EXHIBIT 99
Contact: Susan B. Raile FOR IMMEDIATE RELEASE
(301) 255-4740
Sharon Bramell
(301) 255-4742
AIM 85 REPORTS FOURTH QUARTER NET EARNINGS OF TWO CENTS PER UNIT
2004 Earnings of 30 Cents per Unit
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ROCKVILLE, MD, March 8, 2005--(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 December 31, 2004 of approximately $260,000 (two
cents per unit) compared to approximately $1.1 million (eight cents per unit)
for the three months ended December 31, 2003. AIM 85 reported net earnings for
the year ended December 31, 2004 of approximately $3.8 million (30 cents per
unit) compared to approximately $5.6 million (44 cents per unit) for the year
ended December 31, 2003.
Net earnings decreased for the three and twelve months ended December 31,
2004 as compared to the same periods in 2003 primarily due to a decrease in
mortgage investment income resulting from the reduction in the mortgage base.
The mortgage base decreased as a result of 7 mortgage dispositions with an
aggregate principal balance of approximately $31 million, representing an
approximate 68% decrease in the aggregate principal balance of the total
mortgage portfolio since December 2003.
The decrease in net earnings for the twelve months ended December 31, 2004
was partially offset by an increase in net gains on mortgage dispositions, and a
decrease in asset management fees due to the decreasing mortgage base. During
2004, AIM 85 recognized net gains of approximately $2.1 million from three
mortgage prepayments, one assignment and the sale of three mortgages. During
2003, the Partnership recognized net gains of approximately $1.5 million from
eight mortgage prepayments and six mortgage assignments.
As of December 31, 2004, AIM 85 had investments in 8 fully federally
insured mortgages and one debenture with an aggregate amortized cost of
approximately $15.9 million, a face value of approximately $16.0 million and a
fair value of approximately $16.0 million.
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 trend over the past year, 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, distributions to investors will be made in
accordance with the terms of the Partnership Agreement. A final distribution
will be based on the unitholders' and General Partner's pro-rata share of the
Partnership's remaining net assets after deducting and setting aside amounts
required to satisfy and discharge any existing Partnership obligations and
expenses as stated in the Partnership Agreement. 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
For the three months ended For the years ended
December 31, December 31,
2004 2003 2004 2003
-------------- ------------ ------------ -----------
Income:
Mortgage investment income $ 321,142 $ 1,100,595 $ 2,089,159 $ 4,846,437
Interest and other income 39,597 92,068 222,374 233,299
---------- ----------- ----------- -----------
360,739 1,192,663 2,311,533 5,079,736
---------- ----------- ----------- -----------
Expenses:
Asset management fee to related parties 36,405 142,140 268,885 611,417
General and administrative 64,801 64,205 296,936 393,410
---------- ----------- ----------- -----------
101,206 206,345 565,821 1,004,827
---------- ----------- ----------- -----------
Earnings before gains (losses)
on mortgage dispositions 259,533 986,318 1,745,712 4,074,909
Mortgage dispositions
Gains - 135,858 2,126,903 1,509,197
Losses - (11,415) (71,836) (11,415)
---------- ----------- ----------- -----------
Net earnings $ 259,533 $ 1,110,761 $ 3,800,779 $ 5,572,691
========== =========== =========== ===========
Net earnings per limited
partnership unit - basic and diluted $ 0.02 $ 0.08 $ 0.30 $ 0.44
========== =========== =========== ===========
Limited partnership units
outstanding as of December 31, 12,079,514 12,079,514 12,079,514 12,079,514
========== =========== =========== ===========
CAPTION>
Balance Sheet Data: As of December 31,
2004 2003
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Investment in insured mortgages 14,299,980 45,775,507
Investment in debentures 1,741,873 10,335,670
Total assets 16,802,268 69,048,427