EXHIBIT 99.1
Contact: Susan B. Railey FOR IMMEDIATE RELEASE
(301) 468-3120
Sharon Bramell
(301) 231-0351
AIM 84 REPORTS SECOND QUARTER NET EARNINGS
OF SEVEN CENTS PER UNIT
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ROCKVILLE, MD, August 13, 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 June 30, 2003 of approximately $772,000 (seven cents per unit)
compared to approximately $408,000 (four cents per unit) for the three months
ended June 30, 2002. Net earnings for the six months ended June 30, 2003 were
approximately $2.6 million (25 cents per unit) compared to approximately
$804,000 (eight cents per unit) for the same period last year.
Net earnings increased for the three and six months ended June 30, 2003 as
compared to the corresponding periods in 2002 primarily due to an increase in
gains on mortgage dispositions and interest and other income, partially offset
by a decrease in mortgage investment income. AIM 84 recognized gains of
approximately $1.5 million from the assignment of three mortgages during the
first quarter of 2003 and recognized a gain of approximately $532,000 from the
assignment of one mortgage in the second quarter of 2003. No gains or losses
were recognized during the first six months of 2002. Mortgage investment income
decreased primarily due to a reduction in the Partnership's mortgage base.
Interest and other income increased primarily due to interest earned on
debentures received from HUD.
As of June 30, 2003, the Partnership's investments included four fully
insured mortgages and three debentures with an aggregate amortized cost of
approximately $14.9 million, a face value of approximately $15.8 million, and a
fair value of approximately $15.8 million. The four mortgages have been put to
HUD under the Section 221 program of the National Housing Act, of which one
assignment was approved by HUD in July 2003. As of August 1, 2003, AIM 84 has
not received approval from HUD for the remaining three assignments. AIM 84 will
continue to accrue interest on the mortgages until the debentures are
transferred to the mortgagee and AIM 84 begins receiving the debenture interest.
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. Early prepayment by HUD of some or all of the
debentures, or a sale of some or all of the debentures by the Partnership, may
effect an early termination and dissolution of AIM 84 before the stated
termination date of December 31, 2008. Upon the termination and liquidation of
the Partnership, distributions to unitholders will be made in accordance with
the terms of its Partnership Agreement, as amended, which is not based on GAAP.
As a result, it is likely that the amounts that unitholders receive upon
termination and liquidation of AIM 84 will be substantially lower than the
amounts reflected in the Partnership's financial statements.
2
AMERICAN INSURED MORTGAGE INVESTORS
STATEMENTS OF INCOME
(Unaudited)
For the three months ended For the six months ended
June 30, June 30,
------------------------------ ------------------------------
2003 2002 2003 2002
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Income:
Mortgage investment income $ 153,607 $ 504,602 $ 432,573 $ 1,011,064
Interest and other income 154,110 2,449 216,541 6,583
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307,717 507,051 649,114 1,017,647
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Expenses:
Asset management fee to related parties 17,491 54,084 47,736 108,168
General and administrative 50,492 45,419 101,272 105,658
------------- ------------- ------------- -------------
67,983 99,503 149,008 213,826
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Net earnings before gains on mortgage dispositions 239,734 407,548 500,106 803,821
Gains on mortgage dispositions 531,862 - 2,073,186 -
------------- ------------- ------------- -------------
Net earnings $ 771,596 $ 407,548 $ 2,573,292 $ 803,821
============= ============= ============= =============
Net earnings allocated to:
Limited partners - 97.1% $ 749,220 $ 395,729 $ 2,498,667 $ 780,510
General Partner - 2.9% 22,376 11,819 74,625 23,311
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$ 771,596 $ 407,548 $ 2,573,292 $ 803,821
============= ============= ============= =============
Net earnings per unit of limited
partnership interest - basic $ 0.07 $ 0.04 $ 0.25 $ 0.08
============= ============= ============= =============
Limited partnership units outstanding - basic 10,000,125 10,000,125 10,000,125 10,000,125
========== ========== ========== ==========
Balance Sheet Data: June 30, December 31,
2003 2002
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Investment in insured mortgages $ 5,838,831 $ 15,474,110
Investment in debentures 8,989,212 -
Total assets 17,053,269 18,407,929