AMERICAN HOUSING INCOME TRUST, INC. Unaudited Pro Forma Condensed Consolidated Balance Sheet As of March 31, 2015
The Single Family
Historical
Residences in
Amounts
Tucson, AZ
Pro Forma
(A)
(B)
Amounts
Assets
Investment in real estate
Land
$
4,500,484
$
173,573
$
4,674,057
Buildings and improvements
2,124,117
1,562,161
3,686,278
6,624,601
1,735,734
8,360,335
Less: accumulated depreciation
(138,666)
-
(138,666)
Investment in real estate, net
6,485,935
1,735,734
8,221,669
Cash and cash equivalents
240,330
-
240,330
Accounts receivable
3,200
-
3,200
Notes receivable
120,000
-
120,000
Due from related party
8,321
-
8,321
Other assets
156,927
-
156,927
Total Assets
$
7,014,713
$
1,735,734
8,750,447
Liabilities and Equity
Liabilities:
Accounts payable and accrued liabilities
$
51,902
-
$
51,902
Due to related parties
37,106
-
37,106
Unearned rent received
3,500
-
3,500
Notes payable
2,936,325
1,215,734
4,152,059
Total Liabilities
3,028,833
1,215,734
4,224,567
Equity:
Common Stock
-
-
-
Additional paid-in capital (Members'
contributions)
10,017,511
520,000
10,537,511
Accumulated Deficit
�� (6,016,553)
-
(6,016,553)
Total American Realty Partners, LLC
Members' Equity
4,000,958
520,000
4,520,958
Non-controlling interest
(15,078)
-
(15,078)
Total Members' Equity
3,985,880
520,000
4,505,880
Total Liabilities and Stockholders' Equity
$
7,014,713
$
1,735,734
$
8,750,447
See notes to unaudited pro forma condensed consolidated balance sheet
Page 1
THE SINGLE FAMILY RESIDENCES IN TUCSON, ARIZONA NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
A. Represents the unaudited historical consolidated balance sheet of the Company as of March 31, 2015, as contained in the consolidated financial statements filed in the Company's Form 8-K/A filed on July 7, 2015.
B. Represents the pro forma adjustments to reflect the acquisition of nine single family residences (the "Homes") located in Tucson, Arizona as if the acquisition had occurred on March 31, 2015.
The sources of funding for the acquisition of the Homes were as follows:
Assumption of promissory notes(1)
$
1,215,734
Issuance of 297,143 UPREIT Units
520,000
Total consideration
$
1,735,734
(1) The principal balance outstanding at the time of assumption was $1,215,734, which approximates fair value. The table below summarizes the interest rates and maturity dates of the promissory notes assumed:
Principal Amount
Interest (per annum)
Maturity Dates
$
24,013
5%
April 1, 2018
78,500
4.875%
September 1, 2033
50,196
5.10%
January 13, 2040
95,292
4.125%
July 1, 2029
46,113
3.625%
HELOC
143,552
5.625%
October 1, 2035
86,411
4.5%
November 1, 2026
113,713
5.25%
December 1, 2034
16,685
4.375%
January 1, 2022
277,856
5.25%
July 1, 2041
34,813
8.25%
HELOC
134,079
4.125%
June 1, 2043
114,511
4.125%
June 1, 2043
$
1,215,734
The preliminary allocation of the purchase price was as follows:
Land
$
173,573
Buildings and improvements
1,562,161
Total
$
1,735,734
Page 2
AMERICAN HOUSING INCOME TRUST, INC. Unaudited Pro Forma Condensed Consolidated Statement of Operations For the Three Months Ended March 31, 2015
The Single Family
Residences in
Historical Amounts
Tucson, AZ
Pro Forma
Pro Forma
(A)
(B)
Adjustments
Amounts
Revenues:
Rental revenue
$
87,159
$
32,730
$
-
$
119,889
Interest income
2,402
-
-
2,402
Other Income
500
-
-
500
Total revenue
90,061
32,730
-
122,791
Expenses:
Acquisition expense
325,000
-
-
325,000
Depreciation
19,268
-
14,464(E)
33,732
General and administrative
498,106
11,756
-
509,862
Interest expense
50,866
-
18,251(F)
69,117
Total expenses
893,240
11,756
32,715
937,711
Net loss
(803,179)
20,974
(32,715)
(814,920)
Less: net loss attributable to
non-controlling interest
14,849
-
-
14,849
Net income (loss) attributable to
American Realty Partners, LLC
$
(778,330)
$
20,974
$
(32,715)
$
(800,071)
See notes to unaudited pro forma condensed consolidated statements of operations
Page 3
AMERICAN HOUSING INCOME TRUST, INC. Unaudited Pro Forma Condensed Consolidated Statement of Operations For the Year Ended December 31, 2014
The Single Family
Residences in
Historical Amounts
Tucson, AZ
Pro Forma
Pro Forma
(C)
(D)
Adjustments
Amounts
Revenues:
Rental revenue
$
268,620
$
126,156
$
-
$
394,776
Interest income
22,338
-
-
22,338
Other Income
38,244
-
-
38,244
Total revenue
329,202
126,156
-
455,358
Expenses:
Depreciation
74,670
-
57,858(E)
132,528
General and administrative
1,533,869
32,656
-
1,566,525
Interest expense
201,765
-
52,886(F)
254,651
Total expenses
1,810,304
32,656
110,744
1,953,704
Net loss
$
(1,481,102)
$
93,500
$
(110,744)
$
(1,498,346)
See notes to unaudited pro forma condensed consolidated statements of operations
Page 4
THE SINGLE FAMILY RESIDENCES IN TUCSON, ARIZONA NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
A. Represents historical income from operations included in the consolidated statement of operations of the Company for the three months ended March 31, 2015, as contained in the consolidated financial statements filed in the Company's Form 8-K/A filed on July 7, 2015.
B. Represents the historical revenue and certain expenses of the nine single family residences (the "Homes") located in Tucson, Arizona for the three month period ended March 31, 2015.
C. Represents historical income from operations included in the consolidated statement of operations of the Company for the year ended December 31, 2014, as contained in the consolidated financial statements filed in the Company's Form 8-K/A filed on July 7, 2015.
D. Represents the historical revenue and certain expenses of Homes located in Tucson, Arizona for the year ended December 31, 2014.
E. Represents depreciation based on the preliminary purchase price allocations which are attributable as follows:
Three months
Ended
Year ended
Estimated
March 31,
December 31,
useful life
2015
2014
Buildings and improvements
27 years
$
14,464
$
57,858
F. Represent interest expense on borrowings of $1,215,734 assumed in connection with the acquisition of the Homes located in Tucson, Arizona.
Page 5
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