EXHIBIT 99.1
Contact: Susan B. Railey FOR IMMEDIATE RELEASE
(301) 468-3120
Sharon Bramell
(301) 231-0351
AIM 85 REPORTS THIRD QUARTER NET EARNINGS
OF 13 CENTS PER UNIT
---------------------------------------
ROCKVILLE, MD, November 12, 2003--(AMEX/AII) -- American Insured Mortgage
Investors-Series 85, L.P. (AIM 85), a liquidating partnership that holds
investments in government insured multifamily mortgages, reported net earnings
for the three months ended September 30, 2003 of approximately $1.6 million (13
cents per unit) compared to approximately $1.4 million (11 cents per unit) for
the three months ended September 30, 2002. Net earnings increased for the three
months ended September 30, 2003, as compared to the same period in 2002,
primarily due to an increase in gains on mortgage dispositions partially offset
by a decrease in mortgage investment income.
AIM 85 reported net earnings for the nine months ended September 30, 2003
of approximately $4.5 million (35 cents per unit) compared to approximately $5.4
million (43 cents per unit) for the nine months ended September 30, 2002. Net
earnings decreased for the nine months ended September 30, 2003 compared to the
corresponding period in 2002 primarily due to a decrease in mortgage investment
income partially offset by an increase in gains on mortgage dispositions.
Gains on mortgage dispositions increased for the three and nine months
ended September 30, 2003, as compared to the corresponding periods in 2002.
During the three months ended September 30, 2003, AIM 85 recognized gains of
approximately $627,000 from the assignment of three mortgages compared to net
gains of approximately $87,000 from the disposition of two mortgages during the
three months ended September 30, 2002. During the first nine months of 2003, AIM
85 recognized gains of approximately $1.4 million from four mortgage prepayments
and six mortgage assignments. During the first nine months of 2002, the
Partnership recognized net gains of approximately $1.3 million from three
mortgage prepayments and four mortgage assignments.
Mortgage investment income decreased for the three and nine months ended
September 30, 2003, as compared to the corresponding periods in 2002, primarily
due to a reduction in the mortgage base. The mortgage base decreased as a result
of 14 mortgage dispositions with an aggregate principal balance of approximately
$14.6 million, representing an approximate 21% decrease in the aggregate
principal balance of the total mortgage portfolio since September 2002.
As of September 30, 2003, AIM 85 was invested in 19 insured mortgages and
five debentures with an aggregate amortized cost of approximately $61.6 million,
an aggregate face value of approximately $61.8 million and an aggregate fair
value of approximately $63.3 million. As of November 1, 2003, all of the
mortgages are current with respect to the payment of principal and interest. HUD
has issued a call notice to redeem the five debentures on January 1, 2004.
One of these mortgages, Kaynorth Apartments, was assigned to the United
States Department of Housing and Urban Development ("HUD") pursuant to Section
221(g)(4) of the National Housing Act (the "Section 221 program") by the
servicer in April 2003. The face value of the mortgage was approximately $1.7
million as of the HUD put date. AIM 85 has not received approval for this
assignment as of November 1, 2003.
AIM 85 distributes net proceeds, if any, from mortgage dispositions and
debenture redemptions to its investors, in addition to distributions of regular
cash flow. 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.
-table follows-
2
AMERICAN INSURED MORTGAGE INVESTORS - SERIES 85, L.P.
STATEMENTS OF INCOME
(Unaudited)
For the three months ended For the nine months ended
September 30, September 30,
--------------------------- --------------------------
2003 2002 2003 2002
------------ ----------- ----------- -----------
Income:
Mortgage investment income $ 1,161,982 $1,556,263 $3,745,842 $ 4,756,219
Interest and other income 77,349 34,691 141,231 228,977
----------- ---------- ---------- -----------
1,239,331 1,590,954 3,887,073 4,985,196
----------- ---------- ---------- -----------
Expenses:
Asset management fee to related parties 148,703 189,662 469,277 571,168
General and administrative 106,163 98,586 329,205 320,922
----------- ---------- ---------- -----------
254,866 288,248 798,482 892,090
----------- ---------- ---------- -----------
Net earnings before gains on
mortgage dispositions 984,465 1,302,706 3,088,591 4,093,106
Gains on mortgage dispositions 627,469 86,839 1,373,339 1,264,766
----------- ---------- ---------- -----------
Net earnings $ 1,611,934 $1,389,545 $4,461,930 $ 5,357,872
=========== ========== ========== ===========
Net earnings allocated to:
Limited partners - 96.1% $ 1,549,069 1,335,353 $4,287,915 $ 5,148,915
General Partner - 3.9% 62,865 54,192 174,015 208,957
----------- ---------- ---------- -----------
$ 1,611,934 $1,389,545 $4,461,930 $ 5,357,872
=========== ========== ========== ===========
Net earnings per unit of limited
partnership interest - basic $ 0.13 $ 0.11 $ 0.35 $ 0.43
=========== ========== ========== ===========
Limited partnership units outstanding - basic 12,079,514 12,079,514 12,079,514 12,079,514
=========== ========== ========== ===========
Balance Sheet Data: September 30, December 31,
2003 2002
------------ ------------
Investment in insured mortgages $ 56,807,467 $66,323,565
Total assets 70,613,191 78,237,534