MMA Capital (Trading Symbol(s) MMAC MMAC) 8-K MuniMae Announces Filing of 2005 Annual Report on Form 10-K

Supplemental Financial Information

Fourth Quarter 2005

Exhibit 99.2

1

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Table of Contents

27

23-26

22

20-21

18 -19

17

17-19

Contact Information

CAD Variance Analysis

CAD Income Statement

Analysis of Balance Sheet Components

Bond Portfolio Cash Flow Hedging

Bond Portfolio Distribution

Supplemental Information on Bond Portfolio

Appendix

15

14

13

12

10

11

9

7-8

6

5

3-4

2

Introduction

Financial Highlights

Coverage Ratios

Distribution Growth, CAD Growth, and Payout

Ratio                                                            

Market Capitalization and Leverage

Consolidated Financial Statements

Balance Sheets

Three Months Ended Income Statements

Year Ended Income Statements

Net Income to CAD Reconciliation

Business Segments

Production Summary

Equity Research Coverage

2

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Introduction

It is the mission of MuniMae to be the premier real estate finance and investment advisory company. 

MuniMae provides debt and equity financing to owners of real estate investments and offers investment

advisory services to institutional investors.  We rely on our in-depth industry knowledge and expertise to

successfully structure and manage investments for our own account and for others.  We are dedicated to

an environment where integrity, innovation and service are of the highest importance.

MuniMae is organized as a limited liability company, which allows it to combine the limited liability,

governance and management characteristics of a corporation with the pass-through income features of a

partnership.  As a result, the tax-exempt income derived from certain investments remains tax-exempt

when passed through to shareholders. 

On March 10, 2006, we concluded that our financial statements for the years ended December 31, 2004,

2003, 2002 and 2001 and for the first three quarters in 2005 and

for each quarter in 2004 should no longer

be relied upon as a result of a number of errors in the application of GAAP.  Specifically, we determined

we had not: (A) correctly recognized syndication fee revenue; (B) correctly recorded impairments on

investments in real estate partnerships held by our guaranteed tax credit equity funds; (C) correctly

recorded consolidation entries related to our consolidated tax credit equity funds; (D) correctly capitalized

interest costs on investments in real estate partnerships developing low income housing properties; (E)

correctly accounted for the deferral and recognition of bond and

loan origination fees and direct

origination costs; (F) correctly applied the equity method of accounting for investments in certain

partnerships; (G) correctly identified and valued derivative financial instruments; (H) correctly recorded

income taxes; (I) correctly amortized certain mortgage servicing

rights; and (J) correctly identified our

segments.

Accordingly, the 2004 GAAP financial data set forth herein has been restated to reflect the restatement.

Cash Available for Distribution (“CAD”) results were not affected by the errors and not restated.

3

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Financial Highlights

(See footnotes on following page)

(numbers in thousands, except per share data)

Three months ended

Year ended

December 31,

December 31,

(Restated)

(Restated)

Summary Financial Results

2005

2004

% Change

2005

2004

% Change

GAAP

Income

93,892

$            

67,380

$         

39%

293,055

$        

229,748

$         

28%

Net Income

14,226

15,128

-6%

87,404

47,336

85%

Basic Earnings per Common Share

0.37

0.43

-14%

2.31

1.37

69%

Diluted Earnings per Common Share

0.37

0.43

-14%

2.30

1.36

69%

Weighted Average Common Shares Outstanding

38,137

35,053

37,757

34,522

Diluted Shares Outstanding

38,289

35,250

38,177

34,722

Three months ended

Year ended

December 31,

December 31,

Summary Financial Results

2005

2004

% Change

2005

2004

% Change

CAD

(1)

CAD Income

100,656

$          

73,270

$         

37%

306,554

$        

252,959

$         

21%

CAD 

29,776

22,199

34%

95,706

81,718

17%

CAD per Common Share

0.78

0.63

24%

2.51

2.33

8%

Common Shares Outstanding

38,207

35,183

38,207

35,183

4

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Financial Highlights

Note (1) –

In addition

to

net

income

calculated

in

accordance

with

GAAP,

we

present

Cash

Available

for

Distribution

(CAD)

to

provide

investors additional

information

about

operating

results

that

is

not

readily

apparent

in

net

income.

Our

definition

of

CAD

differs

from

net income because it:

(a)  includes origination, syndication and guarantee fees and other revenues that are deferred or eliminated in the calculation of net

income;

(b) excludes certain non-cash items, including unrealized gains or losses related to derivatives, amortization of intangible assets, non-

cash gains and losses associated with sales of loans, certain valuation allowances and impairment losses, changes in accounting

principle, deferred income taxes and deferred compensation expense;

(c) excludes the

effects

of

our

consolidated

tax

credit

equity

funds

and

the

requirements

surrounding

the

lease

method

accounting

associated with our guaranteed tax credit equity funds;

(d) includes distributions received from our equity method investments rather than our equity in net earnings (loss) of the underlying

partnerships; and

(e) adjusts for differences in carrying bases for investments that are sold.

Our

calculation

of

CAD

may

not

be

comparable

to

similarly

titled

measures

reported

by

other

companies

because

there

is

no

generally

accepted methodology for computing CAD and all companies do not calculate CAD in the same manner.  It should not be considered

as an alternative to net income, determined in accordance with GAAP, as an indication of our financial performance. CAD is not a

liquidity measure and is not an alternative to cash flows. CAD is reconciled to net income on page 12 of this supplemental financial

information package.

Note

(1)

is

referenced

throughout

the

remainder

of

the

presentation.

5

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Coverage Ratios

(3)

CAD-based Fixed Charge Coverage equals total CAD to common shares plus depreciation and amortization, income tax expense, interest expense and interest expense on

preferred shares and subordinate debentures, divided by interest

expense plus interest expense on preferred shares and subordinate debentures and dividends on perpetual

preferred shares.

Notes:

(2) Net income-based Fixed Charge Coverage equals net income plus depreciation and amortization, income tax expense, interest expense, interest

expense on preferred shares

and subordinate debentures, and gains/losses on derivatives, divided by interest expense plus interest expense on preferred shares, subordinate debentures, interest rate swaps

and dividends on perpetual preferred shares. 2004 amounts have been restated accordingly.

Three months ended

December 31,

Fixed Charge Coverage

2005

2004

2005

2004

Net income -

based

(2)

1.69

1.75

2.00

1.62

CAD -

based

(3)

2.10

1.99

1.97

2.03

Dividend Summary

Distributions per Common Share

0.4925

$    

0.4725

$    

1.94

$   

1.86

$    

Dividend Yield

7.6%

6.9%

7.5%

6.8%

CAD Payout Ratio

63.2%

74.9%

77.1%

79.7%

Common Share Price at Period End

25.83

$      

27.21

$      

25.83

$ 

27.21

$  

December 31,

Twelve months ended

6

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Distribution Growth, CAD Growth,

and Payout Ratio

$1.72

$1.92

$2.00

$2.13

$1.94

$1.86

$1.80

$1.76

$2.33

77%

80%

85%

88%

90%

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

$2.00

$2.25

$2.50

2001

2002

2003

2004

2005

75%

80%

85%

90%

95%

100%

Distribution Per Share

CAD Per Share

CAD Payout Ratio

$2.51

7

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Market Capitalization and

Leverage

Note:

(4) Senior Debt includes notes payable, mortgage notes payable, short-term debt, and long-term debt.

(in thousands, except share data)

Total Market Capitalization

Senior Debt

(4)

1,729,156

$   

1,585,432

$   

Subordinate Debentures (Trust Preferred)

172,750

84,000

Preferred Shares in Subsidiary

341,000

241,000

Equity at Market Value (A*B)

986,887

957,329

Total Market Capitalization

3,229,793

$   

2,867,761

$   

Total Assets

3,831,737

$   

3,300,596

$   

Leverage Ratios

Senior Debt to Total Assets

45.1%

48.0%

Senior Debt to Total Market Capitalization

53.5%

55.3%

Common Shares Outstanding

A.  Total Shares Outstanding at  Period-End

38,207

35,183

B.  Closing Common Share Price at Period-End

25.83

$          

27.21

$          

(Restated)

December 31, 2004

December 31, 2005

8

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Market Capitalization

Total Market Capitalization

as of December 31, 2005

Note:

(5) Equity market

capitalization

is

based

on

shares

outstanding

as

of

last

day

of

the

fiscal

quarter

multiplied

by

closing

share

price

as

of

last

trading day in the quarter; other data on chart are GAAP-based amounts as of quarter-end.

Mortgage notes

payable

3%

Long-term debt

12%

Subordinate

debentures

5%

Preferred shares

11%

Short-term debt

38%

Equity market

cap

(5)

31%

9

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Consolidated Balance Sheets

ASSETS

Tax exempt bonds, net

1,404,974

$         

1,275,748

$          

Taxable bonds and loans, net

835,389

631,395

Investment in partnerships

872,514

812,257

Cash, cash equivalents and interest receivable

162,781

111,249

Restricted and other assets

396,491

340,895

Goodwill and intangible assets

159,588

129,052

Total assets

3,831,737

$      

3,300,596

$       

LIABILITIES AND SHAREHOLDERS' EQUITY

Mortgage notes payable

94,716

$               

132,237

$              

Short-term debt

1,236,103

913,774

Long-term debt

398,337

539,421

Subordinate debentures

172,750

84,000

Preferred shares

168,000

168,000

Accounts payable and other liabilities

413,853

316,839

Total liabilities

2,483,759

$      

2,154,271

$       

Minority interest in subsidiary companies

410,973

398,454

Preferred shareholders' equity in a subsidiary company

168,686

71,031

Total shareholders' equity

768,319

676,840

Total liabilities and shareholders' equity

3,831,737

$      

3,300,596

$       

December 31, 2005

December 31, 2004

(Restated)

10

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Consolidated Income Statements –Three Mos.

Ended December 31, 2005 and 2004

(in thousands)

INCOME

Interest income

44,238

$  

33,953

$   

Fee income

44,259

27,283

Net rental income

5,395

6,144

Total income

93,892

67,380

EXPENSES

Interest expense

21,323

19,030

Interest expense on debentures and preferred shares

7,520

5,499

Salaries and benefits

29,327

15,168

General and administrative

9,434

8,586

Professional fees

4,287

4,503

Depreciation and amortization

7,224

4,122

Total expenses

79,115

56,908

Net gains (losses) and other, net

(552)

4,441

Income from continuing operations

14,225

14,913

Discontinued operations

1

215

Income before cumulative effect of a change

in accounting principle

14,226

15,128

Cumulative effect of a change in accounting principle

-

-

Net income

14,226

$  

15,128

$   

December 31, 2005

Three months ended

Three months ended

December 31, 2004

(Restated)

11

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Consolidated Income Statements –

Year 

Ended December 31, 2005 and 2004

(in thousands)

(Restated)

December 31, 2005

INCOME

Interest income

154,154

$  

133,568

Fee income

116,556

79,745

Net rental income

22,345

16,435

Total income

293,055

229,748

EXPENSES

Interest expense

74,882

66,334

Interest expense on debentures and preferred shares

25,650

17,318

Salaries and benefits

88,195

67,812

General and administrative

32,329

25,976

Professional fees

12,246

11,177

Depreciation and amortization

21,210

12,613

Total expenses

254,512

201,230

Net gains and other, net

39,380

7,218

Income from continuing operations

77,923

35,736

Discontinued operations

9,481

11,080

Income before cumulative effect of a change

in accounting principle

87,404

46,816

Cumulative effect of a change in accounting principle

-

520

Net income

87,404

$    

47,336

$      

Year ended

Year ended

December 31, 2004

12

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Net Income to CAD Reconciliation

(in thousands)

Year ended

(Restated)

(Restated)

2005

2004

2005

2004

Net income (GAAP)

14,226

$  

15,128

$   

87,404

$  

47,336

$    

Adjustments to income due to the financing method and

consolidation of tax credit funds

1,759

(1,369)

8,214

8,676

Fees deferred for GAAP purposes

18,372

10,911

36,299

25,778

Non-cash items

(5,857)

(4,012)

2,855

(1,655)

Adjustments for investments in partnerships

997

1,506

(29,865)

10,681

Different carrying bases

279

35

(9,201)

(9,098)

Cash Available for Distribution (CAD) 

29,776

$  

22,199

$   

95,706

$  

81,718

$    

Three months ended

December 31,

December 31,

13

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Business Segments

Note:

(6) Includes $10 million of taxable loans associated with tax-exempt bond originations and $16 million of off-balance sheet assets associated with

demand notes.

(7)

Includes $122 million of off-balance sheet assets associated with CDD securitizations.

Syndication Fees

Asset Management Fees

Guarantee Fees

Tax Credit Equity

$6.8 billion

assets under management

Interest Spread Income

Occasional Gains on Sale

Mortgage Servicing Fees

Origination Fees

Debt

$7.9 billion loans serviced

$1.4 billion tax-exempt bonds (6)

Interest Spread Income

Occasional Gains on Sale

Distribution Income

Origination Fees

Structured Finance

$52 million taxable equity investments

$166 million tax-exempt bonds (7)

$54 million loans serviced

Asset Management and Advisory Fees

Origination Fees

Distribution Income

Loan Servicing Fees

Fund Management

$15 million taxable equity investments

MuniMae

14

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Production Summary

Notes:

(8) Represents equity raised from investors.

(9) Represents bonds originated for Fannie Mae, Freddie Mac, and

FHA/HUD programs.

(10)

MRC production

(B-Notes,

Mezzanine

Loans,

and

Permanent

Whole

Loans)

is

managed

in

third

party

funds.

(in thousands)

Q1

Q2

Q3

Q4

Total

Tax Credit Equity Syndication

(8)

107,436

$    

215,252

$    

370,197

$        

572,692

$       

1,265,577

$     

Permanent Loans

62,938

75,341

400,241

240,441

778,961

Construction Loans

55,964

57,985

73,722

45,151

232,822

Agency Bonds

(9)

7,100

21,725

10,000

149,477

188,302

Tax Exempt Bonds

55,275

40,734

80,209

228,777

404,995

Supplemental Loans

24,013

12,462

12,511

42,079

91,065

MRC Production

(10)

7,255

188,674

230,295

371,122

797,346

Total Production

319,981

$    

612,173

$    

1,177,175

$     

1,649,739

$    

3,759,068

$     

2005

15

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Equity Research Coverage

Firm

Analyst

Telephone

A.G. Edwards

Paul Hamilos

314-955-3371

Legg Mason Wood Walker

Rod Petrik

410-454-4131

Merrill Lynch

William Acheson

212-449-1920

RBC Capital

Rich Moore

216-378-7625

Wachovia Securities

Christopher Haley

443-263-6773

16

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Appendix

23-26

CAD Variance Analysis

27

Contact Information

20-21

Analysis of Balance Sheet Components

22

CAD Income Statement

18-19

Bond Portfolio Cash Flow Hedging

17

Bond Portfolio Distribution

17-19

Supplemental Information on Bond Portfolio

17

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Bond Portfolio Distribution

Definitions:

LIHTC –

Low income housing tax credit

CDD –

Community development district

501(c)(3) –

Non-profit entity

80/20 –

Properties where generally 20-

40% of the units must be set aside for

residents at 50-60% of the median income

By State

TX

26%

CA

12%

GA

11%

FL

14%

TN

5%

Other

32%

By Bond Type

LIHTC

54%

CDD

10%

80/20

24%

501c3 Bond

12%

By Property Status 

Lease up

12%

Stabilized

56%

Escrow

1%

Under

Construction

15%

CDD 

10%

Rehabilitation

6%

18

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Bond Portfolio Cash Flow Hedging

Un-hedged

14%

86%

Fixed-Rate

(11) Includes $122M in bonds financed through off balance sheet securitizations.

(12) Includes $89M of the $122M in bonds financed through off balance sheet fixed rate securitizations.

(13) The Company generally hedges its floating rate bond securitization risk using BMA swaps.  BMA is the short-term tax exempt rate, a spread over which its tax exempt

bonds are priced.  However, since 2003, the Company has from time to time hedged this risk using LIBOR swaps.  This number reflects the Company's estimate of its hedge

positions assuming all LIBOR swaps were converted into BMA swaps, using an industry-standard 70% BMA/LIBOR ratio.  In addition, from time to time, the Company may

purchase senior interests in securitizations (3rd party P-Floats), which reduce the Company's floating rate risk.

(in thousands)

Total Amount

% Total

Bond

Portfolio

Total Bond Portfolio

(11)

1,577,019

100%

Whole Bonds

(738,608)

47%

Fixed Rate Securitizations

(12)

(284,032)

18%

Floating Rate Securitizations

554,379

35%

Swaps & 3rd Party P-floats

(13)

(328,391)

21%

Unhedged

Portion of Total Bond Portfolio 

225,988

$        

14%

$        

19

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

(in thousands)

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2006

2007

2008

2009

2010

2011

0.0%

6.5%

12.9%

19.4%

25.9%

32.3%

38.8%

33%

Cash Flow Hedging

"We employ a laddered hedging strategy to ensure that no more than 33% of our swaps roll-over in any given year."

Weighted average swap rate of 3.63%

Weighted average swap term of 2.41 years

Interest Rate Swap Maturities

As of December 31, 2005

20

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Analysis of GAAP Balance Sheet

Components

(December 31, 2005, unaudited)

(in thousands)

Bond 

Taxable

Tax Credit

Tax Credit

Investments

(14)

Investments

(15)

Operations

(16)

Other

Funds

Total

ASSETS

Tax-exempt bonds, net

1,404,974

$      

-

$                     

-

$                     

-

$                     

-

$                     

1,404,974

$      

Taxable bonds and loans, net

-

801,131

34,258

-

-

835,389

Investments in partnerships

-

66,826

90,121

-

715,567

872,514

Derivative financial instruments

3,975

-

-

-

-

3,975

Cash and cash equivalents

-

-

-

140,681

-

140,681

Interest receivable

15,127

5,871

1,049

53

-

22,100

Restricted assets

17,002

9,000

1,196

-

69,140

96,338

Other assets

7,096

92,336

56,805

30,146

109,795

296,178

Goodwill and other intangibles

-

69,313

88,395

1,880

-

159,588

Total assets

1,448,174

$      

1,044,477

$      

271,824

$         

172,760

$         

894,502

$         

3,831,737

$      

LIABILITIES AND EQUITY

Mortgage notes payable

-

$                     

-

$                     

-

$                     

-

$                     

94,716

$           

94,716

$           

Short-term debt

702,048

469,196

64,859

-

-

1,236,103

Long-term debt

81,725

165,436

-

-

151,176

398,337

Subordinate Debentures

-

-

172,750

-

-

172,750

Preferred shares subject to mandatory

redemption

168,000

-

-

-

-

168,000

Tax credit equity guarantee liability

-

-

-

-

229,690

229,690

Derivative financial instruments

1,678

2,327

-

-

-

4,005

Interest payable

11,090

5,108

472

-

3,022

19,692

Accounts payable, accrued expenses &

other liabilities

5,307

99,375

33,799

5,788

16,197

160,466

Total liabilities

969,848

741,442

271,880

5,788

494,801

2,483,759

Minority interest in subsidiary

companies

-

1,000

97

-

409,876

410,973

-

-

-

-

-

Preferred shareholders' equity in a

subsidiary company

168,686

-

-

-

-

168,686

-

-

-

-

-

Total equity

309,640

302,035

(153)

166,972

(10,175)

768,319

Total liabilities and equity

1,448,174

$      

1,044,477

$      

271,824

$         

172,760

$         

894,502

$         

3,831,737

$      

21

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Analysis of GAAP Balance Sheet

Components (footnotes)

NOTES

(14) Bond investments include the Company's investments in tax-exempt bonds, bond related investments and derivatives and the related on-

balance sheet debt and cash collateral.

(15) Taxable investments

include

the

Company's

construction

and

permanent

loans,

other

investments

from

the

MRC

business,

CAPREIT

equity investments and the related borrowings from the Midland Affordable Housing Group Trust, pension funds and lines of credit.

(16) Tax credit operation includes the Company's investment in properties and advances to tax credit equity funds and the related borrowings

under lines of credit.

22

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Cash Available For Distribution

(in thousands, except per share data, unaudited)

For the three months ended

For the year ended

December 31,

December 31,

2005

2004

2005

2004

CAD REVENUES:

Interest on investments

38,755

$               

31,184

$            

141,009

$            

126,830

$            

Syndication fees

25,745

21,319

55,135

51,852

Asset management and advisory fees

8,845

3,139

35,107

20,054

Origination and brokerage fees

7,236

4,032

18,025

12,651

Guarantee fees

5,880

4,857

13,393

11,852

Loan servicing fees

4,536

2,079

13,342

7,979

Distributions from equity investments in partnerships

1,424

2,299

10,456

8,178

Other income

5,153

3,073

13,375

8,385

Interest on short-term investments

3,082

1,288

6,712

5,178

     TOTAL CAD REVENUES

100,656

73,270

306,554

252,959

CAD EXPENSES:

Interest expense on debt

19,359

16,548

69,959

63,528

Interest expense on debentures and preferred shares

6,869

4,984

25,037

16,803

Salaries and benefits

29,096

14,543

87,049

64,286

Professional fees

3,887

4,057

11,048

10,294

General and administrative

7,290

5,175

21,751

16,523

Income tax expense

2,296

214

4,173

971

     TOTAL CAD EXPENSES

68,797

45,521

219,017

172,405

Net gains (losses)

42

(4,795)

13,131

1,919

Dividends paid on preferred shares of subsidiaries

2,125

755

4,962

755

CASH AVAILABLE FOR DISTRIBUTION

29,776

$               

22,199

$            

95,706

$               

81,718

$               

COMMON SHARES OUTSTANDING

38,207

35,183

CAD PER COMMON SHARE

0.78

$                   

0.63

$                 

2.51

$                   

2.33

$                   

23

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

CAD Variance Analysis

4th Quarter 2005 Compared to 4th Quarter 2004:

CAD for the fourth quarter of 2005 increased $7.6 million over the same period last year due primarily to the following changes:

(1) a $5.7 million increase in asset management and advisory fees primarily due to the new MRC business;

(2) a $4.9 million increase in net gains and losses primarily related to the termination of two interest rate swaps producing a net loss

in 2004 and one total return swap producing a net gain in 2005 and an increase in loss on loans and investments primarily

related to a bond impairment;

(3) a $4.4 million increase in syndication fees due to an increase in acquisition volume and investor equity;

(4) a $3.3 million increase in net interest income (interest on investments and short-term investments less interest expense on debt,

interest expense on debentures and preferred shares and dividends paid on preferred shares of subsidiaries) due primarily to

increases in interest income relative to interest on new bonds and construction loans as well as loans acquired through the

Glaser acquisition, offset by increases in interest expense, interest expense on debentures and preferred shares and

dividends paid on preferred shares of subsidiaries due to increases in senior costs on securitizations, borrowing rates,

outstanding debt balances and increases in preferred shares and trust preferred securities from offerings that occurred in

March, June, and November of 2005;

(5) a $3.2 million increase in origination and brokerage fees due to the acquisitions of MRC and Glaser offset by decreases in fees

from the Legacy portfolio primarily from bond production decreases;

(6) a $2.5 million increase in loan servicing fees related to the new Glaser business;

(7) a $2.1 million increase in other income due primarily to promote income and prepayment/yield maintenance fees related to the

new MRC and Glaser businesses, respectively;

(8) a $1.0 million increase in guarantee fees due to the receipt

of premium payments from previously established funds; and

(9) a $0.2 million decrease in professional fees related to fewer accounting expenditures related to internal control compliance;

24

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

CAD Variance Analysis

Offset in part by:

(1) a $14.6 million increase in salaries and benefits due to severance costs related to the restructuring and an increase in employee

headcount due to the MRC and Glaser acquisitions;

(2) a $2.1 million increase in general and administrative expenses due to increases in office rent, travel, and insurance expenses related

to increased employee headcount resulting from the current year MRC and Glaser acquisitions and organic growth;

(3) a $2.1 million increase in income tax expense due to an increase in state tax liabilities associated with the acquisitions of MRC and

Glaser; and

(4) a $0.9 million decrease in distributions from equity investments in partnerships due to a decrease in CAPREIT distributions.

25

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

CAD Variance Analysis

December 31, 2005 Year to Date Compared to December 31, 2004 Year to Date:

CAD for the year ended December 31, 2005, increased $14.0 million over last year due primarily to the

following changes:

(1) a $15.0 million increase in asset management and advisory fees due primarily to the new MRC business;

(2) a $11.2 million increase in net gains and losses due primarily to an increase in the volume of tax exempt

bond sales

and

gains

associated

with

the

termination

of

interest

rate

swaps

in

2005

and

losses

associated with the termination of total return swaps in 2004 and an increase in loss on loans and

investments primarily related to a bond impairment;

(3) a $5.4 million increase in origination and brokerage fees due to the acquisitions of MRC and Glaser offset

by decreases in fees from the Legacy portfolio primarily from bond production decreases;

(4) a $5.4 million increase in loan servicing fees primarily related to the new Glaser business;

(5) a $5.0 million increase in other income due primarily to promote income and prepayment/yield

maintenance fees related to the new MRC and Glaser businesses;

(6) a $3.3 million increase in syndication fees due to an increase in acquisition volume and investor equity;

(7) a $2.3 million increase in distributions from equity investments in partnerships due to an overall increase

in CAPREIT distributions and distributions from the MRC business; and

(8) a $1.5 million increase in guarantee fees primarily due to the receipt of premium payments from

previously established funds, offset by a decrease in fees resulting from the closing of funds in 2005.

26

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

CAD Variance Analysis

Offset in part by:

(1) a $22.8 million increase in salaries and benefits due to severance costs related to the restructuring and an

increase in employee headcount due to the MRC and Glaser acquisitions;

(2) a $5.2 million increase in general and administrative expenses due to increases in office rent, travel, and

insurance expenses related to increased employee headcount resulting from the current year MRC and

Glaser acquisitions and organic growth;

(3) a $3.2 million decrease in net interest income (interest on investments and interest on short-term

investments less interest expense on debt, interest expense on debentures and preferred shares and

dividends paid on preferred shares of subsidiaries) due primarily to an increase in interest expense,

interest expense on debentures and preferred shares and dividends paid on preferred shares of

subsidiaries due to increases in senior costs on securitizations

and borrowing rates and increases in

preferred shares and trust preferred securities from offerings that occurred in March, June, and

November of 2005, an increase in average short-term borrowings and interest rates, partially offset by

increases in interest income due to an increase in the average principal balance of construction loans

and interest income relative to new bond investments;

(4) a $3.2 million increase in income tax expense due to an increase in state tax liabilities associated with the

acquisitions of MRC and Glaser; and

(5) a $0.7 million increase in professional fees primarily due to the acquisitions of MRC and Glaser offset by

a decrease in accounting expenditures related to internal control compliance.

27

MuniMae

Supplementary Financial Information

Fourth Quarter 2005

Contact Information

MuniMae

621 East Pratt Street, Suite 300

Baltimore, Maryland 21202-3140

Phone: 877-461-4895

Fax: 410-727-5387

Investor Contacts:

Timothy J. Lordan

Investor Relations

888-788-3863