-----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, ExsJchvhT3m2BQ4RL5f4U906FK3g1KuHXq4lddp5mPlJ5iXhpl15Hz/kKHipsGcL YxWkdt4Jk/FKuKNB4CGO5A== 0000930413-02-003504.txt : 20040420 0000930413-02-003504.hdr.sgml : 20040420 20021227141924 ACCESSION NUMBER: 0000930413-02-003504 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021031 FILED AS OF DATE: 20021227 EFFECTIVENESS DATE: 20021227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST INC CENTRAL INDEX KEY: 0000894242 FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07354 FILM NUMBER: 02870000 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 302-797-2449 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK NEW YORK INVESTMENT QUALITY MUNICIPAL TRUST INC CENTRAL INDEX KEY: 0000902717 IRS NUMBER: 133710959 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07672 FILM NUMBER: 02870002 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 302-797-2449 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST CENTRAL INDEX KEY: 0000902719 IRS NUMBER: 137014351 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07666 FILM NUMBER: 02870006 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 302-797-2449 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC CENTRAL INDEX KEY: 0000902722 IRS NUMBER: 133710957 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07664 FILM NUMBER: 02869998 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 302-797-2449 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK NEW JERSEY INVESTMENT QUALITY MUNICIPAL TRUST INC CENTRAL INDEX KEY: 0000902731 IRS NUMBER: 133710958 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07670 FILM NUMBER: 02870004 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 302-797-2449 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK NEW YORK MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001137390 FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-10337 FILM NUMBER: 02870001 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 302-797-2449 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001137391 FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-10331 FILM NUMBER: 02869997 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 302-797-2449 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK FLORIDA MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001137392 FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-10333 FILM NUMBER: 02870005 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 302-797-2449 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001137393 FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-10339 FILM NUMBER: 02869999 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 302-797-2449 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001137440 FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-10335 FILM NUMBER: 02870003 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 302-797-2449 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 N-30D 1 c25795_n-30d.txt WORLD CLASS INSTITUTIONAL ASSET MANAGEMENT AT A PERSONAL LEVEL - ------------------------------ NOT FDIC May Lose Value INSURED No Bank Guarantee - ------------------------------ BLACKROCK CLOSED-END FUNDS ANNUAL REPORT October 31, 2002 BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST BLACKROCK MUNICIPAL INCOME TRUST BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST BLACKROCK FLORIDA MUNICIPAL INCOME TRUST BLACKROCK NEW JERSEY INVESTMENT QUALITY MUNICIPAL TRUST BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUST BLACKROCK NEW YORK INVESTMENT QUALITY MUNICIPAL TRUST BLACKROCK NEW YORK MUNICIPAL INCOME TRUST [LOGO] TABLE OF CONTENTS Letter to Shareholders ...................................................... 1 Portfolio Managers' Report .................................................. 2 Trust Summaries ............................................................. 6 Portfolios of Investments ................................................... 16 Financial Statements Statements of Assets and Liabilities ..................................... 34 Statements of Operations ................................................. 36 Statements of Changes in Net Assets ...................................... 38 Financial Highlights ........................................................ 42 Notes to Financial Statements ............................................... 52 Independent Auditors' Report ................................................ 57 Directors/Trustees Information .............................................. 58 Dividend Reinvestment Plans ................................................. 60 Investment Summaries ........................................................ 61 Additional Information ...................................................... 67 Glossary .................................................................... 67 PRIVACY PRINCIPLES OF THE TRUSTS The Trusts are committed to maintaining the privacy of shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information the Trusts collect, how we protect that information and why, in certain cases, we may share information with select other parties. Generally, the Trusts do not receive any non-public personal information relating to their shareholders, although certain non-public personal information of shareholders may become available to the Trusts. The Trusts do not disclose any non-public personal information about their shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent or third party administrator). The Trusts restrict access to non-public personal information about the shareholders to BlackRock employees with a legitimate business need for the information. The Trusts maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of their shareholders. LETTER TO SHAREHOLDERS November 30, 2002 Dear Shareholder: We are pleased to report that during the fiscal year, the Trusts continued to provide tax-free monthly income, as well as the opportunity to invest in various diversified portfolios of municipal bond securities. The Trusts are actively managed, which means that the management team is continuously monitoring the municipal bond market and adjusting the portfolios to gain exposure to various issuers, revenue sources and security types. This strategy enables the Trusts to move among different sectors, credits and coupons to capitalize on changing market conditions. During the year, the municipal market showed strength as large numbers of individual investors, concerned about the economic environment, volatility in the stock market and the relatively low rates paid by CDs and money market instruments, pursued opportunities in municipal bonds. For the year ended October 31, 2002, the LEHMAN MUNICIPAL BOND INDEX(1) had a total return of 5.87%. The following table shows the Trusts' yields, tax-equivalent yields (based on the maximum Federal tax rate of 38.6%), closing market prices per share and net asset values ("NAV") per share as of October 31, 2002.
TAX- EQUIVALENT MARKET TRUST YIELD(2) YIELD(2) PRICE NAV - ---------------------------------------------------------------------------------------------------------------- BlackRock Investment Quality Municipal Trust (BKN) 6.45% 10.50% $13.48 $15.19 - ---------------------------------------------------------------------------------------------------------------- BlackRock Municipal Income Trust (BFK) 6.97 11.35 13.46 13.33 - ---------------------------------------------------------------------------------------------------------------- BlackRock California Investment Quality Municipal Trust (RAA) 6.13 9.98 13.38 14.81 - ---------------------------------------------------------------------------------------------------------------- BlackRock California Municipal Income Trust (BFZ) 6.76 11.01 13.09 14.16 - ---------------------------------------------------------------------------------------------------------------- BlackRock Florida Investment Quality Municipal Trust (RFA) 5.69 9.27 14.50 15.65 - ---------------------------------------------------------------------------------------------------------------- BlackRock Florida Municipal Income Trust (BBF) 6.47 10.54 13.65 14.57 - ---------------------------------------------------------------------------------------------------------------- BlackRock New Jersey Investment Quality Municipal Trust (RNJ) 5.95 9.69 13.30 14.64 - ---------------------------------------------------------------------------------------------------------------- BlackRock New Jersey Municipal Income Trust (BNJ) 6.38 10.39 13.64 14.29 - ---------------------------------------------------------------------------------------------------------------- BlackRock New York Investment Quality Municipal Trust (RNY) 6.09 9.92 14.40 15.47 - ---------------------------------------------------------------------------------------------------------------- BlackRock New York Municipal Income Trust (BNY) 6.54 10.65 13.42 14.47 - ----------------------------------------------------------------------------------------------------------------
BlackRock, Inc. ("BlackRock"), a world leader in fixed income management, has a proven commitment to the municipal market. As of September 30, 2002, BlackRock managed approximately $13 billion in municipal bonds including six open-end and 31 closed-end municipal bond funds. At BlackRock, we are recognized for our emphasis on risk management and proprietary analytics and for our reputation managing money for the world's largest institutional investors. Individual investors in our closed-end and open-end funds benefit from the same investment management skills and resources as the world's largest institutional investors. BlackRock Advisors, Inc., which manages the Trusts, is a wholly owned subsidiary of BlackRock, Inc. This report contains a summary of market conditions for the year, a review of the strategy used by your Trusts' managers, the Trusts' audited financial statements and a listing of each of the portfolios' holdings. On behalf of BlackRock, we thank you for your continued trust and assure you that we remain committed to excellence in managing your assets. Sincerely, /s/ LAURENCE D. FINK /s/ RALPH L. SCHLOSSTEIN - ----------------------- ------------------------ Laurence D. Fink Ralph L. Schlosstein Chief Executive Officer President BlackRock Advisors, Inc. BlackRock Advisors, Inc. - ---------- (1) The LEHMAN MUNICIPAL BOND INDEX is designed to measure the performance of the investment grade long-term tax-exempt bond market. The index is unmanaged and cannot be purchased directly. (2) Yields are based on market price. Tax-equivalent yield assumes the maximum Federal tax rate of 38.6%. 1 PORTFOLIO MANAGERS' REPORT November 30, 2002 Dear Shareholder: We are pleased to present the audited annual report for the following BlackRock closed-end municipal Trusts: - -------------------------------------------------------------------------------- PRIMARY TRUST EXCHANGE - -------------------------------------------------------------------------------- BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST (BKN) NYSE - -------------------------------------------------------------------------------- BLACKROCK MUNICIPAL INCOME TRUST (BFK) NYSE - -------------------------------------------------------------------------------- BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST (RAA) AMEX - -------------------------------------------------------------------------------- BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST (BFZ) NYSE - -------------------------------------------------------------------------------- BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST (RFA) AMEX - -------------------------------------------------------------------------------- BLACKROCK FLORIDA MUNICIPAL INCOME TRUST (BBF) NYSE - -------------------------------------------------------------------------------- BLACKROCK NEW JERSEY INVESTMENT QUALITY MUNICIPAL TRUST (RNJ) AMEX - -------------------------------------------------------------------------------- BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUST (BNJ) NYSE - -------------------------------------------------------------------------------- BLACKROCK NEW YORK INVESTMENT QUALITY MUNICIPAL TRUST (RNY) AMEX - -------------------------------------------------------------------------------- BLACKROCK NEW YORK MUNICIPAL INCOME TRUST (BNY) NYSE - -------------------------------------------------------------------------------- The annual report reviews the Trusts' market price and NAV performance, summarizes developments in the relevant fixed income markets and discusses recent portfolio management activity for the 12-month period ended October 31, 2002. THE FIXED INCOME MARKETS Fixed income markets displayed considerable vigor during the fiscal year. For the year ended October 31, 2002, the LEHMAN AGGREGATE INDEX, a broad measure of the fixed income market, returned 5.89%. The Index returned an even more impressive 8.05% year-to-date, despite giving back some gains in October, when the equity markets posted one of the strongest monthly gains in 15 years. Over the period (the Trusts' fiscal year), several high profile corporate credit scandals, ongoing economic weakness, as well as continued geopolitical issues, most notably concerns over the possible war in the Middle East and the ongoing threats of terrorism, weighed on the markets. Accordingly, the bond market priced in various scenarios of potential action by the Federal Reserve (the "Fed"). These expectations ranged from a tightening of up to 175 basis points ("bps") by the end of 2002, to the conviction that the Fed's next move would be yet another easing. Indeed, a week after the conclusion of the fiscal year, the Federal Open Market Committee ("FOMC") elected to further reduce interest rates by 50 bps. In their decision, the FOMC cited the existence of greater uncertainty and geopolitical risks, which are, "currently inhibiting spending, production, and employment". Uncertainty and volatility remain the primary themes in the U.S. markets, as the underlying economic data appears inconclusive of either a sustainable market recovery or a "double-dip" scenario. Many fundamental economic factors began the period with optimistic readings, but more recent data point towards an economic recovery that is far from certain. GDP growth began the first quarter of 2002 on a strong note (+5.0%), as inventory rebuilding was a major contributor. However, the barometer of the nation's total output of goods and services has noticeably dropped off since then. GDP growth rose marginally during the third quarter of 2002 and has lagged expectations over the past two quarters. In addition, manufacturing data, as measured by the Institute of Supply Managers Index, indicates that business confidence is weak and the prospects for growth remain sluggish. Consumer confidence, which remained strong through the summer months and reached historical highs, also significantly declined and stood at a nine-year low by the end of the period. The Consumer Confidence measure, which has suffered five consecutive months of declining numbers, suggests concern regarding the strength of the highly leveraged consumer. Job growth advanced from the initial drop-off seen post-September 11th, but remained mostly flat during the year. Jobless claims are also a noticeable source of interest as the unemployment rate peaked at 6% in April and remains at elevated levels. The U.S. trade balance is another topic of concern and the dollar has come under pressure, owing in part to a widening gap in the trade deficit. Some encouraging data has surfaced during the period, most notably in the form of housing starts. Spurred on by historically low interest rates, new residential home building has persevered. Also, the Consumer Price Index has continued to emerge with statistics suggestive of a benign inflationary environment. Although this alleviated the impetus for the Fed to raise interest rates during the period, concern has surfaced surrounding a possible deflationary atmosphere. Indeed, with the conflicting and often negative economic data offered towards the end of the period, the markets had positioned themselves in anticipation of the next move by the FOMC to be their 12th consecutive rate reduction of the current easing cycle. The uncertainty in the overall marketplace was evidenced by volatility in the Treasury market over the fiscal year. As we entered the period, the market was positioned for aggressive Federal Reserve easing. Expectations of a prolonged economic slowdown caused 2 the yield curve to reach its steepest level in almost a decade. The market then reversed its expectations amid signs of an improving economy. As a result, Treasury bonds suffered, leading to a drop in prices and a corresponding rise in yields. When the prospects of a near-term economic recovery faded over the second half of the period, Treasuries rallied strongly. Year-to-date, the Treasury market returned 10.05%, as measured by the LEHMAN TREASURY INDEX. Yields of short and intermediate maturities, specifically in the two- to five-year range, have declined faster than those of longer maturity issues due to risk aversion and expectations for short-term rates to fall. However, rates have fallen across the curve in 2002 and the 10-year yield touched 3.5%, a low not seen since the early 1960s. The equity market rally in early October pushed yields back up and the 10-year note finished the period just under 4.0%. Over the final month of the fiscal year, volatility continued to remain high in the Treasury market given the apparent willingness of investors to assume more risk. As of October 31, 2002, the 10-year Treasury was yielding 3.89% versus 4.23% a year earlier. In the final two months of 2001, municipals experienced a sell-off due in part to heavy new issuance and a decline in demand as investors sought exposure to cyclical equity stocks in anticipation of a near-term economic recovery. However, this recovery did not materialize and the municipal market was one of the top-performing fixed income asset classes throughout the first three quarters of 2002. Municipals, as measured by the LEHMAN MUNICIPAL INDEX, posted strong returns over the fiscal year, returning 5.87%. Demand remained robust for municipal bonds from both retail and institutional investors as a result of the high taxable-equivalent income offered by these securities. A remarkable aspect of the strong performance by the municipal market is that it occurred during a period of record bond issuance. Through the first ten months in 2002, new issue supply totaled approximately $290 billion, a pace that, if continued, will bring total 2002 issuance to over $320 billion, an all-time record (the previous record is $292 billion in 1993). Despite strong performance through the first nine months of 2002, October brought instability to the fixed income markets in general. For municipals, continued heavy supply from issuers looking to take advantage of 40 year lows in rates and a corresponding rally in the equity markets caused demand from retail investors to somewhat taper off, putting pressure on performance. Although performance in all fixed income sectors suffered in October, municipals posted strong returns over the entire period. CALIFORNIA California is the nation's most populous state with nearly 34 million residents spread over its 163,707 square miles. This massive population supports the world's sixth largest economy, which produces a $1.3 trillion annual economic output. The state's vast economy turned sluggish in January 2001 and job growth has remained relatively stagnant. Year over year, through September 2002, California has added approximately 10,000 jobs. The September jobless rate was 6.3%, lower than June's peak (6.5%) but significantly higher than September 2001's 5.4% rate. This indicates that even more people are seeking employment than they were a year ago. In contrast, housing prices, spurred by low mortgage rates, continue to advance at a double digit pace (+18% in August) and the median single-family home price is now $334,100 (August 2002). California's General Fund revenues increased 48% between 1997-2001 while spending grew at a slower 41% during the same time frame. This spread enabled the state to accumulate a $7 billion surplus in the fiscal year ("FY") 2001. More recently, the slower economy depressed revenue returns and the state ended FY2002 with revenues approximately 1% less than projected in the May budget revision. The state's structural imbalance will grow if revenues do not meet projections. This was evidenced by the 2003 budget, which had to close a gap in excess of $23 billion. Revenue enhancements and expenditure cuts were used to accomplish this feat. Last spring, the state's General Fund came under additional stress due to the $6.2 billion loan to the Department of Water Resources in 2001 to pay for power purchases. The state will be reimbursed in mid-November from the proceeds of its $11.9 billion California Department of Water Resources Power bond sale. In June 2002, the state sold $7.5 billion of revenue anticipation warrants ("RAWs") and in October 2002, California sold $12.5 billion revenue anticipation notes ("RANs") to meet cash needs. On a positive note, year-to-date through September, General Fund revenues are only slightly under projected levels. Unless the economy shows considerable improvement, California will have to address the significant structural imbalance looming ahead. However, from the bondholder's perspective, California's large and diverse economy provides sufficient security, confirmed by Moody's and S&P's A1/A+ credit ratings. FLORIDA The state of Florida's historically strong financial position reflects prudent fiscal management combined with a solid and diversified economy. In fact, Florida's $472.1 billion total economic output (in 2000) makes it the nation's fourth largest state economy. The state's strong fiscal management is reflected in its maintenance of its annual General Fund balances vis-a-vis revenues (approximately 2.2% in 2002). This financial cushion provides additional security to both the state and its bondholders. During the recent economic expansion, Florida built up its budget stabilization fund to nearly $1 billion. Thus far, the state government has met the challenges of declining revenues due to the recession and the manifestations of the September 11th terrorist attacks. Specifically, the state's Revenue Estimating Conference lowered its income expectations, and reduced expenditures, in response to the sharp decline in tourism that significantly impacted Florida's economy and revenues. Sales tax receipts are the General Fund's major revenue source (73% in 2001) with tourism generating much of this income. The revenue revisions were accurate and the state expects to end FY2002 with a small surplus. Further evidence of appropriate, prudent revenue forecasting is that current revenue receipts (through September 2002) are nearly 103% of the March revisions. Florida residents' growing needs for Medicaid (2000 and 2001 combined increase was +22%) and education continue to add pressure to the $50.4 billion budget for FY2003. Florida's policy is to maintain a manageable debt burden while continuing to use bonds to meet capital expenses. Florida's population increased at a 1.8% average 3 annual rate between 1990-2000 to over 16 million residents. This compares to an average increase of 1% for the U.S. overall. Net migration into Florida accounted for 85% of its growth with approximately one-third of the new residents coming from foreign countries. By 2000, elderly residents accounted for 17.5% of the state's population. Although economists anticipate slower future growth, Florida's population expansion is expected to continue to exceed that of the nation. The state's economy is anchored by tourism, manufacturing and agriculture. Job creation is increasing slightly (less than 1%) since September 2001. The 5.1% unemployment rate (September 2002) is just above that of a year ago (5.0%) and significantly below the national average (5.7% in October 2002). Trade and services, the major employment sectors, have remained flat. The September 11th terrorist attacks significantly impacted Florida's heavily tourism dependent economy causing declines in air traffic, the hotel industry, and amusement and recreation activities. Manufacturing jobs continue to decline (4% year-over-year) and represent only 6.2% of Florida's employment, which is approximately one-half the national level. The construction industry is becoming less important as the state's economy diversifies. The state's large economy combined with its conservative fiscal policy, merit its Aa2/AA+ ratings by Moody's and S&P. NEW JERSEY New Jersey's strong and diversified workforce supports the eighth largest economy in the U.S. The economic expansion over the past decade fueled the state's dramatic increase in per capita disposable personal income to become the highest in the nation. However, New Jersey's economy was directly shaken by last fall's terrorist attacks. The ramifications of that event, combined with the recession and the downturn on Wall Street, have pressured the labor market and resulted in nearly stagnant job growth (less than 1% year-over-year). Reflecting this, the September 2002 unemployment rate increased to 5.3%, significantly higher than the 4.5% rate a year earlier. The manufacturing sector has notably contributed to the decline in employment. Until recently, New Jersey was able to rely on its strong and growing economy to support annual spending increases. This increasing prosperity, between 1993-2000, enabled New Jersey to afford income, business, and corporate tax reductions and still maintain a year-end operating surplus with reserve funds in excess of $1 billion (2001). In contrast, FY2002 saw significant declines in tax receipts and New Jersey chose to use all of its reserve funds to plug a deficit in excess of 12% of General Fund revenues. The state's debt burden remains manageable despite the 71% increase in appropriation bonds over the past five years. New Jersey's debt ratings (Aa2/AA) were downgraded in 2002, reflecting its slowing economy. NEW YORK Prudent, proactive and responsive fiscal management combined with sufficient reserve funds helped cushion the impact of the recession and the September 11th terrorist attacks on New York State's fiscal well-being. After September 11th, economic growth in New York ceased and the unemployment rate grew to a peak of 6.2% (May 2002), thereafter declining monthly to 5.6% (September 2002). Year-over-year statewide employment has increased less than 1% and remains below its June 2000 high of over 8.5 million jobs. The state benefits from a broad and diverse economic base and a substantial foundation of wealth and resources. However, the terrorist attacks, the recession and the drop in Wall Street employment and profits have had a definite, negative impact on the state's budget. New York used the FY2001 surplus ($1.6 billion) to meet its budgetary needs in FY2002, thus diminishing the state's fiscal flexibility. This year, the budget is faced with challenges in maintaining balanced operations as tax receipts are coming in below anticipated amounts. The FY2003 budget was produced in a timely manner, which helped to maintain New York State's AA rating from S&P. The state's fiscal health is directly linked to that of New York City. The recession, the destruction of the World Trade Center and the devastation to lower Manhattan has most definitely impacted the city's business structure. In September 2001, New York City lost 83,100 jobs and the unemployment rate grew to 7.9% in July 2002 before decreasing to 7.1% in September. Private sector jobs began to show the first indications of growth this past spring and the city's employment has increased slowly since March. The city's administration ended FY2002 in balance, with a small surplus, and closed a $4 billion budget gap for FY2003. This fiscal year and the next one present New York City with additional challenges, as tax revenues are not meeting projections. Revenue uncertainty and the potential for imminent structural imbalance prompted Moody's to change their outlook on New York City's A2 bond rating to "negative". THE TRUSTS' PORTFOLIOS AND INVESTMENT STRATEGIES The Trusts' portfolios are actively managed to diversify exposure to various sectors, issuers, revenue sources and security types. BlackRock's investment strategy emphasizes a relative value approach, which allows the Trusts to capitalize upon changing market conditions by rotating municipal sectors, credits and coupons. Additionally, each of the Trusts in this report may employ leverage to enhance their income by borrowing at short-term municipal rates and investing the proceeds in longer maturity issues which typically have higher yields. The degree to which the Trusts can benefit from their use of leverage may affect their ability to pay high monthly income. 4 The table below summarizes the approximate amount of leverage, as a percentage of managed assets, for each Trust at October 31, 2002. - ------------------------------------------------------------------------- TRUST LEVERAGE - ------------------------------------------------------------------------- BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST (BKN) 37% - ------------------------------------------------------------------------- BLACKROCK MUNICIPAL INCOME TRUST (BFK) 39 - ------------------------------------------------------------------------- BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST (RAA) 33 - ------------------------------------------------------------------------- BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST (BFZ) 38 - ------------------------------------------------------------------------- BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST (RFA) 33 - ------------------------------------------------------------------------- BLACKROCK FLORIDA MUNICIPAL INCOME TRUST (BBF) 37 - ------------------------------------------------------------------------- BLACKROCK NEW JERSEY INVESTMENT QUALITY MUNICIPAL TRUST (RNJ) 34 - ------------------------------------------------------------------------- BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUST (BNJ) 38 - ------------------------------------------------------------------------- BLACKROCK NEW YORK INVESTMENT QUALITY MUNICIPAL TRUST (RNY) 33 - ------------------------------------------------------------------------- BLACKROCK NEW YORK MUNICIPAL INCOME TRUST (BNY) 38 - ------------------------------------------------------------------------- We look forward to continuing to manage BlackRock's municipal closed-end funds to benefit from the opportunities available to investors in the fixed income markets. We thank you for your investment and continued confidence in the BlackRock municipal closed-end funds. Please feel free to call our marketing center at (800) 227-7BFM (7236) if you have any specific questions that were not addressed in this report. Sincerely, /s/ ROBERT S. KAPITO /s/ KEVIN M. KLINGERT - ----------------------------------- --------------------------------------- Robert S. Kapito Kevin M. Klingert Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager BlackRock Advisors, Inc. BlackRock Advisors, Inc. 5 TRUST SUMMARIES AS OF OCTOBER 31, 2002 BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BKN - -------------------------------------------------------------------------------- Initial Offering Date: February 19, 1993 - -------------------------------------------------------------------------------- Closing Market Price as of 10/31/02: $13.48 - -------------------------------------------------------------------------------- Net Asset Value as of 10/31/02: $15.19 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/02 ($13.48):(1) 6.45% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.0725 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.8700 - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. The table below summarizes the changes in the Trust's market price and NAV:
- ------------------------------------------------------------------------------------------------------- 10/31/02 10/31/01 CHANGE HIGH LOW - ------------------------------------------------------------------------------------------------------- MARKET PRICE $13.48 $13.73 (1.82)% $14.54 $13.01 - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE (NAV) $15.19 $15.19 0.00% $15.70 $14.65 - -------------------------------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality allocations: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR OCTOBER 31, 2002 OCTOBER 31, 2001 - -------------------------------------------------------------------------------- Transportation 15% 19% - -------------------------------------------------------------------------------- Education 14 14 - -------------------------------------------------------------------------------- Industrial & Pollution Control 12 12 - -------------------------------------------------------------------------------- Hospital 10 12 - -------------------------------------------------------------------------------- City, County & State 9 12 - -------------------------------------------------------------------------------- Lease Revenue 9 8 - -------------------------------------------------------------------------------- Power 7 7 - -------------------------------------------------------------------------------- Tobacco 6 -- - -------------------------------------------------------------------------------- Tax Revenue 5 4 - -------------------------------------------------------------------------------- Housing 5 5 - -------------------------------------------------------------------------------- District 2 2 - -------------------------------------------------------------------------------- Resource Recovery 1 1 - -------------------------------------------------------------------------------- Water & Sewer -- 1 - -------------------------------------------------------------------------------- Other 5 3 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2002 OCTOBER 31, 2001 - ------------------------------------------------------------------------------- AAA/Aaa 55% 61% - ------------------------------------------------------------------------------- AA/Aa 11 11 - ------------------------------------------------------------------------------- A/A 21 16 - ------------------------------------------------------------------------------- BBB/Baa 6 6 - ------------------------------------------------------------------------------- BB/Ba 2 2 - ------------------------------------------------------------------------------- Not Rated 5 4 - -------------------------------------------------------------------------------- - ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. Percentages based on long-term investments. 6 TRUST SUMMARIES AS OF OCTOBER 31, 2002 BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST TRUST INFORMATION - --------------------------------------------------------------------------- Symbol on New York Stock Exchange: BFK - --------------------------------------------------------------------------- Initial Offering Date: July 27, 2001 - --------------------------------------------------------------------------- Closing Market Price as of 10/31/02: $13.46 - --------------------------------------------------------------------------- Net Asset Value as of 10/31/02: $13.33 - --------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/02 ($13.46):(1) 6.97% - --------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.078125 - --------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.937500 - --------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. The table below summarizes the changes in the Trust's market price and NAV:
- ------------------------------------------------------------------------------------------------------ 10/31/02 10/31/01 CHANGE HIGH LOW - ------------------------------------------------------------------------------------------------------ MARKET PRICE $13.46 $14.75 (8.75)% $14.99 $12.86 - ------------------------------------------------------------------------------------------------------ NET ASSET VALUE (NAV) $13.33 $14.30 (6.78)% $14.49 $13.05 - ------------------------------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality allocations: SECTOR BREAKDOWN - ----------------------------------------------------------------------------- SECTOR OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- Industrial & Pollution Control 24% 10% - ----------------------------------------------------------------------------- Hospital 20 23 - ----------------------------------------------------------------------------- Tobacco 15 7 - ----------------------------------------------------------------------------- Education 9 13 - ----------------------------------------------------------------------------- Transportation 7 18 - ----------------------------------------------------------------------------- Housing 7 2 - ----------------------------------------------------------------------------- City, County & State 5 7 - ----------------------------------------------------------------------------- Water & Sewer 3 10 - ----------------------------------------------------------------------------- District 2 -- - ----------------------------------------------------------------------------- Power 2 1 - ----------------------------------------------------------------------------- Lease Revenue 1 -- - ----------------------------------------------------------------------------- Tax Revenue 1 -- - ----------------------------------------------------------------------------- Other 4 9 - ----------------------------------------------------------------------------- CREDIT BREAKDOWN* - ----------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- AAA/Aaa 11% 30% - ----------------------------------------------------------------------------- AA/Aa 12 26 - ----------------------------------------------------------------------------- A/A 50 31 - ----------------------------------------------------------------------------- BBB/Baa 18 8 - ----------------------------------------------------------------------------- BB/Ba 2 3 - ----------------------------------------------------------------------------- B/B 2 -- - ----------------------------------------------------------------------------- Not Rated 5 2 - ----------------------------------------------------------------------------- - ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. Percentages based on long-term investments. 7 TRUST SUMMARIES AS OF OCTOBER 31, 2002 BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST TRUST INFORMATION - --------------------------------------------------------------------------- Symbol on American Stock Exchange: RAA - --------------------------------------------------------------------------- Initial Offering Date: May 28, 1993 - --------------------------------------------------------------------------- Closing Market Price as of 10/31/02: $13.38 - --------------------------------------------------------------------------- Net Asset Value as of 10/31/02: $14.81 - --------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/02 ($13.38):(1) 6.13% - --------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.068333 - --------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.820000 - --------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. The table below summarizes the changes in the Trust's market price and NAV:
- ----------------------------------------------------------------------------------------------------- 10/31/02 10/31/01 CHANGE HIGH LOW - ----------------------------------------------------------------------------------------------------- MARKET PRICE $13.38 $15.55 (13.95)% $15.60 $13.17 - ----------------------------------------------------------------------------------------------------- NET ASSET VALUE (NAV) $14.81 $15.30 (3.20)% $15.39 $14.57 - -----------------------------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality allocations: SECTOR BREAKDOWN - ---------------------------------------------------------------------------- SECTOR OCTOBER 31, 2002 OCTOBER 31, 2001 - ---------------------------------------------------------------------------- Transportation 26% 22% - ---------------------------------------------------------------------------- Education 24 20 - ---------------------------------------------------------------------------- Lease Revenue 12 17 - ---------------------------------------------------------------------------- District 10 10 - ---------------------------------------------------------------------------- Tobacco 9 -- - ---------------------------------------------------------------------------- City, County & State 5 5 - ---------------------------------------------------------------------------- Power 5 10 - ---------------------------------------------------------------------------- Water & Sewer 5 5 - ---------------------------------------------------------------------------- Housing 2 9 - ---------------------------------------------------------------------------- Industrial & Pollution Control 2 2 - ---------------------------------------------------------------------------- CREDIT BREAKDOWN* - ----------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- AAA/Aaa 53% 67% - ----------------------------------------------------------------------------- AA/Aa 17 23 - ----------------------------------------------------------------------------- A/A 13 5 - ----------------------------------------------------------------------------- BBB/Baa 5 5 - ----------------------------------------------------------------------------- BB/Ba 3 -- - ----------------------------------------------------------------------------- Not Rated 9 -- - ----------------------------------------------------------------------------- - ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. Percentages based on long-term investments. 8 TRUST SUMMARIES AS OF OCTOBER 31, 2002 BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST TRUST INFORMATION - --------------------------------------------------------------------------- Symbol on New York Stock Exchange: BFZ - --------------------------------------------------------------------------- Initial Offering Date: July 27, 2001 - --------------------------------------------------------------------------- Closing Market Price as of 10/31/02: $13.09 - --------------------------------------------------------------------------- Net Asset Value as of 10/31/02: $14.16 - --------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/02 ($13.09):(1) 6.76% - --------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.07375 - --------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.88500 - --------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. The table below summarizes the changes in the Trust's market price and NAV:
- ------------------------------------------------------------------------------------------------------- 10/31/02 10/31/01 CHANGE HIGH LOW - ------------------------------------------------------------------------------------------------------- MARKET PRICE $13.09 $14.75 (11.25)% $14.96 $12.91 - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE (NAV) $14.16 $14.50 (2.34)% $15.02 $13.26 - -------------------------------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality allocations: SECTOR BREAKDOWN - ----------------------------------------------------------------------------- SECTOR OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- Housing 13% 7% - ----------------------------------------------------------------------------- Tobacco 13 -- - ----------------------------------------------------------------------------- City, County & State 12 4 - ----------------------------------------------------------------------------- Lease Revenue 12 13 - ----------------------------------------------------------------------------- Education 11 34 - ----------------------------------------------------------------------------- Hospital 9 2 - ----------------------------------------------------------------------------- Transportation 8 9 - ----------------------------------------------------------------------------- District 7 -- - ----------------------------------------------------------------------------- Power 6 3 - ----------------------------------------------------------------------------- Tax Revenue 1 6 - ----------------------------------------------------------------------------- Water & Sewer 1 18 - ----------------------------------------------------------------------------- Industrial & Pollution Control 1 -- - ----------------------------------------------------------------------------- Other 6 4 - ----------------------------------------------------------------------------- CREDIT BREAKDOWN* - ----------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- AAA/Aaa 35% 57% - ----------------------------------------------------------------------------- AA/Aa -- 12 - ----------------------------------------------------------------------------- A/A 41 19 - ----------------------------------------------------------------------------- BBB/Baa 9 5 - ----------------------------------------------------------------------------- BB/Ba 1 -- - ----------------------------------------------------------------------------- Not Rated 14 7 - ----------------------------------------------------------------------------- - ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. Percentages based on long-term investments. 9 TRUST SUMMARIES AS OF OCTOBER 31, 2002 BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST TRUST INFORMATION - ------------------------------------------------------------------------ Symbol on American Stock Exchange: RFA - ------------------------------------------------------------------------ Initial Offering Date: May 28, 1993 - ------------------------------------------------------------------------ Closing Market Price as of 10/31/02: $14.50 - ------------------------------------------------------------------------ Net Asset Value as of 10/31/02: $15.65 - ------------------------------------------------------------------------ Yield on Closing Market Price as of 10/31/02 ($14.50):(1) 5.69% - ------------------------------------------------------------------------ Current Monthly Distribution per Common Share:(2) $ 0.0688 - ------------------------------------------------------------------------ Current Annualized Distribution per Common Share:(2) $ 0.8256 - ------------------------------------------------------------------------ (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. The table below summarizes the changes in the Trust's market price and NAV:
- ------------------------------------------------------------------------------------------------------- 10/31/02 10/31/01 CHANGE HIGH LOW - ------------------------------------------------------------------------------------------------------- MARKET PRICE $14.50 $14.36 0.97% $15.75 $14.04 - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE (NAV) $15.65 $15.50 0.97% $15.85 $15.12 - -------------------------------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality allocations: SECTOR BREAKDOWN - ----------------------------------------------------------------------------- SECTOR OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- Education 21% 17% - ----------------------------------------------------------------------------- Transportation 17 17 - ----------------------------------------------------------------------------- Lease Revenue 15 15 - ----------------------------------------------------------------------------- Tax Revenue 15 15 - ----------------------------------------------------------------------------- Power 13 17 - ----------------------------------------------------------------------------- City, County & State 9 9 - ----------------------------------------------------------------------------- Hospital 4 4 - ----------------------------------------------------------------------------- Water & Sewer 4 4 - ----------------------------------------------------------------------------- Housing 2 2 - ----------------------------------------------------------------------------- CREDIT BREAKDOWN* - ----------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- AAA/Aaa 71% 71% - ----------------------------------------------------------------------------- AA/Aa -- 4 - ----------------------------------------------------------------------------- A/A 21 21 - ----------------------------------------------------------------------------- BBB/Baa 8 4 - ----------------------------------------------------------------------------- - ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. Percentages based on long-term investments. 10 TRUST SUMMARIES AS OF OCTOBER 31, 2002 BLACKROCK FLORIDA MUNICIPAL INCOME TRUST TRUST INFORMATION - ---------------------------------------------------------------------------- Symbol on New York Stock Exchange: BBF - ---------------------------------------------------------------------------- Initial Offering Date: July 27, 2001 - ---------------------------------------------------------------------------- Closing Market Price as of 10/31/02: $13.65 - ---------------------------------------------------------------------------- Net Asset Value as of 10/31/02: $14.57 - ---------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/02 ($13.65):(1) 6.47% - ---------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.073542 - ---------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.882504 - ---------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. The table below summarizes the changes in the Trust's market price and NAV:
- -------------------------------------------------------------------------------------------------------- 10/31/02 10/31/01 CHANGE HIGH LOW - -------------------------------------------------------------------------------------------------------- MARKET PRICE $13.65 $14.50 (5.86)% $15.00 $13.04 - ------------------------------------------------------------------------------------------------------- NET ASSET VALUE (NAV) $14.57 $14.37 1.39% $15.23 $13.41 - -------------------------------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality allocations: SECTOR BREAKDOWN - ----------------------------------------------------------------------------- SECTOR OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- District 19% --% - ----------------------------------------------------------------------------- Education 17 19 - ----------------------------------------------------------------------------- Hospital 15 17 - ----------------------------------------------------------------------------- Water & Sewer 11 25 - ----------------------------------------------------------------------------- Power 8 8 - ----------------------------------------------------------------------------- City, County & State 5 10 - ----------------------------------------------------------------------------- Tax Revenue 5 5 - ----------------------------------------------------------------------------- Lease Revenue 5 -- - ----------------------------------------------------------------------------- Transportation 5 7 - ----------------------------------------------------------------------------- Tobacco 4 -- - ----------------------------------------------------------------------------- Housing 2 5 - ----------------------------------------------------------------------------- Industrial & Pollution Control 2 -- - ----------------------------------------------------------------------------- Other 2 4 - ----------------------------------------------------------------------------- CREDIT BREAKDOWN* - ----------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- AAA/Aaa 34% 59% - ----------------------------------------------------------------------------- AA/Aa 35 20 - ----------------------------------------------------------------------------- A/A 18 14 - ----------------------------------------------------------------------------- BBB/Baa 6 6 - ----------------------------------------------------------------------------- Not Rated 7 1 - ----------------------------------------------------------------------------- - ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. Percentages based on long-term investments. 11 TRUST SUMMARIES AS OF OCTOBER 31, 2002 BLACKROCK NEW JERSEY INVESTMENT QUALITY MUNICIPAL TRUST TRUST INFORMATION - ---------------------------------------------------------------------------- Symbol on American Stock Exchange: RNJ - ---------------------------------------------------------------------------- Initial Offering Date: May 28, 1993 - ---------------------------------------------------------------------------- Closing Market Price as of 10/31/02: $13.30 - ---------------------------------------------------------------------------- Net Asset Value as of 10/31/02: $14.64 - ---------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/02 ($13.30):(1) 5.95% - ---------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.0659 - ---------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.7908 - ---------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. The table below summarizes the changes in the Trust's market price and NAV:
- -------------------------------------------------------------------------------------------------------- 10/31/02 10/31/01 CHANGE HIGH LOW - -------------------------------------------------------------------------------------------------------- MARKET PRICE $13.30 $13.75 (3.27)% $15.11 $13.00 - -------------------------------------------------------------------------------------------------------- NET ASSET VALUE (NAV) $14.64 $14.85 (1.41)% $15.01 $14.39 - --------------------------------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality allocations: SECTOR BREAKDOWN - ----------------------------------------------------------------------------- SECTOR OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- Transportation 38% 34% - ----------------------------------------------------------------------------- Hospital 15 15 - ----------------------------------------------------------------------------- Education 11 10 - ----------------------------------------------------------------------------- Tax Revenue 10 14 - ----------------------------------------------------------------------------- Power 7 7 - ----------------------------------------------------------------------------- District 5 5 - ----------------------------------------------------------------------------- Resource Recovery 5 5 - ----------------------------------------------------------------------------- Water & Sewer 5 5 - ----------------------------------------------------------------------------- Housing 4 5 - ----------------------------------------------------------------------------- CREDIT BREAKDOWN* - ----------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- AAA/Aaa 70% 73% - ----------------------------------------------------------------------------- AA/Aa 5 10 - ----------------------------------------------------------------------------- A/A 15 10 - ----------------------------------------------------------------------------- BBB/Baa 2 2 - ----------------------------------------------------------------------------- B/B 3 -- - ----------------------------------------------------------------------------- Not Rated 5 5 - ----------------------------------------------------------------------------- - ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. Percentages based on long-term investments. 12 TRUST SUMMARIES AS OF OCTOBER 31, 2002 BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUST TRUST INFORMATION - -------------------------------------------------------------------------- Symbol on New York Stock Exchange: BNJ - -------------------------------------------------------------------------- Initial Offering Date: July 27, 2001 - -------------------------------------------------------------------------- Closing Market Price as of 10/31/02: $13.64 - -------------------------------------------------------------------------- Net Asset Value as of 10/31/02: $14.29 - -------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/02 ($13.64):(1) 6.38% - -------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.0725 - -------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.8700 - -------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. The table below summarizes the changes in the Trust's market price and NAV:
- -------------------------------------------------------------------------------------------------------- 10/31/02 10/31/01 CHANGE HIGH LOW - -------------------------------------------------------------------------------------------------------- MARKET PRICE $13.64 $14.84 (8.09)% $15.18 $13.39 - -------------------------------------------------------------------------------------------------------- NET ASSET VALUE (NAV) $14.29 $14.26 0.21% $14.94 $13.39 - --------------------------------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality allocations: SECTOR BREAKDOWN - ----------------------------------------------------------------------------- SECTOR OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- Hospital 21% 21% - ----------------------------------------------------------------------------- Lease Revenue 18 9 - ----------------------------------------------------------------------------- Transportation 18 16 - ----------------------------------------------------------------------------- Housing 12 15 - ----------------------------------------------------------------------------- Tobacco 10 -- - ----------------------------------------------------------------------------- City, County & State 8 12 - ----------------------------------------------------------------------------- Industrial & Pollution Control 2 5 - ----------------------------------------------------------------------------- Education 1 9 - ----------------------------------------------------------------------------- Water & Sewer 1 1 - ----------------------------------------------------------------------------- District -- 3 - ----------------------------------------------------------------------------- Other 9 9 - ----------------------------------------------------------------------------- CREDIT BREAKDOWN* - ----------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- AAA/Aaa 32% 58% - ----------------------------------------------------------------------------- AA/Aa 7 17 - ----------------------------------------------------------------------------- A/A 31 8 - ----------------------------------------------------------------------------- BBB/Baa 19 2 - ----------------------------------------------------------------------------- BB/Ba -- 3 - ----------------------------------------------------------------------------- B/B 2 -- - ----------------------------------------------------------------------------- Not Rated 9 12 - ----------------------------------------------------------------------------- - ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. Percentages based on long-term investments. 13 TRUST SUMMARIES AS OF OCTOBER 31, 2002 BLACKROCK NEW YORK INVESTMENT QUALITY MUNICIPAL TRUST TRUST INFORMATION - ----------------------------------------------------------------------------- Symbol on American Stock Exchange: RNY - ----------------------------------------------------------------------------- Initial Offering Date: May 28, 1993 - ----------------------------------------------------------------------------- Closing Market Price as of 10/31/02: $14.40 - ----------------------------------------------------------------------------- Net Asset Value as of 10/31/02: $15.47 - ----------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/02 ($14.40):(1) 6.09% - ----------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $ 0.073125 - ----------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $ 0.877500 - ----------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. The table below summarizes the changes in the Trust's market price and NAV:
- -------------------------------------------------------------------------------------------------------- 10/31/02 10/31/01 CHANGE HIGH LOW - -------------------------------------------------------------------------------------------------------- MARKET PRICE $14.40 $14.20 1.41% $14.97 $13.71 - -------------------------------------------------------------------------------------------------------- NET ASSET VALUE (NAV) $15.47 $15.28 1.24% $15.75 $14.88 - --------------------------------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality allocations: SECTOR BREAKDOWN - ----------------------------------------------------------------------------- SECTOR OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- Education 26% 27% - ----------------------------------------------------------------------------- City, County & State 22 18 - ----------------------------------------------------------------------------- Tax Revenue 12 11 - ----------------------------------------------------------------------------- Industrial & Pollution Control 11 15 - ----------------------------------------------------------------------------- Lease Revenue 11 7 - ----------------------------------------------------------------------------- Hospital 4 4 - ----------------------------------------------------------------------------- Power 4 4 - ----------------------------------------------------------------------------- Housing 4 3 - ----------------------------------------------------------------------------- Resource Recovery 3 3 - ----------------------------------------------------------------------------- Transportation 3 4 - ----------------------------------------------------------------------------- Water & Sewer -- 4 - ----------------------------------------------------------------------------- CREDIT BREAKDOWN* - ----------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- AAA/Aaa 38% 38% - ----------------------------------------------------------------------------- AA/Aa 22 21 - ----------------------------------------------------------------------------- A/A 33 37 - ----------------------------------------------------------------------------- BBB/Baa 7 4 - ----------------------------------------------------------------------------- - ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. Percentages based on long-term investments. 14 TRUST SUMMARIES AS OF OCTOBER 31, 2002 BLACKROCK NEW YORK MUNICIPAL INCOME TRUST TRUST INFORMATION - ------------------------------------------------------------------------------ Symbol on New York Stock Exchange: BNY - ------------------------------------------------------------------------------ Initial Offering Date: July 27, 2001 - ------------------------------------------------------------------------------ Closing Market Price as of 10/31/02: $13.42 - ------------------------------------------------------------------------------ Net Asset Value as of 10/31/02: $14.47 - ------------------------------------------------------------------------------ Yield on Closing Market Price as of 10/31/02 ($13.42):(1) 6.54% - ------------------------------------------------------------------------------ Current Monthly Distribution per Common Share:(2) $ 0.073125 - ------------------------------------------------------------------------------ Current Annualized Distribution per Common Share:(2) $ 0.877500 - ------------------------------------------------------------------------------ (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. The table below summarizes the changes in the Trust's market price and NAV:
- -------------------------------------------------------------------------------------------------------- 10/31/02 10/31/01 CHANGE HIGH LOW - -------------------------------------------------------------------------------------------------------- MARKET PRICE $13.42 $14.62 (8.21)% $15.00 $13.24 - -------------------------------------------------------------------------------------------------------- NET ASSET VALUE (NAV) $14.47 $14.09 2.70% $15.05 $13.13 - --------------------------------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality allocations: SECTOR BREAKDOWN - ----------------------------------------------------------------------------- SECTOR OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- Transportation 20% 12% - ----------------------------------------------------------------------------- Education 14 24 - ----------------------------------------------------------------------------- Lease Revenue 13 7 - ----------------------------------------------------------------------------- Tobacco 12 -- - ----------------------------------------------------------------------------- Housing 9 6 - ----------------------------------------------------------------------------- Industrial & Pollution Control 7 2 - ----------------------------------------------------------------------------- City, County & State 4 4 - ----------------------------------------------------------------------------- Water & Sewer 4 17 - ----------------------------------------------------------------------------- Hospital 4 6 - ----------------------------------------------------------------------------- Tax Revenue 4 9 - ----------------------------------------------------------------------------- District 1 5 - ----------------------------------------------------------------------------- Power 1 1 - ----------------------------------------------------------------------------- Other 7 7 - ----------------------------------------------------------------------------- CREDIT BREAKDOWN* - ----------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2002 OCTOBER 31, 2001 - ----------------------------------------------------------------------------- AAA/Aaa 24% 38% - ----------------------------------------------------------------------------- AA/Aa 26 32 - ----------------------------------------------------------------------------- A/A 27 18 - ----------------------------------------------------------------------------- BBB/Baa 13 5 - ----------------------------------------------------------------------------- B/B 3 -- - ----------------------------------------------------------------------------- Not Rated 7 7 - ----------------------------------------------------------------------------- - ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. Percentages based on long-term investments. 15 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2002 BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- LONG-TERM INVESTMENTS--152.8% ALABAMA--6.0% AAA $14,000 University of Alabama Hosp. Rev., Ser. A, 5.875%, 9/01/31, MBIA ............ 09/10 @ 101 $ 15,173,900 ------------ ALASKA--2.4% AAA 6,015 Alaska Hsg. Fin. Corp. Rev., Ser. A, 5.875%, 12/01/24, MBIA ................ 12/05 @ 102 6,158,759 ------------ CALIFORNIA--15.5% AA 5,770 California, GO, 5.625%, 5/01/18 ............................................ 05/10 @ 101 6,174,535 Aa2 1,220 California Hsg. Fin. Agcy. Rev., Home Mtge., Ser. C, 5.65%, 8/01/14 ........ 02/04 @ 102 1,255,782 BBB 3,000 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., 5.75%, 1/15/40 ..... 01/10 @ 101 3,041,460 AAA 10,945 Los Altos Sch. Dist., GO, Zero Coupon, 8/01/24, MBIA ....................... 08/13 @ 53.632 3,216,845 AAA 15,460 Los Angeles Cnty. Asset Leasing Corp. Rev., 5.95%, 12/01/07, AMBAC ......... No Opt. Call 17,846,869 Univ. of California Rev., Research Fac., Ser. B, Aaa 2,000+ 6.10%, 9/01/03 N/A 2,112,640 Aaa 3,305+ 6.20%, 9/01/03 N/A 3,493,848 Aaa 2,000+ 6.25%, 9/01/03 N/A 2,115,080 ------------ 39,257,059 ------------ COLORADO--3.9% AAA 3,100 Arapahoe Cnty. Cap. Impvt. Hwy. Rev., Trust Fund, Ser. E, Zero Coupon, 8/31/04 ETM 2,986,912 Denver City & Cnty. Arpt. Rev., Ser. C, A+ 3,000 6.50%, 11/15/06 .......................................................... 11/02 @ 102 3,063,840 A+ 1,120 6.65%, 11/15/05 .......................................................... 11/02 @ 102 1,143,878 AAA 2,250+ E-470 Pub. Hwy. Auth. Rev., Ser. B, 6.90%, 8/31/05 ......................... N/A 2,619,585 ------------ 9,814,215 ------------ CONNECTICUT--1.1% Baa3 3,000++ Mashantucket Western Pequot Tribe, Spec. Rev., Ser. A, 5.50%, 9/01/28 ...... 09/09 @ 101 2,915,370 ------------ DELAWARE--3.0% NR 7,000++ Charter Mac Equity Issuer Trust, Ser. B, 7.60%, 11/30/50 ................... 11/10 @ 100 7,646,940 ------------ DISTRICT OF COLUMBIA--0.8% District of Columbia, GO, Ser. E, CAPMAC, AAA 195+ 6.00%, 6/01/03 ........................................................... N/A 203,730 AAA 1,705 6.00%, 6/01/09 ........................................................... ETM 1,780,020 ------------ 1,983,750 ------------ FLORIDA--3.8% AAA 1,435 Florida Hsg. Fin. Agcy., Sngl. Fam. Mtge. Rev., Ser. A, 6.55%, 7/01/14 ..... 01/05 @ 102 1,501,986 NR 3,700 Hillsborough Cnty. Ind. Dev. Auth. Fac. Rev., National Gypsum, Ser. A, 7.125%, 4/01/30 .................................................................. 04/10 @ 101 3,627,036 BB- 4,000 Santa Rosa Bay Bridge Auth. Rev., 6.25%, 7/01/28 ........................... 07/06 @ 102 2,536,080 A+ 2,000 So. Broward Hosp. Dist. Rev., 5.60%, 5/01/27 ............................... 05/12 @ 101 2,004,440 ------------ 9,669,542 ------------ HAWAII--1.1% AAA 2,500 Hawaii Dept. Budget & Fin. Spec. Purp. Rev., Hawaiian Elec. Co. Inc., Ser. D, 6.15%, 1/01/20, AMBAC .................................................... 01/09 @ 101 2,732,525 ------------ ILLINOIS--10.5% AAA 10,000 Chicago Brd. of Ed., Sch. Reform, 5.75%, 12/01/27, AMBAC ................... 12/07 @ 102 10,760,000 AAA 5,000 Chicago Pub. Bldg. Rev., Ser. A, 7.00%, 1/01/20, MBIA ...................... ETM 6,476,500 Illinois Edl. Fac. Auth. Rev., Loyola Univ., FGIC, AAA 4,000+ 5.45%, 7/01/05 ........................................................... N/A 4,153,680 AAA 5,000+ 5.70%, 7/01/05 ........................................................... N/A 5,201,950 ------------ 26,592,130 ------------ INDIANA--3.1% BBB 7,420 Indianapolis Arpt. Auth. Rev., Spec. Fac. Fed. Express Corp. Proj., 7.10%, 1/15/17 ........................................................... 07/04 @ 102 7,887,163 ------------ KENTUCKY--8.2% AAA 15,715 Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero Coupon, 10/01/23, MBIA ........................................................... No Opt. Call 5,055,830 AAA 15,000+ Kentucky Tpke. Auth., Econ. Dev. Road Rev., 5.75%, 7/01/03, AMBAC .......... N/A 15,700,800 ------------ 20,756,630 ------------
See Notes to Financial Statements. 16
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- LOUISIANA--8.0% AAA $14,400+ Louisiana Pub. Fac. Auth. Hosp. Rev., Our Lady of the Lake Regl. Med. Ctr., 5.90%, 12/01/03, FSA ....................................................... N/A $ 15,338,592 AAA 4,640 New Orleans Pub. Impvt., GO, 5.875%, 11/01/29, FSA 11/09 @ 100 5,007,349 ------------ 20,345,941 ------------ MARYLAND--4.8% Aa2 4,450 Maryland Dept. Hsg. & Cmnty. Dev. Admin., Sngl. Fam. Prog., Ser. 2, 6.55%, 4/01/26 .................................................................... 04/05 @ 102 4,603,970 NR 4,000++ MuniMae TE Bond Subsidiary LLC, Ser. B, 7.75%, 6/30/50 11/10 @ 100 4,349,240 AAA 3,175 Northeast Waste Disp. Auth. Rev., Sld. Wst., Montgomery Cnty. Res. Rec. Proj., Ser. A, 6.30%, 7/01/16, MBIA ............................................... 07/03 @ 102 3,319,843 ------------ 12,273,053 ------------ MICHIGAN--0.8% AAA 2,000+ River Rouge Sch. Dist., 5.625%, 5/01/03, FSA ................................. N/A 2,068,800 ------------ MISSOURI--1.7% Lake of the Ozarks Cmnty. Brdg. Corp., Brdg. Sys. Rev., BBB- 2,000 5.25%, 12/01/14 ............................................................ 12/08 @ 102 1,932,380 BBB- 2,500 5.25%, 12/01/26 ............................................................ 12/08 @ 102 2,325,625 ------------ 4,258,005 ------------ NEVADA--1.5% AAA 3,750 Washoe Cnty. Arpt. Auth., Arpt. Sys. Impvt. Rev., Ser. B, 5.80%, 7/01/09, MBIA .............................................................. 07/03 @ 102 3,917,775 ------------ NEW JERSEY--8.6% AAA 2,000 Delaware River Port Auth. of PA & NJ Port Dist. Proj., Ser. B, 5.70%, 1/01/22, FSA ........................................................ 01/10 @ 100 2,147,880 AA 7,000+ New Jersey Transp. Trust Fund Auth., Transp. Sys. Rev., Ser. A, 6.00%, 6/15/10 N/A 8,185,590 A1 12,000 Tobacco Settlement Fin. Corp., 6.125%, 6/01/42 ............................... 06/12 @ 100 11,511,240 ------------ 21,844,710 ------------ NEW MEXICO--0.8% AAA 1,945 Farmington, PCR, So. California Edison Co., Ser. A, 5.875%, 6/01/23, MBIA .... 06/03 @ 102 2,015,137 ------------ NEW YORK--16.1% New York City, GO, A+ 4,140 Ser. A, 6.00%, 8/01/05 ..................................................... No Opt. Call 4,487,884 A+ 7,000 Ser. E, 6.50%, 2/15/06 ..................................................... No Opt. Call 7,724,430 New York City Ind. Dev. Agcy. Spec. Fac. Rev., Term. One Grp. Assoc. Proj., A3 4,000 6.00%, 1/01/08 ............................................................. 01/04 @ 102 4,134,280 A3 1,000 6.00%, 1/01/15 ............................................................. 01/04 @ 102 1,029,370 New York City Transl. Fin. Auth. Rev., AA+ 3,300 Ser. A, 5.25%, 11/01/11 .................................................... No Opt. Call 3,694,713 AA+ 8,145+ Ser. B, 6.00%, 5/15/10 ..................................................... N/A 9,633,987 AA+ 1,855 Ser. B, 6.00%, 11/15/21 .................................................... 05/10 @ 101 2,048,180 AAA 3,000+ New York Dorm. Auth. Rev., St. Univ. Edl. Fac., Ser. B, 6.10%, 5/15/04 ....... N/A 3,261,480 New York Dorm. Auth. Rev., Univ. of Rochester, Ser. A, MBIA, AAA 1,865 Zero Coupon, 7/01/21 ....................................................... 07/10 @ 101 1,286,925 AAA 2,030 Zero Coupon, 7/01/23 ....................................................... 07/10 @ 101 1,393,209 AA 1,955 New York Hsg. Fin. Agcy., Hlth. Fac. of New York City, Ser. A, 6.375%, 11/01/04 ................................................................... No Opt. Call 2,116,561 ------------ 40,811,019 ------------ NORTH CAROLINA--2.3% AAA 5,000 North Carolina Eastn. Mun. Pwr. Agcy. Sys. Rev., Ser. B, 7.00%, 1/01/08, CAPMAC ..................................................................... No Opt. Call 5,895,100 ------------ OHIO--0.2% AAA 415 Cleveland Cuyahoga Cnty. Port Auth. Rev., Port Dev. Proj., 6.00%, 3/01/07 .... ETM 452,587 ------------ OREGON--2.2% NR 5,600 Klamath Falls Elec. Rev., Sr. Lien-Klamath Cogen, 5.50%, 1/01/07 ............. No Opt. Call 5,666,416 ------------ PENNSYLVANIA--8.1% AAA 10,100 Lehigh Cnty. Gen. Purp. Auth. Rev., St. Lukes Hosp. Bethlehem Proj., 5.50%, 11/15/13, AMBAC ..................................................... 11/03 @ 102 10,586,517 AAA 3,305 McKeesport Area Sch. Dist., Cap. Apprec., Zero Coupon, 10/01/31, FGIC ........ No Opt. Call 676,897 Pennsylvania Higher Edl. Fac. Auth., Hlth. Svcs. Rev., Ser. A, A 2,300 5.75%, 1/01/17 ............................................................. 01/06 @ 101 2,373,370 A 2,750 5.875%, 1/01/15 ............................................................ 01/06 @ 101 2,857,443 AAA 4,000 Pennsylvania Intergovtl. Coop. Auth. Spec. Tax Rev., Philadelphia Fdg. Prog., 5.50%, 6/15/20, FGIC ....................................................... 06/06 @ 100 4,158,760 ------------ 20,652,987 ------------
See Notes to Financial Statements. 17
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- RHODE ISLAND--0.9% AAA $ 2,000 Rhode Island Hlth. & Edl. Bldg. Corp. Rev., Hosp. Fin., 5.50%, 5/15/16, MBIA ..................................................................... 05/07 @ 102 $ 2,154,900 ------------ TENNESSEE--5.3% A3 7,800 Maury Cnty. Ind. Dev. Brd., PCR, Saturn Corp. Proj., 6.50%, 9/01/24 ........ 09/04 @ 102 8,132,124 AAA 4,865 Memphis Shelby Cnty. Arpt. Auth. Rev., Ser. D, 6.00%, 3/01/24, AMBAC ....... 03/10 @ 101 5,243,497 ------------ 13,375,621 ------------ TEXAS--11.8% Dallas Cnty. Util. & Cap. Reclam. Dist., Ser. A, AMBAC, AAA 6,085 Zero Coupon, 2/15/19 ..................................................... 02/05 @ 44.538 2,424,021 AAA 3,800 Zero Coupon, 2/15/20 ..................................................... 02/05 @ 41.799 1,418,730 BB- 5,500 Dallas Ft. Worth Intl. Arpt. Fac. Impvt. Rev., Amer. Airlines Inc., 6.375%, 5/01/35 .......................................................... 11/09 @ 101 1,521,630 AAA 6,000 Grapevine, GO, 5.875%, 8/15/24, FGIC ....................................... 08/10 @ 100 6,561,360 AAA 5,000 Harris Cnty. Houston Sports Auth. Spec. Rev., Ser. A, Zero Coupon, 11/15/38, MBIA ........................................................... 11/30 @ 61.166 672,550 BBB 7,000 Port Corpus Christi Auth., Celanese Proj., Ser. B, 6.70%, 11/01/30 ......... 05/12 @ 101 7,200,410 A3 6,320 Texas Affordable Hsg. Corp. Mult. Fam. Hsg. Rev., 5.80%, 11/01/26 .......... 11/11 @ 102 6,345,406 AAA 15,000 Texas Tpke. Auth. Central Sys. Rev., Cap. Appr., Zero Coupon, 8/15/31, AMBAC .................................................................... 08/12 @ 32.807 2,725,350 Aa1 1,000 Texas Wtr. Fin. Asst., GO, 5.75%, 8/01/22 .................................. 08/10 @ 100 1,091,900 ------------ 29,961,357 ------------ UTAH--1.8% Intermountain Pwr. Agcy. Pwr. Supply Rev., AAA 2,810 5.00%, 7/01/13, AMBAC .................................................... ETM 2,817,952 A+ 1,145 Ser. 86-B, 5.00%, 7/01/16 ................................................ ETM 1,146,523 A+ 655 Ser. 86-B, 5.00%, 7/01/16 ................................................ 12/02 @ 100 655,636 ------------ 4,620,111 ------------ WASHINGTON--8.8% Washington, GO, AA+ 4,000 Ser. A, 5.375%, 7/01/21 .................................................. 07/06 @ 100 4,109,720 AA+ 1,000 Ser. B, 6.00%, 1/01/25 ................................................... 01/10 @ 100 1,097,920 Washington Pub. Pwr. Supply Sys. Rev. AAA 13,395 Nuclear Proj. No. 1, 5.75%, 7/01/11, MBIA ................................ 07/06 @ 102 14,915,868 AAA 2,000 Nuclear Proj. No. 2, 5.55%, 1/01/10, FGIC ................................ 07/03 @ 102 2,079,520 ------------ 22,203,028 ------------ WISCONSIN--5.7% A1 15,000 Badger Tobacco Asset Sec. Corp. Rev., 6.375%, 6/01/32 ...................... 06/12 @ 100 14,412,150 ------------ WYOMING--4.0% A3 10,000 Sweetwater Cnty., PCR, Idaho Pwr. Co. Proj., Ser. A, 6.05%, 7/15/26 ........ 07/06 @ 102 10,244,700 ------------ Total Long-Term Investments (cost $367,274,048) ............................ 387,761,380 ------------ MONEY MARKET FUND--2.8% NR 7,000 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $7,000,000) ...... N/A 7,000,000 ------------ TOTAL INVESTMENTS--155.6% (COST $374,274,048) .............................. 394,761,380 Other assets in excess of liabilities--2.2% ................................ 5,564,158 Preferred shares at redemption value, including dividends payable--(57.8)% . (146,616,022) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ......................... $253,709,516 ============
- ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. ** Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + This bond is prerefunded. See Glossary for definition. ++ Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2002, the Trust held 5.9% of its net assets, with a current market value of $14,911,500 in securities restricted as to resale. KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation FSA -- Financial Security Assurance CAPMAC -- Capital Markets Assurance Company GO -- General Obligation ETM -- Escrowed to Maturity MBIA -- Municipal Bond Insurance Association FGIC -- Financial Guaranty Insurance Company PCR -- Pollution Control Revenue See Notes to Financial Statements. 18 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2002 BLACKROCK MUNICIPAL INCOME TRUST
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- LONG-TERM INVESTMENTS--163.2% ALABAMA--7.3% Baa2 $12,000 Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., 6.15%, 6/01/19 ... 06/05 @ 102 $ 12,184,080 A2 15,000 Huntsville Hlth. Care Auth. Rev., Ser. B, 5.75%, 6/01/32 .................... 06/12 @ 101 15,068,100 BBB 15,000 Phenix Cnty. Indl. Dev. Brd. Envirmntl. Impvt. Rev., Ser. A, 6.35%, 5/15/35 . 05/12 @ 100 14,799,300 ------------ 42,051,480 ------------ ARIZONA--1.2% A3 7,000 Scottsdale Ind. Dev. Auth. Hosp. Rev., Scottsdale Hlth. Care, 5.80%, 12/01/31 12/11 @ 101 7,067,340 ------------ CALIFORNIA--12.1% A- 19,000 California Infrastructure & Econ. Dev. Rev., J. David Gladstone Inst. Proj., 5.25%, 10/01/34 .............................................. 10/11 @ 101 18,403,400 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., BBB- 54,635 Zero Coupon, 1/15/32 ...................................................... 01/10 @ 27.37 9,509,222 BBB- 20,535 Zero Coupon, 1/15/34 ...................................................... 01/10 @ 24.228 3,161,568 BBB- 75,000 Zero Coupon, 1/15/38 ...................................................... 01/10 @ 19.014 9,043,500 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., BB- 24,000 Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24 .............................. 12/12 @ 102 16,021,680 AAA 13,320 Facs. Laxfuel Corp. L.A. Int'l, 5.50%, 1/01/32, AMBAC ..................... 01/12 @ 100 13,737,449 ------------ 69,876,819 ------------ COLORADO--0.6% BBB+ 3,500 Denver Hlth. & Hosp. Auth. Hlth. Care. Rev., Ser. A, 6.00%, 12/01/31 ........ 12/11 @ 100 3,527,615 ------------ CONNECTICUT--9.4% A3 31,840 Connecticut Dev. Auth., PCR, Connecticut Lt. & Pwr., Ser. A, 5.85%, 9/01/28 . 10/08 @ 102 33,153,718 BBB- 20,940 Mohegan Tribe Indians, Pub. Impvt. Priority Dist., 6.25%, 1/01/31 ........... 01/11 @ 101 21,547,679 ------------ 54,701,397 ------------ DELAWARE--6.1% Charter Mac Equity Issuer Trust, NR 1,000+ Ser. A, 6.625%, 6/30/49 ................................................... 06/09 @ 100 1,047,150 NR 11,000+ Ser. A-2, 6.30%, 6/30/49 .................................................. 06/09 @ 100 11,274,560 NR 16,000+ Ser. A-3, 6.80%, 10/01/52 ................................................. 10/14 @ 100 16,395,360 NR 6,500+ Ser. B-1, 6.80%, 11/30/50 ................................................. 11/10 @ 100 6,669,715 ------------ 35,386,785 ------------ DISTRICT OF COLUMBIA--4.1% Dist. of Columbia Rev., Cap. Appr. Georgetown Univ., Ser. A, MBIA, AAA 15,600 Zero Coupon, 4/01/36 ...................................................... 04/11 @ 22.875 2,181,972 AAA 51,185 Zero Coupon, 4/01/37 ...................................................... 04/11 @ 21.546 6,732,875 A1 14,535 Dist. of Columbia Tobacco Settlement Fin. Corp., 6.75%, 5/15/40 ............. 05/11 @ 101 14,761,165 ------------ 23,676,012 ------------ FLORIDA--13.0% Baa 4,600 Escambia Cnty., PCR, Champion Intl. Corp. Proj., 6.40%, 9/01/30 ............. 09/06 @ 102 4,778,020 A- 9,670 Highlands Cnty. Hlth. Facs. Auth. Rev., Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31 ................................................... 11/11 @ 101 9,992,881 Jacksonville Econ. Dev. Comm. Hlth. Facs. Rev., Mayo Clinic, AA 16,000 Ser. B, 5.50%, 11/15/36 ................................................... 11/11 @ 101 16,394,080 AA 10,000 Ser. C, 5.50%, 11/15/36 ................................................... 11/11 @ 101 10,246,300 Aa3 24,410 JEA Wtr. & Swr. Sys. Rev., Ser. C, 5.25%, 10/01/37 .......................... 10/06 @ 100 24,571,350 BBB- 9,000 Martin Cnty. Indl. Dev. Auth. Rev., Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25 .................................................. 12/04 @ 102 9,234,270 ------------ 75,216,901 ------------ GEORGIA--0.7% BBB 4,000 Richmond Cnty. Dev. Auth., Environ. Impvt. Rev., Intl. Paper Co. Proj., Ser. A, 6.00%, 2/01/25 .................................................... 02/12 @ 101 4,007,760 ------------ IDAHO--3.0% AAA 16,970 Univ. Idaho. Rev., Student Fee Hsg. Impvt. Proj., 5.40%, 4/01/41, FGIC ...... 04/11 @ 100 17,456,021 ------------ ILLINOIS--17.2% Bolingbrook, GO, Ser. B, FGIC, AAA 14,085 Zero Coupon, 1/01/34 ...................................................... No. Opt Call 2,495,017 AAA 7,120 Zero Coupon, 1/01/33 ...................................................... No. Opt Call 1,337,492 A 25,000 Illinois Dev. Fin. Auth., PCR, Ser. C, 5.95%, 8/15/26 ....................... 12/06 @ 101 25,461,500 A- 7,095 Illinois Dev. Fin. Auth. Hosp. Rev., Adventist Hlth. Sys. Sunbelt Obl., 5.65%, 11/15/24 ............................................. 11/09 @ 101 7,024,121 Aa1 39,325 Illinois Edl. Facs. Auth. Rev., Univ. of Chicago, Ser. A, 5.25%, 7/01/41 .... 07/11 @ 101 39,688,363
See Notes to Financial Statements. 19
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- ILLINOIS--(CONT'D) Illinois Edl. Facs. Auth. Student Hsg. Rev., Edl. Advancement Fund Univ. Ctr. Proj., Baa2 $10,000 6.25%, 5/01/30 ................ 05/12 @ 101 $ 9,967,300 Baa2 7,000 6.25%, 5/01/34 ............................................................ 05/07 @ 100 6,858,460 AAA 40,000 Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj., Ser. A, Zero Coupon, 12/15/34, MBIA ....................................... No Opt. Call 6,718,400 ------------ 99,550,653 ------------ INDIANA--5.7% A+ 9,000 Indiana Hlth. Fac. Hosp. Rev., Methodist Hosp. Inc., 5.50%, 9/15/31 ......... 09/11 @ 100 9,187,560 Petersburg, PCR, Indiana Pwr. & Lt. Conv., A3 10,000 5.90%, 12/01/24 ........................................................... 08/11 @ 102 9,210,400 A3 16,000 5.95%, 12/01/29 ........................................................... 08/11 @ 102 14,636,160 ------------ 33,034,120 ------------ KANSAS--2.1% A3 11,500 Wyandotte Cnty., Gen. Motors Corp. Proj., 6.00%, 6/01/25 .................... 03/12 @ 101 11,900,200 ------------ KENTUCKY--1.6% AAA 9,090 Kentucky Hsg. Corp. Hsg. Rev., Ser. F, 5.45%, 1/01/32 ....................... 07/11 @ 100 9,126,633 ------------ LOUISIANA--7.4% A 21,425 Louisiana Local Gov't. Environ. Facs. & Cmnty. Dev. Auth. Rev., Cap. Projs. & Equip. Acquisition, 6.55%, 9/01/25, ACA ..................... No Opt. Call 23,734,186 A3 20,000 Louisiana Pub. Facs. Auth. Rev., Ochsner Clinic Fndtn. Proj., Ser. B, 5.50%, 5/15/27 ............................................. 05/12 @ 101 19,347,600 ------------ 43,081,786 ------------ MARYLAND--1.4% NR 8,000+ MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49 .................... 06/09 @ 100 8,513,600 ------------ MICHIGAN--3.0% AA 17,210 Kent Hosp. Fin. Auth. Rev., Spectrum Hlth., Ser. A, 5.50%, 1/15/31 .......... 07/11 @ 101 17,581,048 ------------ MISSISSIPPI--3.2% A2 18,680 Gulfport Hosp. Fac. Rev., Mem. Hosp. Gulfport Proj., Ser. A, 5.75%, 7/01/31 . 07/11 @ 100 18,847,373 ------------ NEW HAMPSHIRE--0.6% A+ 3,500 New Hampshire Hlth. & Edl. Facs. Auth. Rev., Exeter Hosp. Proj., 5.75%, 10/01/31 ........................................................... 10/11 @ 101 3,505,110 ------------ NEW JERSEY--9.4% B+ 34,435 New Jersey Econ. Dev. Auth., Continental Airlines Inc. Proj., 7.00%, 11/15/30 11/10 @ 101 19,117,279 A1 37,000 Tobacco Settlement Fin. Corp., 6.125%, 6/01/42 .............................. 06/12 @ 100 35,492,990 ------------ 54,610,269 ------------ OHIO--2.5% BBB 14,500 Ohio Air Quality Dev. Auth., PCR, Cleveland Elec. Illuminating Co. Proj., Ser. B, 6.00%, 8/01/20 ............................................. 08/07 @ 102 14,485,935 ------------ PENNSYLVANIA--4.8% A 5,000 Montgomery Cnty. Higher Ed. & Hlth. Auth., Abington Memorial Hosp., Ser. A, 5.125%, 6/01/27 ................................................... 06/12 @ 101 4,647,100 A3 6,500 Pennsylvania Econ. Dev. Fin. Auth. Exempt Facs. Rev., Amtrak Proj., Ser. A, 6.375%, 11/01/41 .............................. 05/11 @ 101 5,816,915 A 17,250 Pennsylvania Higher Edl. Facs. Auth. Univ. of Pennsylvania Hlth. Svcs., Ser. A, 5.75%, 1/01/22 .................................................... 01/06 @ 101 17,528,415 ------------ 27,992,430 ------------ RHODE ISLAND--3.3% A1 20,000 Tobacco Settlement Fin. Corp., Tobacco Settlement Rev., Ser. A, 6.25%, 6/01/42 .............................................. 06/12 @ 100 19,075,000 ------------ SOUTH DAKOTA--3.4% A1 20,000 Edl. Enhancement Fdg. Corp., Tobacco Settlement Rev., Ser. B, 6.50%, 6/01/32 06/12 @ 101 19,740,800 ------------ TEXAS--16.5% BB- 26,310 Dallas Ft. Worth Intl. Arpt. Fac. Impvt. Rev., Amer. Airlines Inc., 6.375%, 5/01/35 ........................................................... 11/09 @ 101 7,278,925 Harris Cnty. Houston Sports Auth. Spec. Rev., MBIA, AAA 12,580 Ser. A, Zero Coupon, 11/15/38 ............................................. 11/30 @ 61.166 1,692,136 AAA 5,000 Ser. H, Zero Coupon, 11/15/35 ............................................. 11/31 @ 78.178 787,100 BBB 20,000 Port Corpus Christi Auth., Celanese Proj., Ser. B, 6.70%, 11/01/30 .......... 05/12 @ 101 20,572,600 BBB 4,450 Sabine River Auth., PCR, TXU Elec. Co. Proj., Ser. B, 5.75%, 5/01/30 ........ 11/11 @ 100 3,902,205 Texas Affordable Hsg. Corp. Mult. Fam. Hsg. Rev., A3 6,010 5.80%, 11/01/26 ........................................................... 11/11 @ 102 6,034,160 BBB- 4,435 Amer. Oppty. Hsg. Portfolio, Ser. B, 8.00%, 3/01/32 ....................... 09/12 @ 102 4,370,116 A3 18,605 Arborstone/Baybrook Oaks, Ser. A, 5.85%, 11/01/31 ......................... 11/11 @ 102 18,742,863 BBB- 6,605 So. Texas Pptys. Corp., Ser. B, 8.00%, 3/01/32 ............................ 09/12 @ 102 6,508,369 Texas Tpke. Auth. Central Sys. Rev., Cap. Appr., AMBAC, AAA 35,000 Zero Coupon, 8/15/32 ...................................................... 08/12 @ 30.846 5,970,650 AAA 62,325 Zero Coupon, 8/15/33 ...................................................... 08/12 @ 28.997 9,980,102 AAA 65,040 Zero Coupon, 8/15/34 ...................................................... 08/12 @ 27.31 9,804,780 ------------ 95,644,006 ------------
See Notes to Financial Statements. 20
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- VIRGINIA--7.5% Arlington Cnty. Ind. Dev. Auth., Hosp. Fac. Rev. Virginia Hosp. Ctr. Arlington Hlth. Sys., A2 $10,000 5.25%, 7/01/25 ............................................................ 07/11 @ 101 $ 10,006,700 A2 13,000 5.25%, 7/01/31 ............................................................ 07/11 @ 101 12,890,280 Virginia Comnwlth. Transp. Brd. Trust, MBIA, AAA 3,475 Zero Coupon, 4/01/19 ...................................................... No Opt. Call 1,538,765 AAA 4,000 Zero Coupon, 4/01/20 ...................................................... No Opt. Call 1,659,840 AAA 5,000 Zero Coupon, 4/01/21 ...................................................... No Opt. Call 1,930,450 AAA 5,000 Zero Coupon, 4/01/22 ...................................................... No Opt. Call 1,795,350 AAA 5,000 Zero Coupon, 4/01/23 ...................................................... No Opt. Call 1,689,500 AAA 4,340 Zero Coupon, 4/01/24 ...................................................... No Opt. Call 1,381,813 AAA 3,605 Zero Coupon, 4/01/25 ...................................................... No Opt. Call 1,087,989 AAA 4,605 Zero Coupon, 4/01/26 ...................................................... No Opt. Call 1,314,359 AAA 2,000 Zero Coupon, 4/01/27 ...................................................... No Opt. Call 539,760 AAA 5,855 Zero Coupon, 4/01/28 ...................................................... 04/12 @ 43.235 1,453,445 AAA 3,605 Zero Coupon, 4/01/29 ...................................................... 04/12 @ 40.959 842,705 AAA 8,105 Zero Coupon, 4/01/30 ...................................................... 04/12 @ 38.864 1,802,633 AAA 8,105 Zero Coupon, 4/01/31 ...................................................... 04/12 @ 36.876 1,706,264 AAA 8,105 Zero Coupon, 4/01/32 ...................................................... 04/12 @ 34.99 1,615,002 ------------ 43,254,855 ------------ WASHINGTON--3.8% Baa1 2,190 Energy Northwest Washington Wind Proj. Rev., Ser. B, 6.00%, 7/01/23 ......... 01/07 @ 103 2,220,879 A1 20,000 Tobacco Settlement Auth., Tobacco Settlement Rev., 6.625%, 6/01/32 .......... 06/13 @ 100 19,705,600 ------------ 21,926,479 ------------ WEST VIRGINIA--1.4% BBB 8,000 Braxton Cnty. Sld. Wst. Disp. Rev., Weyerhaeuser Co. Proj., 6.50%, 4/01/25 .. 04/05 @ 102 8,203,760 ------------ WISCONSIN--10.9% A1 36,000 Badger Tobacco Asset Sec. Corp. Rev., 6.375%, 6/01/32 ....................... 06/12 @ 100 34,589,160 Wisconsin Hlth. & Edl. Facs. Auth. Rev., A+ 13,750 Froedert & Cmnty. Hlth. Obl., 5.375%, 10/01/30 ............................ 10/11 @ 101 13,446,125 A 15,000 Wheaton Franciscan Svcs., 5.75%, 8/15/30 .................................. 02/12 @ 101 15,111,750 ------------ 63,147,035 ------------ TOTAL LONG-TERM INVESTMENTS (COST $974,404,517) 946,189,222 ------------ SHORT-TERM INVESTMENTS--2.3% NEW YORK--0.8% P1 4,400 New York Energy Research & Dev. Auth., PCR, Niagara Mohawk Pwr. Corp., Ser. B, 1.90%, 11/01/02, FRDD++ ........................................... N/A 4,400,000 ------------ MONEY MARKET FUND--1.5% NR 9,000 AIM Tax Free Investment Co. Cash Reserve Portfolio .......................... N/A 9,000,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $13,400,000) ............................. 13,400,000 ------------ TOTAL INVESTMENTS--165.5% (COST $987,804,517) ............................... 959,589,222 Liabilities in excess of other assets--(0.8)% ............................... (4,725,343) Preferred shares at redemption value, including dividends payable--(64.7)% .. (375,183,000) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $579,680,879 ============
- ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. ** Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2002, the Trust held 7.6% of its net assets, with a current market value of $43,900,385 in securities restricted as to resale. ++ For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. KEY TO ABBREVIATIONS ACA -- American Capital Access GO -- General Obligation AMBAC -- American Municipal Bond Assurance Corporation MBIA -- Municipal Bond Insurance Association FGIC -- Financial Guaranty Insurance Company PCR -- Pollution Control Revenue FRDD -- Floating Rate Daily Demand See Notes to Financial Statements. 21 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2002 BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- LONG-TERM INVESTMENTS--147.3% California Cnty. Tobacco Sec. Agcy. Rev., A1 $ 900 Stanislaus Fdg., Ser. A, 5.875%, 6/01/43 .................................. 06/12 @ 100 $ 883,935 A+ 1,000 Tobacco Settlement, Ser. B, 6.00%, 6/01/29 ................................ 06/12 @ 100 1,007,390 California Edl. Facs. Auth. Rev., MBIA, AAA 760+ Santa Clara Univ., 5.00%, 9/01/06 ......................................... N/A 851,557 AAA 835 Student Loan Prog., Ser. A, 6.00%, 3/01/16 ................................ 03/07 @ 102 886,152 California, GO, AA 960+ 5.75%, 3/01/05 ............................................................ N/A 1,053,197 AA 40 5.75%, 3/01/19 ............................................................ 03/05 @ 101 42,709 California Hsg. Fin. Agcy. Rev., Home Mtge., Aa2 135 Ser. G, 7.20%, 8/01/14 .................................................... 08/04 @ 102 140,488 AAA 695 Ser. I, Zero Coupon, 8/01/21, FSA ......................................... 02/11 @ 53.209 236,759 California Pub. Wks. Brd. Lease Rev., Ser. A, Aaa 1,000+ Dept. of Corrections, 6.875%, 11/01/04 .................................... N/A 1,122,230 A+ 1,000 St. Univ. Proj., 6.10%, 10/01/06 .......................................... 10/04 @ 102 1,091,750 AAA 1,385 Foothill/Eastn. Transp. Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/01/04 . No Opt. Call 1,356,303 Los Angeles Cnty., AAA 1,000 Cmnty. Facs. Spec. Tax, Ser. A, 5.50%, 9/01/14, FSA ....................... 09/07 @ 102 1,106,010 AAA 1,000+ Met. Trans. Auth. Sales Tax Rev., 6.00%, 7/01/06, MBIA .................... N/A 1,141,970 AA 1,150 Los Angeles Harbor Dept. Rev., Ser. B, 6.00%, 8/01/13 ....................... 08/06 @ 101 1,297,959 Aa3 1,000+ Los Angeles Pub. Wks. Fin. Auth. Rev., Regl. Park & Open Space, Dist. A, 6.00%, 10/01/04 ........................................................... N/A 1,101,640 BB- 945 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. B, 7.50%, 12/01/24 ................................................... 12/12 @ 102 630,854 NR 1,000 Poway Sch. Dist., Spec. Tax, Cmnty. Facs. Dist. No. 6, 5.60%, 9/01/33 ....... 09/10 @ 102 963,020 BBB- 1,000 Sacramento Pwr. Auth., Cogeneration Proj. Rev., 6.50%, 7/01/09 .............. 07/06 @ 102 1,111,620 NR 1,000 San Bernardino Cnty., Spec. Tax, Cmnty. Facs. Dist. No. 2002-1, 5.90%, 9/01/33 ................................................ 09/12 @ 102 957,560 AAA 500 San Diego Ind. Dev. Rev., Ser. A, 5.90%, 6/01/18, AMBAC ..................... 06/03 @ 102 519,975 San Francisco City & Cnty., AAA 150 Arpt. Comn. Rev., Intl. Arpt., Ser. 12-A, 5.90%, 5/01/26, MBIA ............ 05/06 @ 101 161,109 AAA 1,000 Arpt. Comn. Rev., Intl. Arpt., Ser. 6, 6.125%, 5/01/09, AMBAC ............. 05/04 @ 102 1,071,470 AAA 1,000 Swr. Rev., Ser. A, 5.95%, 10/01/25, FGIC .................................. 10/03 @ 102 1,044,950 AAA 40 So. California Pub. Pwr. Auth. Transm., Proj. Rev., 5.50%, 7/01/20, MBIA .... 11/02 @ 100 40,024 AAA 500 Temecula Valley Uni. Sch. Dist., GO, Ser. G, 5.75%, 8/01/25, FGIC ........... 08/07 @ 102 548,480 AAA 1,135+ Univ. of California Rev., Research Fac., Ser. B, 6.30%, 9/01/03 ............. N/A 1,200,773 AAA 370 West Basin Mun. Wtr. Dist. Rev., COP, Ser. A, 5.50%, 8/01/22, AMBAC ......... 08/07 @ 101 392,207 ------------ TOTAL INVESTMENTS--147.3% (COST $20,689,473) ................................ 21,962,091 Other assets in excess of liabilities--3.0% ................................. 449,676 Preferred shares at redemption value, including dividends payable--50.3% .... (7,500,312) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $14,911,455 ============
- ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. ** Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + This bond is prerefunded. See Glossary for definition. KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation FSA -- Financial Security Assurance COP -- Certificate of Participation GO -- General Obligation FGIC -- Financial Guaranty Insurance Company MBIA -- Municipal Bond Insurance Association KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association See Notes to Financial Statements. 22 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2002 BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- LONG-TERM INVESTMENTS--158.8% CALIFORNIA--144.8% Anaheim Pub. Fin. Auth. Lease Rev., Pub. Impvts Proj., Ser. C, FSA, AAA $24,500 Zero Coupon, 9/01/31 ...................................................... No Opt. Call $ 5,071,500 AAA 6,070 Zero Coupon, 9/01/32 ...................................................... No Opt. Call 1,189,659 California Cnty. Tobacco Sec. Agcy. Rev., A1 12,000 Fresno Cnty. Fdg. Corp., 6.00%, 6/01/35 ................................... 06/12 @ 100 11,633,880 A1 5,000 Stanislaus Fdg., Ser. A, 5.875%, 6/01/43 .................................. 06/12 @ 100 4,910,750 AAA 11,700 California Edl. Facs. Auth. Rev., Stanford Univ., Ser. Q, 5.25%, 12/01/32 ... 06/11 @ 101 12,039,885 California, GO, A+ 4,000 5.125%, 6/01/27 ........................................................... 06/11 @ 100 4,018,280 A+ 25,000 5.20%, 11/01/31 ........................................................... 11/11 @ 100 25,273,000 AAA 5,500 Ser. BZ, 5.35%, 12/01/21, MBIA ............................................ 06/07 @ 101 5,557,530 AAA 5,000 Ser. BZ, 5.375%, 12/01/24, MBIA ........................................... 06/07 @ 101 5,004,550 California Hlth. Facs. Fin. Auth. Rev., Ser. A, A+ 3,000 Insured Hlth. Facs. Valleycare, 5.375%, 5/01/27 ........................... 05/12 @ 100 3,053,160 A 4,890 Kaiser Proj., 5.40%, 5/01/28 .............................................. 07/06 @ 102 4,850,929 California Hsg. Fin. Agcy. Rev., AAA 23,145 Ser. B, Zero Coupon, 8/01/31, FSA ......................................... 08/10 @ 31.194 4,615,345 AAA 28,395 Home Mtge., Ser. Q, Zero Coupon, 2/01/33, AMBAC ........................... 08/11 @ 29.558 5,024,779 AAA 19,185 Home Mtge., Ser. T, Zero Coupon, 8/01/21, MBIA ............................ 08/11 @ 57.562 6,815,279 California Infrastructure & Econ. Dev. Rev., A- 18,750 J. David Gladstone Inst. Proj., 5.25%, 10/01/34 ........................... 10/11 @ 101 18,161,250 A 13,500 Kaiser Hosp. Asst. LLC, Ser. A, 5.55%, 8/01/31 ............................ 08/11 @ 102 13,606,515 A+ 10,000 California Statewide Cmnty. Dev. Auth. Rev., Sutter Hlth. Oblig. Grp., Ser. B, 5.625%, 8/15/42 ............................................. 08/12 @ 100 10,075,200 Charter Mac Equity Issuer Trust, NR 7,000+ Ser. A-2, 6.30%, 6/30/49 .................................................. 06/09 @ 100 7,174,720 NR 4,000+ Ser. B-1, 6.80%, 11/30/50 ................................................. 11/10 @ 100 4,104,440 A- 5,000 Daly City Hsg. Dev. Fin. Agcy. Rev., Sr. Franciscan Acquisition Proj., Ser. A, 5.85%, 12/15/32 ............................................ 12/13 @ 102 5,059,050 AAA 6,000 El Monte, Sr. Dept. Pub. Svcs. Fac. Phase II, COP, 5.25%, 1/01/34, AMBAC .... 01/11 @ 100 6,152,160 Elk Grove Unified Sch. Dist. Spec. Tax, Cap. Appr. Cmnty. Facs. Dist. 1, AMBAC, AAA 7,485 Zero Coupon, 12/01/29 ..................................................... 12/11 @ 37.373 1,621,700 AAA 7,485 Zero Coupon, 12/01/30 ..................................................... 12/11 @ 35.365 1,528,437 AAA 7,485 Zero Coupon, 12/01/31 ..................................................... 12/11 @ 33.465 1,444,306 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., BBB- 5,000 Zero Coupon, 1/15/33 ...................................................... 01/10 @ 25.78 819,350 BBB- 5,000 Zero Coupon, 1/15/34 ...................................................... 01/10 @ 24.228 769,800 BBB- 13,445 Zero Coupon, 1/15/35 ...................................................... 01/10 @ 22.819 1,948,584 BBB- 1,000 Zero Coupon, 1/15/38 ...................................................... 01/10 @ 19.014 120,580 BBB- 9,620 5.75%, 1/15/40 ............................................................ 01/10 @ 101 9,752,948 NR 5,000 Irvine Mobile Home Park Rev., Meadows Mobile Home Park, Ser. A, 5.70%, 3/01/28 ............................................................ 03/08 @ 102 4,940,750 AAA 2,975 Los Angeles Dept. Wtr. & Pwr., Wtr. Wks. Rev., Ser. A, 5.125%, 7/01/41, FGIC 07/11 @ 100 3,011,563 BB- 5,500 Los Angeles Regl. Arpt. Impvt. Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24 ................................................... 12/12 @ 102 3,671,635 Aaa 10,000 Monterey Cnty. Master Plan Fin., COP, 5.00%, 8/01/32, MBIA .................. 08/11 @ 100 10,021,900 MuniMae TE Bond Subsidiary, LLC, NR 7,000++ Ser. A, 6.30%, 6/30/49 .................................................... 11/09 @ 100 7,216,580 NR 3,000++ Ser. B, 6.80%, 6/30/50 .................................................... 11/10 @ 100 3,072,630 BBB 1,000 Palm Springs Mobile Home Park. Rev., Sahara Mobile Home Park A, 5.625%, 5/15/26 ................................................................... 05/12 @ 102 1,004,210 AAA 15,500 Rancho Cucamonga Redev. Agcy. Tax Alloc. Rev., Rancho Redev. Proj., 5.125%, 9/01/30, MBIA ............................................................. 09/11 @ 100 15,726,920 AAA 1,905 Richmond Wst. Wtr. Rev., Zero Coupon, 8/01/31, FGIC ......................... No Opt. Call 396,126 AAA 10,000 Sacramento Mun. Util. Dist. Elec. Rev., Ser. N, 5.00%, 8/15/28, MBIA ........ 08/11 @ 100 10,036,100 AAA 7,500 San Francisco Bay Area Rapid Trans., Dist. Sales Tax Rev., 5.125%, 7/01/36, AMBAC .................................................... 07/11 @ 100 7,608,000 AAA 6,500 San Francisco City & Cnty., Arpts. Comn. Rev., Intl. Arpt. Ser. 27-A, 5.25%, 5/01/31, MBIA ............................................................. 05/11 @ 100 6,580,665
See Notes to Financial Statements. 23
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- San Francisco City & Cnty. Redev. Agcy. Rev., Cmnty. Facs. Dist., Mission Bay South, NR $ 1,775 6.125%, 8/01/31 ........................................................... 08/09 @ 102 $ 1,799,353 NR 7,500 6.25%, 8/01/33 ............................................................ 08/11 @ 101 7,526,250 San Jose Mult. Fam. Hsg. Rev., AAA 2,880 Lenzen Hsg., Ser. B, 5.45%, 2/20/43 ....................................... 08/11 @ 102 2,903,126 AAA 4,225 Vlgs. Pkwy. Sr. Apts., Ser. D, 5.50%, 4/01/34 ............................. 04/11 @ 100 4,270,081 Santa Clara Cnty. Hsg. Auth., Mult. Fam. Hsg. Rev., Ser. A, NR 6,250 Blossom River Apts., 6.50%, 9/01/39 ....................................... 03/08 @ 102 5,970,312 A3 1,715 John Burns Gardens Apts. Proj., 5.85%, 8/01/31 ............................ 02/12 @ 101 1,737,226 A3 1,235 River Town Apts. Proj., 6.00%, 8/01/41 .................................... 02/12 @ 101 1,237,668 NR 3,075 Santa Clarita Facs. Dist., Valencia Town Center, 5.85%, 11/15/32 ............ 11/10 @ 102 3,053,414 A1 5,345 Tobacco Sec. Auth. No. California, Tobacco Settlement Rev., Ser. A, 5.375%, 6/01/41 ................................................... 06/11 @ 100 4,765,335 Tobacco Sec. Auth. So. California, Tobacco Settlement Rev., Ser. A, A 7,000 5.50%, 6/01/36 ............................................................ 06/12 @ 100 6,573,980 A 11,500 5.625%, 6/01/43 ........................................................... 06/12 @ 100 10,781,940 AAA 2,000 Upland Unified Sch. Dist., Election of 2000, GO, Ser. B, 5.125%, 8/01/25, FSA .............................................. 08/13 @ 100 1,883,320 ------------ 307,186,650 ------------ PUERTO RICO--14.0% A1 3,000 Children's Trust Fund Tobacco Settlement Rev., 5.625%, 5/15/43 .............. 05/12 @ 100 2,878,500 A- 10,000 Puerto Rico Elec. Pwr. Auth., Rev., Ser. II, 5.25%, 7/01/31 ................. 07/12 @ 101 10,133,600 Puerto Rico Pub. Fin. Corp. Rev., Comnwlth. Approp., Ser. E, BBB+ 10,000 5.70%, 8/01/25 ............................................................ 02/10 @ 100 10,537,800 BBB+ 5,750 5.75%, 8/01/30 ............................................................ 02/07 @ 100 6,193,957 ------------ 29,743,857 ------------ TOTAL LONG-TERM INVESTMENTS (COST $336,581,584) ............................. 336,930,507 ------------ MONEY MARKET FUND--4.7% NR 10,000 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $10,000,000) ....... N/A 10,000,000 ------------ TOTAL INVESTMENTS--163.5% (COST $346,581,584) ............................... 346,930,507 Liabilities in excess of other assets--(1.3)% ............................... (2,746,901) Preferred shares at redemption value, including dividends payable--(62.2)% .. (131,968,424) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $212,215,182 ============
- ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. ** Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. + Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2002, the Trust held 10.2% of its net assets, with a current market value of $21,568,370 in securities restricted as to resale. KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association See Notes to Financial Statements. 24 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2002 BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- LONG-TERM INVESTMENTS--142.8% FLORIDA--112.8% Boynton Beach Util. Sys. Rev., FGIC, AAA $ 830+ 6.25%, 11/01/02 ............................................................ N/A $ 846,600 AAA 170 6.25%, 11/01/20 ............................................................ ETM 204,347 A1 1,000 Brevard Cnty. Hlth. Fac. Auth. Rev., Holmes Regl. Med. Ctr. Proj., 5.75%, 10/01/13 ............................................................ 10/03 @ 102 1,029,140 AAA 1,000 Brevard Cnty. Sch. Brd., COP, Ser. B, 5.50%, 7/01/21, AMBAC .................. 07/06 @ 102 1,054,110 AAA 1,000 Collier Cnty. Sch. Brd., COP, 5.00%, 2/15/16, FSA ............................ 02/06 @ 101 1,028,530 AAA 1,000 Dade Cnty. Aviation Rev., Ser. C, 5.75%, 10/01/25, MBIA ...................... 10/05 @ 102 1,069,910 AAA 1,000+ Dade Cnty. Sch. Brd., COP, Ser. A, 6.00%, 5/01/04, MBIA ...................... N/A 1,073,470 AAA 1,000+ Dade Cnty. Spl. Oblig., Ser. B, Zero Coupon, 10/01/08, AMBAC ................. N/A 589,460 AAA 1,000+ First Florida Gov. Fin. Com. Rev., 5.75%, 7/01/06, AMBAC ..................... N/A 1,129,460 Florida Brd. of Ed., GO, AAA 1,000+ Ser. B, 5.875%, 6/01/05 .................................................... N/A 1,108,030 AAA 1,000+ Ser. C, 5.85%, 6/01/03 ..................................................... N/A 1,034,010 AAA 500 Florida Dept. of Corrections, COP, Okeechobee Correctional Fac., 6.25%, 3/01/15, AMBAC ...................................................... 03/05 @ 102 550,625 AAA 1,000+ Florida Dept. of Transp., GO, 5.80%, 7/01/05 ................................. N/A 1,109,190 AAA 1,000+ Florida Div. of Bond Fin. Dept., Gen. Svcs. Rev., Dept. of Environ. Pres., Ser. A, 5.75%, 7/01/05, AMBAC ....................................... N/A 1,107,900 AAA 495 Florida Hsg. Fin. Agcy., Sngl. Fam. Mtge. Rev., Ser. A, 6.25%, 7/01/11 ....... 07/04 @ 102 516,295 AAA 1,000 Jacksonville Cap. Impvt. Rev., Gator Bowl Proj., 5.50%, 10/01/14, AMBAC ...... 10/04 @ 101 1,075,710 AAA 1,000 Lee Cnty. Transp. Fac. Rev., 5.75%, 10/01/22, MBIA ........................... 10/05 @ 102 1,074,500 A 1,000 Orlando & Orange Cnty. Expwy. Auth. Rev., 5.95%, 7/01/23 ..................... 01/03 @ 101 1,007,710 AAA 1,000+ Seminole Cnty. Sch. Brd., COP, Ser. A, 6.125%, 7/01/04, MBIA ................. N/A 1,092,220 AAA 1,000+ Sunrise Util. Sys. Rev., Ser. A, 5.75%, 10/01/06, AMBAC ...................... N/A 1,135,270 BBB+ 1,000 Volusia Cnty. Ed. Fac. Auth. Rev., 6.125%, 10/15/16 .......................... 10/06 @ 102 1,071,500 ------------ 19,907,987 ------------ PUERTO RICO--30.0% Puerto Rico Elec. Pwr. Auth. Rev., AAA 1,000+ Ser. T, 6.375%, 7/01/04 .................................................... N/A 1,098,030 A- 1,000 Ser. U, 6.00%, 7/01/14 ..................................................... 07/04 @ 102 1,060,210 Puerto Rico Pub. Bldg. Auth., Gtd. Pub. Ed. & Hlth. Fac. Rev., Ser. M, A- 530+ 5.50%, 7/01/03 ............................................................. N/A 550,744 A- 470 5.50%, 7/01/21 ............................................................. 07/03 @ 101.5 488,715 A- 1,000 5.75%, 7/01/15 ............................................................. 07/03 @ 101.5 1,041,440 BBB+ 1,000 Puerto Rico Pub. Fin. Corp. Rev., Comnwlth. Approp., Ser. E, 5.50%, 8/01/29 .. 02/12 @ 100 1,047,370 ------------ 5,286,509 ------------ TOTAL INVESTMENTS--142.8% (COST $22,874,999) ................................. 25,194,496 Other assets in excess of liabilities--5.4% .................................. 946,789 Preferred shares at redemption value, including dividends payable--(48.2)% ... (8,502,445) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 17,638,840 ============
- ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. ** Date (month/year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + This bond is prerefunded. See Glossary for definition. KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation ETM -- Escrowed to Maturity FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance MBIA -- Municipal Bond Insurance Association GO -- General Obligation See Notes to Financial Statements. 25 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2002 BLACKROCK FLORIDA MUNICIPAL INCOME TRUST
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- LONG-TERM INVESTMENTS--154.1% FLORIDA--132.7% AA $10,715 Beacon Tradeport Cmnty. Dev. Dist. Spec. Assmt., Coml. Proj., Ser. A, 5.625%, 5/1/32 ............................................. 05/12 @ 102 $ 11,119,920 AAA 2,800 Cap. Projs. Fin. Auth. Student Hsg. Rev., Cap. Projs. Loan Prog., Ser. F-1, 5.00%, 10/01/31, MBIA ........................................... 08/11 @ 102 2,768,612 Aaa 7,000 Escambia Cnty. Hlth. Facs. Auth. Hlth. Care Fac. Rev., 5.95%, 7/01/20, AMBAC No Opt. Call 8,032,640 Florida Brd. of Ed., GO, AA+ 5,550 Ser. A, 5.125%, 6/01/30 ................................................... 06/10 @ 101 5,602,281 AAA 2,500 Ser. F, 5.00%, 6/01/32, MBIA .............................................. 06/12 @ 101 2,502,900 A 3,000 Florida Hsg. Fin. Corp. Rev., Sunset Place, Ser. K-1, 6.10%, 10/01/29 ....... 10/09 @ 102 3,073,440 AA- 1,860 Florida Tpke. Auth. Rev., Dept. of Transp., Ser. B, 5.00%, 7/01/30 .......... 07/10 @ 101 1,861,432 NR 1,715 Heritage Harbour So. Cmnty., Cap. Impvt., Ser. A, 6.50%, 5/01/34 ............ 05/13 @ 101 1,655,026 A- 6,500 Highlands Cnty. Hlth. Facs. Auth. Rev., Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31 ................................................... 11/11 @ 101 6,717,035 A2 3,000 Hillsborough Cnty. Ind. Dev. Auth., PCR, Tampa Elec. Co. Proj., 5.50%, 10/01/23 .................................................... 10/12 @ 100 2,981,250 AA 7,500 Jacksonville Econ. Dev. Comm. Hlth. Facs. Rev., Mayo Clinic, Ser. B, 5.50%, 11/15/36 ................................................... 11/11 @ 101 7,684,725 AAA 4,000 Jacksonville Transp. Rev., 5.00%, 10/01/26, MBIA ............................ 10/11 @ 100 4,011,920 AA 5,000 JEA Elec. Sys. Rev., Ser. A, 5.50%, 10/01/41 ................................ 10/07 @ 100 5,088,000 Aa3 7,500 JEA Wtr. & Swr. Sys. Rev., Ser. C, 5.25%, 10/01/37 .......................... 10/06 @ 100 7,549,575 AAA 2,770 Melbourne Wtr. & Swr. Rev., Zero Coupon, 10/01/21, FGIC ..................... No Opt. Call 1,067,059 Aaa 1,000 Miami Dade Cnty. Expwy. Auth. Toll Sys. Rev., 5.125%, 7/01/25, FGIC ......... 07/11 @ 101 1,013,520 AAA 6,000 Miami Dade Cnty. Sch. Brd., COP, Ser. A, 5.00%, 5/01/31, MBIA ............... 05/11 @ 101 5,992,440 Miami Dade Cnty. Spec. Oblig., MBIA, AAA 2,595 Ser. A, Zero Coupon, 10/01/19 ............................................. 04/08 @ 55.413 1,059,383 AAA 9,700 Ser. B, Zero Coupon, 10/01/33 ............................................. 04/08 @ 25.056 1,723,011 AAA 25,000 Ser. C, Zero Coupon, 10/01/28 ............................................. 04/08 @ 32.99 5,881,250 No. Palm Beach Cnty. Impvt. Dist. Rev., Wtr. Ctrl. & Impvt. Unit Dev. No. 43, NR 5,845 6.10%, 8/01/21 ............................................................ 08/11 @ 101 5,885,214 NR 3,500 6.125%, 8/01/31 ........................................................... 08/11 @ 101 3,474,450 Aaa 4,000 Osceola Cnty. Sch. Brd., COP, Ser. A, 5.25%, 6/01/27, AMBAC ................. 06/12 @ 101 4,082,800 AAA 4,500 Palm Beach Cnty. Sch. Brd., COP, Ser. B, 5.00%, 8/01/25, AMBAC .............. 08/11 @ 101 4,518,180 AAA 2,325 Port St. Lucie Util. Rev., 5.125%, 9/01/31, MBIA ............................ 09/11 @ 100 2,347,413 Aaa 5,000 St. Petersburg Pub. Util. Rev., Ser. A, 5.00%, 10/01/28, FSA ............... 10/09 @ 101 5,006,450 AA 5,500 Tampa Rev., Univ. Tampa Proj., 5.625%, 4/01/32, RAA ......................... 04/12 @ 100 5,689,805 AA 8,000 Tampa Wtr. & Swr. Rev., Ser. A, 5.00%, 10/01/26 ............................. 10/11 @ 101 8,026,880 Baa2 2,000 Volusia Cnty. Edl. Fac. Auth. Rev., Embry Riddle Aero. Univ., Ser. A, 5.75%, 10/15/29 ................................................... 10/09 @ 101 2,044,760 ------------ 128,461,371 ------------ PUERTO RICO--21.4% A1 6,000 Children's Trust Fund Tobacco Settlement Rev., 5.625%, 5/15/43 .............. 05/12 @ 100 5,757,000 A- 7,500 Puerto Rico Comnwlth., GO, Ser. A, 5.125%, 7/01/31 .......................... 07/11 @ 100 7,534,350 Puerto Rico Pub. Fin. Corp. Rev., Comnwlth. Approp., Ser. E, BBB+ 4,000 5.70%, 8/01/25 ............................................................ 02/10 @ 100 4,215,120 BBB+ 3,000 5.75%, 8/01/30 ............................................................ 02/07 @ 100 3,231,630 ------------ 20,738,100 ------------ TOTAL LONG-TERM INVESTMENTS (COST $146,357,347) ............................. 149,199,471 ------------
See Notes to Financial Statements. 26
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS--6.2% NR $ 3,000 AIM Tax Free Investment Co. Cash Reserve Portfolio ............................. N/A $ 3,000,000 NR 3,000 SSgA Tax Free Money Mkt. Fund .................................................. N/A 3,000,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $6,000,000) ................................. 6,000,000 ------------ Total Investments--160.3% (cost $152,357,347) .................................. 155,199,471 Liabilities in excess of other assets--(0.9)% .................................. (827,836) Preferred shares at redemption value, including dividends payable--(59.4)% ..... (57,555,361) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ............................. $ 96,816,274 ============
- ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. ** Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control revenue RAA -- Radian Asset Assurance See Notes to Financial Statements. 27 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2002 BLACKROCK NEW JERSEY INVESTMENT QUALITY MUNICIPAL TRUST
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- LONG-TERM INVESTMENTS--145.6% NEW JERSEY-131.3% NR $ 1,000+ Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/49 .................... 06/09 @ 100 $ 1,047,150 AAA 1,000 Delaware River Port. Auth. of PA & NJ Rev., 5.75%, 1/01/26, FSA ............. 01/10 @ 100 1,073,170 AAA 1,000++ Essex Cnty. Util. Auth. Sld. Wst. Rev., Ser. A, 5.60%, 4/01/06, FSA ......... N/A 1,125,980 New Jersey Econ. Dev. Auth. Rev., B+ 1,000 Continental Airlines Inc. Proj., 7.00%, 11/15/30 .......................... 11/10 @ 101 555,170 AAA 1,000++ Mkt. Trans. Fac., Ser. A, 5.875%, 7/01/04, MBIA ........................... N/A 1,088,160 AAA 900 Transp. Proj. Sublease, Ser. A, 5.75%, 5/01/10, FSA ....................... No Opt. Call 1,030,626 BBB 500 Trigen-Trenton Proj., Ser. A, 6.20%, 12/01/10 ............................. 12/03 @ 102 512,440 AAA 1,000++ New Jersey Edl. Fac. Auth. Rev., Rowan College, Ser. E, 5.875%, 7/01/06, AMBAC .................................................... N/A 1,133,820 New Jersey Hlth. Care Fac. Fin. Auth. Rev., A2 1,000 Hackensack Univ. Med. Ctr, 6.00%, 1/01/25 ................................. 01/10 @ 101 1,043,280 AAA 1,000++ Riverview Med. Ctr., 5.50%, 7/01/04, AMBAC ................................ N/A 1,082,060 AAA 1,000 St. Josephs Hosp. & Med. Ctr., 5.75%, 7/01/16, CONNIE LEE ................. 07/06 @ 102 1,090,890 AAA 840 New Jersey Hsg. & Mtge. Fin. Rev., Home Buyer, Ser. O, 6.35%, 10/01/27, MBIA ............................................................ 10/05 @ 101.5 869,408 AAA 1,000 New Jersey Tpke. Auth. Rev., Ser. C, 6.50%, 1/01/16, AMBAC .................. No Opt. Call 1,223,640 New Jersey Transp. Trust Fund Auth., Trans. Sys. Rev., Ser. B, MBIA, AAA 375++ 5.50%, 6/15/05 ............................................................ N/A 416,055 AAA 625 5.50%, 6/15/15 ............................................................ 06/05 @ 102 678,150 AAA 375++ 5.75%, 6/15/05 ............................................................ N/A 418,433 AAA 625 5.75%, 6/15/14 ............................................................ 06/05 @ 102 688,406 AA 1,000++ North Brunswick Twnshp. Brd. of Ed., GO, 6.30%, 2/01/05 ..................... N/A 1,095,270 AAA 1,000 Passaic Valley Sewage Com., Swr. Sys., Ser. E, GO, 5.75%, 12/01/21, AMBAC ... 12/09 @ 101 1,098,870 A1 1,000 Port Auth. of NY & NJ Rev., 5.75%, 12/15/20 ................................. 06/05 @ 101 1,070,210 South Jersey Transp. Auth., Transp. Sys. Rev., Ser. B, MBIA, AAA 570++ 6.00%, 11/01/02 ........................................................... N/A 581,400 AAA 430 6.00%, 11/01/12 ........................................................... 11/02 @ 102 439,864 ------------ 19,362,452 ------------ PUERTO RICO--14.3% AAA 1,000 Puerto Rico Comnwlth., 5.40%, 7/01/25, FSA .................................. 07/06 @ 101.5 1,055,540 A- 1,000 Puerto Rico Elec. Pwr. Auth. Rev., Ser. U, 6.00%, 7/01/14 ................... 07/04 @ 102 1,060,210 ------------ 2,115,750 ------------ TOTAL INVESTMENTS--145.6% (COST $19,981,595) ................................ 21,478,202 Other assets in excess of liabilities--5.2% ................................. 769,480 Preferred shares at redemption value, including dividends payable--(50.8)% .. (7,500,534) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $ 14,747,148 ============
- ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. ** Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2002, the Trust held 7.1% of its net assets, with a current market value of $1,047,150 in securities restricted as to resale. ++ This bond is prerefunded. See Glossary for definition. KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation GO -- General Obligation CONNIE LEE -- College Construction Loan Insurance Association MBIA -- Municipal Bond Insurance Association FSA -- Financial Security Assurance See Notes to Financial Statements. 28 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2002 BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUST
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- LONG-TERM INVESTMENTS--156.5% NEW JERSEY--112.8% Charter Mac Equity Issuer Trust, NR $ 7,000+ Ser. A-2, 6.30%, 6/30/49 ................................................... 06/09 @ 100 $ 7,174,720 NR 2,500+ Ser. B-1, 6.80%, 11/30/50 .................................................. 11/10 @ 100 2,565,275 Cherry Hill Twnshp., GO, Aa2 4,065 5.00%, 7/15/22 ............................................................. 07/11 @ 100 4,093,862 Aa2 4,275 5.00%, 7/15/23 ............................................................. 07/11 @ 100 4,296,332 Middlesex Cnty., AAA 7,750 COP, 5.00%, 8/01/31, MBIA .................................................. 08/11 @ 100 7,766,972 AAA 1,400 Impvt. Auth. Rev., Admin. Bldg. Res. Proj., 5.35%, 7/01/34 ................. 07/11 @ 100 1,407,784 AAA 1,450 Impvt. Auth. Util. Sys. Rev., Perth Amboy Franchise Proj., Ser. A, 5.00%, 9/01/29, AMBAC .............................................. 09/09 @ 101 1,453,669 AAA 1,820 Monmouth Cnty. Impvt. Auth. Rev., Brookland Cmnty. Coll. Proj., 5.00%, 8/01/29, AMBAC .......................................... 08/10 @ 100 1,824,532 MuniMae TE Bond Subsidiary, LLC, NR 3,000+ Ser. A, 6.30%, 6/30/49 ..................................................... 11/09 @ 100 3,092,820 NR 2,000+ Ser. B, 6.80%, 6/30/50 ..................................................... 11/10 @ 100 2,048,420 New Jersey Econ. Dev. Auth. Rev., B+ 4,000 Continental Airlines Inc. Proj., 7.00%, 11/15/30 ........................... 11/10 @ 101 2,220,680 B+ 2,000 Continental Airlines Inc. Proj., 7.20%, 11/15/30 ........................... 11/10 @ 101 1,140,480 BBB- 2,630 First Mtg. Fellowship Vlg. Proj., Ser. C., 5.50%, 1/01/18 .................. 01/09 @ 102 2,468,570 Baa3 2,500 Kapkowski Road Landfill Proj., 6.50%, 4/01/28 .............................. No Opt. Call 2,679,425 Baa3 5,000 Kapkowski Road Landfill Proj., 6.50%, 4/01/31 .............................. No Opt. Call 5,352,900 A+ 2,000 Masonic Charity Fndtn. Proj., 5.50%, 6/01/31 ............................... 06/11 @ 102 2,060,520 Aaa 2,000 Victoria Hlth., Ser. A, 5.20%, 12/20/36 .................................... 12/11 @ 103 2,032,740 New Jersey Hlth. Care Facs. Fin. Auth. Rev., A- 4,500 Atlantic City Med. Ctr., 5.75%, 7/01/25 .................................... 07/12 @ 100 4,626,180 AA 1,500 Good Shepherd, 5.20%, 7/01/31, RAA ......................................... 07/11 @ 100 1,502,160 A3 10,000 Kennedy Hlth. Sys., 5.625%, 7/01/31 ........................................ 07/11 @ 100 10,066,200 Baa1 1,960 So. Jersey Hosp., 6.00%, 7/01/26 ........................................... 07/12 @ 100 1,976,366 Baa1 5,500 So. Jersey Hosp., 6.00%, 7/01/32 ........................................... 07/12 @ 100 5,529,810 AA 1,250 So. Ocean Cnty. Hosp., 5.125%, 7/01/31, RAA ................................ 07/11 @ 100 1,254,863 Baa1 1,540 So. Ocean Cnty. Hosp., Ser. A, 6.25%, 7/01/23 .............................. 07/03 @ 102 1,560,836 AAA 3,000 New Jersey Hsg. Mult. Fam. Mtge. Rev., Ser. A, 5.05%, 5/01/34, FSA .......... 05/11 @ 100 2,982,660 Aaa 1,990 Newark Hlth. Care Fac. Rev., New Cmty. Urban Renewal Proj., Ser. A, 5.20%, 6/01/30 ..................................................... 06/12 @ 102 2,030,138 Port Auth. of NY & NJ Rev., AAA 4,000 Ser. 124, 5.00%, 8/01/36, FGIC ............................................. 08/08 @ 101 4,004,880 AAA 8,000 Spec. Oblig. Rev., JFK Intl., Air Term. 6, 5.75%, 12/01/22, MBIA ........... 12/07 @ 102 8,555,040 A1 10,000 Tobacco Settlement Fin. Corp., 6.125%, 6/01/42 ............................... 06/12 @ 100 9,592,700 Trenton Pkg. Auth. Rev., FGIC, Aaa 5,465 5.00%, 4/01/25 ............................................................. 04/11 @ 100 5,491,451 Aaa 3,700 5.00%, 4/01/30 ............................................................. 04/11 @ 100 3,707,807 Vineland, GO, MBIA, Aaa 1,500 5.30%, 5/15/30 ............................................................. 05/10 @ 101 1,518,630 Aaa 1,500 5.375%, 5/15/31 ............................................................ 05/10 @ 101 1,528,410 ------------ 119,607,832 ------------ PUERTO RICO--43.7% A1 8,000 Children's Trust Fund Tobacco Settlement Rev., 5.625%, 5/15/43 ............... 05/12 @ 100 7,676,000 A 7,000 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Transp. Rev., Ser. D, 5.25%, 7/01/38 ..................................................... 07/12 @ 100 7,054,110 Puerto Rico Hsg. Fin. Corp. Home Mtge. Rev., AAA 3,000 Ser. A, 5.20%, 12/01/33 .................................................... 06/11 @ 100 3,032,130 AAA 3,000 Ser. B, 5.30%, 12/01/28 .................................................... 06/11 @ 100 3,012,180 Puerto Rico Pub. Bldgs. Auth. Rev., Ser. D, AAA 5,000 Zero Coupon, 7/01/31, AMBAC ................................................ 07/17 @ 100 3,104,450 A- 10,500 Gov't. Facs., 5.25%, 7/01/36 ............................................... 07/12 @ 100 10,613,085
See Notes to Financial Statements. 29
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- Puerto Rico Pub. Fin. Corp. Rev., Comnwlth. Approp., Ser. E, BBB+ $ 4,000 5.70%, 8/01/25 ........................................................... 02/10 @ 100 $ 4,215,120 BBB+ 7,040 5.75%, 8/01/30 ........................................................... 02/07 @ 100 7,583,558 ------------ 46,290,633 ------------ TOTAL LONG-TERM INVESTMENTS (COST $165,020,024) ............................ 165,898,465 ------------ MONEY MARKET FUND--1.9% NR 2,000 AIM Tax Free Investment Co. Cash Reserves Portfolio (cost $2,000,000) ...... N/A 2,000,000 ------------ TOTAL INVESTMENTS--158.4% (COST $167,020,024) .............................. 167,898,465 Other assets in excess of liabilities--1.8% ................................ 1,906,205 Preferred shares at redemption value, including dividends payable--(60.2)% . (63,819,574) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ......................... $105,985,096 ============
- ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. ** Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2002, the Trust held 14.0% of its net assets, with a current market value of $14,881,235 in securities restricted as to resale. KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association RAA -- Radian Asset Assurance See Notes to Financial Statements. 30 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2002 BLACKROCK NEW YORK INVESTMENT QUALITY MUNICIPAL TRUST
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- LONG-TERM INVESTMENTS--143.9% NEW YORK--133.3% AAA $ 1,000+ Met. Transp. Auth., Trans. Fac. Rev., Ser. M, 6.00%, 7/01/03, AMBAC ......... N/A $ 1,043,400 AAA 1,000 Nassau Cnty., GO, Ser. U, 5.25%, 11/01/14, AMBAC ............................ 11/06 @ 102 1,070,410 New York City, GO, A 1,000 Ser. A, 6.00%, 5/15/30 .................................................... 05/10 @ 101 1,063,190 A 1,000 Ser. D, 6.60%, 2/01/04 .................................................... No Opt. Call 1,054,070 A 1,000 Ser. I, 5.875%, 3/15/18 ................................................... 03/06 @ 101.5 1,049,540 New York City Ind. Dev. Agcy. Spec. Fac. Rev., Term. One Grp. Assoc. Proj., A3 1,000 6.00%, 1/01/08 ............................................................ 01/04 @ 102 1,033,570 A3 1,000 6.00%, 1/01/15 ............................................................ 01/04 @ 102 1,029,370 A3 1,000 6.10%, 1/01/09 ............................................................ 01/04 @ 102 1,033,760 AAA 1,000+ New York City Mun. Wtr. Fin. Auth., Rev., Ser. A, 6.00%, 6/15/05 ............ N/A 1,114,000 New York City Trans'l. Fin. Auth. Rev., Ser. B, AA+ 815+ 6.00%, 5/15/10 ............................................................ N/A 963,990 AA+ 1,000+ 6.00%, 5/15/10 ............................................................ N/A 1,182,810 AA+ 185 6.00%, 11/15/21 ........................................................... 05/10 @ 101 204,266 New York Dorm. Auth. Rev., City Univ., AAA 1,250+ 6.125%, 7/01/04, AMBAC .................................................... N/A 1,366,363 AAA 1,000+ 6.20%, 7/01/04, AMBAC ..................................................... N/A 1,094,310 BBB 1,000 Mount Sinai Hlth., Ser. A, 6.50%, 7/01/25 ................................. 07/10 @ 101 1,076,200 AAA 1,005 St. Univ. Edl. Fac., 5.25%, 5/15/15, AMBAC ................................ No Opt. Call 1,118,173 AAA 1,000+ St. Univ. Edl. Fac., Ser. A, 6.25%, 5/15/03 ............................... N/A 1,044,170 AAA 1,000+ St. Univ. Edl. Fac., Ser. B, 6.00%, 5/15/04 ............................... N/A 1,085,660 AAA 1,000+ St. Univ. Edl. Fac., Ser. B, 6.25%, 5/15/04 ............................... N/A 1,089,420 A+ 1,000 Univ. Rochester, Ser. B, 5.625%, 7/01/24 .................................. 07/09 @ 101 1,044,940 AA 1,000 New York, GO, Ser. B, 5.70%, 8/15/12 ........................................ 08/05 @ 101 1,090,410 AA- 1,000 New York Hsg. Fin. Agcy., Svc. Ctr. Oblig. Rev., Ser. A, 5.50%, 9/15/22 ..... 03/03 @ 102 1,026,900 AA- 1,000 New York Local Gov't. Asst. Corp. Rev., Ser. B, 5.50%, 4/01/21 .............. 04/03 @ 102 1,026,780 New York Urban Dev. Corp. Rev., AAA 1,000 Correctional Cap. Facs., 5.70%, 1/01/27, MBIA ............................. 01/07 @ 102 1,067,810 AA- 900 Youth Fac., 5.875%, 4/01/09 ............................................... 04/04 @ 102 962,568 A- 1,000 Ulster Cnty. Res. Rec. Agcy., Sld. Wst. Sys. Rev., 5.90%, 3/01/07 ........... 03/03 @ 102 1,029,460 ------------ 26,965,540 ------------ PUERTO RICO--10.6% A- 1,000+ Puerto Rico Elec. Pwr. Auth. Rev., Ser. T, 6.00%, 7/01/04 ................... N/A 1,091,060 BBB+ 1,000 Puerto Rico Pub. Fin. Corp. Rev., Comnwlth. Approp., Ser. E, 5.50%, 8/01/29 . 02/12 @ 100 1,047,370 ------------ 2,138,430 ------------ TOTAL INVESTMENTS--143.9% (COST $26,580,235) ................................ 29,103,970 Other assets in excess of liabilities--4.5% ................................. 919,191 Preferred shares at redemption value, including dividends payable--(48.4)% .. (9,801,396) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $ 20,221,765 ============
- ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. ** Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + This bond is prerefunded. See Glossary for definition. KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporation GO -- General Obligation MBIA -- Municipal Bond Insurance Association See Notes to Financial Statements. 31 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2002 BLACKROCK NEW YORK MUNICIPAL INCOME TRUST
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- LONG-TERM INVESTMENTS--158.2% NEW YORK--136.7% Charter Mac Equity Issuer Trust, NR $ 6,000+ Ser. A-2, 6.30%, 6/30/49 ................................................... 06/09 @ 100 $ 6,149,760 NR 5,500+ Ser. B-1, 6.80%, 11/30/50 .................................................. 11/10 @ 100 5,643,605 Aaa 2,750 Columbia Cnty. Ind. Dev. Agcy., Civic Fac. Rev., Hudson Valley Care, Ser. A, 6.875%, 3/20/37 ............................................................ 03/12 @ 105 3,155,047 AAA 1,355 East Rochester Hsg. Auth., Gates Sr. Hsg. Inc. Proj., 6.13%, 4/20/43 ......... 10/11 @ 105 1,457,966 A- 2,590 Long Island Pwr. Auth. Elec. Sys. Rev., Ser. A, 5.50%, 12/01/29 .............. 06/03 @ 101 2,626,105 Met. Transp. Auth. Rev., Ser. A, A 12,000 5.125%, 11/15/31 ........................................................... 11/12 @ 100 12,017,520 AA- 12,000 Dedicated Tax Fnd. Rev., 5.00%, 11/15/30 ................................... 11/12 @ 100 11,824,440 MuniMae TE Bond Subsidiary, LLC, NR 6,000+ Ser. A, 6.30%, 6/30/49 ..................................................... 11/09 @ 100 6,185,640 NR 3,000+ Ser. B, 6.80%, 6/30/50 ..................................................... 11/10 @ 100 3,072,630 New York City, GO, A 6,000 Ser. C, 5.375%, 3/15/28 .................................................... 03/12 @ 100 5,998,620 A 7,000 Ser. D, 5.375%, 6/01/32 .................................................... 06/12 @ 100 6,985,790 New York City Ind. Dev. Agcy., A 750 Marymount Sch. Proj., 5.125%, 9/01/21, ACA ................................. 09/11 @ 102 751,792 A 2,000 Marymount Sch. Proj., 5.25%, 9/01/31, ACA .................................. 09/11 @ 102 1,994,400 AAA 1,550 Royal Charter Presbyterian, 5.25%, 12/15/32, FSA ........................... 12/11 @ 102 1,583,356 BBB- 14,850 Spec. Arpt. Airis JFK I LLC Proj., Ser. A, 5.50%, 7/01/28 .................. 07/11 @ 100 13,664,079 A3 6,000 Spec. Fac. Rev., Term. One Grp. Assoc. Proj., 6.00%, 1/01/19 ............... 01/04 @ 102 6,144,540 New York City Mun. Wtr. Fin. Auth. Rev., AAA 5,000 Ser. A, 5.00%, 6/15/32, FGIC ............................................... 06/11 @ 100 5,007,350 AA 7,000 Ser. C, 5.00%, 6/15/32 ..................................................... 06/11 @ 100 6,990,900 New York City Trans'l. Fin. Auth. Rev., Ser. C, AA+ 5,940++ 5.00%, 5/01/09 ............................................................. N/A 6,643,712 AA+ 3,660 5.00%, 5/01/29 ............................................................. 05/09 @ 101 3,628,817 A1 4,750 New York Cntys. Tobacco Trust II, Tobacco Settlement Rev., 5.625%, 6/01/35 ... 06/11 @ 101 4,618,710 New York Dorm. Auth. Rev., AA- 17,000 City Univ. Ser. A, 5.25%, 7/01/31 .......................................... 07/11 @ 100 17,225,420 A3 10,780 Lenox Hill Hosp. Oblig. Grp., 5.50%, 7/01/30 ............................... 07/11 @ 101 10,848,669 AAA 9,000 New Sch. Univ., 5.00%, 7/01/41, MBIA ....................................... 07/11 @ 100 8,972,820 AAA 9,000 New York Univ., Ser. 2, 5.00%, 7/01/41, AMBAC .............................. 07/11 @ 100 8,972,820 New York St. Mtge. Agcy. Rev., Aa1 5,985 Ser. 101, 5.40%, 4/01/32 ................................................... 10/11 @ 100 6,009,838 Aaa 15,500 Ser. A, 5.30%, 10/01/31 .................................................... 04/11 @ 100 15,530,380 AA- 6,290 New York Urban Dev. Corp. Rev., Correctional Cap. Facs., Ser. 6, 5.375%, 1/1/25 ..................................................... 01/06 @ 102 6,404,918 Port Auth. of NY & NJ Rev., AAA 9,500 Ser. 124, 5.00%, 8/01/36, FGIC ............................................. 08/08 @ 101 9,511,590 B3 8,800 Spec. Oblig. Rev., Cont'l./Eastern Proj. LaGuardia, 9.125%, 12/01/15 ....... 12/02 @ 100 8,817,952 AAA 13,000 Spec. Oblig. Rev., JFK Int'l. Air Term. 6, 5.75%, 12/01/22, MBIA ........... 12/07 @ 102 13,901,940 A1 2,500 Rensselaer Tobacco Asset Sec. Corp., New York Tobacco Settlement Rev., Ser. A, 5.75%, 6/01/43 ..................................................... 06/12 @ 100 2,408,650 A1 5,000 Rockland Tobacco Asset Sec. Corp., New York Tobacco Settlement Rev., 5.75%, 8/15/43 ............................................ 08/12 @ 100 4,816,850 TSASC Inc., Ser. 1, Aa3 8,000 Flexible Amortization Bonds, 6.375%, 7/15/39 ............................... 07/09 @ 101 8,454,400 Aa2 5,000 Tobacco Settlement Rev., 5.75%, 7/15/32 .................................... 07/12 @ 100 4,988,300 AA 2,500 Westchester Cnty. Ind. Dev. Agcy. Rev., Winward Sch. Civic Fac., 5.25%, 10/01/31, RAA ........................................... 10/11 @ 100 2,521,550 A1 2,000 Westchester Tobacco Asset Sec., Corp. Tobacco Settlement Rev., 6.75%, 7/15/29 .................................... 07/10 @ 101 2,193,140 ------------ 247,724,016 ------------
See Notes to Financial Statements. 32
PRINCIPAL OPTION CALL RATING* AMOUNT PROVISIONS** VALUE (UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1) - -------------------------------------------------------------------------------------------------------------------------------- PUERTO RICO--21.5% A1 $ 6,000 Children's Trust Fund Tobacco Settlement Rev., 5.625%, 5/15/43 ............... 05/12 @ 100 $ 5,757,000 A- 3,000 Puerto Rico Comnwlth., GO, Ser. A, 5.125%, 7/01/31 .......................... 07/11 @ 100 3,013,740 A- 6,000 Puerto Rico Pub. Bldgs. Auth. Rev., Gov't. Facs., Ser. D, 5.25%, 7/01/36 ..... 07/12 @ 100 6,064,620 Puerto Rico Pub. Fin. Corp. Rev., Comnwlth. Approp., Ser. E, BBB+ 10,000 5.50%, 8/01/29 ............................................................. 02/12 @ 100 10,473,700 BBB+ 7,000 5.70%, 8/01/25 ............................................................. 02/10 @ 100 7,376,460 BBB+ 5,750 5.75%, 8/01/30 ............................................................. 02/07 @ 100 6,193,958 ------------ 38,879,478 ------------ TOTAL INVESTMENTS--158.2% (COST $281,814,205) ................................ 286,603,494 Other assets in excess of liabilities--2.4% .................................. 4,359,124 Preferred shares at redemption value, including dividends payable--(60.6)% ... (109,762,702) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $181,199,916 ============
- ---------- * Using the higher of Standard & Poor's, Moody's or Fitch's rating. ** Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. + Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2002, the Trust held 11.6% of its net assets, with a current market value of $21,051,635 in securities restricted as to resale. ++ This bond is prerefunded. See Glossary for definition. KEY TO ABBREVIATIONS ACA -- American Capital Access AMBAC -- American Municipal Bond Assurance Corporation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association RAA -- Radian Asset Assurance See Notes to Financial Statements. 33 STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 2002 - --------------------------------------------------------------------------------
CALIFORNIA INVESTMENT QUALITY INVESTMENT QUALITY CALIFORNIA MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL TRUST INCOME TRUST TRUST INCOME TRUST -------------- --------------- -------------- ------------- ASSETS Investments at value(1) ........................... $ 394,761,380 $ 959,589,222 $ 21,962,091 $ 346,930,507 Cash .............................................. 77,068 -- 258,427 1,044,188 Receivable from investments sold .................. -- 2,506,739 -- -- Interest receivable ............................... 6,991,041 16,211,646 308,274 5,002,809 Other assets ...................................... 61,853 46,055 7,446 14,359 ------------ ------------- ------------ ------------ 401,891,342 978,353,662 22,536,238 352,991,863 ------------ ------------- ------------ ------------ LIABILITIES Payable to custodian .............................. -- 230,081 -- -- Payable for investments purchased ................. -- 19,369,800 -- 7,448,400 Dividends payable-- common shares ................. 1,211,264 3,397,087 68,818 1,105,181 Investment advisory fee payable ................... 119,871 287,538 6,707 103,587 Administration fee payable ........................ 51,373 -- 1,916 -- Deferred Directors/Trustees fees .................. 39,868 26,301 7,236 7,485 Other accrued expenses ............................ 143,428 178,976 39,794 143,604 ------------ ------------- ------------ ------------ 1,565,804 23,489,783 124,471 8,808,257 ------------ ------------- ------------ ------------ PREFERRED SHARES AT REDEMPTION VALUE $25,000 liquidation value per share, including dividends payable(2,3) .......................... 146,616,022 375,183,000 7,500,312 131,968,424 ------------ ------------- ------------ ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS ............................... $ 253,709,516 $ 579,680,879 $ 14,911,455 $ 212,215,182 ============ ============= ============ ============ Composition of Net Assets Applicable to Common Shareholders: Par value ....................................... $ 167,071 $ 43,311 $ 10,071 $ 14,959 Paid-in capital in excess of par ................ 231,766,743 617,134,569 13,392,714 212,627,025 Undistributed net investment income ............. 7,208,291 6,300,650 236,052 1,592,801 Accumulated net realized loss ................... (5,919,921) (15,582,356) -- (2,368,526) Net unrealized appreciation (depreciation) ...... 20,487,332 (28,215,295) 1,272,618 348,923 ------------ ------------- ------------ ------------ Net assets applicable to common shareholders, October 31, 2002 ................................ $ 253,709,516 $ 579,680,879 $ 14,911,455 $ 212,215,182 ============ ============= ============ ============ Net asset value per common share(4) ............... $15.19 $13.33 $14.81 $14.16 ====== ====== ====== ====== (1)Investments at cost ............................ $ 374,274,048 $ 987,804,517 $ 20,689,473 $ 346,581,584 (2)Preferred shares outstanding ................... 5,862 15,005 300 5,278 (3)Par value per share ............................ 0.01 0.001 0.01 0.001 (4)Common shares outstanding ...................... 16,707,093 43,482,711 1,007,093 14,985,501
See Notes to Financial Statements. 34
FLORIDA NEW JERSEY NEW YORK INVESTMENT QUALITY FLORIDA INVESTMENT QUALITY NEW JERSEY INVESTMENT QUALITY NEW YORK MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL TRUST INCOME TRUST TRUST INCOME TRUST TRUST INCOME TRUST ------------ ------------- -------------- ------------- ------------- ------------- $ 25,194,496 $155,199,471 $ 21,478,202 $167,898,465 $ 29,103,970 $286,603,494 701,761 352,361 481,493 -- -- 857,441 -- -- -- 5,000 531,134 -- 371,403 1,989,989 395,316 2,582,744 523,130 4,604,955 7,462 6,423 7,437 7,058 7,494 11,813 ----------- ------------ ------------ ------------ ------------ ----------- 26,275,122 157,548,244 22,362,448 170,493,267 30,165,728 292,077,703 ----------- ------------ ------------ ------------ ------------ ----------- -- -- -- 12,875 -- -- -- 2,560,764 -- -- -- -- 77,544 488,785 66,367 537,572 95,581 915,634 7,777 46,358 6,639 51,034 8,953 87,183 2,222 -- 1,897 -- 2,558 7,230 3,398 7,230 3,695 7,223 6,195 39,064 77,304 32,633 83,421 28,252 106,073 ----------- ------------ ------------ ------------ ------------ ----------- 133,837 3,176,609 114,766 688,597 142,567 1,115,085 ----------- ------------ ------------ ------------ ------------ ----------- 8,502,445 57,555,361 7,500,534 63,819,574 9,801,396 109,762,702 ----------- ------------ ------------ ------------ ------------ ----------- $ 17,638,840 $ 96,816,274 $14,747,148 $105,985,096 $20,221,765 $181,199,916 =========== ============ ============ ============ ============ =========== $ 11,271 $ 6,618 $ 10,071 $ 7,369 $ 13,071 $ 12,429 15,001,008 94,259,853 13,353,335 105,166,790 17,651,717 177,605,686 307,064 548,066 407,105 597,996 492,564 883,082 -- (840,387) (519,970) (665,500) (459,322) (2,090,570) 2,319,497 2,842,124 1,496,607 878,441 2,523,735 4,789,289 ----------- ------------ ------------ ------------ ------------ ----------- $ 17,638,840 $ 96,816,274 $14,747,148 $105,985,096 $20,221,765 $181,199,916 =========== ============ ============ ============ ============ =========== $15.65 $14.57 $14.64 $14.29 $15.47 $14.47 ====== ====== ====== ====== ====== ====== $ 22,874,999 $152,357,347 $19,981,595 $167,020,024 $26,580,235 $281,814,205 340 2,302 300 2,552 392 4,390 0.01 0.001 0.01 0.001 0.01 0.001 1,127,093 6,646,343 1,007,093 7,414,793 1,307,093 12,521,494
35 STATEMENTS OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 2002 - --------------------------------------------------------------------------------
CALIFORNIA INVESTMENT QUALITY INVESTMENT QUALITY CALIFORNIA MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL TRUST INCOME TRUST TRUST INCOME TRUST ------------ ------------ ------------ ------------ INVESTMENT INCOME Interest Income (Note 1) .................. $ 22,673,136 $ 57,158,060 $ 1,240,080 $ 18,561,938 ------------ ------------ ------------ ------------ EXPENSES Investment advisory ....................... 1,392,923 5,841,300 79,526 2,051,488 Administration ............................ 596,967 -- 22,722 -- Transfer agent ............................ 22,783 31,809 10,000 25,863 Auction agent ............................. 389,831 968,222 19,000 353,690 Custodian ................................. 113,500 161,945 4,000 81,969 Reports to shareholders ................... 52,142 39,031 16,000 50,040 Directors/Trustees fees ................... 40,473 85,542 12,000 35,230 Registration .............................. 31,792 49,861 2,000 50,340 Independent accountants ................... 33,766 27,138 8,000 39,902 Legal ..................................... 39,127 16,498 6,000 12,686 Insurance ................................. 6,734 43,555 1,354 15,424 Miscellaneous ............................. 25,478 115,409 15,131 35,715 ------------ ------------ ------------ ------------ Total expenses .......................... 2,745,516 7,380,310 195,733 2,752,347 Less fees waived by Advisor (Note 2) .... -- (2,433,875) -- (854,787) Less fees paid indirectly (Note 2) ...... (11,137) (75,584) -- (41,979) ------------ ------------ ------------ ------------ Net expenses ............................ 2,734,379 4,870,851 195,733 1,855,581 ------------ ------------ ------------ ------------ Net investment income ....................... 19,938,757 52,287,209 1,044,347 16,706,357 ------------ ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments ... (369,453) (15,056,085) 247,705 (2,398,647) Net change in unrealized appreciation (depreciation) on investments ........... (4,013,001) (33,446,564) (897,244) (4,365,363) ------------ ------------ ------------ ------------ Net gain (loss) on investments .............. (4,382,454) (48,502,649) (649,539) (6,764,010) ------------ ------------ ------------ ------------ DIVIDENDS TO PREFERRED SHAREHOLDERS FROM NET INVESTMENT INCOME ....................... (2,091,204) (5,491,070) (90,269) (1,808,646) ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS ................... $ 13,465,099 $ (1,706,510) $ 304,539 $ 8,133,701 ============ ============ ============ ============
See Notes to Financial Statements. 36
FLORIDA NEW JERSEY NEW YORK INVESTMENT QUALITY FLORIDA INVESTMENT QUALITY NEW JERSEY INVESTMENT QUALITY NEW YORK MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL TRUST INCOME TRUST TRUST INCOME TRUST TRUST INCOME TRUST ------------ ------------ ------------ ------------ ------------ ------------ $ 1,387,899 $ 7,996,935 $ 1,219,546 $ 9,119,365 $ 1,620,564 $ 15,261,991 ------------ ------------ ------------ ------------ ------------ ------------ 93,745 906,649 78,017 1,008,246 104,001 1,701,807 25,927 -- 22,291 -- 29,715 -- 10,000 21,275 12,000 21,497 10,000 23,497 21,000 159,022 19,000 166,637 25,000 302,154 5,000 40,999 5,000 62,673 5,000 72,196 15,000 41,008 16,000 36,002 16,000 47,125 12,000 16,097 12,000 17,994 12,000 28,562 -- 36,223 1,000 45,273 -- 50,254 8,000 37,318 8,000 37,091 8,000 36,973 6,000 4,494 6,000 6,107 6,000 9,445 755 6,731 651 7,324 863 12,410 12,422 21,510 14,118 21,151 15,493 31,342 ------------ ------------ ------------ ------------ ------------ ------------ 209,849 1,291,326 194,077 1,429,995 232,072 2,315,765 -- (377,771) -- (420,102) -- (709,086) -- (18,815) -- (35,323) -- (35,366) ------------ ------------ ------------ ------------ ------------ ------------ 209,849 894,740 194,077 974,570 232,072 1,571,313 ------------ ------------ ------------ ------------ ------------ ------------ 1,178,050 7,102,195 1,025,469 8,144,795 1,388,492 13,690,678 ------------ ------------ ------------ ------------ ------------ ------------ 109,254 (711,143) 24,648 (615,525) 17,396 (2,021,656) (92,970) 1,525,829 (414,958) 120,445 56,010 5,742,628 ------------ ------------ ------------ ------------ ------------ ------------ 16,284 814,686 (390,310) (495,080) 73,406 3,720,972 ------------ ------------ ------------ ------------ ------------ ------------ (119,861) (764,896) (90,295) (914,433) (118,520) (1,615,269) ------------ ------------ ------------ ------------ ------------ ------------ $ 1,074,473 $ 7,151,985 $ 544,864 $ 6,735,282 $ 1,343,378 $ 15,796,381 ============ ============ ============ ============ ============ ============
37 STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
INVESTMENT MUNICIPAL QUALITY MUNICIPAL TRUST INCOME TRUST ----------------------------- ----------------------------- FOR THE PERIOD JULY 27, 2001(2) YEAR ENDED YEAR ENDED YEAR ENDED THROUGH OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2002 2001(1) 2002 2001(1) ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS OPERATIONS: Net investment income .................................. $ 19,938,757 $ 20,063,681 $ 52,287,209 $ 7,006,679 Net realized gain (loss) on investments ................ (369,453) (139,260) (15,056,085) (526,271) Net change in unrealized appreciation (depreciation) ... (4,013,001) 12,674,420 (33,446,564) 5,231,269 Dividends to preferred shareholders: From net investment income ........................... (2,091,204) (4,799,537) (5,491,070) (562,667) In excess of net investment income ................... -- -- -- (18,927) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations ........................................ 13,465,099 27,799,304 (1,706,510) 11,130,083 ------------ ------------ ------------ ------------ DIVIDENDS TO COMMON SHAREHOLDERS: From net investment income ............................. (13,532,094) (13,030,933) (40,274,799) (6,444,012) In excess of net investment income ..................... -- -- -- (216,763) ------------ ------------ ------------ ------------ Total dividends ...................................... (13,532,094) (13,030,933) (40,274,799) (6,660,775) ------------ ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS: Net proceeds from the issuance of common shares ........ -- -- -- 535,236,781 Net proceeds from the underwriters' over- allotment option exercised ........................... -- -- -- 79,503,750 Reinvestment of common dividends ....................... -- -- 2,401,296 38,778 (Additional) Unused offering costs relating to the issuance of preferred shares ................. -- 158,743 12,275 -- ------------ ------------ ------------ ------------ Net proceeds from capital share transactions ......... -- 158,743 2,413,571 614,779,309 ------------ ------------ ------------ ------------ Total increase (decrease) .......................... (66,995) 14,927,114 (39,567,738) 619,248,617 ------------ ------------ ------------ ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS Beginning of period ...................................... 253,776,511 238,849,397 619,248,617 -- ------------ ------------ ------------ ------------ End of period ............................................ $253,709,516 $253,776,511 $579,680,879 $619,248,617 ============ ============ ============ ============ End of period undistributed (distributions in excess of) net investment income .................... $ 7,208,291 $ 2,938,017 $ 6,300,650 $ (235,690)
- ---------- (1) Prior period amounts have been restated to conform to the current period's presentation under the provisions of EITF D-98 (Note 1). (2) Commencement of investment operations. This information includes the initial investment by BlackRock Advisors, Inc. (Note 1). See Notes to Financial Statements. 38
CALIFORNIA INVESTMENT CALIFORNIA FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST MUNICIPAL INCOME TRUST QUALITY MUNICIPAL TRUST - ----------------------------- ----------------------------- ----------------------------- FOR THE PERIOD JULY 27, 2001(2) YEAR ENDED YEAR ENDED YEAR ENDED THROUGH YEAR ENDED YEAR ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2002 2001(1) 2002 2001(1) 2002 2001(1) - ------------ ------------ ------------ ------------ ------------ ------------ $ 1,044,347 $ 1,060,522 $ 16,706,357 $ 2,156,178 $ 1,178,050 $ 1,163,769 247,705 17,385 (2,398,647) 30,121 109,254 -- (897,244) 610,063 (4,365,363) 4,714,286 (92,970) 964,928 (90,269) (209,155) (1,808,646) (182,924) (119,861) (268,703) -- -- -- (18,138) -- -- - ------------ ------------ ------------ ------------ ------------ ------------ 304,539 1,478,815 8,133,701 6,699,523 1,074,473 1,859,994 - ------------ ------------ ------------ ------------ ------------ ------------ (803,884) (792,980) (13,106,112) (1,973,254) (907,851) (896,582) -- -- -- (195,660) -- -- - ------------ ------------ ------------ ------------ ------------ ------------ (803,884) (792,980) (13,106,112) (2,168,914) (907,851) (896,582) - ------------ ------------ ------------ ------------ ------------ ------------ -- -- -- 184,357,095 -- -- -- -- -- 27,933,750 -- -- -- -- 380,015 7,166 -- -- -- -- (21,042) -- -- -- - ------------ ------------ ------------ ------------ ------------ ------------ -- -- 358,973 212,298,011 -- -- - ------------ ------------ ------------ ------------ ------------ ------------ (499,345) 685,835 (4,613,438) 216,828,620 166,622 963,412 - ------------ ------------ ------------ ------------ ------------ ------------ 15,410,800 14,724,965 216,828,620 -- 17,472,218 16,508,806 - ------------ ------------ ------------ ------------ ------------ ------------ $ 14,911,455 $ 15,410,800 $212,215,182 $216,828,620 $ 17,638,840 $ 17,472,218 ============ ============ ============ ============ ============ ============ $ 236,052 $ 92,684 $ 1,592,801 $ (213,798) $ 307,064 $ 137,794
39 - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FLORIDA NEW JERSEY INVESTMENT MUNICIPAL INCOME TRUST QUALITY MUNICIPAL TRUST ------------------------------ ------------------------------ FOR THE PERIOD JULY 27, 2001(2) YEAR ENDED THROUGH YEAR ENDED YEAR ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2002 2001(1) 2002 2001(1) ------------ ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSET APPLICABLE TO COMMON SHAREHOLDERS OPERATIONS: Net investment income .................................. $ 7,102,195 $ 1,041,619 $ 1,025,469 $ 967,744 Net realized gain (loss) on investments ................ (711,143) (129,244) 24,648 10,000 Net change in unrealized appreciation (depreciation) ... 1,525,829 1,316,295 (414,958) 871,565 Dividends to preferred shareholders: From net investment income ........................... (764,896) (85,894) (90,295) (213,947) In excess of net investment income ................... -- (349) -- -- ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations ..... 7,151,985 2,142,427 544,864 1,635,362 ------------ ------------ ------------ ------------ DIVIDENDS TO COMMON SHAREHOLDERS: From net investment income ............................. (5,799,995) (955,725) (755,976) (735,851) In excess of net investment income ..................... -- (3,889) -- -- ------------ ------------ ------------ ------------ Total dividends ...................................... (5,799,995) (959,614) (755,976) (735,851) ------------ ------------ ------------ ------------ CAPITAL SHARE TRANSACTIONS: Net proceeds from the issuance of common shares ........ -- 82,332,227 -- -- Net proceeds from the underwriters' over- allotment option exercised ........................... -- 11,603,250 -- -- Reinvestment of common dividends ....................... 394,894 4,260 -- -- Additional (Unused) offering costs relating to the issuance of preferred shares .................. (53,160) -- -- -- ------------ ------------ ------------ ------------ Net proceeds from capital share transactions ......... 341,734 93,939,737 -- -- ------------ ------------ ------------ ------------ Total increase (decrease) .......................... 1,693,724 95,122,550 (211,112) 899,511 ------------ ------------ ------------ ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS Beginning of period ...................................... 95,122,550 -- 14,958,260 14,058,749 ------------ ------------ ------------ ------------ End of period ............................................ $ 96,816,274 $ 95,122,550 $ 14,747,148 $ 14,958,260 ============ ============ ============ ============ End of period undistributed (distributions in excess of) net investment income .................... $ 548,066 $ (4,238) $ 407,105 $ 228,282
- ---------- (1) Prior year amounts have been restated to conform to the current period's presentation under the provisions of EITF D-98 (Note 1). (2) Commencement of investment operations. This information includes the initial investment by BlackRock Advisors, Inc. (Note 1). See Notes to Financial Statements. 40 - --------------------------------------------------------------------------------
NEW JERSEY NEW YORK INVESTMENT NEW YORK MUNICIPAL INCOME TRUST QUALITY MUNICIPAL TRUST MUNICIPAL INCOME TRUST - ------------------------------ ------------------------------ ------------------------------ FOR THE PERIOD FOR THE PERIOD JULY 27, 2001(2) JULY 27, 2001(2) YEAR ENDED THROUGH YEAR ENDED YEAR ENDED YEAR ENDED THROUGH OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2002 2001(1) 2002 2001(1) 2002 2001(1) - ------------ ------------ ------------ ------------ ------------ ------------ $ 8,144,795 $ 952,596 $ 1,388,492 $ 1,387,746 $ 13,690,678 $ 1,712,744 (615,525) (49,975) 17,396 -- (2,021,656) (68,914) 120,445 757,996 56,010 913,204 5,742,628 (953,339) (914,433) (78,257) (118,520) (276,052) (1,615,269) (140,446) -- (17,366) -- -- -- (21,856) - ------------ ------------ ------------ ------------ ------------ ------------ 6,735,282 1,564,994 1,343,378 2,024,898 15,796,381 528,189 - ------------ ------------ ------------ ------------ ------------ ------------ (6,435,974) (874,340) (1,094,531) (1,068,407) (10,955,545) (1,572,298) -- (194,025) -- -- -- (244,679) - ------------ ------------ ------------ ------------ ------------ ------------ (6,435,974) (1,068,365) (1,094,531) (1,068,407) (10,955,545) (1,816,977) - ------------ ------------ ------------ ------------ ------------ ------------ -- 90,833,498 -- -- -- 153,176,800 -- 13,752,000 -- -- -- 23,206,500 651,099 6,679 -- -- 1,276,152 15,854 (54,117) -- -- -- (27,438) -- - ------------ ------------ ------------ ------------ ------------ ------------ 596,982 104,592,177 -- -- 1,248,714 176,399,154 - ------------ ------------ ------------ ------------ ------------ ------------ 896,290 105,088,806 248,847 956,491 6,089,550 175,110,366 - ------------ ------------ ------------ ------------ ------------ ------------ 105,088,806 -- 19,972,918 19,016,427 175,110,366 -- - ------------ ------------ ------------ ------------ ------------ ------------ $105,985,096 $105,088,806 $ 20,221,765 $ 19,972,918 $181,199,916 $175,110,366 ============ ============ ============ ============ ============ ============ $ 597,996 $ (211,392) $ 492,564 $ 317,123 $ 883,082 $ (266,535)
41 FINANCIAL HIGHLIGHTS BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST - --------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,(1) ---------------------------------------------------------------- 2002 2001 2000 1999 1998 -------- -------- -------- -------- -------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year(2) .......................... $ 15.19 $ 14.30 $ 13.95 $ 15.78 $ 15.32 -------- -------- -------- -------- -------- Investment operations: Net investment income ........................................ 1.20 1.20 1.13 1.09 1.08 Net realized and unrealized gain (loss) on investments ....... (0.26) 0.75 0.43 (1.63) 0.70 Dividends and distributions to preferred shareholders: From net investment income ................................. (0.13) (0.29) (0.35) (0.24) (0.24) Net realized gain on investments ........................... -- -- -- (0.04) (0.07) -------- -------- -------- -------- -------- Net increase (decrease) from investment operations ............. 0.81 1.66 1.21 (0.82) 1.47 -------- -------- -------- -------- -------- Dividends and distributions to common shareholders: From net investment income ................................... (0.81) (0.78) (0.83) (0.86) (0.81) Net realized gain on investment .............................. -- -- -- (0.15) (0.20) -------- -------- -------- -------- -------- Total dividends and distributions .............................. (0.81) (0.78) (0.83) (1.01) (1.01) -------- -------- -------- -------- -------- Capital change with respect to issuance of preferred shares .... -- 0.01 (0.03) -- -- -------- -------- -------- -------- -------- Net asset value, end of year(2) ................................ $ 15.19 $ 15.19 $ 14.30 $ 13.95 $ 15.78 ======== ======== ======== ======== ======== Market value, end of year(2) ................................... $ 13.48 $ 13.73 $ 12.13 $ 13.13 $ 15.44 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(3) ..................................... 4.14% 20.03% (1.27)% (9.03)% 23.81% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(4) Expenses before fees paid indirectly ........................... 1.09% 1.14% 1.20% 1.05% 1.04% Expenses after fees paid indirectly ............................ 1.09% 1.14% 1.20% 1.05% 1.04% Net investment income after fees paid indirectly, and before preferred share dividends ............................ 7.93% 8.10% 8.18% 7.21% 6.95% Preferred share dividends ...................................... 0.83% 1.94% 2.53% 1.60% 1.53% Net investment income available to common shareholders ......... 7.10% 6.16% 5.65% 5.61% 5.42% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ................ $251,428 $247,832 $230,746 $252,536 $259,280 Portfolio turnover ............................................. 19% 4% 35% 26% 46% Net assets of common shareholders, end of year (000) ........... $253,710 $253,777 $238,849 $233,085 $263,590 Preferred shares outstanding (000) ............................. $146,550 $146,550 $146,550 $130,000 $130,000 Asset coverage per preferred share, end of year ................ $ 68,292 $ 68,308 $ 65,745 $ 69,824 $ 75,690
- ---------- (1) Prior year amounts have been restated to conform to the current period's presentation under the provisions of EITF D-98 (Note 1). (2) Net asset value and market value are published in BARRON'S on Saturday and THE WALL STREET JOURNAL on Monday. (3) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of the year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Past performance is not a guarantee of future results. (4) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders. The information above represents the audited operating performance for a common share outstanding, total investment return, ratios to average net assets and other supplemental data for the years indicated. This information has been determined based upon financial information provided in the financial statements and market value data for the Trust's common shares. See Notes to Financial Statements. 42 FINANCIAL HIGHLIGHTS BLACKROCK MUNICIPAL INCOME TRUST - --------------------------------------------------------------------------------
FOR THE PERIOD JULY 27, 2001(1) YEAR ENDED THROUGH OCTOBER 31, OCTOBER 31, 2002 2001(2,3) -------- -------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period(4) ...................... $ 14.30 $ 14.33 -------- -------- Investment operations: Net investment income ..................................... 1.20 0.17 Net realized and unrealized gain (loss) on investments .... (1.11) 0.12 Dividends and distributions to preferred shareholders: From net investment income .............................. (0.13) (0.01) In excess of net investment income ...................... -- (0.00)(5) -------- -------- Net increase (decrease) from investment operations ........... (0.04) 0.28 -------- -------- Dividends and distributions to common shareholders: From net investment income ................................ (0.93) (0.16) In excess of net investment income ........................ -- (0.01) -------- -------- Total dividends and distributions ............................ (0.93) (0.17) -------- -------- Capital change with respect to issuance of: Common shares ............................................. -- (0.03) Preferred shares .......................................... 0.00(5) (0.11) -------- -------- Total capital charges ........................................ 0.00(5) (0.14) -------- -------- Net asset value, end of period(4) ............................ $ 13.33 $ 14.30 ======== ======== Market value, end of period(4) ............................... $ 13.46 $ 14.75 ======== ======== TOTAL INVESTMENT RETURN(6) ................................... (2.40)% (1.13)% ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(7,8) Expenses after expense offsets ............................... 0.81% 0.61% Expenses before expense offsets .............................. 1.23% 0.91% Net investment income after expense offsets and before preferred share dividends .................................. 8.74% 4.59% Preferred share dividends .................................... 0.92% 0.38% Net investment income available to common shareholders ....... 7.82% 4.21% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) .............. $598,425 $572,610 Portfolio turnover ........................................... 70% 27% Net assets of common shareholders, end of period (000) ....... $579,681 $619,249 Preferred shares outstanding (000) ........................... $375,125 $375,125 Asset coverage per preferred share, end of period ............ $ 63,636 $ 66,275
- ---------- (1) Commencement of investment operations. This information includes the initial investment by BlackRock Advisors, Inc. Net asset value immediately after the closing of the first public offering was $14.30 (Note 1). (2) Calculated using the average shares outstanding method. (3) Prior period amounts have been restated to conform to the current period's presentation under the provisions of EITF D-98 (Note 1). (4) Net asset value and market value are published in BARRON'S on Saturday and THE WALL STREET JOURNAL on Monday. (5) Amount is less than $0.005 per share. (6) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of the period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (7) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (8) Annualized. The information above represents the audited operating performance for a common share outstanding, total investment return, ratios to average net assets and other supplemental data for the periods indicated. This information has been determined based upon financial information provided in the financial statements and market value data for the Trust's common shares. See Notes to Financial Statements. 43 FINANCIAL HIGHLIGHTS BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST - --------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,(1) --------------------------------------------------------------- 2002 2001 2000 1999 1998 ------- ------- ------- ------- ------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year(2) ....................... $ 15.30 $ 14.62 $ 14.34 $ 15.49 $ 14.77 ------- ------- ------- ------- ------- Investment operations: Net investment income .................................... 1.04 1.05 1.06 1.05 1.05 Net realized and unrealized gain (loss) on investments ... (0.64) 0.63 0.29 (1.10) 0.79 Dividends to preferred shareholders from net investment income ...................................... (0.09) (0.21) (0.25) (0.22) (0.24) ------- ------- ------- ------- ------- Net increase (decrease) from investment operations .......... 0.31 1.47 1.10 (0.27) 1.60 ------- ------- ------- ------- ------- Dividends to common shareholders from net investment income ....................................... (0.80) (0.79) (0.82) (0.88) (0.88) ------- ------- ------- ------- ------- Net asset value, end of year(2) ............................. $ 14.81 $ 15.30 $ 14.62 $ 14.34 $ 15.49 ======= ======= ======= ======= ======= Market value, end of year(2) ................................ $ 13.38 $ 15.55 $ 14.00 $ 15.50 $16.125 ======= ======= ======= ======= ======= TOTAL INVESTMENT RETURN(3) .................................. (9.26)% 17.03% (4.33)% 1.52% 13.70% ======= ======= ======= ======= ======= RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(4) Expenses .................................................... 1.29% 1.38% 1.41% 1.34% 1.36% Net investment income before preferred share dividends ...... 6.86% 7.04% 7.36% 6.95% 6.93% Preferred share dividends ................................... 0.59% 1.39% 1.75% 1.47% 1.60% Net investment income available to common shareholders ...... 6.27% 5.65% 5.61% 5.48% 5.33% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............. $15,221 $15,072 $14,450 $15,170 $15,265 Portfolio turnover .......................................... 30% 1% 0% 4% 0% Net assets of common shareholders, end of year (000) ........ $14,911 $15,411 $14,725 $14,439 $15,595 Preferred shares outstanding (000) .......................... $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 Asset coverage per preferred share, end of year ............. $74,706 $76,377 $74,097 $73,138 $76,990
- ---------- (1) Prior year amounts have been restated to conform to the current period's presentation under the provisions of EITF D-98 (Note 1). (2) Net asset value and market value are published in BARRON'S on Saturday and THE WALL STREET JOURNAL on Monday. (3) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of the year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Past performance is not a guarantee of future results. (4) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. The information above represents the audited operating performance for a common share outstanding, total investment return, ratios to average net assets and other supplemental data for the years indicated. This information has been determined based upon financial information provided in the financial statements and market value data for the Trust's common shares. See Notes to Financial Statements. 44 FINANCIAL HIGHLIGHTS BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST - --------------------------------------------------------------------------------
FOR THE PERIOD JULY 27, 2001(1) YEAR ENDED THROUGH OCTOBER 31, OCTOBER 31, 2002 2001(2,3) -------- -------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period(4) ..................... $ 14.50 $ 14.33 -------- -------- Investment operations: Net investment income .................................... 1.11 0.16 Net realized and unrealized gain (loss) on investments ... (0.46) 0.32 Dividends and distributions to preferred shareholders: From net investment income ............................. (0.12) (0.01) In excess of net investment income ..................... -- (0.00)(5) -------- -------- Net increase from investment operations ..................... 0.53 0.47 -------- -------- Dividends and distributions to common shareholders: From net investment income ............................... (0.87) (0.15) In excess of net investment income ....................... -- (0.01) -------- -------- Total dividends and distributions ........................... (0.87) (0.16) -------- -------- Capital change with respect to issuance of: Common shares ............................................ -- (0.03) Preferred shares ......................................... (0.00)(5) (0.11) -------- -------- Total capital charges ....................................... (0.00)(5) (0.14) -------- -------- Net asset value, end of period(4) ........................... $ 14.16 $ 14.50 ======== ======== Market value, end of period(4) .............................. $ 13.09 $ 14.75 ======== ======== TOTAL INVESTMENT RETURN(6) .................................. (5.49)% (1.17)% ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(7,8) Expenses after expense offsets .............................. 0.88% 0.72% Expenses before expense offsets ............................. 1.31% 1.02% Net investment income after expense offsets and before preferred share dividends ................................. 7.96% 4.06% Preferred share dividends ................................... 0.86% 0.38% Net investment income available to common shareholders ...... 7.10% 3.68% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............. $209,965 $199,356 Portfolio turnover .......................................... 44% 16% Net assets of common shareholders, end of period (000) ...... $212,215 $216,829 Preferred shares outstanding (000) .......................... $131,950 $131,950 Asset coverage per preferred share, end of period ........... $ 65,211 $ 66,086
- ---------- (1) Commencement of investment operations. This information includes the initial investment by BlackRock Advisors, Inc. Net asset value immediately after the closing of the first public offering was $14.30 (Note 1). (2) Calculated using the average shares outstanding method. (3) Prior period amounts have been restated to conform to the current period's presentation under the provisions of EITF D-98 (Note 1). (4) Net asset value and market value are published in BARRON'S on Saturday and THE WALL STREET JOURNAL on Monday. (5) Amount is less than $0.005 per share. (6) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of the period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (7) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders. (8) Annualized The information above represents the audited operating performance for a common share outstanding, total investment return, ratios to average net assets and other supplemental data for the periods indicated. This information has been determined based upon financial information provided in the financial statements and market value data for the Trust's common shares. See Notes to Financial Statements. 45 FINANCIAL HIGHLIGHTS BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST - --------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,(1) ------------------------------------------------------------------- 2002 2001 2000 1999 1998 ------- ------- ------- ------- ------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year(2) ....................... $ 15.50 $ 14.65 $ 14.29 $ 15.69 $ 14.86 ------- ------- ------- ------- ------- Investment operations: Net investment income .................................... 1.05 1.03 1.07 1.05 1.05 Net realized and unrealized gain (loss) on investments ... 0.02 0.86 0.40 (1.41) 0.81 Dividends to preferred shareholders from net investment income ...................................... (0.11) (0.24) (0.31) (0.24) (0.28) ------- ------- ------- ------- ------- Net increase (decrease) from investment operations .......... 0.96 1.65 1.16 (0.60) 1.58 ------- ------- ------- ------- ------- Dividends to common shareholders from net investment income ....................................... (0.81) (0.80) (0.80) (0.80) (0.75) ------- ------- ------- ------- ------- Net asset value, end of year(2) ............................. $ 15.65 $ 15.50 $ 14.65 $ 14.29 $ 15.69 ======= ======= ======= ======= ======= Market value, end of year(2) ................................ $ 14.50 $ 14.36 $13.125 $12.8125 $15.125 ======= ======= ======= ======= ======= TOTAL INVESTMENT RETURN(3) .................................. 6.52% 15.65% 9.00% (10.60)% 19.70% ======= ======= ======= ======= ======= RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(4) Expenses .................................................... 1.20% 1.38% 1.22% 1.27% 1.31% Net investment income before preferred share dividends ...... 6.76% 6.83% 7.48% 7.11% 6.81% Preferred share dividends ................................... 0.69% 1.58% 2.18% 1.64% 1.80% Net investment income available to common shareholders ...... 6.07% 5.25% 5.30% 5.47% 5.01% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............. $17,427 $17,046 $16,167 $16,736 $17,299 Portfolio turnover .......................................... 8% 0% 0% 0% 0% Net assets of common shareholders, end of year (000) ........ $17,639 $17,472 $16,509 $16,110 $17,684 Preferred shares outstanding (000) .......................... $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ 8,500 Asset coverage per preferred share, end of year ............. $76,886 $76,397 $73,570 $72,390 $77,017
- ---------- (1) Prior year amounts have been restated to conform to the current period's presentation under the provisions of EITFD-98 (Note 1). (2) Net asset value and market value are published in BARRON'S on Saturday and THE WALL STREET JOURNAL on Monday. (3) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of the year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Past performance is not a guarantee of future results. (4) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders. The information above represents the audited operating performance for a common share outstanding, total investment return, ratios to average net assets and other supplemental data for the years indicated. This information has been determined based upon financial information provided in the financial statements and market value data for the Trust's common shares. See Notes to Financial Statements. 46 FINANCIAL HIGHLIGHTS BLACKROCK FLORIDA MUNICIPAL INCOME TRUST - --------------------------------------------------------------------------------
FOR THE PERIOD JULY 27, 2001(1) YEAR ENDED THROUGH OCTOBER 31, OCTOBER 31, 2002 2001(2,3) ------- ------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period(4) ..................... $ 14.37 $ 14.33 ------- ------- Investment operations: Net investment income .................................... 1.07 0.17 Net realized and unrealized gain on investments .......... 0.13 0.18 Dividends and distributions to preferred shareholders: From net investment income ............................. (0.12) (0.01) In excess of net investment income ..................... -- (0.00)(5) ------- ------- Net increase from investment operations ..................... 1.08 0.34 ------- ------- Dividends and distributions to common shareholders: From net investment income ............................... (0.87) (0.16) In excess of net investment income ....................... -- (0.00)(5) ------- ------- Total dividends and distributions ........................... (0.87) (0.16) ------- ------- Capital change with respect to issuance of: Common shares ............................................ -- (0.03) Preferred shares ......................................... (0.01) (0.11) ------- ------- Total capital charges ....................................... (0.01) (0.14) ------- ------- Net asset value, end of period(4) ........................... $ 14.57 $ 14.37 ======= ======= Market value, end of period(4) .............................. $ 13.65 $ 14.50 ======= ======= TOTAL INVESTMENT RETURN(6) .................................. 0.16% (2.84)% ======= ======= RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(7,8) Expenses after expense offsets .............................. 0.96% 0.87% Expenses before expense offsets ............................. 1.38% 1.17% Net investment income after expense offsets and before preferred share dividends ................................. 7.59% 4.43% Preferred share dividends ................................... 0.82% 0.37% Net investment income available to common shareholders ...... 6.77% 4.06% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............. $93,558 $87,918 Portfolio turnover .......................................... 35% 28% Net assets of common shareholders, end of period (000) ...... $96,816 $95,123 Preferred shares outstanding (000) .......................... $57,550 $57,550 Asset coverage per preferred share, end of period ........... $67,060 $66,323
- ---------- (1) Commencement of investment operations. This information includes the initial investment by BlackRock Advisors, Inc. Net asset value immediately after the closing of the first public offering was $14.30 (Note 1). (2) Calculated using the average shares outstanding method. (3) Prior period amounts have been restated to conform to the current period's presentation under the provisions of EITF D-98 (Note 1). (4) Net asset value and market value are published in BARRON'S on Saturday and THE WALL STREET JOURNAL on Monday. (5) Amount is less than $0.005 per share. (6) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of the period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (7) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (8) Annualized The information above represents the audited operating performance for a common share outstanding, total investment return, ratios to average net assets and other supplemental data for the periods indicated. This information has been determined based upon financial information provided in the financial statements and market value data for the Trust's common shares. See Notes to Financial Statements. 47 FINANCIAL HIGHLIGHTS BLACKROCK NEW JERSEY INVESTMENT QUALITY MUNICIPAL TRUST - --------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,(1) ------------------------------------------------------------------- 2002 2001 2000 1999 1998 ------- ------- ------- ------- ------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year(2) ....................... $ 14.85 $ 13.96 $ 13.52 $ 14.95 $ 14.19 ------- ------- ------- ------- ------- Investment operations: Net investment income .................................... 1.02 0.96 1.01 1.00 1.00 Net realized and unrealized gain (loss) on investments ... (0.39) 0.87 0.43 (1.47) 0.71 Dividends to preferred shareholders from net investment income ...................................... (0.09) (0.21) (0.27) (0.23) (0.24) ------- ------- ------- ------- ------- Net increase (decrease) from investment operations .......... 0.54 1.62 1.17 (0.70) 1.47 ------- ------- ------- ------- ------- Dividends to common shareholders from net investment income ........................................ (0.75) (0.73) (0.73) (0.73) (0.71) ------- ------- ------- ------- ------- Net asset value, end of year(2) ............................. $ 14.64 $ 14.85 $ 13.96 $ 13.52 $ 14.95 ======= ======= ======= ======= ======= Market value, end of year(2) ................................ $ 13.30 $ 13.75 $12.125 $ 12.25 $14.125 ======= ======= ======= ======= ======= TOTAL INVESTMENT RETURN(3) .................................. 2.07% 19.63% 5.08% (8.77)% 15.56% ======= ======= ======= ======= ======= RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(4) Expenses .................................................... 1.31% 1.54% 1.32% 1.29% 1.35% Net investment income before preferred share dividends ...... 6.93% 6.64% 7.44% 6.94% 6.88% Preferred share dividends ................................... 0.61% 1.47% 1.98% 1.59% 1.68% Net investment income available to common shareholders ...... 6.32% 5.17% 5.46% 5.35% 5.20% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............. $14,791 $14,570 $13,696 $14,550 $14,663 Portfolio turnover .......................................... 14% 9% 23% 17% 0% Net assets of common shareholders, end of year (000) ........ $14,747 $14,958 $14,059 $13,620 $15,055 Preferred shares outstanding (000) .......................... $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 Asset coverage per preferred share, end of year ............. $74,159 $74,862 $71,879 $70,409 $75,191
- ---------- (1) Prior year amounts have been restated to conform to the current period's presentation under the provisions of EITF D-98 (Note 1). (2) Net asset value and market value are published in BARRON'S on Saturday and THE WALL STREET JOURNAL on Monday. (3) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of the year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Past performance is not a guarantee of future results. (4) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. The information above represents the audited operating performance for a common share outstanding, total investment return, ratios to average net assets and other supplemental data for the years indicated. This information has been determined based upon financial information provided in the financial statements and market value data for the Trust's common shares. See Notes to Financial Statements. 48 FINANCIAL HIGHLIGHTS BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUST - --------------------------------------------------------------------------------
FOR THE PERIOD JULY 27, 2001(1) YEAR ENDED THROUGH OCTOBER 31, OCTOBER 31, 2002 2001(2,3) ------- ------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period(4) ..................... $ 14.26 $ 14.33 ------- ------- Investment operations: Net investment income .................................... 1.10 0.14 Net realized and unrealized gain (loss) on investments ... (0.07) 0.10 Dividends and distributions to preferred shareholders: From net investment income ............................. (0.12) (0.01) In excess of net investment income ..................... -- (0.00)(5) ------- ------- Net increase from investment operations ..................... 0.91 0.23 ------- ------- Dividends and distributions to common shareholders: From net investment income ............................... (0.87) (0.13) In excess of net investment income ....................... -- (0.03) ------- ------- Total dividends and distributions ........................... (0.87) (0.16) ------- ------- Capital change with respect to issuance of: Common shares ............................................ -- (0.03) Preferred shares ......................................... (0.01) (0.11) ------- ------- Total capital charges ....................................... (0.01) (0.14) ------- ------- Net asset value, end of period(4) ........................... $ 14.29 $ 14.26 ======= ======= Market value, end of period(4) .............................. $ 13.64 $ 14.84 ======= ======= TOTAL INVESTMENT RETURN(6) .................................. (2.25)% (0.56)% ======= ======= RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(7,8) Expenses after expense offsets .............................. 0.93% 0.83% Expenses before expense offsets ............................. 1.37% 1.12% Net investment income after expense offsets and before preferred share dividends .................................. 7.81% 3.67% Preferred share dividends ................................... 0.88% 0.37% Net investment income available to common shareholders ...... 6.93% 3.30% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............. $104,241 $97,050 Portfolio turnover .......................................... 50% 16% Net assets of common shareholders, end of period (000) ...... $105,985 $105,089 Preferred shares outstanding (000) .......................... $63,800 $63,800 Asset coverage per preferred share, end of period ........... $66,538 $66,187
- ---------- (1) Commencement of investment operations. This information includes the initial investment by BlackRock Advisors, Inc. Net asset value immediately after the closing of the first public offering was $14.30 (Note 1). (2) Calculated using the average shares outstanding method. (3) Prior period amounts have been restated to conform to the current period's presentation under the provisions of EITF D-98 (Note 1). (4) Net asset value and market value are published in BARRON'S on Saturday and THE WALL STREET JOURNAL on Monday. (5) Amount is less than $0.005 per share. (6) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of the period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (7) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (8) Annualized The information above represents the audited operating performance for a common share outstanding, total investment return, ratios to average net assets and other supplemental data for the periods indicated. This information has been determined based upon financial information provided in the financial statements and market value data for the Trust's common shares. See Notes to Financial Statements. 49 FINANCIAL HIGHLIGHTS BLACKROCK NEW YORK INVESTMENT QUALITY MUNICIPAL TRUST - --------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,(1) ------------------------------------------------------------------- 2002 2001 2000 1999 1998 ------- ------- ------- ------- ------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year(2) ....................... $ 15.28 $ 14.55 $ 14.11 $ 15.58 $ 14.91 ------- ------- ------- ------- ------- Investment operations: Net investment income .................................... 1.06 1.06 1.08 1.08 1.06 Net realized and unrealized gain (loss) on investments ... 0.06 0.70 0.44 (1.50) 0.67 Dividends to preferred shareholders from net investment income ...................................... (0.09) (0.21) (0.26) (0.23) (0.24) ------- ------- ------- ------- ------- Net increase (decrease) from investment operations .......... 1.03 1.55 1.26 (0.65) 1.49 ------- ------- ------- ------- ------- Dividends to common shareholders from net investment income ........................................ (0.84) (0.82) (0.82) (0.82) (0.82) ------- ------- ------- ------- ------- Net asset value, end of year(2) ............................. $ 15.47 $ 15.28 $ 14.55 $ 14.11 $ 15.58 ======= ======= ======= ======= ======= Market value, end of year(2) ................................ $ 14.40 $ 14.20 $12.625 $ 13.63 $ 15.13 ======= ======= ======= ======= ======= TOTAL INVESTMENT RETURN:(3) ................................. 7.42% 19.20% (1.21)% (4.86)% 11.85% ======= ======= ======= ======= ======= RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(4) Expenses .................................................... 1.17% 1.31% 1.21% 1.09% 1.15% Net investment income before preferred share dividends ...... 6.97% 7.06% 7.63% 7.13% 7.02% Preferred share dividends ................................... 0.60% 1.40% 1.83% 1.50% 1.60% Net investment income available to common shareholders ...... 6.37% 5.66% 5.81% 5.63% 5.42% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............. $19,915 $19,663 $18,523 $19,791 $19,980 Portfolio turnover .......................................... 7% 0% 22% 0% 0% Net assets of common shareholders, end of year (000) ........ $20,222 $19,973 $19,016 $18,443 $20,359 Preferred shares outstanding (000) .......................... $ 9,800 $ 9,800 $ 9,800 $ 9,800 $ 9,800 Asset coverage per preferred share, end of year ............. $76,590 $75,955 $73,516 $72,048 $76,935
- ---------- (1) Prior year amounts have been restated to conform to the current period's presentation under the provisions of EITF D-98 (Note 1). (2) Net asset value and market value are published in BARRON'S on Saturday and THE WALL STREET JOURNAL on Monday. (3) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of the year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Past performance is not a guarantee of future results. (4) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. The information above represents the audited operating performance for a common share outstanding, total investment return, ratios to average net assets and other supplemental data for the years indicated. This information has been determined based upon financial information provided in the financial statements and market value data for the Trust's common shares. See Notes to Financial Statements. 50 FINANCIAL HIGHLIGHTS BLACKROCK NEW YORK MUNICIPAL INCOME TRUST - --------------------------------------------------------------------------------
FOR THE PERIOD JULY 27, 2001(1) YEAR ENDED THROUGH OCTOBER 31, OCTOBER 31, 2002 2001(2,3) -------- -------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period(4) ..................... $ 14.09 $ 14.33 -------- -------- Investment operations: Net investment income .................................... 1.09 0.15 Net realized and unrealized gain (loss) on investments ... 0.29 (0.08) Dividends and distributions to preferred shareholders: From net investment income ............................. (0.13) (0.01) In excess of net investment income ..................... -- (0.00)(5) -------- -------- Net increase from investment operations ..................... 1.25 0.06 -------- -------- Dividends and distributions to common shareholders: From net investment income ............................... (0.87) (0.14) In excess of net investment income ....................... -- (0.02) -------- -------- Total dividends and distributions ........................... (0.87) (0.16) -------- -------- Capital change with respect to issuance of: Common shares ............................................ -- (0.03) Preferred shares ......................................... (0.00)(5) (0.11) -------- -------- Total capital charges ....................................... (0.00)(5) (0.14) -------- -------- Net asset value, end of period(4) ........................... $ 14.47 $ 14.09 ======== ======== Market value, end of period(4) .............................. $ 13.42 $ 14.62 ======== ======== TOTAL INVESTMENT RETURN(6) .................................. (2.25)% (5.58)% ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(7,8) Expenses after expense offsets .............................. 0.90% 0.73% Expenses before expense offsets ............................. 1.33% 1.03% Net investment income after expense offsets and before preferred share dividends .......................... 7.87% 3.93% Preferred share dividends ................................... 0.93% 0.37% Net investment income available to common shareholders ...... 6.94% 3.56% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ............. $173,885 $163,077 Portfolio turnover .......................................... 57% 2% Net assets of common shareholders, end of period (000) ...... $181,200 $175,110 Preferred shares outstanding (000) .......................... $109,750 $109,750 Asset coverage per preferred share, end of period ........... $ 66,279 $ 64,894
- ---------- (1) Commencement of investment operations. This information includes the initial investment by BlackRock Advisors, Inc. Net asset value immediately after the closing of the first public offering was $14.30 (Note 1). (2) Calculated using the average shares outstanding method. (3) Prior period amounts have been restated to conform to the current period's presentation under the provisions of EITF D-98 (Note 1). (4) Net asset value and market value are published in BARRON'S on Saturday and THE WALL STREET JOURNAL on Monday. (5) Amount is less than $0.005 per share. (6) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of the period reported. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (7) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (8) Annualized The information above represents the audited operating performance for a common share outstanding, total investment return, ratios to average net assets and other supplemental data for the periods indicated. This information has been determined based upon financial information provided in the financial statements and market value data for the Trust's common shares. See Notes to Financial Statements. 51 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION & ACCOUNTING POLICIES The BlackRock Investment Quality Municipal Trust Inc. ("Municipal Investment Quality") was organized as a Maryland corporation on November 19, 1992. The BlackRock California Investment Quality Municipal Trust Inc. ("California Investment Quality"), The BlackRock New Jersey Investment Quality Municipal Trust Inc. ("New Jersey Investment Quality") and The BlackRock New York Investment Quality Municipal Trust Inc. ("New York Investment Quality") were organized as Maryland corporations on April 12, 1993. The BlackRock Florida Investment Quality Municipal Trust Inc. ("Florida Investment Quality") was organized as a Massachusetts business trust on April 15, 1993. BlackRock Municipal Income Trust ("Municipal Income"), BlackRock California Municipal Income Trust ("California Income"), BlackRock Florida Municipal Income Trust ("Florida Income"), BlackRock New Jersey Municipal Income Trust ("New Jersey Income") and BlackRock New York Municipal Income Trust ("New York Income") (collectively the "Income Trusts") were organized as Delaware business trusts on March 30, 2001. Municipal Investment Quality and Municipal Income are registered as diversified closed-end management investment companies under the Investment Company Act of 1940. California Investment Quality, California Income, Florida Investment Quality, Florida Income, New Jersey Investment Quality, New Jersey Income, New York Investment Quality and New York Income are registered as non-diversified closed-end management investment companies under the Investment Company Act of 1940. Municipal Investment Quality, California Investment Quality, Florida Investment Quality, New Jersey Investment Quality and New York Investment Quality are herein referred to as the Investment Quality Trusts. The ability of issuers of debt securities held by the Trust to meet their obligations may be affected by economic developments in a state, a specific industry or region. The following is a summary of significant accounting policies followed by the Trusts. SECURITIES VALUATION: Municipal securities (including commitments to purchase such securities on a "when-issued" basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Trust's Board of Directors/Trustees (the "Board"). In determining the value of a particular security, pricing services may use certain information with respect to transactions in such securities, quotations from bond dealers, market transactions in comparable securities and various relationships between securities. Short-term investments may be valued at amortized cost. Any securities or other assets for which such current market quotations are not readily available are valued at fair value as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust's Board. SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on trade date. Realized and unrealized gains and losses are calculated on the identified cost basis. Each Trust also records interest income on an accrual basis and amortizes premium and accretes discount to interest income on securities purchased using the interest method. SEGREGATION: In cases in which the Investment Company Act of 1940, as amended, and the interpretive positions of the Securities and Exchange Commission ("SEC") require that each Trust segregate assets in connection with certain investments (e.g., when issued securities, reverse repurchase agreements or futures contracts), each Trust will, consistent with certain interpretive letters issued by the SEC, designate on its books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. FEDERAL INCOME TAXES: It is each Trust's intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient net income to shareholders. For this reason and because substantially all of the gross income of each Trust consists of tax-exempt interest, no Federal income tax provisions are required. DIVIDENDS AND DISTRIBUTIONS: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss carryforwards may be distributed annually. Dividends and distributions are recorded on the ex-dividend date. Dividends and distributions to preferred shareholders are accrued and determined as described in Note 5. ESTIMATES: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. DEFERRED COMPENSATION PLAN: Under the revised deferred compensation plan approved by each Trust's Board on September 20, 2002, non-interested Directors/Trustees may elect to defer receipt of all or a portion of their annual compensation, and beginning on January 1, 2003 will be required to defer a portion of their annual compensation pursuant to the plan. Deferred amounts earn a return as though equivalent dollar amounts had been invested in common shares of other BlackRock Trusts selected by the Directors/Trustees. This has the same economic effect for the Directors/Trustees as if the Directors/Trustees had invested the deferred amounts in such other BlackRock Trusts. The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in common shares of those Trusts selected by the Directors/Trustees in order to match its deferred compensation obligations. CHANGE IN FINANCIAL STATEMENT CLASSIFICATION FOR AMPS: In accordance with the provisions of EITF D-98, "Classification and Measurement of Redeemable Securities," effective for the current period, the Trusts have reclassified its Auction Market Preferred Shares ("AMPS") out- 52 side of permanent equity in the net assets section of the statement of assets and liabilities. In addition, distributions to AMPS shareholders are now classified as a component of net assets resulting from operations on the statement of operations and changes in net assets and as a component of the investment operations in the financial highlights. Prior period amounts presented have been restated to conform to this period's presentation. This change has no impact on the net assets applicable to common shares of the Trusts. RECLASSIFICATION OF CAPITAL ACCOUNTS: In order to present paid-in capital ("PIC"), undistributed (distribution in excess of) net investment income ("UNII") and accumulated net realized gain ("Accumulated Gain") more closely to its tax character the following accounts were increased (decreased): ACCUMULATED FUND PIC UNII GAIN - ---- ------- -------- ----------- Municipal Investment Quality $ -- $(45,185) $ 45,185 Municipal Income (15,000) 15,000 -- California Investment Quality (504,389) (6,826) 511,215 California Income (15,000) 15,000 -- Florida Investment Quality (584,437) (4,068) 588,505 Florida Income (15,000) 15,000 -- New Jersey Investment Quality (554,124) (375) 554,499 New Jersey Income (15,000) 15,000 -- New York Investment Quality (430,522) -- 430,522 New York Income (29,753) 29,753 -- NOTE 2. AGREEMENTS Each Trust has an Investment Advisory Agreement with BlackRock Advisors, Inc. (the "Advisor"), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to the Income Trusts. BlackRock, Inc. is an indirect majority owned subsidiary of The PNC Financial Services Group, Inc. The investment management agreement on the Income Trusts covers both investment advisory and administration services. Municipal Investment Quality has an Administration Agreement with Princeton Administrators, L.P. ("Princeton"), an indirect wholly owned affiliate of Merrill Lynch & Co., Inc. California Investment Quality, Florida Investment Quality, New Jersey Investment Quality and New York Investment Quality have Administration Agreements with Prudential Investments LLC ("PI"), an indirect wholly owned subsidiary of Prudential Financial, Inc. Each Trust's investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.35% for the Investment Quality Trusts and 0.60% for the Income Trusts, of the Trust's average weekly managed assets. "Managed assets" means the total assets of the Trust (including any assets attributable to any preferred shares that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fee or other expenses on the Income Trusts as a percentage of managed assets as follows: 0.25% for the first five years of each of the Trust's operations, 0.20% in year six, 0.15% in year seven, 0.10% in year eight and 0.05% in year nine. The investment advisory fee and waiver amount (if applicable) for each Trust for the periods ended October 31, 2002, 2001 and 2000, were as follows:
OCTOBER 31, 2002 OCTOBER 31, 2001 OCTOBER 31, 2000 ---------------------------- -------------------------- -------------------------- FUND ADVISORY FEE WAIVER ADVISORY FEE WAIVER ADVISORY FEE WAIVER - ---- ------------ ------ ------------ ------ ------------ ------ Municipal Investment Quality $1,392,923 $ -- $1,384,129 $ -- $1,313,673 $ -- Municipal Income 5,841,300 2,433,875 1,066,877 444,532 N/A N/A California Investment Quality 79,526 -- 79,219 -- 77,246 -- California Income 2,051,488 854,787 372,015 155,006 N/A N/A Florida Investment Quality 93,745 -- 89,654 -- 87,048 -- Florida Income 906,649 377,771 163,786 68,244 N/A N/A New Jersey Investment Quality 78,017 -- 77,458 -- 74,594 -- New Jersey Income 1,008,246 420,102 180,916 75,382 N/A N/A New York Investment Quality 104,001 -- 103,403 -- 99,674 -- New York Income 1,701,807 709,086 305,092 127,122 N/A N/A
53 The administration fee paid to each Trust's respective administrator is computed weekly and payable monthly based on an annual rate, 0.10% to PI and 0.15% to Princeton, on other than the Income Trusts, of the Trust's average weekly managed assets. The administration fee paid to Princeton is subject to a minimum monthly fee of $12,500. The total dollar amounts paid to the administrators by the Trusts for the years ended October 31, 2002, 2001 and 2000, were as follows: OCTOBER 31, OCTOBER 31, OCTOBER 31, FUND 2002 2001 2000 - -------- -------- -------- -------- Municipal Investment Quality $596,967 $593,198 $563,003 California Investment Quality 22,722 22,634 22,070 Florida Investment Quality 25,927 25,616 24,871 New Jersey Investment Quality 22,291 22,131 21,312 New York Investment Quality 29,715 29,544 28,478 Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor. The Advisor pays occupancy and certain clerical and accounting costs for the Income Trusts. Each Investment Quality Trust's administrator pays occupancy and certain clerical and accounting costs of their respective Trust(s). Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for certain operational support services provided to each Trust. Pursuant to the terms of the custody agreement, Municipal Investment Quality, Municipal Income, California Income, Florida Income, New Jersey Income and New York Income received earning credits from its custodian for positive cash balances maintained, which are used to offset custody fees, in the amounts of $11,137, $75,584, $41,979, $18,815, $35,323 and $35,366, respectively. NOTE 3. PORTFOLIO SECURITIES Purchases and sales of investment securities, other than short-term investments, for the year ended October 31, 2002, were as follows:
FUND PURCHASES SALES FUND PURCHASES SALES - ---- ------------- ------------ ---- ------------ ------------ Municipal Investment Quality $ 73,698,533 $ 78,363,590 Florida Income $ 52,843,240 $ 56,744,572 Municipal Income 685,246,545 676,310,612 New Jersey Investment Quality 2,943,810 3,134,850 California Investment Quality 6,696,371 6,564,109 New Jersey Income 82,829,738 83,579,592 California Income 150,882,336 171,206,792 New York Investment Quality 1,975,753 2,181,048 Florida Investment Quality 1,911,058 2,001,428 New York Income 162,425,834 159,237,095
At October 31, 2002, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by each Trust were as follows:
FUND COST APPRECIATION DEPRECIATION NET - -------- ------------ ------------ ------------ ----------- Municipal Investment Quality $373,719,339 $26,871,769 $ 5,829,728 $21,042,041 Municipal Income 987,763,440 15,347,481 43,521,699 (28,174,218) California Investment Quality 20,659,173 1,695,490 392,572 1,302,918 California Income 346,577,525 4,799,325 4,446,343 352,982 Florida Investment Quality 22,838,484 2,356,012 -- 2,356,012 Florida Income 152,375,056 2,992,123 167,708 2,824,415 New Jersey Investment Quality 19,949,250 1,961,605 432,653 1,528,952 New Jersey Income 167,010,090 2,842,020 1,953,645 888,375 New York Investment Quality 26,541,898 2,562,072 -- 2,562,072 New York Income 281,814,745 6,066,413 1,277,664 4,788,749
For Federal income tax purposes, the following Trusts had capital loss carryforwards at October 31, 2002. These amounts may be used to offset future realized capital gains, if any:
CAPITAL LOSS CAPITAL LOSS CARRYFORWARD CARRYFORWARD FUND AMOUNT EXPIRES FUND AMOUNT EXPIRES - ---- ------------ ------- ---- ------------ ------- Municipal Investment Quality $ 324,268 2010 New Jersey Investment Quality $ 228,242 2008 Municipal Investment Quality 133,706 2009 New Jersey Investment Quality 6,166 2004 Municipal Investment Quality 5,068,444 2008 New Jersey Investment Quality 281,021 2003 Municipal Investment Quality 312,281 2007 New Jersey Income 615,438 2010 Municipal Income 15,055,804 2010 New Jersey Income 49,975 2009 Municipal Income 526,271 2009 New York Investment Quality 248,074 2008 California Investment Quality -- -- New York Investment Quality 11,820 2007 California Income 2,398,646 2010 New York Investment Quality 199,428 2003 Florida Investment Quality -- -- New York Income 68,166 2010 Florida Income 711,136 2010 Florida Income 111,530 2009
Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its capital loss carryforward amounts. New York Income's tax year end is July 31st. 54 NOTE 4. CAPITAL There are 200 million of $.01 par value common shares authorized for each of the Investment Quality Trusts. There are an unlimited number of $.001 par value common shares authorized for the Income Trusts. Each Trust may classify or reclassify any unissued common shares into one or more series of preferred shares. At October 31, 2002, the common shares outstanding and the shares owned by affiliates of the Advisor of each Trust were as follows: COMMON SHARES COMMON FUND OUTSTANDING SHARES OWNED - ---- ----------- ------------ Municipal Investment Quality 16,707,903 7,205 Municipal Income 43,482,711 8,205 California Investment Quality 1,007,093 7,093 California Income 14,985,501 8,191 Florida Investment Quality 1,127,093 7,093 Florida Income 6,646,343 8,194 New Jersey Investment Quality 1,007,093 7,093 New Jersey Income 7,414,793 8,195 New York Investment Quality 1,307,093 7,093 New York Income 12,521,494 8,199 During the year ended October 31, 2002, Municipal Income, California Municipal Income, Florida Municipal Income, New Jersey Municipal Income and New York Municipal Income issued additional shares under their dividend reinvestment plans of 171,937, 26,975, 28,015, 46,292, and 92,332, respectively. As of October 31, 2002, each Trust had the following series of Auction Market Preferred Shares ("preferred shares") outstanding as listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.
FUND AND SERIES SHARES FUND AND SERIES SHARES - --------------- ------ --------------- ------ Municipal Investment Quality Florida Income T7 3,262 T7 2,302 T28 2,600 New Jersey Investment Quality Municipal Income T7 300 M7 3,001 New Jersey Income T7 3,001 R7 2,552 W7 3,001 New York Investment Quality R7 3,001 F7 392 F7 3,001 New York Income California Investment Quality W7 2,195 W7 300 F7 2,195 California Income T7 2,639 R7 2,639 Florida Investment Quality R7 340
Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. Dividends on twenty-eight day preferred shares are cumulative at a rate which is reset every 28 days based on the results of an auction. The dividend ranges on the preferred shares for each of the Trusts for the year ended October 31, 2002, were:
FUND LOW HIGH FUND LOW HIGH - ---- ----- ----- ---- ----- ----- Municipal Investment Quality 1.15% 2.00% Florida Income 0.35% 1.80% Municipal Income 1.00 2.15 New Jersey Investment Quality 0.90 1.50 California Investment Quality 1.00 1.55 New Jersey Income 1.10 1.85 California Income 0.80 2.00 New York Investment Quality 0.90 1.60 Florida Investment Quality 0.50 1.95 New York Income 1.10 2.00
A Trust may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding preferred shares would be less than 200%. The preferred shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at $25,000 per share plus any accumulated or unpaid dividends whether or not declared. The preferred shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Trust, as set forth in each Trust's Declaration of Trust, are not satisfied. 55 The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However, holders of preferred shares are also entitled to elect two Directors/Trustees for each Trust. In addition, the Investment Company Act of 1940 requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding preferred shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares and (b) take any action requiring a vote of security holders, including, among other things, changes in a Trust's sub-classification as a closed-end investment company or changes in its fundamental investment restrictions. NOTE 5. DIVIDENDS Subsequent to October 31, 2002, the Board of each Trust declared dividends from undistributed earnings per common share payable December 2, 2002, to shareholders of record on November 15, 2002. The per share common dividends declared were:
COMMON DIVIDEND COMMON DIVIDEND FUND PER SHARE FUND PER SHARE - ---- --------------- ---- --------------- Municipal Investment Quality $0.072500 Florida Income $0.073542 Municipal Income 0.078125 New Jersey Investment Quality 0.065900 California Investment Quality 0.068333 New Jersey Income 0.072500 California Income 0.073750 New York Investment Quality 0.073125 Florida Investment Quality 0.068800 New York Income 0.073125
The dividends declared on preferred shares for the period November 1, 2002 to November 30, 2002, for each of the Trusts were as follows:
DIVIDENDS DIVIDENDS DIVIDENDS FUND AND SERIES DECLARED FUND AND SERIES DECLARED FUND AND SERIES DECLARED - --------------- -------- --------------- -------- --------------- -------- Municipal Investment Quality California Investment Quality New Jersey Investment Quality T7 $ 96,294 W7 $ 6,780 T7 $ 6,708 T28 70,746 California Income New Jersey Income Municipal Income T7 55,155 R7 69,950 M7 77,396 R7 80,199 New York Investment Quality T7 80,397 Florida Investment Quality F7 9,824 W7 81,397 R7 11,489 New York Income R7 102,124 Florida Income W7 56,807 F7 82,227 T7 52,762 F7 61,482
56 INDEPENDENT AUDITORS' REPORT - -------------------------------------------------------------------------------- To the Trustees and Shareholders of: The BlackRock Investment Quality Municipal Trust Inc., The BlackRock California Investment Quality Municipal Trust Inc., The BlackRock Florida Investment Quality Municipal Trust Inc., The BlackRock New Jersey Investment Quality Municipal Trust Inc., The BlackRock New York Investment Quality Municipal Trust Inc., BlackRock Municipal Income Trust, BlackRock California Municipal Income Trust, BlackRock Florida Municipal Income Trust, BlackRock New Jersey Municipal Income Trust and BlackRock New York Municipal Income Trust (collectively the "Trusts"). We have audited the accompanying statements of assets and liabilities of the Trusts, including the portfolios of investments, as of October 31, 2002, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years or periods then ended, and the financial highlights for each of the years or the periods then ended. These financial statements are the responsibility of the Trusts' management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2002, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Trusts as of October 31, 2002, the results of their operations, the changes in their net assets and the financial highlights for the respective stated periods, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Boston, Massachusetts December 6, 2002 57 DIRECTORS/TRUSTEES INFORMATION - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT DIRECTORS/TRUSTEES - ------------------------------------------------------------------------------------------------------------------------------------ Name, address, age Andrew F. Brimmer Richard E. Cavanagh Kent Dixon P.O. Box 4546 P.O. Box 4546 P.O. Box 4546 New York, NY 10163-4546 New York, NY 10163-4546 New York, NY 10163-4546 Age: 76 Age: 56 Age: 65 - ------------------------------------------------------------------------------------------------------------------------------------ Current positions held Lead Director/Trustee Director/Trustee Director/Trustee with the Funds Audit Committee Chairman Audit Committee Member Audit Committee Member - ------------------------------------------------------------------------------------------------------------------------------------ Term of office and 3 years(2) / since inception(3) 3 years(2) / since inception(3) 3 years(2) / since inception(3) length of time served - ------------------------------------------------------------------------------------------------------------------------------------ Principal occupations President of Brimmer & Company, President and Chief Executive Consultant/Investor. Former during the past Inc., a Washington, D.C.-based Officer of The Conference Board, President and Chief Executive five years economic and financial consulting Inc., a leading global business Officer of Empire Federal Savings firm, also Wilmer D. Barrett membership organization, from Bank of America and Banc PLUS Professor of Economics, 1995-present. Former Executive Savings Association, former University of Massachusetts - Dean of the John F. Kennedy Chairman of the Board, President Amherst. Formerly member of the School of Government at Harvard and Chief Executive Officer of Board of Governors of the Federal University from 1988-1995. Acting Northeast Savings. Reserve System. Former Chairman, Director, Harvard Center for District of Columbia Financial Business and Government Control Board. (1991-1993). Formerly Partner (principal) of McKinsey & Company, Inc. (1980- 1988). Former Executive Director of Federal Cash Management, White House Office of Management and Budget (1977-1979). Co-author, THE WINNING PERFORMANCE (best selling management book published in 13 national editions). - ------------------------------------------------------------------------------------------------------------------------------------ Number of portfolios 44(4) 44(4) 44(4) overseen within the fund complex - ------------------------------------------------------------------------------------------------------------------------------------ Other Directorships held Director of CarrAmerica Realty Trustee Emeritus, Wesleyan Former Director of ISFA (the owner outside of the fund Corporation and Borg-Warner University, Trustee: Drucker of INVEST, a national securities complex Automotive. Formerly Director of Foundation, Airplanes Group, brokerage service designed for AirBorne Express, BankAmerica Aircraft Finance Trust (AFT) and banks and thrift institutions). Corporation (Bank of America), Educational Testing Service (ETS). Bell South Corporation, College Director, Arch Chemicals, Fremont Retirement Equities Fund Group and The Guardian Life (Trustee), Commodity Exchange, Insurance Company of America. Inc. (Public Governor), Connecticut Mutual Life Insurance Company, E.I. Dupont de Nemours & Company, Equitable Life Assurance Society of the United States, Gannett Company, Mercedes-Benz of North America, MNC Financial Corporation (American Security Bank), NCM Capital Management, Navistar International Corporation, PHH Corp. and UAL Corporation (United Airlines). - ------------------------------------------------------------------------------------------------------------------------------------ For "Interested Director/Trustee" Relationships, events or transactions by reason of which the Director/ trustee is an interested person as defined in Section 2(a)(19) (1940 Act) - ------------------------------------------------------------------------------------------------------------------------------------
(1) Interested Director/Trustee as defined by Section 2(a)(19) of the Investment Company Act of 1940. (2) The Board of Directors/Trustees is classified into three classes of which one class is elected annually. Each Director/Trustee serves a three year term concurrent with the class from which he is elected. (3) Commencement of investment operations (June 4, 1993 for the Investment Quality Trusts except for Municipal Investment Quality, which was November 19, 1992, and July 27, 2002 for the Income Trusts) (4) The fund complex currently consists of 44 separate closed-end funds, each with one investment portfolio. (5) For the Investment Quality Trusts except during the period, 8/12/93 through 4/15/97 and except during the period 10/31/02 through 11/02/02 for all of the Trusts. 58
- ------------------------------------------------------------------------------- --------------------------------------------------- INDEPENDENT DIRECTORS/TRUSTEES (CONTINUED) INTERESTED DIRECTORS/TRUSTEES(1) - ------------------------------------------------------------------------------- --------------------------------------------------- Frank J. Fabozzi James Clayburn La Force, Jr. Walter F. Mondale Ralph L. Schlosstein(1) Robert S. Kapito(1) P.O. Box 4546 P.O. Box 4546 P.O. Box 4546 40 East 52nd Street 40 East 52nd Street New York, NY 10163-4546 New York, NY 10163-4546 New York, NY 10163-4546 New York, NY 10154 New York, NY 10154 Age: 54 Age: 73 Age: 74 Age: 51 Age: 45 - ------------------------------------------------------------------------------- --------------------------------------------------- Director/Trustee Director/Trustee Director/Trustee Chairman of the Board President and Director/Trustee - ------------------------------------------------------------------------------- --------------------------------------------------- 3 years(2) / 3 years(2) / 3 years(2) / 3 years(2) / 3 years(2) / since inception(3) since inception(3) since inception(3,5) since inception(3) since August 22, 2002 - ------------------------------------------------------------------------------- --------------------------------------------------- Consultant. Editor of Dean Emeritus of The John Partner, Dorsey & Director since 1999 and Vice Chairman of THE JOURNAL OF PORTFOLIO E. Anderson Graduate Whitney, a law firm President of BlackRock, BlackRock, Inc. Head of MANAGEMENT and Adjunct School of Management, (December 1996-present, Inc. since its formation the Portfolio Management Professor of Finance at University of California September 1987-August in 1998 and of BlackRock, Group. Also a member the School of Management since July 1, 1993. 1993). Formerly U.S. Inc.'s predecessor of the Management at Yale University. Acting Dean of The School Ambassador to Japan entities since 1988. Committee, the Author and editor of of Business, Hong Kong (1993-1996). Formerly Member of the Management Investment Strategy several books on fixed University of Science and Vice President of the Committee and Investment Group, the Fixed Income income portfolio Technology 1990-1993. United States, U.S. Strategy Group of and Global Operating management. Visiting From 1978 to September Senator and Attorney BlackRock, Inc. Formerly, Committees and the Professor of Finance and 1993, Dean of The John E. General of the State of Managing Director of Equity Investment Accounting at the Sloan Anderson Graduate School Minnesota. 1984 Lehman Brothers, Inc. and Strategy Group. School of Management, of Management, University Democratic Nominee for Co-head of its Mortgage Responsible for the Massachusetts Institute of California. President of the United and Savings Institutions portfolio management of of Technology from 1986 States. Group. Currently, the Fixed Income, to August 1992. Chairman of each of the Domestic Equity and closed-end Trusts in International Equity, which BlackRock Advisors, Liquidity, and Inc. acts as investment Alternative Investment advisor. Groups of BlackRock. Currently President and a Trustee of each of th closed-end Trusts in which BlackRock Advisors, Inc. acts as investment advisor. - ------------------------------------------------------------------------------- --------------------------------------------------- 44(4) 44(4) 44(4) 44(4) 44(4) - ------------------------------------------------------------------------------- --------------------------------------------------- Director, Guardian Director, Jacobs Chairman and President of Chairman of the Hope and Mutual Funds Group Engineering Group, Inc., the BlackRock Provident Heroes Children's Cancer (18 portfolios). Payden & Rygel Investment Institutional Funds (10 Fund. President of the Trust, Provident portfolios) and Director Board of Directors of Investment Counsel Funds. of Anthricite Capital, the Periwinkle National Advisors Series Trust, Inc. and several of Theatre for Young Arena Pharmaceuticals, BlackRock's alternative Audiences. Director of Inc. and CancerVax investment vehicles. icruise.com, Corp. Corporation. Currently, a Member of the Visiting Board of Overseers of the John F. Kennedy School of Government at Harvard University, the Financial Institutions Center Board of the Wharton School of the University of Pennsylvania, a Trustee of Trinity School in New York City and a Trustee of New Visions for Public Education in New York City. Formerly, a Director of Pulte Corporation and a Member of Fannie Mae's Advisory Council. - ------------------------------------------------------------------------------- --------------------------------------------------- Director and President of Vice Chairman of the the Advisor. Advisor. - ------------------------------------------------------------------------------- ---------------------------------------------------
59 DIVIDEND REINVESTMENT PLANS - -------------------------------------------------------------------------------- Pursuant to each Trust's Dividend Reinvestment Plan (the "Plan"), common shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by EquiServe Trust Company, N.A. (the "Plan Agent") in the respective Trust's shares pursuant to the Plan. Shareholders who elect not to participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan. After an Investment Quality Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants' account, by the purchase of outstanding shares on the open market, on the Trust's primary exchange or elsewhere ("open market purchases"). The Investment Quality Trusts will not issue any new shares under the Plan. After an Income Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants' account, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust ("newly issued shares") or (ii) by open market purchases. If, on the dividend payment date, the net asset value per share ("NAV") is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as "market premium"), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant's account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as "market discount"), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open market purchases. Participants in the Plan may withdraw from the Plan upon written notice to the Plan Agent and will receive certificates for whole Trust shares and a cash payment for any fraction of a Trust share. The Plan Agent's fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent's open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any Federal income tax that may be payable on such dividends or distributions. Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan, however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. All correspondence concerning the Plan should be directed to the Plan Agent at 150 Royall Street, Canton, MA 02021 or (800) 699-1BFM. 60 INVESTMENT SUMMARIES - -------------------------------------------------------------------------------- WHO MANAGES THE TRUSTS? BlackRock Advisors, Inc. (the "Advisor") manages the Trusts. The Advisor is a wholly owned subsidiary of BlackRock, Inc. ("BlackRock"), which is one of the largest publicly traded investment management firms in the United States with $246 billion of assets under management as of September 30, 2002. BlackRock manages assets on behalf of institutional and individual investors worldwide through a variety of equity, fixed income, liquidity and alternative investment products. In addition, BlackRock provides risk management and investment system services to a growing number of institutional investors under the BLACKROCK SOLUTIONS name. Clients are served from the company's headquarters in New York City, as well as offices in Boston, Edinburgh, Hong Kong, San Francisco, Tokyo and Wilmington. BlackRock is majority-owned by The PNC Financial Services Group (NYSE: PNC), and by BlackRock employees. HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD? DOES THE TRUST PAY DIVIDENDS REGULARLY? The Trusts common shares are traded on either the New York Stock Exchange or the American Stock Exchange both of which provide investors with liquidity on a daily basis. Orders to buy or sell shares of the Trusts must be placed through a registered broker or financial advisor. The Trusts pay monthly dividends which are typically paid on the first business day of the month. For shares held in the shareholder's name, dividends may be reinvested in additional shares of the respective Trust through its transfer agent, EquiServe Trust Company, N.A. Investors who wish to hold shares in a brokerage account should check with their financial advisor to determine whether their brokerage firm offers dividend reinvestment services. LEVERAGE CONSIDERATIONS IN THE TRUSTS The Trusts employ leverage primarily through the issuance of preferred shares. Leverage permits the Trusts to borrow money at short-term rates and reinvest that money in longer-term assets, which typically offer higher interest rates. The difference between the cost of the borrowed funds and the income earned on the proceeds that are invested in longer-term assets is the potential benefit to the Trusts from leverage. Leverage increases the duration (or price sensitivity of the net assets with respect to changes in interest rates) of the Trusts, which can improve the performance of the Trusts in a declining interest rate environment, but can cause net assets to decline faster in a rapidly rising interest rate environment. The Advisor's portfolio managers continuously monitor and regularly review each Trust's use of leverage and may reduce, or unwind, the amount of leverage employed should the Advisor consider that reduction to be in the best interests of the shareholders. SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO THE TRUSTS The Trusts are intended to be long-term investments and are not short-term trading vehicles. DIVIDEND CONSIDERATIONS. The income and dividends paid by the Trusts are likely to vary over time as fixed income market conditions change. Future dividends may be higher or lower than the dividends the Trusts are currently paying. LEVERAGE. The Trusts utilize leverage through the issuance of preferred shares, which involves special risks. The Trusts net asset value and market value may be more volatile due to the use of leverage. MARKET PRICE OF SHARES. The shares of closed-end investment companies such as the Trusts trade on the New York Stock Exchange ("NYSE") or the American Stock Exchange ("AMEX") and as such are subject to supply and demand influences. As a result, shares may trade at a discount or a premium to their net asset value. MUNICIPAL OBLIGATIONS. The value of municipal debt securities generally varies inversely with changes in prevailing market interest rates. Depending on the amount of call protection that the securities in a Trust have, a Trust may be subject to certain reinvestment risks in environments of declining interest rates. HIGH YIELD RISK. The Trusts may invest in high yield bonds, which involves additional risks, including credit risk. The value of high yield, lower quality bonds is affected by the creditworthiness of the issuers of the securities and by general economic and specific industry conditions. Issuers of high yield bonds are not as strong financially as those with higher credit ratings. A Trust's investment in lower grade securities will expose the Trust to greater risk than if the Trust owned only higher grade securities. ILLIQUID SECURITIES. The Trusts may invest in securities that are illiquid, although under current market conditions the Trusts expect to do so to only a limited extent. These securities involve special risks. ANTITAKEOVER PROVISIONS. Certain antitakeover provisions will make a change in a Trust's business or management more difficult without the approval of the Trust's Board of Trustees and may have the effect of depriving shareholders of an opportunity to sell their shares at a premium above the prevailing market price. ALTERNATIVE MINIMUM TAX (AMT). The Trusts may invest in securities subject to alternative minimum tax. 61 - -------------------------------------------------------------------------------- BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST - -------------------------------------------------------------------------------- INVESTMENT OBJECTIVE The Trust's investment objective is to provide high current income exempt from regular Federal income tax consistent with the preservation of capital. WHAT CAN THE TRUST INVEST IN? Under normal conditions, the Trust expects to manage its assets so that at the time of investment, at least 80% of its investments are rated at least investment grade (BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of its assets may instead be deemed to be of equivalent credit quality by the Advisor. Examples of the types of securities that the Trust may invest in include general obligation bonds, which are backed by the full taxing power of the municipality (states, counties and cities), and revenue bonds, which are backed by a revenue source associated with the issuing municipality or by a special tax. Revenue bonds include those that are backed by revenues generated by universities, hospitals, housing developments, utilities, public facilities, toll roads, airports, etc. WHAT IS THE ADVISOR'S INVESTMENT STRATEGY? The Advisor manages the assets of the Trust in accordance with the Trust's investment objective and policies by investing in municipal debt securities that are diversified both geographically and according to revenue source. As such, the Advisor actively manages the assets in relation to market conditions and interest rate changes. In seeking the investment objective, the Trust does not expect to invest more than 25% of its total assets in municipals that are issued by the same state. Depending on yield and portfolio allocation considerations, the Advisor may choose to invest a portion of the Trust's assets in securities which pay interest that is subject to AMT (alternative minimum tax). The Trust employs leverage primarily through the issuance of preferred stock. Preferred stockholders will receive dividends based on short-term rates in exchange for allowing the Trust to borrow additional assets. These assets will be invested in longer-term assets which typically offer higher interest rates. The difference between the cost of the dividends paid to preferred stockholders and the interest earned on the longer-term securities will provide higher income levels for common stockholders in most interest rate environments. See "Leverage Considerations in the Trusts". - -------------------------------------------------------------------------------- BLACKROCK MUNICIPAL INCOME TRUST - -------------------------------------------------------------------------------- INVESTMENT OBJECTIVE The Trust's investment objective is to provide current income exempt from regular Federal income tax. WHAT CAN THE TRUST INVEST IN? Under normal conditions, the Trust expects to manage its assets so that at the time of investment, at least 80% of its investments are rated at least investment grade (BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of its assets are rated below investment grade (Ba/BB or B) or that are unrated but deemed to be of comparable quality by the Advisor. WHAT IS THE ADVISOR'S INVESTMENT STRATEGY? The Advisor manages the assets of the Trust in accordance with the Trust's investment objective and policies by investing substantially all of its assets in municipal bonds that pay interest that is exempt from regular Federal income tax. As such, the Advisor actively manages the assets in relation to market conditions and interest rate changes. Depending on yield and portfolio allocation considerations, the Advisor may choose to invest a portion of the Trust's assets in securities which pay interest that is subject to AMT (alternative minimum tax). The Trust intends to invest primarily in long-term bonds and expects bonds in its portfolio to maintain an average portfolio maturity of 15 years or more, but the average maturity may be shortened or lengthened from time to time depending on market conditions. The Trust employs leverage primarily through the issuance of preferred shares. Preferred shareholders will receive dividends based on short-term rates in exchange for allowing the Trust to borrow additional assets. These assets will be invested in longer-term assets which typically offer higher interest rates. The difference between the cost of the dividends paid to preferred shareholders and the interest earned on the longer-term securities will provide higher income levels for common shareholders in most interest rate environments. See "Leverage Considerations in the Trusts". 62 - -------------------------------------------------------------------------------- BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST - -------------------------------------------------------------------------------- INVESTMENT OBJECTIVE The Trust's investment objective is to provide high current income exempt from regular Federal and California income taxes consistent with the preservation of capital. WHAT CAN THE TRUST INVEST IN? Under normal conditions, the Trust expects to manage its assets so that at the time of investment, at least 80% of its investments are rated at least investment grade (BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of its assets may instead be deemed to be of equivalent credit quality by the Advisor. The Trust intends to invest substantially all of the assets in a portfolio of investment grade California municipal obligations, which include debt obligations issued by or on behalf of California, its political subdivisions, agencies and instrumentalities and by other qualifying issuers that pay interest which, in the opinion of the bond counsel of the issuer, is exempt from regular Federal and California income taxes. California municipal obligations are issued to obtain funds for various public functions, including the construction of public facilities, the refinancing of outstanding obligations, the obtaining of funds for general operating expenses and for loans to other public institutions and facilities. WHAT IS THE ADVISOR'S INVESTMENT STRATEGY? The Advisor manages the assets of the Trust, in accordance with the Trust's investment objective and policies by investing in investment grade California Municipal Obligations or other qualifying issuers. As such, the Advisor actively manages the assets in relation to market conditions and interest rate changes. Depending on yield and portfolio allocation considerations, the Advisor may choose to invest a portion of the Trust's assets in securities which pay interest that is subject to AMT (alternative minimum tax). The Trust intends to emphasize investments in California municipal obligations with long-term maturities and expects to maintain an average portfolio maturity of 15-20 years, but the average maturity may be shortened or lengthened from time to time depending on market conditions. The Trust employs leverage primarily through the issuance of preferred stock. Preferred stockholders will receive dividends based on short-term rates in exchange for allowing the Trust to borrow additional assets. These assets will be invested in longer-term assets which typically offer higher interest rates. The difference between the cost of the dividends paid to preferred stockholders and the interest earned on the longer-term securities will provide higher income levels for common stockholders in most interest rate environments. See "Leverage Considerations in the Trusts". - -------------------------------------------------------------------------------- BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST - -------------------------------------------------------------------------------- INVESTMENT OBJECTIVE The Trust's investment objective is to provide current income exempt from regular Federal and California income taxes. WHAT CAN THE TRUST INVEST IN? Under normal conditions, the Trust expects to manage its assets so that at the time of investment, at least 80% of its investments are rated at least investment grade (BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of its assets are rated below investment grade (Ba/BB or B) or that are unrated but deemed to be of comparable quality by the Advisor. The Trust intends to invest primarily all of the assets in a portfolio of California municipal obligations, which include debt obligations issued by the state of California, its political subdivisions, agencies and instrumentalities and by other qualifying issuers that pay interest which, in the opinion of the bond counsel of the issuer, is exempt from Federal and California income taxes. WHAT IS THE ADVISOR'S INVESTMENT STRATEGY? The Advisor manages the assets of the Trust in accordance with the Trust's investment objective and policies by investing primarily in municipal bonds that pay interest that is exempt from regular Federal income tax and California income tax. As such, the Advisor actively manages the assets in relation to market conditions and interest rate changes. Depending on yield and portfolio allocation considerations, the Advisor may choose to invest a portion of the Trust's assets in securities which pay interest that is subject to AMT (alternative minimum tax). The Trust intends to invest primarily in long-term bonds and expects bonds in its portfolio to maintain an average portfolio maturity of 15 years or more, but the average maturity may be shortened or lengthened from time to time depending on market conditions. The Trust employs leverage primarily through the issuance of preferred shares. Preferred shareholders will receive dividends based on short-term rates in exchange for allowing the Trust to borrow additional assets. These assets will be invested in longer-term assets which typically offer higher interest rates. The difference between the cost of the dividends paid to preferred shareholders and the interest earned on the longer-term securities will provide higher income levels for common shareholders in most interest rate environments. See "Leverage Considerations in the Trusts". 63 - -------------------------------------------------------------------------------- BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST - -------------------------------------------------------------------------------- INVESTMENT OBJECTIVE The Trust's investment objective is to provide high current income exempt from regular Federal income tax and to provide an exemption from Florida intangible personal property taxes consistent with the preservation of capital. WHAT CAN THE TRUST INVEST IN? Under normal conditions, the Trust expects to manage its assets so that at the time of investment, at least 80% of its investments are rated at least investment grade (BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of its assets may instead be deemed to be of equivalent credit quality by the Advisor. The Trust intends to invest substantially all of the assets in a portfolio of investment grade Florida municipal obligations, which include debt obligations issued by the state of Florida, its political subdivisions, agencies and instrumentalities and by other qualifying issuers that pay interest which, in the opinion of the bond counsel of the issuer, is exempt from Federal income tax. Florida municipal obligations are issued to obtain funds for various public functions, including the construction of public facilities, the refinancing of outstanding obligations, the obtaining of funds for general operating expenses and for loans to other public institutions and facilities. WHAT IS THE ADVISOR'S INVESTMENT STRATEGY? The Advisor manages the assets of the Trust, in accordance with the Trust's investment objective and policies by investing in investment grade Florida Municipal Obligations or other qualifying issuers. As such, the Advisor actively manages the assets in relation to market conditions and interest rate changes. Depending on yield and portfolio allocation considerations, the Advisor may choose to invest a portion of the Trust's assets in securities which pay interest that is subject to AMT (alternative minimum tax). The Trust intends to emphasize investments in Florida municipal obligations with long-term maturities and expects to maintain an average portfolio maturity of 15-20 years, but the average maturity may be shortened or lengthened from time to time depending on market conditions. The Trust employs leverage primarily through the issuance of preferred stock. Preferred shareholders will receive dividends based on short-term rates in exchange for allowing the Trust to borrow additional assets. These assets will be invested in longer-term assets which typically offer higher interest rates. The difference between the cost of the dividends paid to preferred stockholders and the interest earned on the longer-term securities will provide higher income levels for common stockholders in most interest rate environments. See "Leverage Considerations in the Trusts". - -------------------------------------------------------------------------------- BLACKROCK FLORIDA MUNICIPAL INCOME TRUST - -------------------------------------------------------------------------------- INVESTMENT OBJECTIVE The Trust's investment objective is to provide current income exempt from regular Federal income tax and Florida intangible personal property tax. WHAT CAN THE TRUST INVEST IN? Under normal conditions, the Trust expects to manage its assets so that at the time of investment, at least 80% of its investments are rated at least investment grade (BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of its assets are rated below investment grade (Ba/BB or B) or that are unrated but deemed to be of comparable quality by the Advisor. The Trust intends to invest primarily all of the assets in a portfolio of Florida municipal obligations, which include debt obligations issued by the state of Florida, its political subdivisions, agencies and instrumentalities and by other qualifying issuers that pay interest which, in the opinion of the bond counsel of the issuer, is exempt from Federal income tax and Florida intangible personal property tax. WHAT IS THE ADVISOR'S INVESTMENT STRATEGY? The Advisor manages the assets of the Trust in accordance with the Trust's investment objective and policies by investing primarily in municipal bonds that pay interest that is exempt from regular Federal income tax and Florida intangible personal property tax. As such, the Advisor actively manages the assets in relation to market conditions and interest rate changes. Depending on yield and portfolio allocation considerations, the Advisor may choose to invest a portion of the Trust's assets in securities which pay interest that is subject to AMT (alternative minimum tax). The Trust intends to invest primarily in long-term bonds and expects bonds in its portfolio to maintain an average portfolio maturity of 15 years or more, but the average maturity may be shortened or lengthened from time to time depending on market conditions. The Trust employs leverage primarily through the issuance of preferred shares. Preferred shareholders will receive dividends based on short-term rates in exchange for allowing the Trust to borrow additional assets. These assets will be invested in longer-term assets which typically offer higher interest rates. The difference between the cost of the dividends paid to preferred shareholders and the interest earned on the longer-term securities will provide higher income levels for common shareholders in most interest rate environments. See "Leverage Considerations in the Trusts". 64 - -------------------------------------------------------------------------------- BLACKROCK NEW JERSEY INVESTMENT QUALITY MUNICIPAL TRUST - -------------------------------------------------------------------------------- INVESTMENT OBJECTIVE The Trust's investment objective is to provide high current income exempt from regular Federal income tax and New Jersey gross income tax consistent with the preservation of capital. WHAT CAN THE TRUST INVEST IN? Under normal conditions, the Trust expects to manage its assets so that at the time of investment, at least 80% of its investments are rated at least investment grade (BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of its assets may instead be deemed to be of equivalent credit quality by the Advisor. The Trust intends to invest substantially all of the assets in a portfolio of investment grade New Jersey municipal obligations, which include debt obligations issued by or on behalf of New Jersey, its political subdivisions, agencies and instrumentalities and by other qualifying issuers that pay interest which, in the opinion of the bond counsel of the issuer, is exempt from regular Federal income taxes and New Jersey state income tax. New Jersey municipal obligations are issued to obtain funds for various public functions, including the construction of public facilities, the refinancing of outstanding obligations, the obtaining of funds for general operating expenses and for loans to other public institutions and facilities. WHAT IS THE ADVISOR'S INVESTMENT STRATEGY? The Advisor manages the assets of the Trust, in accordance with the Trust's investment objective and policies by investing in investment grade New Jersey Municipal Obligations or other qualifying issuers. As such, the Advisor actively manages the assets in relation to market conditions and interest rate changes. Depending on yield and portfolio allocation considerations, the Advisor may choose to invest a portion of The Trust's assets in securities which pay interest that is subject to AMT (alternative minimum tax). The Trust intends to emphasize investments in New Jersey municipal obligations with long-term maturities and expects to maintain an average portfolio maturity of 15-20 years, but the average maturity may be shortened or lengthened from time to time depending on market conditions. The Trust employs leverage primarily through the issuance of preferred stock. Preferred stockholders will receive dividends based on short-term rates in exchange for allowing the Trust to borrow additional assets. These assets will be invested in longer-term assets which typically offer higher interest rates. The difference between the cost of the dividends paid to preferred stockholders and the interest earned on the longer-term securities will provide higher income levels for common stockholders in most interest rate environments. See "Leverage Considerations in the Trusts". - -------------------------------------------------------------------------------- BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUST - -------------------------------------------------------------------------------- INVESTMENT OBJECTIVE The Trust's investment objective is to provide current income exempt from regular Federal income tax and New Jersey gross income tax. WHAT CAN THE TRUST INVEST IN? Under normal conditions, the Trust expects to manage its assets so that at the time of investment, at least 80% of its investments are rated at least investment grade (BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of its assets are rated below investment grade (Ba/BB or B) or that are unrated but deemed to be of comparable quality by the Advisor. The Trust intends to invest primarily all of the assets in a portfolio of New Jersey municipal obligations, which include debt obligations issued by the state of New Jersey, its political subdivisions, agencies and instrumentalities and by other qualifying issuers that pay interest which, in the opinion of the bond counsel of the issuer, is exempt from Federal income tax and New Jersey gross income tax. WHAT IS THE ADVISOR'S INVESTMENT STRATEGY? The Advisor manages the assets of the Trust in accordance with the Trust's investment objective and policies by investing primarily in municipal bonds that pay interest that is exempt from regular Federal income tax and New Jersey state gross income tax. As such, the Advisor actively manages the assets in relation to market conditions and interest rate changes. Depending on yield and portfolio allocation considerations, the Advisor may choose to invest a portion of the Trust's assets in securities which pay interest that is subject to AMT (alternative minimum tax). The Trust intends to invest primarily in long-term bonds and expects bonds in its portfolio to maintain an average portfolio maturity of 15 years or more, but the average maturity may be shortened or lengthened from time to time depending on market conditions. The Trust employs leverage primarily through the issuance of preferred shares. Preferred shareholders will receive dividends based on short-term rates in exchange for allowing the Trust to borrow additional assets. These assets will be invested in longer-term assets which typically offer higher interest rates. The difference between the cost of the dividends paid to preferred shareholders and the interest earned on the longer-term securities will provide higher income levels for common shareholders in most interest rate environments. See "Leverage Considerations in the Trusts". 65 - -------------------------------------------------------------------------------- BLACKROCK NEW YORK INVESTMENT QUALITY MUNICIPAL TRUST - -------------------------------------------------------------------------------- INVESTMENT OBJECTIVE The Trust's investment objective is to provide high current income exempt from regular Federal, New York state and New York City income tax consistent with the preservation of capital. WHAT CAN THE TRUST INVEST IN? Under normal conditions, the Trust expects to manage its assets so that at the time of investment, at least 80% of its investments are rated at least investment grade (BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of its assets may instead be deemed to be of equivalent credit quality by the Advisor. The Trust intends to invest substantially all of the assets in a portfolio of investment grade New York municipal obligations, which include debt obligations issued by or on behalf of the state, its political subdivisions (including New York City), agencies and instrumentalities and by other qualifying issuers that pay interest which, in the opinion of the bond counsel of the issuer, is exempt from regular Federal, state and city income taxes. New York municipal obligations may be issued to obtain funds for various public purposes, including the construction of such public facilities as airports, bridges, highways, housing, hospitals, mass transportation, schools, streets, water and sewer works. Other public purposes for which New York municipal obligations may be issued include the refinancing of outstanding obligations and the obtaining of funds for general operating expenses and for loans to other public institutions and facilities. WHAT IS THE ADVISOR'S INVESTMENT STRATEGY? The Advisor manages the assets of the Trust, in accordance with the Trust's investment objective and policies by investing in investment grade New York Municipal Obligations or other qualifying issuers. As such, the Advisor actively manages the assets in relation to market conditions and interest rate changes. Depending on yield and portfolio allocation considerations, the Advisor may choose to invest a portion of the Trust's assets in securities which pay interest that is subject to AMT (alternative minimum tax). The Trust intends to emphasize investments in New York municipal obligations with long-term maturities and expects to maintain an average portfolio maturity of 15-20 years, but the average maturity may be shortened or lengthened from time to time depending on market conditions. The Trust employs leverage primarily through the issuance of preferred stock. Preferred stockholders will receive dividends based on short-term rates in exchange for allowing the Trust to borrow additional assets. These assets will be invested in longer-term assets which typically offer higher interest rates. The difference between the cost of the dividends paid to preferred stockholders and the interest earned on the longer-term securities will provide higher income levels for common stockholders in most interest rate environments. See "Leverage Considerations in the Trusts". - -------------------------------------------------------------------------------- BLACKROCK NEW YORK MUNICIPAL INCOME TRUST - -------------------------------------------------------------------------------- INVESTMENT OBJECTIVE The Trust's investment objective is to provide current income exempt from regular Federal income tax and New York State and New York City personal income taxes. WHAT CAN THE TRUST INVEST IN? Under normal conditions, the Trust expects to manage its assets so that at the time of investment, at least 80% of its investments are rated at least investment grade (BBB by Standard & Poor's or Baa by Moody's Investor Services) and up to 20% of its assets are rated below investment grade (Ba/BB or B) or that are unrated but deemed to be of comparable quality by the Advisor. The Trust intends to invest primarily all of the assets in a portfolio of New York municipal obligations, which include debt obligations issued by the state of New York, its political subdivisions, agencies and instrumentalities and by other qualifying issuers that pay interest which, in the opinion of the bond counsel of the issuer, is exempt from Federal income tax and New York State and New York City personal income taxes. WHAT IS THE ADVISOR'S INVESTMENT STRATEGY? The Advisor manages the assets of the Trust in accordance with the Trust's investment objective and policies by investing primarily in municipal bonds that pay interest that is exempt from regular Federal income tax and New York State and New York City personal income taxes. As such, the Advisor actively manages the assets in relation to market conditions and interest rate changes. Depending on yield and portfolio allocation considerations, the Advisor may choose to invest a portion of the Trust's assets in securities which pay interest that is subject to AMT (alternative minimum tax). The Trust intends to invest primarily in long-term bonds and expects bonds in its portfolio to maintain an average portfolio maturity of 15 years or more, but the average maturity may be shortened or lengthened from time to time depending on market conditions. The Trust employs leverage primarily through the issuance of preferred shares. Preferred shareholders will receive dividends based on short-term rates in exchange for allowing the Trust to borrow additional assets. These assets will be invested in longer-term assets which typically offer higher interest rates. The difference between the cost of the dividends paid to preferred shareholders and the interest earned on the longer-term securities will provide higher income levels for common shareholders in most interest rate environments. See "Leverage Considerations in the Trusts". 66 ADDITIONAL INFORMATION - -------------------------------------------------------------------------------- There have been no material changes in the Trusts' investment objectives or policies that have not been approved by the shareholders or to its charter or by-laws or in the principal risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts' portfolio. We are required by the Internal Revenue Code to advise you within 60 days of a Trust's tax year end as to the Federally tax-exempt interest dividends received by you during such fiscal year. Accordingly, we are advising you that all dividends paid by all of the Trusts (excluding New York Income, which has a July 31st, tax year end) during the tax year ended October 31, 2002, were federally tax-exempt interest dividends. Quarterly performance and other information regarding the Trusts may be found on BlackRock's website, which can be accessed at http://www.blackrock.com/funds/cefunds.html. This reference to BlackRock's website is intended to allow investors public access to quarterly information regarding the Trusts and is not intended to incorporate BlackRock's website into this report. Certain of the officers of the Trusts listed on the inside back cover of this Report to Shareholders, are also officers of the Advisor or Sub-Advisor. They serve in the following capacities for the Advisor or Sub-Advisor: Robert S. Kapito--Director and Vice Chairman of the Advisor and Vice Chairman of the Sub-Advisor, Kevin M. Klingert--Director and Managing Director of the Advisor and Managing Director of the Sub-Advisor, Henry Gabbay and Anne Ackerley--Managing Directors of the Advisor and the Sub-Advisor and Richard M. Shea and James Kong--Managing Directors of the Sub-Advisor. GLOSSARY - -------------------------------------------------------------------------------- CLOSED-END FUND: Investment vehicle which initially offers a fixed number of shares and trades on a stock exchange. Each Trust invests in a portfolio of securities in accordance with its stated investment objectives and policies. DISCOUNT: When a Trust's net asset value is greater than its market price, the Trust is said to be trading at a discount. DIVIDEND: Income generated by securities in a portfolio and distributed to shareholders after the deduction of expenses. Each Trust declares and pays dividends to common shareholders on a monthly basis. DIVIDEND REINVESTMENT: Common shareholders may have all dividends and distributions of capital gains automatically reinvested into additional shares of their respective Trust. MARKET PRICE: Price per share of a security trading in the secondary market. For each Trust, this is the price at which one share of a Trust trades on the stock exchange. If you were to buy or sell shares, you would pay or receive the market price. NET ASSET VALUE (NAV): Net asset value is the total market value of all securities and other assets held by a Trust, including income accrued on its investments, minus any liabilities including accrued expenses, divided by the total number of outstanding common shares. It is the underlying value of a single common share on a given day. Net asset value for each Trust is calculated weekly and published in BARRON'S on Saturday and THE WALL STREET JOURNAL on Monday. PREMIUM: When a Trust's market price is greater than its net asset value, the Trust is said to be trading at a premium. PREREFUNDED BONDS: These securities are collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on the tax-exempt issue and to retire the bond in full at the date indicated, typically at a premium to par. 67 BlackRock Closed-End Funds Directors/Trustees Ralph L. Schlosstein, CHAIRMAN(1) Andrew F. Brimmer Richard E. Cavanagh Kent Dixon Frank J. Fabozzi Robert S. Kapito(1) James Clayburn La Force, Jr. Walter F. Mondale Officers Robert S. Kapito, PRESIDENT(1) Kevin M. Klingert, VICE PRESIDENT Richard M. Shea, VICE PRESIDENT/TAX Henry Gabbay, TREASURER James Kong, ASSISTANT TREASURER Anne Ackerley, SECRETARY Investment Advisor BlackRock Advisors, Inc. 100 Bellevue Parkway Wilmington, DE 19809 (800) 227-7BFM Sub-Advisor(2) BlackRock Financial Management, Inc. 40 East 52nd Street New York, NY 10022 Custodian State Street Bank and Trust Company One Heritage Drive North Quincy, MA 02171 Transfer Agent EquiServe Trust Company, N.A. 150 Royall Street Canton, MA 02021 (800) 699-1BFM Auction Agent(2) Bank of New York 5 Penn Plaza, 13th Floor New York, NY 10001 Auction Agent(3) Deutsche Bank Trust Company Americas 4 Albany Street New York, NY 10006 Independent Accountants Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 Legal Counsel Skadden, Arps, Slate, Meagher & Flom LLP Four Times Square New York, NY 10036 Legal Counsel - Independent Directors/Trustees Debevoise & Plimpton 919 Third Avenue New York, NY 10022 This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change. BlackRockAdvisors, Inc.(4) 100 Bellevue Parkway Wilmington, DE 19809 (800) 227-7BFM BlackRock Municipal Income Trust BlackRock California Municipal Income Trust BlackRock Florida Municipal Income Trust BlackRock New Jersey Municipal Income Trust BlackRock New York Municipal Income Trust Princeton Administrators, L.P.(4) P.O. Box 9095 Princeton, NJ 08543-9095 (800) 543-6217 BlackRock Investment Quality Municipal Trust Prudential Investments LLC(4) Gateway Center Three 100 Mulberry Street Newark, NJ 07102-4077 (800) 227-7BFM BlackRock California Investment Quality Municipal Trust BlackRock Florida Investment Quality Municipal Trust BlackRock New Jersey Investment Quality Municipal Trust BlackRock New York Investment Quality Municipal Trust - ---------- (1) Laurence D. Fink has resigned his positions as Director/Trustee and Chairman of the Board effective August 22, 2002, and will continue as Chairman and Chief Executive Officer of BlackRock, Inc. and Chief Executive Officer of BlackRock Advisors, Inc. The Board of Directors/Trustees elected Ralph L. Schlosstein as the new Chairman of the Board, elected Robert S. Kapito as the new President of the Trust and appointed Robert S. Kapito as a new Director/Trustee of the Board effective August 22, 2002. (2) For the Income Trusts only. (3) For the Investment Quality Trusts only. (4) Provides administrative services for the Trust(s) listed directly below its name. The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called "householding" and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 227-7BFM. ================================================================================ This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change. [BLACKROCK LOGO] -----END PRIVACY-ENHANCED MESSAGE-----