EXHIBIT 99
Contact: Susan B. Railey FOR IMMEDIATE RELEASE
(301) 468-3120
Sharon Bramell
(301 231-0351
AIM 85 REPORTS THIRD QUARTER NET EARNINGS
OF SEVEN CENTS PER UNIT
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ROCKVILLE, MD, November 9, 2004--(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, 2004 of approximately $867,000 (seven
cents per unit) compared to approximately $1.6 million (13 cents per unit) for
the three months ended September 30, 2003. Net earnings decreased, as compared
to the same period in 2003, primarily due to a decrease in mortgage investment
income and net gains on mortgage dispositions partially offset by a decrease in
expenses.
AIM 85 reported net earnings for the nine months ended September 30, 2004
of approximately $3.5 million (28 cents per unit) compared to approximately $4.5
million (35 cents per unit) for the nine months ended September 30, 2003. Net
earnings decreased for the nine months ended September 30, 2004 compared to the
corresponding period in 2003 primarily due to a decrease in mortgage investment
income partially offset by an increase in net gains on mortgage dispositions and
a decrease in expenses.
Mortgage investment income decreased for the three and nine months ended
September 30, 2004, as compared to the corresponding periods in 2003, primarily
due to the disposition of 11 mortgages with an aggregate principal balance of
approximately $41.4 million, representing an approximate 74% decrease in the
aggregate principal balance of the total mortgage portfolio since September
2003.
Net gains on mortgage dispositions decreased for the three months ended
September 30, 2004 and increased for the nine months ended September 30, 2004,
as compared to the corresponding periods in 2003. During the three months ended
September 30, 2004, AIM 85 recognized gains of approximately $572,000 primarily
from the sale of one mortgage. This compares to gains of approximately $627,000
from the assignment of three mortgages during the same three-month period last
year. During the first nine months of 2004, AIM 85 recognized gains of
approximately $2.1 million from three mortgage prepayments, one assignment and
the sale of three mortgages. During the first nine months of 2003, the
Partnership recognized net gains of approximately $1.4 million from four
mortgage prepayments and six mortgage assignments.
As of September 30, 2004, AIM 85 was invested in eight insured mortgages
and one debenture with an aggregate amortized cost of approximately $15.9
million, an aggregate face value of approximately $16.0 million and an aggregate
fair value of approximately $16.1 million. As of November 1, 2004, all of the
mortgages are current with respect to the payment of principal and interest.
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 AIM 85 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. Based upon the current level of interest rates, the
trend in mortgage prepayments over the last year is likely to continue. Such
mortgage prepayments, if continued at the recent trend, will likely result in a
termination and liquidation of the Partnership significantly earlier than the
December 2009 stated termination date. Upon the termination and liquidation of
the Partnership, on or before December 31, 2009, distributions to investors will
be made in accordance with the terms of the Partnership Agreement. A final
distribution to unitholders will be based on the Partnership's remaining net
assets after deducting and setting aside amounts required to satisfy and
discharge any existing Partnership obligations and expenses, and such
distribution to unitholders will be substantially less than the amount
referenced in limited partners' equity in the Partnership's financial
statements.
-table follows-
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,
2004 2003 2004 2003
-------- --------- -------- --------
Income:
Insured mortgage investment income $ 353,160 $ 1,161,982 $ 1,768,017 $ 3,745,842
Interest and other income 63,274 77,349 182,777 141,231
----------- ----------- ----------- -----------
416,434 1,239,331 1,950,794 3,887,073
----------- ----------- ----------- -----------
Expenses:
Asset management fee to related parties 45,038 148,703 232,480 469,277
General and administrative 75,984 106,163 232,135 329,205
----------- ----------- ----------- -----------
121,022 254,866 464,615 798,482
----------- ----------- ----------- -----------
Net earnings before gains on insured
mortgage dispositions 295,412 984,465 1,486,179 3,088,591
Net gains on insured mortgage dispositions 571,671 627,469 2,055,067 1,373,339
----------- ----------- ----------- -----------
Net earnings $ 867,083 $ 1,611,934 $ 3,541,246 $ 4,461,930
=========== =========== =========== ===========
Net earnings allocated to:
Limited partners - 96.1% $ 833,267 $ 1,549,069 $ 3,403,137 $ 4,287,915
General Partner - 3.9% 33,816 62,865 138,109 174,015
----------- ----------- ----------- -----------
$ 867,083 $ 1,611,934 $ 3,541,246 $ 4,461,930
=========== =========== =========== ===========
Net earnings per unit of limited
partnership interest - basic $ 0.07 $ 0.13 $ 0.28 $ 0.35
=========== =========== =========== ===========
Limited partnership units outstanding - basic 12,079,514 12,079,514 12,079,514 12,079,514
=========== =========== =========== ===========
Balance Sheet Data: September 30, December 31,
- ------------------- 2004 2003
------------ -----------
Investment in insured mortgages, at fair value $14,344,015 $45,775,507
Investment in debentures, at fair value 1,741,873 10,335,670
Total assets 27,728,736 69,048,427