Exhibit 99.1
Contact: Susan B. Railey FOR IMMEDIATE RELEASE
(301) 468-3120
Sharon Bramell
(301 468-3130
AIM 84 REPORTS 4TH QUARTER NET EARNINGS OF SIX CENTS PER UNIT
2002 Earnings of 18 Cents per Unit
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ROCKVILLE, MD, March 20, 2003 -- (AMEX/AIA) -- American Insured Mortgage
Investors (AIM 84), a liquidating partnership that holds investments in
government insured multifamily mortgages, reported net earnings for the three
months ended December 31, 2002 of approximately $616,000 (six cents per unit)
compared to approximately $422,000 (five cents per unit) for the three months
ended December 31, 2001. Net earnings increased for the fourth quarter of 2002
as compared to the fourth quarter of 2001 primarily due to an increase in gains
on mortgage dispositions, partially offset by a decrease in mortgage investment
income.
AIM 84 reported net earnings for the year ended December 31, 2002 of
approximately $1.8 million (18 cents per unit) as compared to approximately $2.0
million (19 cents per unit) for the year ended December 31, 2001. Net earnings
decreased for the year ended December 31, 2002 compared to 2001 due to a
decrease in mortgage investment income, partially offset by an increase in gains
on mortgage dispositions.
Mortgage investment income decreased for the three months and the year
ended December 31, 2002 as compared to the same periods in 2001 primarily due to
a reduction in the mortgage base. The mortgage base decreased due to two
mortgage dispositions with a principal balance of approximately $6.8 million,
representing an approximate 30% decrease in the aggregate principal balance of
the total mortgage portfolio since December 2001. Gains on mortgage dispositions
increased for the three months and the year ended December 31, 2002 as compared
to the same periods in 2001. During 2002, AIM 84 recognized gains of
approximately $386,000 from the prepayment of the mortgages on Creekside Village
Apartments and Bay Pointe Apartments, in July 2002 and December 2002,
respectively. During 2001, the Partnership recognized a gain of approximately
$190,000 on the prepayment of the mortgage on Berryhill Apartments in September
2002.
As of December 31, 2002, there were eight insured mortgages in the
portfolio. All of the mortgages held by AIM 84 were eligible to be put to HUD
under the Section 221 program. The portfolio had an aggregate amortized cost of
approximately $14.2 million, a face value of approximately $17.3 million and a
fair value of approximately $17.4 million. As of March 1, 2003, the mortgage on
Town Park Apartments is delinquent with respect to the February 2003 payment of
principal and interest. AIM 84 expects this mortgage to be put to HUD, if not
otherwise disposed, by the servicer during the second quarter of 2003.
2
In January 2003, the Partnership received assignment proceeds from HUD for
the defaulted mortgage on Westbrook Apartments. AIM 84 received net proceeds of
approximately $1.5 million, or 90% of the unpaid principal balance of this
mortgage plus accrued interest at the debenture rate of 9.875% from September
2002 through January 2003. AIM 84 expects to recognize a gain of approximately
$228,000 for the first quarter 2003 and declare a distribution of approximately
14 cents per unit in March 2003, payable in May 2003.
In February 2003, HUD transferred assignment proceeds in the form of 6.375%
debentures in exchange for the mortgages on Baypoint Shoreline Apartments and
Eastdale Apartments.
As of March 1, 2003, AIM 84 has not received approval from HUD for the
assignments of three mortgages, with an aggregate face value of approximately
$6.5 million, which have been put to HUD under the Section 221 program. AIM 84
will continue to accrue interest on these three mortgages until the debentures
are transferred to the mortgagee and AIM 84 begins receiving the debenture
interest.
AIM 84 expects to assign the Partnership's two remaining mortgages to HUD
during the second quarter of 2003.
Quarterly net cash flow distributions, which had been temporarily retained
to fund the Partnership's operating expenses, are expected to resume in the
first quarter of 2003. Proceeds from mortgage dispositions and debenture
redemptions, if any, will be distributed to investors as usual in the quarter in
which such proceeds are received.
As the Partnership continues to liquidate its mortgage investments and
investors receive distributions of return of capital and taxable gains,
investors should expect a reduction in earnings and distributions due to the
decreasing mortgage base.
3
AMERICAN INSURED MORTGAGE INVESTORS
STATEMENTS OF OPERATIONS
For the three months ended For the year ended
December 31, December 31,
------------------------------ ------------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
Income:
Mortgage investment income $ 396,849 $ 508,277 $ 1,818,290 $ 2,110,712
Interest and other income 9,470 25,311 38,755 104,224
------------ ------------ ------------ ------------
406,319 533,588 1,857,045 2,214,936
------------ ------------ ------------ ------------
Expenses:
Asset management fee
to related parties 41,562 54,084 195,466 224,202
General and administrative 38,671 57,247 198,606 226,255
------------ ------------ ------------ ------------
80,233 111,331 394,072 450,457
------------ ------------ ------------ ------------
Earnings before gains
on mortgage dispositions 326,086 422,257 1,462,973 1,764,479
Gains on mortgage dispositions 290,289 - 385,829 190,206
------------ ------------ ------------ ------------
Net earnings $ 616,375 $ 422,257 $ 1,848,802 $ 1,954,685
============ ============ ============ ============
Net earnings per unit of limited
partnership interest - Basic $ 0.06 $ 0.05 $ 0.18 $ 0.19
============ ============ ============ ============
Limited partnership units
outstanding as of December 31, 10,000,125 10,000,125 10,000,125 10,000,125
============ ============ ============ ============
Balance Sheet Data: As of December 31,
- ------------------ 2002 2001
------------ ------------
Investment in insured mortgages $ 15,474,110 $ 22,155,147
Total assets $ 18,407,929 $ 24,137,592