MMA Capital 8K Financial statements and exhibits | Trading Symbol(s) MMAC MMAC 3 Aug 04

Exhibit 99.1

MUNICIPAL MORTGAGE & EQUITY, LLC

EARNINGS PACKAGE

QUARTER ENDED JUNE 30, 2004

TABLE OF CONTENTS


GAAP Income Statement for the three months ended June 30, 2004	Page	1
Variance Analysis for GAAP	Page	3
Rolling Five Quarters – GAAP	Page	5
Calculation of Diluted Earnings Per Share	Page	6
GAAP Net Income to CAD reconciliation for the Rolling Five Quarters	Page	7
GAAP Net Income to CAD reconciliation for the three and six months ended June 30, 2004	Page	9
CAD Statement for the three and six months ended June 30, 2004	Page	11
Variance Analysis for CAD	Page	12
Rolling Five Quarters – CAD	Page	14
Condensed Balance Sheets and Book Value Per Share	Page	15
Analysis of Consolidated Balance Sheet Components	Page	16
Summary of 2nd Quarter 2004 Investment Activity	Page	19
Participating Portfolio Property Net Operating Income Trends	Page	20
Units, Occupancy and Average Rents for Bond Portfolio	Page	21

MUNICIPAL MORTGAGE & EQUITY, LLC
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
(unaudited)


	For the three months ended						For the six months ended
	June 30,						June 30,
	2004			2003			2004			2003
INCOME:
Interest income
Interest on bonds and residual interests in bond securitizations	$	21,340		$	14,366		$	40,842		$	30,721
Interest on loans		11,388			7,894			22,109			17,804
Interest on short-term investments		1,859			332			2,666			524

Total interest income		34,587			22,592			65,617			49,049

Fee income
Syndication fees		4,190			1,825			7,941			3,236
Origination and brokerage fees		2,848			2,219			3,765			2,917
Loan servicing fees		1,139			1,070			2,258			2,202
Asset management and advisory fees		1,967			1,198			8,133			2,274
Guarantee fees		1,506			112			3,359			223
Other income		1,705			3,197			3,542			5,283

Total fee income		13,355			9,621			28,998			16,135

Net rental income		5,496			—			5,496			—

Total income		53,438			32,213			100,111			65,184

EXPENSES:
Interest expense		21,279			8,724			36,743			19,092
Interest expense on preferred shares		3,035			—			6,081			—
Salaries and benefits		20,421			8,671			33,480			14,637
General and administrative		6,992			1,972			11,017			3,628
Professional fees		2,731			877			4,225			1,866
Depreciation and amortization		3,597			414			5,209			803

Total expenses		58,055			20,658			96,755			40,026

Net gain on sale of loans		1,730			540			2,410			1,720
Net gain (loss) on sale of tax-exempt investments		1,013			(6	)		1,205			(6	)
Net gain on sale of investments in tax credit equity partnerships		379			178			2,814			276
Net gain on termination of derivatives		—			741			—			741
Net holding gains (losses) on derivatives		7,853			(2,449	)		5,498			424
Impairments and valuation allowances related to investments		(430	)		(1,144	)		(730	)		(1,144	)
Net losses from equity investments in partnerships		(71,224	)		(1,606	)		(81,735	)		(2,353	)

Net income before income taxes, income allocable to minority interest, and cumulative effect of accounting change		(65,296	)		7,809			(67,182	)		24,816
Income tax benefit (expense)		(173	)		540			2,337			472

Net income before income allocable to minority interest and cumulative effect of accounting change		(65,469	)		8,349			(64,845	)		25,288
Net income (expense) allocable to minority interest		76,659			(2,995	)		76,764			(5,989	)

Net income before discontinued operations and cumulative effect of accounting change		11,190			5,354			11,919			19,299
Discontinued operations		—			25,748			—			25,748

Net income before cumulative effect of accounting change		11,190			31,102			11,919			45,047
Cumulative effect of a change in accounting principle		—			—			520			—

Net income	$	11,190		$	31,102		$	12,439		$	45,047


	For the three months ended				For the six months ended
	June 30,				June 30,
	2004		2003		2004		2003
Basic earnings per common share:
Earnings before discontinued operations and cumulative effect of accounting change	$	0.32	$	0.19	$	0.35	$	0.69
Discontinued operations		—		0.89		—		0.91
Cumulative effect of a change in accounting principle		—		—		0.02		—

Basic earnings per common share	$	0.32	$	1.08	$	0.37	$	1.60

Weighted average common shares outstanding		34,800,580		28,857,305		34,047,243		28,104,281
Diluted earnings per common share:
Earnings before discontinued operations and cumulative effect of accounting change	$	0.32	$	0.18	$	0.35	$	0.68
Discontinued operations		—		0.88		—		0.90
Cumulative effect of a change in accounting principle		—		—		0.02		—

Diluted earnings per common share	$	0.32	$	1.06	$	0.37	$	1.58

Weighted average common shares outstanding		35,140,968		29,213,062		34,406,363		28,451,480

VARIANCE ANALYSIS FOR GAAP

2nd Quarter 2004 Compared to 2nd Quarter 2003:

GAAP net income for the second quarter of 2004 decreased $19.9 million compared to the same period last year due primarily to the following changes:

(1) a $25.7 million decrease in discontinued operations resulting from the sale of a property (NorthPointe) in the second quarter of 2003;

(2) a $10.8 million increase in operating expenses due to additional employees and expenses from the July 2003 acquisition of a leading tax credit syndication business;

(3) a $1.9 million increase in salaries and benefits due to growth in headcount and an increase in bonus expense accruals;

(4) a $1.5��million decrease in other income composed primarily of:

(i)		a $2.4 million decrease in fees earned on nonrecurring transactions including prepayment penalties, a fee on a conventional equity transaction and other income related to the sale of a property (NorthPointe); offset in part by

(ii)		$0.7 million of other fee income generated by the tax credit equity business, including general partner fees, guarantee fees and investment valuation service fees; and

(iii)		a $0.3 million increase in put income;

(5)		a $1.3 million increase in professional fees primarily due to an increase in accounting and legal expenses related to Sarbanes-Oxley 404 compliance and new transactions;

(6)		a $1.2 million increase in amortization of intangibles related to the July 2003 acquisition;

(7)		a $0.7 million increase in income tax expense;

Offset in part by:

(8)		a $10.3 million increase in the fair value of derivatives;

(9)		a $3.6 million increase in net interest income (total interest income less interest expense);

(10)		$4.2 million in net income attributed to consolidation of the tax credit equity funds under FIN46, financing accounting for the Company’s investment in guaranteed tax credit funds and equity accounting for the Company’s warehousing of tax credit equity properties (see Note 1 below);

(11)		$2.8 million increase in syndication and asset management fees generated by the tax credit equity business;

(12)		a $1.5 million increase in net gain on sales due primarily to:

(i)		a $1.2 million increase in gain on sale of loans to GNMA, FNMA and other conduit lenders;

(ii)		a $1.0 million increase in gain on sale of tax-exempt bond investments; partially offset by

(iii)		a $0.7 million decrease in gain on sale of derivatives; and

(13)

a $0.7 million decrease in impairments and valuation allowances related to investments.

Note 1:

The Company’s operations include those of tax credit equity funds consolidated pursuant to FIN 46. Because the funds’ primary business purpose is to make equity investments in underlying property partnerships, the vast majority of the funds’ activity is recorded in net losses from equity investments in partnerships. The Company typically holds less than a 1% interest in the funds and therefore, approximately 99% of the funds’ losses are shown as minority interest income in the consolidated income statement. All fees charged by the Company to the funds, primarily syndication and asset management, are eliminated in consolidation.

VARIANCE ANALYSIS FOR GAAP

Year-to-date 2004 Compared to Year-to-date 2003:

GAAP net income for the six months ended June 30, 2004 decreased $32.6 million compared to the same period last year due primarily to the following changes:

(1) a $25.7 million decrease in discontinued operations resulting from the sale of a property (NorthPointe) in the second quarter of 2003;

(2) an $18.8 million increase in operating expenses due to additional employees and expenses from the July 2003 acquisition;

(3) a $3.5 million increase in salaries and benefits due to growth in headcount and an increase in bonus expense accruals;

(4) a $2.4 million increase in amortization of intangibles related to the July 2003 HCI acquisition;

(5) a $1.7 million decrease in other income composed primarily of:

a.		a $3.9 million decrease in fees earned on nonrecurring transactions including prepayment penalties, a fee on a conventional equity transaction and other income related to the sale of a property (NorthPointe); offset in part by,

b.		$1.3 million of other fee income generated by the tax credit equity business, which includes general partner fees, guarantee fees and investment valuation service fees; and

c.		a $0.6 million increase in put income;

(6)		$1.5 million in net loss attributed to consolidation of the tax credit equity funds under FIN46, financing accounting for the Company’s investment in guaranteed tax credit funds and equity accounting for the Company’s warehousing of tax credit equity properties (see Note 1 below);

(7)		a $1.3 million increase in professional fees primarily due to an increase in accounting and legal expenses related to Sarbanes-Oxley 404 compliance and new transactions;

Offset in part by:

(8)		a $10.0 million increase in syndication and asset management fees generated by the tax credit equity business;

(9)		a $5.1 million increase in the fair value of derivatives;

(10)		a $3.1 million increase in net interest income (total interest income less interest expense);

(11)		a $1.9 increase in income tax benefit;

(12)		a $1.2 million increase in net gain on sales due primarily to:

a.		a $1.2 million increase in gain on sale of tax-exempt bond investments;

b.		a $0.7 million increase in gain on sale of loans to GNMA, FNMA and other conduit lenders; partially offset by

c.		a $0.7 million decrease in gain on sale of derivatives; and

(13) a $0.8 million increase in loan brokerage fees.

Note 1:

MUNICIPAL MORTGAGE & EQUITY, LLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
(unaudited)


	Qtr Ended			Qtr Ended			Qtr Ended			Qtr Ended			Qtr Ended
	6/30/2004			03/31/04			12/31/03			09/30/03			06/30/03
INCOME:
Interest income
Interest on bonds and residual interests in bond securitizations	$	21,340		$	19,502		$	16,232		$	15,894		$	14,366
Interest on loans		11,388			10,721			9,616			9,790			7,894
Interest on short-term investments		1,859			807			1,326			308			332

Total interest income		34,587			31,030			27,174			25,992			22,592

Fee income
Syndication fees		4,190			3,751			17,856			5,764			1,825
Origination and brokerage fees		2,848			917			2,805			862			2,219
Loan servicing fees		1,139			1,119			981			1,052			1,070
Asset management and advisory fees		1,967			6,166			4,871			3,191			1,198
Guarantee fees		1,506			1,853			1,500			1,891			112
Other income		1,705			1,837			1,881			1,691			3,197

Total fee income		13,355			15,643			29,894			14,451			9,621

Net rental revenue		5,496			—			—			—			—

Total income		53,438			46,673			57,068			40,443			32,213

EXPENSES:
Interest expense (Note 1)		21,279			15,464			12,741			12,696			8,724
Interest expense on preferred shares (Note 1)		3,035			3,046			3,194			2,994			—
Salaries and benefits		20,421			13,059			15,034			12,065			8,671
General and administrative		6,992			4,025			5,149			3,385			1,972
Professional fees		2,731			1,494			1,217			1,105			877
Depreciation and amortization		3,597			1,612			2,859			2,863			414

Total expenses		58,055			38,700			40,194			35,108			20,658

Net gain on sale of loans		1,730			680			1,521			1,623			540
Net gain (loss) on sale of tax-exempt investments		1,013			192			(4,525	)		6,665			(6	)
Net gain on sale of investments in tax credit equity partnerships		379			2,435			2,471			—			178
Net gain (loss) on termination of derivatives		—			—			(193	)		—			741
Net holding gains (losses) on derivatives		7,853			(2,355	)		2,400			3,498			(2,449	)
Impairments and valuation allowances related to investments		(430	)		(300	)		(5,839	)		—			(1,144	)
Net losses (gains) from equity investments in partnerships		(71,224	)		(10,511	)		788			(1,608	)		(1,606	)
Income tax benefit (expense)		(173	)		2,510			(2,956	)		2,622			540
Income (expense) allocable to minority interest (Note 1)		76,659			105			—			—			(2,995	)

Net income from continuing operations		11,190			729			10,541			18,135			5,354
Discontinued operations		—			—			—			—			25,748
Cumulative effect of a change in accounting principle		—			520			(1,228	)		—			—

Net income	$	11,190		$	1,249		$	9,313		$	18,135		$	31,102

EARNINGS PER COMMON SHARE:
Basic earnings per common share:
Net income from continuing operations	$	0.32		$	0.02		$	0.33		$	0.63		$	0.19
Discontinued operations		—			—			—			—			0.89
Cumulative effect of a change in accounting principle		—			0.02			(0.04	)		—			—

Basic earnings per common share	$	0.32		$	0.04		$	0.29		$	0.63		$	1.08

Weighted average common shares outstanding		34,800,580			33,301,337			32,496,904			28,842,447			28,857,305
Diluted earnings per common share:
Net income from continuing operations	$	0.32		$	0.02		$	0.32		$	0.62		$	0.18
Discontinued operations		—			—			—			—			0.88
Cumulative effect of a change in accounting principle		—			0.02			(0.04	)		—			—

Diluted earnings per common share	$	0.32		$	0.04		$	0.28		$	0.62		$	1.06

Weighted average common shares outstanding		35,140,968			33,679,188			32,894,390			29,224,605			29,213,062


Note 1:		As the result of adopting Financial Accounting Standards Board Statement of Financial Accounting Standards No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity”, as of July 1, 2003 the Company was required to reclassify its preferred shareholders’ equity of $160.5 million, recording the $168.0 million redemption obligation as a liability and the $7.5 million of preferred equity issue costs as an asset, to be amortized until the redemption dates, on the consolidated balance sheets. In addition, amounts previously classified as distributions paid to the preferred shareholders have been recorded as interest expense starting in the third quarter of 2003.

Municipal Mortgage & Equity, LLC
Reconciliation of Basic and Diluted EPS
(unaudited)


	For the three months ended June, 2004						For the three months ended June, 2003
	Income		Shares		Per Share		Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount
(in thousands, except share and per share data)
Basic EPS
Net income from continuing operations	$	11,190			$	0.32	$	5,354			$	0.19
Discontinued operations		—				—		25,748				0.89

Income allocable to common shares	$	11,190		34,800,580	$	0.32	$	31,102		28,857,305	$	1.08

Effect of Dilutive Securities
Options and deferred shares				340,388						355,757

Diluted EPS
Net income from continuing operations	$	11,190			$	0.32	$	5,354			$	0.18
Discontinued operations		—						25,748				0.88

Income allocable to common shares plus assumed conversions	$	11,190		35,140,968	$	0.32	$	31,102		29,213,062	$	1.06


	For the six months ended June, 2004						For the six months ended June, 2003
	Income		Shares		Per Share		Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount
(in thousands, except share and per share data)													��
Basic EPS
Net income from continuing operations	$	11,919			$	0.35	$	19,299			$	0.69
Discontinued operations		—				—		25,748				0.91
Cumulative effect of a change in accounting principle		520				0.02		—				—

Income allocable to common shares	$	12,439		34,047,243	$	0.37	$	45,047		28,104,281	$	1.60

Effect of Dilutive Securities
Options and deferred shares				359,120						347,199

Diluted EPS
Net income from continuing operations	$	11,919			$	0.35	$	19,299			$	0.68
Discontinued operations		—				—		25,748				0.90
Cumulative effect of a change in accounting principle		520				0.02		—				—

Income allocable to common shares plus assumed conversions	$	12,439		34,406,363	$	0.37	$	45,047		28,451,480	$	1.58

MUNICIPAL MORTGAGE & EQUITY, LLC
RECONCILIATION OF GAAP INCOME TO CASH AVAILABLE FOR DISTRIBUTION
(in thousands)

(unaudited)


	Qtr Ended			Qtr Ended			Qtr Ended			Qtr Ended			Qtr Ended
	6/30/2004			03/31/04			12/31/03			09/30/03			06/30/03
INCOME:
Interest income
Interest on bonds and residual interests in bond securitizations	$	21,340		$	19,502		$	16,232		$	15,894		$	14,366
Interest on loans		11,388			10,721			9,616			9,790			7,894
Interest on short-term investments		1,859			807			1,326			308			332

Total interest income		34,587			31,030			27,174			25,992			22,592

Fee income
Syndication fees		4,190			3,751			17,856			5,764			1,825
Origination and brokerage fees		2,848			917			2,805			862			2,219
Loan servicing fees		1,139			1,119			981			1,052			1,070
Asset management and advisory fees		1,967			6,166			4,871			3,191			1,198
Guarantee fees		1,506			1,853			1,500			1,891			112
Other income		1,705			1,837			1,881			1,691			3,197

Total fee income		13,355			15,643			29,894			14,451			9,621

Net rental income		5,496			—			—			—			—

Total income		53,438			46,673			57,068			40,443			32,213

EXPENSES:
Interest expense		21,279			15,464			12,741			12,696			8,724
Interest expense on preferred shares		3,035			3,046			3,194			2,994			—
Salaries and benefits		20,421			13,059			15,034			12,065			8,671
General and administrative		6,992			4,025			5,149			3,385			1,972
Professional fees		2,731			1,494			1,217			1,105			877
Depreciation and amortization		3,597			1,612			2,859			2,863			414

Total expenses		58,055			38,700			40,194			35,108			20,658

Net gain on sale of loans		1,730			680			1,521			1,623			540
Net gain (loss) on sale of tax-exempt investments		1,013			192			(4,525	)		6,665			(6	)
Net gain on sale of investments in tax credit equity partnerships		379			2,435			2,471			—			178
Net gain (loss) on termination of derivatives		—			—			(193	)		—			741
Net holding gains (losses) on derivatives		7,853			(2,355	)		2,400			3,498			(2,449	)
Impairments and valuation allowances related to investments		(430	)		(300	)		(5,839	)		—			(1,144	)
Net losses from equity investments in partnerships		(71,224	)		(10,511	)		788			(1,608	)		(1,606	)
Income tax benefit (expense)		(173	)		2,510			(2,956	)		2,622			540
Net income allocable to minority interest		76,659			105			—			—			(2,995	)

Net income from continuing operations		11,190			729			10,541			18,135			5,354
Discontinued operations		—			—			—			—			25,748
Cumulative effect of a change in accounting principle		—			520			(1,228	)		—			—

Net income	$	11,190		$	1,249		$	9,313		$	18,135		$	31,102

Conversion to Cash Available for Distribution:
(1) Mark to market adjustments	$	(7,853	)	$	2,355		$	(2,400	)	$	(3,498	)	$	2,449
(2) Equity investments		1,985			2,866			(235	)		1,995			3,181
(3) Net gain on sales		(1,663	)		(125	)		(2,211	)		(577	)		(10,486	)
(3) Amortization of capitalized mortgage servicing fees		464			403			385			390			414
(3) Amortization of asset management contracts		1,179			1,179			2,458			2,422			—
(4) Origination and brokerage fees, syndication fees and other income, net		17,471			1,852			2,650			2,675			1,335
(5) Valuation allowances and other-than-temporary impairments		430			326			3,037			—			1,097
(6) Deferred tax expense		(13	)		(2,514	)		21			(2,622	)		984
(7) Discontinued operations		—			—			—			—			(25,748	)
(7) Interest income		—			—			—			—			10,793
(8) Fund income		(1,866	)		5,930			4,775			(3,629	)		—
(9) Change in accounting principle		—			(520	)		1,228			—			—

Cash Available for Distribution (CAD)	$	21,324		$	13,001		$	19,021		$	15,291		$	15,121

Notes:

(1) For GAAP reporting, the Company records the non-cash change in fair value of its investment in interest rate swaps and other derivative financial instruments through net income. These gains and losses are not included in the Company’s calculation of CAD.

(2) For GAAP reporting, the Company accounts for various investments in partnerships using the equity accounting method. As a result, the Company’s allocable share of the income or loss from the partnerships is reported in income (losses) from equity investments in partnerships. The income from these partnerships includes depreciation expense and changes in the fair value of investments in derivatives. For GAAP reporting, distributions are treated as a return of capital. For CAD reporting, the Company records the cash distributions it receives from the partnerships as other income.

(3) For GAAP reporting, the Company recognizes non-cash gains and losses and amortization of intangible assets, including (a) non-cash gains and losses associated with the sale of assets or capitalization of certain mortgage servicing rights; (b) amortization of certain mortgage servicing rights over the estimated life of the serviced loans; and (c) amortization of certain asset management contracts recorded in connection with a July 2003 acquisition. These non-cash items are not included in CAD.

(4) This adjustment reflects the net difference, for the relevant period, between fees reflected in income when received for CAD and the recognition of fees for GAAP. This line item reflects several types of income:

(a) Origination fees and certain other income amounts, which are recognized as income when received for CAD purposes, but for GAAP reporting are amortized over the life of the associated investment.

(b) Syndication fees, which are recognized as income when earned for CAD purposes, but for GAAP reporting a portion of the fee may be deferred until investors have paid in greater than 20% of their total capital contributions to the tax credit funds. For quarters ended and after June 30, 2004, for GAAP purposes syndication fees relating to certain tax credit equity funds are eliminated in consolidation as a result of consolidating those funds under Financial Interpretation No.46 (Revised), “Consolidation of Variable Interest Entities” (“FIN 46”).

(c) Guarantee fees, which are recognized as income when received for CAD purposes, but for GAAP reporting are recorded into income over the guarantee period.

(d) Asset management fees, which are recognized as income when earned and collectible for CAD purposes, but for GAAP purposes are applied first to relieve accounts receivable recorded in conjunction with the July 2003 acquisition, and second as income consistent with certain CAD revenue recognition. For the quarter ended June 30, 2004, for GAAP purposes asset management fees relating to certain tax credit equity funds are eliminated as a result of consolidating certain tax credit equity funds under FIN46.

(5) For GAAP reporting, the Company records valuation allowances and other-than-temporary impairments on its investments in loans, bonds and other bond-related investments. Such non-cash charges do not affect the cash flow generated from the operation of the underlying properties, distributions to shareholders, or the tax-exempt status of the income of the financial obligation under the bonds. Therefore, these items are not included in the calculation of CAD.

(6) For GAAP reporting, the Company’s income tax expense contains both a current and a deferred component. Only the Company’s current income tax expense is reflected in CAD.

(7) For GAAP reporting, the Company recognized a gain upon the sale of a property. This gain was required to be classified as discontinued operations because the Company owned the property prior to the sale. For CAD reporting, the gain was significantly less due to recording a portion of the proceeds as interest income. In addition, the carrying value of the tax-exempt bond associated with the property was significantly more for CAD due to an impairment previously recognized for GAAP.

(8) For those of the Company’s tax credit equity syndication funds in which the Company provides a guarantee or otherwise has continuing involvement in the underlying assets of the fund, GAAP accounting requires the Company to record the net income (loss) from the fund. This non-cash item is not reflected in CAD. In addition, as a result of the adoption of FIN46, the company determined its residual interests in non-guaranteed tax credit equity funds represented equity interests in variable interest entities (“VIEs”) and the Company was the primary beneficiary of certain of those VIEs and, therefore, was required to consolidate the funds. The GAAP earnings (loss) from these tax credit equity funds is not included in CAD.

(9) In conjunction with (8) above, as a result of the adoption of FIN46, the Company recorded a cumulative effect adjustment for GAAP accounting. This adjustment is not included in CAD.

MUNICIPAL MORTGAGE & EQUITY, LLC
RECONCILIATION OF GAAP INCOME TO CASH AVAILABLE FOR DISTRIBUTION
(in thousands)
(unaudited)


	For the three months ended						For the six months ended
	June 30,						June 30,
	2004			2003			2004			2003
INCOME:
Interest income
Interest on bonds and residual interests in bond securitizations	$	21,340		$	14,366		$	40,842		$	30,721
Interest on loans		11,388			7,894			22,109			17,804
Interest on short-term investments		1,859			332			2,666			524

Total interest income		34,587			22,592			65,617			49,049

Fee income
Syndication fees		4,190			1,825			7,941			3,236
Origination and brokerage fees		2,848			2,219			3,765			2,917
Loan servicing fees		1,139			1,070			2,258			2,202
Asset management and advisory fees		1,967			1,198			8,133			2,274
Guarantee fees		1,506			112			3,359			223
Other income		1,705			3,197			3,542			5,283

Total fee income		13,355			9,621			28,998			16,135

Net rental income		5,496			—			5,496			—

Total income		53,438			32,213			100,111			65,184

EXPENSES:
Interest expense		21,279			8,724			36,743			19,092
Interest expense on preferred shares		3,035			—			6,081			—
Salaries and benefits		20,421			8,671			33,480			14,637
General and administrative		6,992			1,972			11,017			3,628
Professional fees		2,731			877			4,225			1,866
Depreciation and amortization		3,597			414			5,209			803

Total expenses		58,055			20,658			96,755			40,026

Net gain on sale of loans		1,730			540			2,410			1,720
Net gain (loss) on sale of tax-exempt investments		1,013			(6	)		1,205			(6	)
Net gain on sale of investments in tax credit equity partnerships		379			178			2,814			276
Net gain on termination of interest rate swaps		—			741			—			741
Net holding gains (losses) on derivatives		7,853			(2,449	)		5,498			424
Impairments and valuation allowances related to investments		(430	)		(1,144	)		(730	)		(1,144	)
Net gains (losses) from equity investments in partnerships		(71,224	)		(1,606	)		(81,735	)		(2,353	)
Income tax benefit (expense)		(173	)		540			2,337			472
Net income allocable to minority interest		76,659			(2,995	)		76,764			(5,989	)

Net income from continuing operations		11,190			5,354			11,919			19,299
Discontinued operations		—			25,748			—			25,748
Cumulative effect of a change in accounting principle		—			—			520			—

Net income	$	11,190		$	31,102		$	12,439		$	45,047

Conversion to Cash Available for Distribution:
(1) Mark to market adjustments	$	(7,853	)	$	2,449		$	(5,498	)	$	(424	)
(2) Equity investments		1,985			3,181			4,851			5,591
(3) Net gain on sales		(1,663	)		(10,486	)		(1,788	)		(10,813	)
(3) Amortization of capitalized mortgage servicing fees		464			414			867			766
(3) Amortization of asset management contracts		1,179			—			2,358			—
(4) Origination and brokerage fees, syndication fees and other income, net		17,471			1,335			19,323			1,616
(5) Valuation allowances and other-than-temporary impairments		430			1,097			756			1,097
(6) Deferred tax expense		(13	)		984			(2,527	)		1,612
(7) Discontinued operations		—			(25,748	)		—			(25,748	)
(7) Interest income		—			10,793			—			10,793
(8) Fund Income		(1,866	)		—			4,064			—
(9) Change in Accounting Principle		—			—			(520	)		—

Cash Available for Distribution (CAD)	$	21,324		$	15,121		$	34,325		$	29,537

Notes:

(a) Origination fees and certain other income amounts, which are recognized as income when received for CAD purposes, but for GAAP reporting are amortized over the life of the associated investment.

(c) Guarantee fees, which are recognized as income when received for CAD purposes, but for GAAP reporting are recorded into income over the guarantee period.

(6) For GAAP reporting, the Company’s income tax expense contains both a current and a deferred component. Only the Company’s current income tax expense is reflected in CAD.

(9) In conjunction with (8) above, as a result of the adoption of FIN46, the Company recorded a cumulative effect adjustment for GAAP accounting. This adjustment is not included in CAD.

MUNICIPAL MORTGAGE & EQUITY, LLC
CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
(in thousands, except share and per share data)
(unaudited)


	For the three months ended						For the six months ended
	June 30,						June 30,
	2004			2003			2004			2003
SOURCES OF CASH:
Interest on bonds, residual interests in bond securitizations and loans	$	32,342		$	31,597		$	61,201		$	56,445
Interest on short-term investments		1,930			332			2,717			524
Syndication fees		11,190			1,825			15,923			3,236
Origination and brokerage fees		4,191			2,711			6,161			3,871
Loan servicing fees		1,940			1,835			3,813			3,744
Asset management and advisory fees		5,398			1,198			11,564			2,274
Distributions from equity investments in partnerships		1,887			1,716			3,805			3,547
Other income		6,718			4,221			9,056			6,312
Net gain (loss) on sales		1,089			(9,033	)		1,700			(8,082	)

TOTAL SOURCES OF CASH		66,685			36,402			115,940			71,871

EXPENSES:
Interest expense		16,450			8,102			31,189			17,941
Interest expense — preferred shares (Note 1)		3,035			—			6,081			—
Salaries and benefits		19,679			8,671			32,738			14,637
Professional fees		2,481			877			3,975			1,866
General and administrative		3,529			2,113			7,468			3,938
Loan loss expense		—			47			(26	)		47
Income tax expense (benefit)		187			(1,524	)		190			(2,084	)

TOTAL EXPENSES		45,361			18,286			81,615			36,345

CASH AVAILABLE FOR DISTRIBUTION		21,324			18,116			34,325			35,526

LESS:
Cash allocable to minority interest (Note 1)		—			2,995			—			5,989

CASH AVAILABLE FOR DISTRIBUTION TO COMMON SHARES	$	21,324		$	15,121		$	34,325		$	29,537

CAD PER COMMON SHARE	$	0.61		$	0.52		$	0.98		$	1.02

CALCULATION OF CASH DISTRIBUTION:
CASH AVAILABLE FOR DISTRIBUTION TO COMMON SHARES	$	21,324		$	15,121		$	34,325		$	29,537
												��
ACTUAL AMOUNT PAID	$	16,138		$	12,903		$	32,078		$	25,740

PAYOUT RATIO		75.7	%		85.3	%		93.5	%		87.3	%

COMMON SHARES OUTSTANDING		34,893,770			28,832,443

CASH DISTRIBUTION PER COMMON SHARE	$	0.4625		$	0.4475		$	0.9200		$	0.8925

Note 1: As the result of adopting Financial Accounting Standards Board Statement of Financial Accounting Standards No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity”, as of July 1, 2003 the Company was required to reclassify its preferred shareholders’ equity of $160.5 million, recording the $168.0 million redemption obligation as a liability and the $7.5 million of preferred equity issue costs as an asset, to be amortized until the redemption dates, on the consolidated balance sheets. In addition, amounts previously classified as distributions paid to the preferred shareholders have been recorded as interest expense starting in the third quarter of 2003.

The primary differences between Net Income as calculated under generally accepted accounting principles (“GAAP”) and Cash Available For Distribution (“CAD”) result from the timing of income and expense recognition and non-cash events. These differences between CAD and GAAP income include the treatment of certain fees, which for CAD purposes are recognized when received but for GAAP purposes are amortized into income over the relevant period. In addition, there are differences related to non-cash gains and losses associated with bond valuations and sales, non-cash gains and losses associated with changes in market value of derivative financial instruments, amortization of goodwill and intangibles and capitalization of mortgage servicing rights, which are not included in the calculation of CAD. As a result of Financial Interpretation No. 46 (Revised), “Consolidation of Variable Interest Entities”, effective in the second quarter of 2004 asset management and syndication fees are eliminated for GAAP as a result of consolidating the tax credit equity funds.

The common shares outstanding reported for Cash Available for Distribution are the actual shares outstanding at the end of the quarter. For GAAP, the weighted average shares outstanding during the period are reported for the basic net income per share calculation. The weighted average shares outstanding for diluted net income per share include the potential dilutive effect from the exercise of options and vesting of deferred shares.

VARIANCE ANALYSIS FOR CAD

2nd Quarter 2004 Compared to 2nd Quarter 2003:

CAD for the second quarter of 2004 increased $6.2 million over the same period last year due primarily to the following changes:

(1)		a $13.3 million increase in syndication and asset management fees generated by the tax credit equity fund business primarily as a result of the July 2003 acquisition;

(2)		a $10.1 million increase in net gain on sale due primarily to:

(i)		a $10.8 million loss recorded in 2003 on the termination of interest rate swaps; offset in part by

(ii)		a $0.7 million decrease in gain on sale of tax-exempt bond investments;

(3)

a $2.5 million increase in other income composed primarily of:

(i)		$4.2 million in guarantee fee income resulting from the closing of guaranteed tax credit funds in the second quarter of 2004;

(ii)		$1.5 million of other fee income generated by the tax credit equity business, which includes general partner fees, guarantee fees and investment valuation service fees; and

(iii)		a $0.3 million increase in income on written put options; offset in part by

(iv)		a $3.5 million decrease in fees earned on nonrecurring transactions including prepayment penalties, a fee on a conventional equity transaction and other income related to the sale of a property (NorthPointe);

(4)		a $1.6 million increase in income on short-term investments due primarily to reimbursement of warehousing costs from tax credit equity funds;

(5)		a $1.5 million increase in origination fees due primarily to an increase in tax-exempt bond originations;

Offset in part by:

(6)		a $10.9 million increase in operating expenses due to additional employees and expenses from the July 2003 acquisition;

(7)		a $7.6 million decrease in net interest income (interest on bonds, residual interest in bond securitizations and loans less interest expense) due primarily to:

(i)		$10.8 million of deferred base interest and yield maintenance collected in 2003 upon the sale of Northpointe; partially offset by

(ii)		a $3.2 million increase in net interest income on bonds and loans;

(8)		a $1.9 million increase in salaries and benefits due to growth in headcount and an increase in bonus expense accruals;

(9)		a $1.7 million increase in income tax expense due to an increase in taxable income; and

(10)		a $1.3 million increase in professional fees primarily due to an increase in accounting and legal expenses related to Sarbanes-Oxley 404 compliance and new transactions.

VARIANCE ANALYSIS FOR CAD

Year-to-Date 2004 Compared to Year-to-Date 2003:

CAD income for the six months ended June 30, 2004 increased $4.8 million over the same period last year due primarily to the following changes:

(1)		a $21.6 million increase in syndication and asset management fees generated by the tax credit equity fund business primarily as a result of the July 2003 acquisition;

(2)		a $9.8 million increase in net gain on sale due primarily to

(i)		a $10.8 million loss recorded in 2003 on the termination of interest rate swaps; offset in part by

(ii)		a $0.7 million decrease in gain on sale of tax-exempt bond investments;

(iii)		a $0.3 million decrease in gain on sale of loans to GNMA, FNMA and other conduit lenders;

(3)

a $2.7 million increase in other income composed primarily of:

(i)		$4.2 million in guarantee fee income resulting from the closing of guaranteed tax credit funds in the second quarter of 2004;

(ii)		$2.6 million of other fee income generated by the tax credit equity business, which includes general partner fees, guarantee fees and investment valuation service fees; and

(iii)		a $0.5 million increase in income on written put options; offset in part by,

(iv)		a $4.6 million decrease in fees earned on nonrecurring transactions including prepayment penalties, a fee on a conventional equity transaction and other income related to the sale of a property (NorthPointe);

(4)		a $2.3 million increase in origination fees due primarily to an increase in tax-exempt bond originations;

(5)		a $2.2 million increase in income on short-term investments due primarily to reimbursement of warehousing costs from tax credit equity funds;

Offset in part by:

(6)		an $18.8 million increase in operating expenses due to additional employees and expenses from the July 2003 acquisition;

(7)		an $8.5 million decrease in net interest income (interest on bonds, residual interest in bond securitizations and loans less interest expense) due primarily to:

(i)		$10.8 million of deferred base interest and yield maintenance collected in 2003 upon the sale of Northpointe; partially offset by

(ii)		a $2.3 million increase in net interest income on bonds and loans;

(8)		a $3.5 million increase in salaries and benefits due to growth in headcount and an increase in bonus expense accruals;

(9)		a $2.3 million increase in income tax expense due to an increase in taxable income; and

(10)		a $1.3 million increase in professional fees primarily due to an increase in accounting and legal expenses related to Sarbanes-Oxley 404 compliance and new transactions.

MUNICIPAL MORTGAGE & EQUITY, LLC
CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
(in thousands, except share and per share data)
(unaudited)


	Qtr Ended			Qtr Ended			Qtr Ended			Qtr Ended			Qtr Ended
	6/30/2004			03/31/04			12/31/03			09/30/03			06/30/03
SOURCES OF CASH:
Interest on bonds, residual interests in bond securitizations and loans	$	32,342		$	28,859		$	24,708		$	24,626		$	31,597
Interest on short-term investments		1,930			787			1,264			277			332
Syndication fees		11,190			4,733			18,004			6,588			1,825
Origination fees		4,191			1,970			4,047			1,887			2,711
Loan servicing fees		1,940			1,873			1,705			1,708			1,835
Asset management and advisory fees		5,398			6,166			6,267			3,777			1,198
Distributions from equity investments in partnerships		1,887			1,918			2,123			1,946			1,716
Other income		6,718			2,338			2,407			2,384			4,221
Net gain (loss) on sales		1,089			611			878			3,239			(9,033	)

TOTAL SOURCES OF CASH		66,685			49,255			61,403			46,432			36,402

EXPENSES:
Interest expense		16,450			14,739			12,372			11,920			8,102
Interest expense — preferred shares (Note 1)		3,035			3,046			3,276			2,994			—
Salaries and benefits		19,679			13,059			15,034			12,065			8,671
Professional fees		2,481			1,494			1,217			1,105			877
General and administrative		3,529			3,939			4,746			3,057			2,113
Loan loss expense		—			(26	)		2,802			—			47
Income tax expense (benefit)		187			3			2,935			—			(1,524	)

TOTAL EXPENSES		45,361			36,254			42,382			31,141			18,286

CASH AVAILABLE FOR DISTRIBUTION		21,324			13,001			19,021			15,291			18,116
LESS:
Cash allocable to preferred shareholders of a subsidiary company (Note 1)		—			—			—			—			2,995

CASH AVAILABLE FOR DISTRIBUTION TO COMMON SHARES	$	21,324		$	13,001		$	19,021		$	15,291		$	15,121

CAD PER COMMON SHARE	$	0.61		$	0.37		$	0.58		$	0.53		$	0.52

COMMON SHARES OUTSTANDING		34,893,770			34,840,630			32,576,380			28,917,912			28,832,443

CALCULATION OF CASH DISTRIBUTION:
CASH AVAILABLE FOR DISTRIBUTION TO COMMON SHARES	$	21,324		$	13,001		$	19,021		$	15,291		$	15,121

ACTUAL AMOUNT PAID	$	16,138		$	15,940		$	14,739		$	14,643		$	12,903

PAYOUT RATIO (Note 2)		75.7	%		122.6	%		77.5	%		95.8	%		85.3	%

COMMON SHARES OUTSTANDING FOR DISTRIBUTION (Note 2)		34,893,770			34,840,630			32,576,380			32,540,512			28,832,443

CASH DISTRIBUTION PER COMMON SHARE	$	0.4625		$	0.4575		$	0.4525		$	0.4500		$	0.4475

Note 2: The payout ratio calculation for the quarter ended 9/30/03 is based on 32,540,412 common shares outstanding to reflect the 3,622,500 common shares issued in October 2003 that received the third quarter distribution.

Note 3: Certain prior quarter amounts have been reclassified to conform to the 6/30/04 presentation.

The primary differences between Net Income as calculated under generally accepted accounting principles (“GAAP”) and Cash Available For Distribution (“CAD”) result from the timing of income and expense recognition and non-cash events. These differences between CAD and GAAP income include the treatment of certain fees, which for CAD purposes are recognized when received but for GAAP purposes are amortized into income over the relevant period. In addition, there are differences related to non-cash gains and losses associated with bond valuations and sales, non-cash gains and losses associated with changes in market value of derivative financial instruments, amortization of goodwill and intangibles and capitalization of mortgage servicing rights, which are not included in the calculation of CAD. As a result of Financial Interpretation No.46 (Revised), “Consolidation of Variable Interest Entities”, effective in the second quarter of 2004 asset management and syndication fees are eliminated for GAAP as a result of consolidating the tax credit equity funds.

MUNICIPAL MORTGAGE & EQUITY, LLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)


	June 30,		December 31,
	2004		2003
ASSETS:
Investment in tax-exempt bonds, net	$	1,180,237	$	1,043,973
Loans receivable, net		574,956		497,884
Loans receivable held for sale		39,740		54,492
Investments in partnerships		1,587,008		282,492
Investments in derivative financial instruments		3,320		2,563
Cash, cash equivalents and interest receivable		118,167		67,669
Other assets		273,251		160,453
Land, building and equipment		177,284		5,429
Goodwill and other intangible assets		133,379		134,664

TOTAL	$	4,087,342	$	2,249,619

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Notes payable	$	1,010,878	$	646,096
Mortgage notes payable		122,578		—
Debentures		60,000		—
Short-term debt		409,493		371,881
Long-term debt		179,988		190,090
Preferred shares subject to mandatory redemption (Note 1)		168,000		168,000
Tax credit equity guarantee liability		150,475		151,326
Investments in derivative financial instruments		10,545		15,287
Other liabilities		109,596		65,073
Minority interest in subsidiary companies		1,192,038		31
Shareholders’ equity		673,751		641,835

TOTAL	$	4,087,342	$	2,249,619

BOOK VALUE PER COMMON SHARE	$	19.35	$	19.74


Note 1:		As the result of adopting Financial Accounting Standards Board Statement of Financial Accounting Standard No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity”, as of July 1, 2003 the Company was required to reclassify its preferred shareholders’ equity of $160.5 million, recording the $168.0 million redemption obligation as a liability and the $7.5 million of preferred equity issue costs as an asset, to be amortized until the redemption dates, on the consolidated balance sheets. In addition, amounts previously classified as distributions paid to the preferred shareholders have been recorded as interest expense starting in the third quarter of 2003.

Municipal Mortgage & Equity, LLC
Analysis of Consolidated Balance Sheet Components

The table on page 17 provides an overview, organized according to major categories of invested assets or product types, of the Company’s assets and liabilities as of June 30, 2004. Management believes this presentation provides helpful detail on the components of the Company’s leverage and how the Company’s assets and liabilities relate to those major categories. The table also provides data on the Company’s off-balance-sheet bond securitizations as June 30, 2004 in order to permit comparison of the Company’s leverage based on the GAAP balance sheet alone to leverage inclusive of those off-balance-sheet items. Readers are cautioned that (1) this table does not reflect formal operating units or business segments within the Company, (2) shareholder’s equity for each of columns A through G was calculated by taking assets minus liabilities for each column, and the related columnar shareholder equity figures should not, therefore, be construed as representing the actual or notional equity supporting the invested assets or product type represented by a given column, (3) various items grouped in column E (Other) relate to other columns but have been aggregated in column E for ease of presentation and simplicity (e.g., cash is not allocated among the various columns), and (4) the preferred equity interest in MuniMae TE Bond Subsidiary, LLC has been presented in a separate column F to highlight subsidiary preferred shares reclassified as debt as of July 1, 2003 according to Statement of Financial Standards No. 150, “Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity.”

MUNICIPAL MORTGAGE & EQUITY, LLC
ANALYSIS OF CONSOLIDATED BALANCE SHEET COMPONENTS
June 30, 2004
(in thousands, except percentages)
(unaudited)


	(A)			(B)			(C)			(D)			(E)			(F)			(G)			(H)			(I)			(J)
	Bond									CAPREIT						Preferred									Off Balance			Adjusted
	Securitizations and			Taxable			Tax Credit			Equity						Equity in			Tax Credit			Balance Sheet			Sheet Bond			Balance Sheet
	Derivatives (1)			Lending (2)			Operations (3)			Investments (4)			Other			TE Bond Sub (5)			Funds (6)			June 30, 2004			Securitizations			June 30, 2004
ASSETS
Investment in tax-exempt bonds, net	$	1,180,237		$	—		$	—		$	—		$	—		$	—		$	—		$	1,180,237		$	95,270		$	1,275,507
Loans receivable, net		28,360			544,074						2,522												574,956						574,956
Loans receivable held for sale					39,740																		39,740						39,740
Investments in partnerships								33,327			64,335			(3	)					1,489,349			1,587,008						1,587,008
Investment in derivative financial instruments		3,320																					3,320						3,320
Cash and cash equivalents														99,962									99,962						99,962
Interest receivable														18,205									18,205						18,205
Restricted assets		1,431									19,477			11,898						162,037			194,843						194,843
Other assets					2,133			45,077						36,735			7,339			(24,498	)		66,786						66,786
Land, building and equipment														5,417						171,867			177,284						177,284
Mortgage servicing rights, net					11,622																		11,622						11,622
Goodwill (7)					15,855			90,844						1,879									108,578						108,578
Other intangibles								24,801															24,801						24,801

Total assets	$	1,213,348		$	613,424		$	194,049		$	86,334		$	174,093		$	7,339		$	1,798,755		$	4,087,342		$	95,270		$	4,182,612

LIABILITIES AND SHAREHOLDERS’ EQUITY
Notes payable	$	89,239		$	566,196		$	85,432		$	—		$	—		$	—		$	270,011		$	1,010,878		$	—		$	1,010,878
Mortgage Notes Payable																				122,578			122,578						122,578
Debentures								60,000															60,000						60,000
Short-term debt		409,493																					409,493						409,493
Long-term debt		179,988																					179,988			95,270			275,258
Preferred shares subject to mandatory redemption																	168,000						168,000						168,000
Tax credit syndication guarantee liability																				150,475			150,475						150,475
Investment in derivative financial instruments		10,545																					10,545						10,545
Accounts payable and accrued expenses														13,904						3,085			16,989						16,989
Interest payable					1,006									6,102			4,485			1,940			13,533						13,533
Unearned revenue and other liabilities														37,426						41,648			79,074						79,074

Total liabilities		689,265			567,202			145,432			—			57,432			172,485			589,737			2,221,553			95,270			2,316,823

Minority Interest in subsidiary companies																				1,192,038			1,192,038						1,192,038
Liabilities / Assets		57	%(9)		92	%		75	%		0	%		33	%		2350	%		33	%		54.4	%(10)		100	%		55.4	%
Percentage of liabilities — balance sheet 6/30/04		31	%		25	%		7	%		0	%		2	%		8	%		27	%		100	%		N/A			N/A
Percentage of liabilities — adjusted balance sheet 6/30/04		30	%		25	%		6	%		0	%		2	%		7	%		25	%		N/A			5	%		100	%
Total shareholders’ equity (8)		524,083			46,222			48,617			86,334			288,528			(165,146	)		(154,887	)		673,751			—			673,751

Total liabilities and shareholders’ equity	$	1,213,348		$	613,424		$	194,049		$	86,334		$	174,093		$	7,339		$	1,798,755		$	4,087,342		$	95,270		$	4,182,612

(1)		Bond securitizations and derivatives includes the Company’s investments in tax-exempt bonds, bond related investments and derivatives and the related on-balance sheet debt and cash collateral.

(2)		Taxable lending includes the Company’s construction and permanent loans and the related borrowings from the Midland Affordable Housing Group Trust, pension funds and lines of credit.

(3)		Tax credit operations includes the Company’s investment in properties and advances to tax credit equity funds and the related borrowings under lines of credit.

(4)		CAPREIT equity investments includes the taxable equity investments in the CAPREIT joint ventures and the related cash collateral.

(5)		Due to Statement of Financial Accounting Standards No. 150, “Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity,” the preferred shares issued by TE Bond Subsidiary have been reclassified to debt.

(6)		Tax credit funds reflects the consolidation of assets and liabilities of certain tax credit equity funds under two GAAP rules: FIN46 which requires consolidation of certain funds which are considered “variable interest entities”; and Statement of Financial Accounting Statement No. 66, “Accounting for Sales of Real Estate”, which requires consolidation of funds where the Company has provided investors a guarantee or has continuing involvement with the assets of the funds. The great majority of assets, and all of the minority interest in subsidiary company, shown in this column relates to funds consolidated as of June 30, 2004 pursuant to FIN46.

(7)		Goodwill of $31.7 million related to the 1999 purchase of the Midland Companies has been allocated equally between taxable lending and tax credit operations.

(8)		Shareholders’ equity was calculated by taking assets minus liabilities and minority interest for each column, and therefore these amounts do not accurately represent the actual or notional amount of equity attributable to each column.

(9)		Including the assets and liabilities from off balance sheet bond securitizations the percentage relating to bond securitizations and derivatives would be 60%.

(10)		Adjusted to include minority interest as a liability the percentage would be 84%. Adjusted to exclude the assets and liabilities of the tax credit funds the percentage would be 71%.

MUNICIPAL MORTGAGE & EQUITY, LLC
2004 INVESTMENTS
SECOND QUARTER AND YTD
(In thousands)

BOND PRODUCTION:


						QUARTER				RECOGNIZED TOTAL FEES		YTD				TOTAL FEES
			PERMANENT INTEREST			BOND VOLUME				THIS QUARTER		BOND VOLUME				RECOGNIZED YTD
PROPERTY	CITY	STATE	RATE			CONSTRUCTION		PERMANENT		FOR CAD		CONSTRUCTION		PERMANENT		FOR CAD
Aldus Street Apartments	Bronx	NY		5.79	%	$	—	$	8,100	$	70	$	—	$	8,100	$	70
Alta Ridenour Seniors	Kennesaw	GA		6.60	%		14,700		14,700		257		14,700		14,700		257
Columbia Knoll	Portland	OR		7.10	%		24,500		24,500		256		24,500		24,500		256
Evergreen at Plano Parkway	Plano	TX		6.55	%		14,750		14,750		258		14,750		14,750		258
Hoe Avenue Apartments	Bronx	NY		5.79	%		—		6,660		58		—		6,660		58
Peter Cintron Apartments	Bronx	NY		5.79	%		—		7,840		68		—		7,840		68
Stonehouse Valley	San Antonio	TX		6.60	%		11,800		11,800		207		11,800		11,800		207
Tranquility Bay	Pearland	TX		6.50	%		14,350		14,350		179		14,350		14,350		179
Westchase Park Apartments	Atlanta	GA		6.40	%		14,400		14,400		180		14,400		14,400		180

							94,500		117,100		1,533		94,500		117,100		1,533
First Quarter Volume							—		—		—		14,050		49,280		364

TOTAL						$	94,500	$	117,100	$	1,533	$	108,550	$	166,380	$	1,897

CONSTRUCTION/PERMANENT LENDING, SYNDICATION AND OTHER PRODUCTION:


			TOTAL FEES				TOTAL FEES
			RECOGNIZED				RECOGNIZED
	QUARTER		THIS QUARTER		YTD		YTD
	VOLUME		FOR CAD		VOLUME		FOR CAD
Tax Credit Equity Syndications (Equity Raised)	$	243,989	$	11,190	$	335,320	$	15,923
Tax Credit Acquisition Production	$	191,280	$	—	$	333,830	$	—
Conventional Equity Production	$	13,094	$	458	$	16,909	$	592
Taxable Construction Loan Production (generating a weighted average spread of .79%)	$	95,276	$	460	$	224,967	$	898
Taxable Permanent Loan Production	$	167,837	$	2,193	$	229,801	$	3,320
Supplemental Loan Production	$	9,102	$	7	$	20,846	$	80
OTHER INFORMATION:
Balance as of 6/30/04 of Permanent Loan Servicing Portfolio under Management	$	1,235,498	$	1,132			$	2,243
Balance as of 6/30/04 of Equity Syndication Portfolio under Management	$	5,697,218	$	4,825			$	10,522

MUNICIPAL MORTGAGE & EQUITY, LLC
PARTICIPATING BOND PORTFOLIO
NET OPERATING INCOME - TREND
As of June 30, 2004


		Q2 2003		Q1 2004		Q2 2004		Q2’04/				Q1’04/
	Property	Actual		Actual		Actual (2)			Q2 ’03			Q1 ’04
	Alban		247,847		260,256		239,829			-3.2	%		-7.8	%
⁽¹⁾	Arlington		-47,648		-96,639		-19,763			-58.5	%		-79.5	%
	Barkley Place		338,357		352,382		359,519			6.3	%		2.0	%
⁽¹⁾	Barrington at Beach Street		105,449		218,642		340,704			223.1	%		55.8	%
	Cobblestone		140,885		168,134		160,898			14.2	%		-4.3	%
⁽¹⁾	Cool Springs		4,165		25,156		30,421			630.4	%		20.9	%
	Creekside		284,987		237,374		230,403			-19.2	%		-2.9	%
	Crossings		168,809		181,815		188,970			11.9	%		3.9	%
	Gilman Meadows		139,564		146,071		149,696			7.3	%		2.5	%
	Hamilton Grove		174,422		170,549		222,546			27.6	%		30.5	%
	Jefferson Commons		351,133		321,581		340,040			-3.2	%		5.7	%
	Lakeview		182,750		173,442		178,679			-2.2	%		3.0	%
	Mallard I		24,999		34,649		32,971			31.9	%		-4.8	%
	Mallard II		97,454		73,779		94,296			-3.2	%		27.8	%
	Montclair		362,277		311,379		335,575			-7.4	%		7.8	%
	Newport Village		159,181		233,677		215,102			35.1	%		-7.9	%
	Nicollet Ridge		250,242		312,816		405,217			61.9	%		29.5	%
	Palisades Park		255,158		238,916		275,723			8.1	%		15.4	%
	Riverset I		329,930		379,173		433,310			31.3	%		14.3	%
	Riverset II		120,781		150,770		134,043			11.0	%		-11.1	%
	Steeplechase Falls		368,704		354,425		374,792			1.7	%		5.7	%
	Meadows		125,259		94,047		120,325			-3.9	%		27.9	%
	Timber Ridge		125,030		123,584		124,072			-0.8	%		0.4	%
	Villas at LaRiviera		209,711		231,406		230,711			10.0	%		-0.3	%
	Whispering Lake		325,721		211,201		281,889			-13.5	%		33.5	%

	Total		4,845,167		4,908,585		5,479,968			13.1	%		11.6	%

	Same Store Growth		4,783,201		4,761,426		5,128,605			7.2	%		7.7	%

⁽¹⁾ In Lease-up. Quarterly totals are not included in Same Store Growth calculations.

⁽²⁾ Q2 2004 includes April and May actuals plus the June budget.

Real Estate Table


				Occupancy
				Month Ended			Month Ended			Month Ended			Month Ended
	Month/Year	Apartment		Jun 30			Mar 31			Jun 30			Jun 30
Apartment Community	Acquired	Units		2004			2004			2003			2002
Participating Mortgage Bonds:
Alban Place	Sep-86		194		93.8	%		91.8	%		91.2	%		94.8	%
Cobblestone	Aug-99		184		93.5	%		94.6	%		95.7	%		95.1	%
Creekside Village	Nov-87		296		95.6	%		95.6	%		98.3	%		99.3	%
Crossings	Jan-97		200		92.5	%		95.5	%		89.5	%		95.5	%
Jefferson Commons	Dec-00		173		87.9	%		87.9	%		85.5	%		91.9	%
Lakeview	Sep-87		180		96.1	%		97.2	%		98.9	%		96.1	%
Timber Ridge	Dec-00		168		95.8	%		98.2	%		94.0	%		97.6	%
Villas at LaRiviera	Jun-99		199		85.9	%		93.5	%		80.5	%		81.5	%

Subtotal Participating Mortgage Bonds			1,594

Mortgage Bonds
Applewood (a.k.a. Paola)	Jul-99		48		97.9	%		97.9	%		95.8	%		91.7	%
Autumn Oaks/Crest at Thousand Oaks	Feb-03		410		92.7	%		89.8	%		86.6	%		N/A
Charter House (2)	Dec-96		—		N/A			N/A			N/A			N/A
Cielo Vista	Aug-99		378		95.8	%		96.0	%		96.3	%		95.0	%
Country Club	Jul-99		101		63.4	%		68.3	%		81.2	%		90.1	%
Delta Village	Jun-99		80		95.0	%		96.3	%		97.5	%		100.0	%
Diamond Fork	Feb-04		60		90.0	%		93.3	%		N/A			N/A
Elmbrooke	Aug-00		54		100.0	%		100.0	%		100.0	%		100.0	%
Florida A&M	Feb-00		96		89.6	%		96.9	%		57.3	%		69.8	%
Fort Branch	Dec-00		250		91.2	%		96.4	%		88.0	%		19.6	%
Gannon (Dade) (3)	Feb-98		575		91.5	%		92.5	%		96.3	%		95.5	%
Gannon (St. Louis)	Feb-98		336		87.8	%		84.5	%		93.5	%		92.9	%
Hidden Brooks (8)	Sep-01		201		95.5	%		94.5	%		71.6	%		80.6	%
Hidden Valley	Dec-96		82		92.7	%		74.4	%		90.2	%		92.7	%
Honey Creek	Mar-99		656		90.7	%		91.9	%		89.6	%		95.1	%
Jefferson at Town Lake	Dec-02		216		83.8	%		88.9	%		N/A			N/A
Lake Piedmont	Apr-98		648		91.0	%		90.7	%		92.1	%		95.2	%
Monroe (Oakmont, Towne Oak) (8)	Dec-98		364		94.8	%		90.7	%		93.7	%		98.9	%
Mountain View (Willowgreen)	Nov-86		241		97.1	%		90.5	%		94.6	%		98.3	%
Northridge Park II	Aug-87		128		99.2	%		98.4	%		99.2	%		96.9	%
Oakbrook	Dec-96		170		87.6	%		81.2	%		83.5	%		95.3	%
Oklahoma City (4)	Aug-98		774		91.6	%		92.2	%		90.9	%		91.3	%
Orangevale	Apr-98		64		100.0	%		100.0	%		100.0	%		98.4	%
Parkwood	Jun-99		180		90.6	%		98.9	%		97.2	%		97.8	%
Pointe at St. Joseph	Nov-03		202		93.1	%		90.1	%		N/A			N/A
Riverset II (1)	Jan-96		—		N/A			N/A			N/A			N/A
Riverview	Jun-00		228		93.4	%		98.2	%		96.1	%		73.7	%
Sahuarita (8)	Jun-99		52		82.7	%		82.7	%		73.1	%		100.0	%
Santa Fe Springs	Jun-00		310		91.9	%		94.2	%		78.1	%		91.9	%
Shadowbrook (8)	Jun-99		193		99.0	%		94.8	%		95.3	%		97.4	%
Silver Springs	Dec-99		250		94.0	%		83.6	%		92.4	%		70.0	%
Southwind	Aug-00		88		95.5	%		100.0	%		100.0	%		100.0	%
Torries Chase	Dec-96		99		79.8	%		88.9	%		91.9	%		92.9	%
Village Apartments	May-00		210		96.7	%		95.7	%		95.2	%		96.2	%
Village at Stone Mountain	Oct-97		722		92.5	%		92.5	%		84.9	%		91.6	%
Village Green	Feb-00		200		88.5	%		92.0	%		81.5	%		86.5	%
Weatherstone	Sep-00		100		99.0	%		99.0	%		97.0	%		91.0	%
Western Hills (8)	Dec-98		80		66.3	%		66.3	%		70.0	%		95.0	%
Willow Key	Mar-99		384		94.8	%		96.1	%		93.5	%		99.5	%
Woodglen	Dec-99		250		74.0	%		80.0	%		79.6	%		90.8	%
Woodmark	Jun-99		173		97.1	%		98.8	%		97.1	%		98.3	%

Subtotal Mortgage Bonds			9,653

Real Estate Table


				Avg. Monthly Rent
				Per Apartment Unit
				Month Ended		Month Ended		Month Ended		Month Ended
	Month/Year	Apartment		Jun 30		Mar 31		Jun 30		Jun 30
Apartment Community	Acquired	Units		2004		2004		2003		2002
Participating Mortgage Bonds:
Alban Place	Sep-86		194		974		970		943		924
Cobblestone	Aug-99		184		589		590		589		572
Creekside Village	Nov-87		296		617		613		596		559
Crossings	Jan-97		200		768		765		757		749
Jefferson Commons	Dec-00		173		1,227		1,227		1,216		1,361
Lakeview	Sep-87		180		747		744		718		695
Timber Ridge	Dec-00		168		493		499		468		464
Villas at LaRiviera	Jun-99		199		729		742		708		682

Subtotal Participating Mortgage Bonds			1,594

Mortgage Bonds
Applewood (a.k.a. Paola)	Jul-99		48		566		566		518		502
Autumn Oaks/Crest at Thousand Oaks	Feb-03		410		529		526		534		N/A
Charter House (2)	Dec-96		—		N/A		N/A		N/A		N/A
Cielo Vista	Aug-99		378		423		422		423		424
Country Club	Jul-99		101		441		452		451		438
Delta Village	Jun-99		80		624		616		585		578
Diamond Fork	Feb-04		60		671		670		N/A		N/A
Elmbrooke	Aug-00		54		1,085		1,080		1,063		1,021
Florida A&M	Feb-00		96		1,585		1,580		1,380		1,385
Fort Branch	Dec-00		250		680		688		734		830
Gannon (Dade) (3)	Feb-98		575		838		834		815		748
Gannon (St. Louis)	Feb-98		336		606		602		592		573
Hidden Brooks (8)	Sep-01		201		825		823		1,036		1,057
Hidden Valley	Dec-96		82		593		588		575		552
Honey Creek	Mar-99		656		526		493		542		560
Jefferson at Town Lake	Dec-02		216		1,434		1,439		N/A		N/A
Lake Piedmont	Apr-98		648		486		498		494		476
Monroe (Oakmont, Towne Oak) (8)	Dec-98		364		486		491		489		482
Mountain View (Willowgreen)	Nov-86		241		648		649		643		628
Northridge Park II	Aug-87		128		1,012		1,022		1,007		1,053
Oakbrook	Dec-96		170		458		468		462		430
Oklahoma City (4)	Aug-98		774		488		487		491		481
Orangevale	Apr-98		64		1,005		969		968		958
Parkwood	Jun-99		180		501		497		479		464
Pointe at St. Joseph	Nov-03		202		720		729		N/A		N/A
Riverset II (1)	Jan-96		—		N/A		N/A		N/A		N/A
Riverview	Jun-00		228		645		655		655		658
Sahuarita (8)	Jun-99		52		588		588		446		529
Santa Fe Springs	Jun-00		310		597		596		594		592
Shadowbrook (8)	Jun-99		193		523		521		506		484
Silver Springs	Dec-99		250		770		766		777		809
Southwind	Aug-00		88		783		783		737		711
Torries Chase	Dec-96		99		514		506		441		498
Village Apartments	May-00		210		586		586		585		568
Village at Stone Mountain	Oct-97		722		767		731		757		733
Village Green	Feb-00		200		634		638		637		638
Weatherstone	Sep-00		100		801		800		804		812
Western Hills (8)	Dec-98		80		521		528		523		502
Willow Key	Mar-99		384		707		708		706		655
Woodglen	Dec-99		250		730		730		676		641
Woodmark	Jun-99		173		707		696		680		680

Subtotal Mortgage Bonds			9,653

Real Estate Table


				Occupancy
				Month Ended			Month Ended			Month Ended			Month Ended
	Month/Year	Apartment		Jun 30			Mar 31			Jun 30			Jun 30
Apartment Community	Acquired	Units		2004			2004			2003			2002
Participating Subordinate Mortgage Bonds:
Barkley Place	May-87		156		96.8	%		97.4	%		95.5	%		89.7	%
Gilman Meadows	Mar-87		125		91.2	%		92.0	%		93.6	%		90.4	%
Hamilton Chase	Feb-87		300		96.0	%		94.7	%		92.7	%		93.7	%
Mallard Cove I & II	Feb-87		198		95.5	%		94.4	%		94.9	%		90.4	%
Meadows	Jan-88		200		94.5	%		88.0	%		93.0	%		94.0	%
Montclair	Oct-86		159		88.1	%		87.4	%		93.1	%		97.5	%
Newport Village	Dec-86		220		93.2	%		97.7	%		84.1	%		94.1	%
Nicollet Ridge	Dec-87		339		92.0	%		87.9	%		90.9	%		92.0	%
Riverset II	Jan-96		148		95.0	%		94.8	%		89.0	%		86.8	%
Steeplechase	Oct-88		450		95.6	%		94.7	%		95.1	%		92.9	%
Whispering Lake	Oct-87		384		89.6	%		84.6	%		93.8	%		93.5	%

Subtotal Participating Subordinate Mortgage Bonds			2,679

Subordinate Mortgage Bonds:
CAPREIT	Sep-99		—		N/A			N/A			N/A			N/A
Farmington Meadows	Aug-99		69		98.6	%		100.0	%		100.0	%		100.0	%
Independence Ridge	Aug-96		336		77.4	%		76.5	%		75.9	%		81.8	%
Locarno	Aug-96		110		91.8	%		89.1	%		89.1	%		81.8	%
Olde English Manor	Nov-99		—		N/A			N/A			N/A			N/A
Peaks of Conyer	Sep-01		260		89.2	%		88.1	%		75.2	%		87.3	%
Rillito Village	Jul-00		—		N/A			N/A			N/A			N/A

Subtotal Subordinate Mortgage Bonds			775

Other Bond Related Investments:
Briarwood	Dec-98		600		96.3	%		97.5	%		98.3	%		97.5	%
Cinnamon Ridge	Dec-97		264		90.2	%		89.4	%		97.3	%		98.1	%
Golfside Villas (f.k.a. Club West)	Mar-99		194		99.5	%		99.5	%		99.5	%		99.5	%
Park at Landmark	Sep-00		396		93.4	%		94.7	%		95.7	%		94.9	%
Poplar Glen	Jun-97		191		93.2	%		94.2	%		93.2	%		95.8	%
RITES - Charter House	Dec-96		280		91.1	%		92.5	%		92.5	%		98.2	%
RITES - Indian Lakes (8)	Jul-97		296		98.6	%		96.6	%		90.9	%		88.5	%
RITES - LaPaloma	Apr-99		120		98.3	%		99.2	%		100.0	%		99.2	%
RITES - LeMirador (Coleman Senior)	Apr-98		141		86.5	%		84.4	%		83.7	%		92.9	%
RITES - Museum Towers	Apr-01		286		95.8	%		95.8	%		95.8	%		87.4	%
RITES - Olde English Manor	Jun-98		264		85.2	%		76.9	%		76.5	%		90.5	%
RITES - Palisades Park	Feb-98		304		95.4	%		97.4	%		93.8	%		97.4	%
RITES - Pavillion	Apr-99		132		98.5	%		98.5	%		100.0	%		100.0	%
RITES - Rancho/Villas	May-00		417		74.4	%		82.3	%		88.6	%		92.1	%
RITES - Rillito Village	Aug-98		272		92.3	%		91.5	%		89.3	%		91.2	%
RITES- Riverset (1)	Aug-88		352		95.0	%		94.8	%		89.0	%		86.8	%
RITES -Riverset II (1)	Jan-96		—		N/A			N/A			N/A			N/A
RITES - Sienna (a.k.a. Italian Gardens)	Apr-98		140		85.7	%		85.7	%		90.0	%		83.6	%
RITES - Sonterra	May-98		156		94.9	%		93.6	%		87.8	%		94.2	%
RITES - Southgate Crossings	Jun-97		215		94.4	%		95.3	%		98.1	%		97.2	%

Subtotal Other Bond Related Investments			5,020

Total Units/Weighted Average Investments			19,721		91.8	%		91.8	%		90.8	%		91.8	%

Total/Same Stores (5) 2001			18,833		91.9	%		91.9	%		90.9	%		91.8	%
Total/Same Stores (5) 2002			19,243		91.9	%		91.9	%		90.8	%

Real Estate Table


				Avg. Monthly Rent
				Per Apartment Unit
				Month Ended		Month Ended		Month Ended		Month Ended
	Month/Year	Apartment		Jun 30		Mar 31		Jun 30		Jun 30
Apartment Community	Acquired	Units		2004		2004		2003		2002
Participating Subordinate Mortgage Bonds:
Barkley Place	May-87		156		2,167		2,156		2,094		2,068
Gilman Meadows	Mar-87		125		989		990		993		1,020
Hamilton Chase	Feb-87		300		620		625		624		613
Mallard Cove I & II	Feb-87		198		721		721		714		748
Meadows	Jan-88		200		612		614		605		611
Montclair	Oct-86		159		1,896		1,885		1,836		1,820
Newport Village	Dec-86		220		863		854		854		839
Nicollet Ridge	Dec-87		339		987		965		954		942
Riverset II	Jan-96		148		719		739		702		706
Steeplechase	Oct-88		450		628		629		613		590
Whispering Lake	Oct-87		384		651		647		656		639

Subtotal Participating Subordinate Mortgage Bonds			2,679

Subordinate Mortgage Bonds:
CAPREIT	Sep-99		—		N/A		N/A		N/A		N/A
Farmington Meadows	Aug-99		69		816		814		814		814
Independence Ridge	Aug-96		336		555		555		554		551
Locarno	Aug-96		110		890		874		887		877
Olde English Manor	Nov-99		—		N/A		N/A		N/A		N/A
Peaks of Conyer	Sep-01		260		693		694		726		738
Rillito Village	Jul-00		—		N/A		N/A		N/A		N/A

Subtotal Subordinate Mortgage Bonds			775

Other Bond Related Investments:
Brianwood	Dec-98		600		670		666		642		603
Cinnamon Ridge	Dec-97		264		962		972		952		917
Golfside Villas (f.k.a. Club West)	Mar-99		194		610		610		618		618
Park at Landmark	Sep-00		396		1,107		1,085		1,058		1,066
Poplar Glen	Jun-97		191		1,014		1,014		991		938
RITES - Charter House	Dec-96		280		629		628		625		619
RITES - Indian Lakes (8)	Jul-97		296		804		795		785		785
RITES - LaPaloma	Apr-99		120		684		646		643		619
RITES - LeMirador (Coleman Senior)	Apr-98		141		845		836		858		871
RITES - Museum Towers	Apr-01		286		1,389		1,389		1,389		1,367
RITES - Olde English Manor	Jun-98		264		501		501		500		479
RITES - Palisades Park	Feb-98		304		565		560		559		545
RITES - Pavillion	Apr-99		132		719		661		672		675
RITES - Rancho/Villas	May-00		417		544		544		546		487
RITES - Rillito Village	Aug-98		272		477		479		471		440
RITES - Riverset (1)	Aug-88		352		724		735		498		693
RITES - Riverset II (1)	Jan-96		—		N/A		N/A		N/A		N/A
RITES - Sienna (a.k.a. Italian Gardens)	Apr-98		140		815		813		812		857
RITES - Sonterra	May-98		156		910		911		861		847
RITES - Southgate Crossings	Jun-97		215		1,030		1,034		1,005		981

Subtotal Other Bond Related Investments			5,020

Total Units/Weighted Average Investments			19,721		725		721		705		702

Total/Same Stores (5) 2001			18,833		721		717		709		702
Total/Same Stores (5) 2002			19,243		717		713		705

Real Estate Table

Occupancy

Month Ended

Month/Year

Apartment

Jun 30

Mar 31

Jun 30

Apartment Community

Acquired

Units

2004

2003

2002

Construction/Substantial Rehab Properties and Other Investments

Alta Ridenour

Jun-04

252

N/A

Arlington

Dec-00

176

40.3

34.1

N/A

Barrington at Beach Street

Oct-00

398

81.2

84.9

65.1

39.2

Bedford Park

Oct-00

312

69.2

53.5

69.6

75.6

Brookside Park

Dec-03

200

N/A

CAPREIT Joint Venture (6)

Jun-02

6,475

93.6

93.3

95.6

96.0

CAPREIT TERA(7)

Mar-01

2,942

94.5

94.1

94.2

93.2

Cedar Park Ranch

Aug-03

180

N/A

Columbia Knoll

Apr-04

326

N/A

Chancellor

Nov-01

101

N/A

Chancellor II

Mar-02

N/A

City Views at Rosa Burney Park (8)

Dec-02

180

68.3

68.9

80.6

N/A

Cool Springs

Aug-00

124

72.6

63.7

54.8

28.2

Coronel Village

Apr-02

N/A

Desert Tree Estates

Sep-03

196

N/A

Eden Park

May-03

104

N/A

Evergreen at Mesquite

Aug-03

200

N/A

Evergreen at Plano

May-04

250

N/A

Glenwood Farms (8)

Nov-03

294

78.2

86.7

N/A

Lake Pleasant Village

May-03

152

N/A

Las Trojas

Mar-02

N/A

Liberty Park Townhomes (8)

Feb-03

184

81.0

84.8

64.7

N/A

Lincoln Corner

Dec-01

134

73.9

29.9

N/A

Madison Chase

Jun-04

230

N/A

McEver Vineyards

Nov-03

221

N/A

Meridian at Bridgewater

Nov-99

83.3

90.0

82.2

71.1

North White Road

Nov-01

157

67.5

61.8

N/A

Oak Grove Commons

Dec-01

168

60.1

54.8

23.8

N/A

Oaks at Riverview

Mar-04

N/A

Olathe Senior Residences

Dec-02

144

N/A

Osborne Place Manor

Dec-02

N/A

Penn Valley

Dec-01

N/A

Providence at Rush Creek

Jan-04

144

N/A

Riverview Manor

Dec-03

120

N/A

Rocky Creek

Dec-03

200

N/A

Rose Cove

Feb-04

124

73.4

63.7

N/A

Sanger Trails

Dec-02

208

64.9

51.9

N/A

Sterlingshire

Dec-03

200

80.0

85.5

N/A

Stonehouse Valley

Jun-04

248

N/A

Sycamore Senior Village

Jun-02

300

N/A

Tranquility Bay

Jun-04

246

N/A

Village at Sun Valley

May-00

276

83.0

75.0

82.6

60.1

Walnut Grove

Jul-03

51.7

31.7

N/A

Walnut Tree

Mar-02

N/A

Westchase

Mar-04

224

N/A

Woodland Village

May-03

198

76.8

60.6

N/A

Subtotal Construction/Rehab Properties

17,082

Total Units

36,803

Real Estate Table

Avg. Monthly Rent

Per Apartment Unit

Month Ended

Month/Year

Apartment

Jun 30

Mar 31

Jun 30

Apartment Community

Acquired

Units

2004

2003

2002

Construction/Substantial Rehab Properties and Other Investments

Alta Ridenour

Jun-04

252

N/A

Arlington

Dec-00

176

1,390

1,389

N/A

Barrington at Beach Street

Oct-00

398

798

800

847

Bedford Park

Oct-00

312

475

498

434

547

Brookside Park

Dec-03

200

N/A

CAPREIT Joint Venture (6)

Jun-02

6,475

723

720

745

739

CAPREIT TERA (7)

Mar-01

2,942

600

601

605

630

Cedar Park Ranch

Aug-03

180

N/A

Columbia Knoll

Apr-04

326

N/A

Chancellor

Nov-01

101

N/A

Chancellor II

Mar-02

N/A

City Views at Rosa Burney Park (8)

Dec-02

180

577

726

569

N/A

Cool Springs

Aug-00

124

2,003

1,965

1,936

1,947

Coronel Village

Apr-02

N/A

Desert Tree Estates

Sep-03

196

N/A

Eden Park

May-03

104

N/A

Evergreen at Mesquite

Aug-03

200

N/A

Evergreen at Plano

May-04

250

N/A

Glenwood Farms (8)

Nov-03

294

533

530

N/A

Lake Pleasant Village

May-03

152

N/A

Las Trojas

Mar-02

N/A

Liberty Park Townhomes (8)

Feb-03

184

892

490

N/A

Lincoln Corner

Dec-01

134

1,489

N/A

Madison Chase

Jun-04

230

N/A

McEver Vineyards

Nov-03

221

N/A

Meridian at Bridgewater

Nov-99

3,496

3,818

3,496

North White Road

Nov-01

157

1,174

N/A

Oak Grove Commons

Dec-01

168

529

534

N/A

Oaks at Riverview

Mar-04

N/A

Olathe Senior Residences

Dec-02

144

N/A

Osborne Place Manor

Dec-02

N/A

Penn Valley

Dec-01

N/A

Providence at Rush Creek

Jan-04

144

N/A

Riverview Manor

Dec-03

120

N/A

Rocky Creek

Dec-03

200

N/A

Rose Cove

Feb-04

124

641

N/A

Sanger Trails

Dec-02

208

645

N/A

Sterlingshire

Dec-03

200

555

482

N/A

Stonehouse Valley

Jun-04

248

N/A

Sycamore Senior Village

Jun-02

300

N/A

Tranquility Bay

Jun-04

246

N/A

Village at Sun Valley

May-00

276

666

691

684

681

Walnut Grove

Jul-03

451

450

N/A

Walnut Tree

Mar-02

N/A

Westchase

Mar-04

224

N/A

Woodland Village

May-03

198

555

N/A

Subtotal Construction/Rehab Properties

17,082

Total Units

36,803

(1) The Company owns a participating bond, a participating subordinate bond and a RITES interest collateralized by the Riverset property.

(2) The Company owns a non-participating bond and a RITES interest collateralized by the Charter House property.

(3) The Dade Gannon Portfolio represents three properties.

(4) The Oklahoma City Portfolio represents three properties.

(5) Same Store includes only properties reporting for all three quarters.

(6) CAPREIT Joint Venture represents twenty-one properties (not included previously in CAPREIT Portfolio). February 2004 Average Rent used in place of March 2004.

(7) The CAPREIT TERA Portfolio represents eleven properties. May 2004 Average Rent used in place of June 2004.

(8) May 2004 Occupancy used in place of June 2004.

MMA Capital (Trading Symbol(s) MMAC MMAC) 8-KFinancial statements and exhibits