Exhibit 99.1
Contact: Susan B. Railey FOR IMMEDIATE RELEASE
(301) 468-3120
Sharon Bramell
(301) 468-3161
AIM 84 TO DEFER REGULAR CASH FLOW DISTRIBUTIONS
Dividend Reinvestment Plan to Terminate
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ROCKVILLE, MD, August 8, 2002- - (AMEX/AIA) The General Partner of American
Insured Mortgage Investors (AIM 84) today announced that AIM 84 will defer the
payment of regular cash flow distributions for the remainder of 2002. Proceeds
from mortgage dispositions and debenture redemptions, if any, are expected to
continue to be distributed to investors as usual in the quarter in which such
proceeds are received.
The General Partner is deferring regular quarterly cash flow distributions
because of an expected decline in AIM 84's net cash flow during the next several
quarters. In June 2002, three mortgages in AIM 84's portfolio were put to FHA
under the Section 221 program of the National Housing Act and, in July 2002, one
mortgage prepaid. These four mortgages, with an aggregate face value of
approximately $14.6 million, generated approximately 60% of AIM 84's mortgage
investment income for the six months ended June 30, 2002. Because AIM 84's six
remaining mortgages may be put to FHA under the Section 221 program by October
2003, the Partnership's cash flow may further decline substantially while AIM 84
awaits the receipt of HUD debentures. As a result, the General Partner is
expected to temporarily retain net cash flow for the remainder of 2002 to fund
AIM 84's operating expenses.
AIM 84 expects to resume quarterly regular cash flow distributions when the
Partnership receives the semi-annual interest payments on the HUD debentures to
be issued in connection with the June 2002 assignments of the three mortgages.
The resumption of quarterly regular cash flow distributions is expected to occur
no earlier than the first quarter 2003 distribution payment date, and may occur
later in 2003. Such quarterly regular cash flow distributions are expected to be
at a reduced amount due to the reduced mortgage base and a lower expected
interest rate on the HUD debentures as compared to the interest rate on the
mortgages put to FHA.
As a result of the July 1, 2002 prepayment of the Creekside Village
Apartments mortgage, AIM 84 received net proceeds of approximately $4.9 million.
The Partnership expects to declare a distribution of mortgage proceeds in
September 2002 to be paid on November 1, 2002.
In June 2002, the Eastdale Apartments, North River Place and Baypoint
Shoreline Apartments mortgages were put to FHA under the Section 221 program.
AIM 84 will no longer receive monthly principal and interest payments from these
mortgages, which have an aggregate face value of approximately $9.8 million.
However, AIM 84 will receive, at a future date, semi-annual interest payments on
the HUD debentures. In the General Partner's experience, receipt of HUD
debentures issued under the Section 221 program has generally taken 6 to 18
months from the date they were put to FHA.
The General Partner also announced today that, in light of the
Partnership's reduced cash flow and deferral of regular cash flow distributions,
the AIM 84 Dividend Reinvestment Plan will terminate effective September 30,
2002. Notice of termination will be mailed directly to Dividend Reinvestment
Plan participants.
Under the Section 221 program, a mortgagee has the right to assign the
mortgage ("put") to FHA and receive, in exchange, a 10-year HUD debenture equal
to the unpaid principal balance of the mortgage plus accrued interest on the
mortgage. The HUD debenture bears interest at a current rate and pays interest
semi-annually in January and July. The Federal rate for a 10-year HUD debenture
issued under the Section 221 program for the period January 1 through June 30,
2002 was 6.375%. Based on past experience, HUD has called the debentures before
their 10-year maturity date.
Note: Certain statements in this press release are forward-looking statements.
These forward-looking statements inherently involve risks and uncertainties.
Certain factors could cause actual results and conditions to differ materially
from those anticipated by any forward-looking statements. These factors include,
but are not limited to, (i) the timing of the receipt of HUD debentures issued
in exchange for mortgages put to FHA, (ii) the interest rate of HUD debentures,
(iii) the timing of redemption of HUD debentures, (iv) the timing of mortgage
prepayments, if any, and (v) the reinvestment rate earned on mortgage
dispositions proceeds and regular cash flow distributions. Additional factors
are enumerated in the Partnership's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended December
31, 2001 and in its Quarterly Report on Form 10-Q for the quarter ended March
31, 2002. Readers are cautioned not to place undue reliance on these
forward-looking statements which speak only as of the date hereof. The
Partnership undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances occurring after the date hereof or
to reflect the occurrence of unanticipated events.