EXHIBIT 99.1
Contact: Susan B. Railey FOR IMMEDIATE RELEASE
(301)468-3120
Sharon Bramell
(301)231-0351
AIM 84 REPORTS FIRST QUARTER NET EARNINGS OF 17 CENTS PER UNIT
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ROCKVILLE, MD, May 6, 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 March 31, 2003 of approximately $1.8 million (17 cents per unit)
compared to approximately $396,000 (four cents per unit) for the three months
ended March 31, 2002. Net earnings increased for the first quarter of 2003 as
compared to the first quarter of 2002 primarily due to an increase in gains on
mortgage dispositions, partially offset by a decrease in mortgage investment
income.
AIM 84 recognized gains of approximately $1.5 million related to the
assignment of three mortgages to HUD during the first quarter 2003 compared to
no gains recognized during the first quarter 2002. Mortgage investment income
for the three months ended March 31, 2003 was approximately $279,000 as compared
to $506,000 for the comparable period in 2002. The decrease was primarily due to
a reduction in the mortgage base.
As of March 31, 2003, AIM 84 was invested in five fully insured mortgages
and two debentures with an aggregate amortized cost of approximately $14.3
million, a face value of approximately $15.8 million, and a fair value of
approximately $15.8 million. The five mortgages have been put to HUD under the
Section 221 program of the National Housing Act. As of May 1, 2003, AIM 84 has
not received approval from HUD for these five assignments. AIM 84 will continue
to accrue interest on these mortgages until the debentures are transferred to
the mortgagee and AIM 84 begins receiving the debenture interest.
In addition to the five mortgages in its portfolio, AIM 84 holds or has an
interest in debentures issued in exchange for two mortgages, Eastdale Apartments
and Baypoint Shoreline Apartments. In February 2003, HUD transferred assignment
proceeds in the form of 6.375% debentures in exchange for these mortgages.
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.
2
AMERICAN INSURED MORTGAGE INVESTORS
STATEMENTS OF INCOME
(Unaudited)
For the three months ended
March 31,
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2003 2002
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Income:
Mortgage investment income $ 278,966 $ 506,462
Interest and other income 62,431 4,134
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341,397 510,596
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Expenses:
Asset management fee to related parties 30,245 54,084
General and administrative 50,780 60,239
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81,025 114,323
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Net earnings before gains on mortgage dispositions 260,372 396,273
Gains on mortgage dispositions 1,541,324 -
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Net earnings $ 1,801,696 $ 396,273
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Net earnings allocated to:
Limited partners - 97.1% $ 1,749,447 $ 384,781
General Partner - 2.9% 52,249 11,492
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$ 1,801,696 $ 396,273
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Net earnings per unit of limited
partnership interest - basic $ 0.17 $ 0.04
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Limited partnership units outstanding-basic 10,000,125 10,000,125
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Balance Sheet Data: March 31, December 31,
- ------------------ 2003 2002
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Investment in insured mortgages $ 8,099,521 $ 15,474,110
Investment in debenture 6,125,943 -
Total assets 17,977,419 18,407,929