EXHIBIT 99.1
Contact: Susan B. Railey FOR IMMEDIATE RELEASE
(301) 468-3120
Sharon Bramell
(301) 231-0351
AIM 84 REPORTS THIRD QUARTER NET EARNINGS
OF EIGHT CENTS PER UNIT
AIM 84 Liquidation and Dissolution Expected in 2004
-----------------------
ROCKVILLE, MD, November 13, 2003 -- (AMEX/AIA) -- American Insured Mortgage
Investors (AIM 84), a liquidating partnership that holds an investment in one
government insured multifamily mortgage and six debentures, reported net
earnings for the three months ended September 30, 2003 of approximately $843,000
(eight cents per unit) compared to approximately $429,000 (four cents per unit)
for the three months ended September 30, 2002. Net earnings for the nine months
ended September 30, 2003 were approximately $3.4 million (33 cents per unit) as
compared to approximately $1.2 million (12 cents per unit) for the same period
last year.
Net earnings increased for the three and nine months ended September 30,
2003 primarily due to increases in gains on mortgage dispositions and interest
and other income, partially offset by a reduction in mortgage investment income.
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 and nine months ended September 30, 2003, AIM 84 recognized
gains of approximately $627,000 and $2.7 million, respectively, from the
assignment of seven mortgages. Interest and other income increased primarily due
to interest earned on debentures received from HUD. Mortgage investment income
decreased primarily as a result of a significant reduction in the Partnership's
mortgage base due to the assignment of mortgages to HUD.
As of September 30, 2003, the Partnership's investments included one fully
insured mortgage and six debentures, four of which are due from an affiliate,
with an aggregate amortized cost of approximately $15.6 million, face value of
approximately $15.9 million and fair value of approximately $15.9 million.
The Partnership's six debentures have been called for redemption by HUD on
January 1, 2004. After the redemption of these debentures in January 2004, AIM
84's only remaining asset will be one claim for the mortgage on Kaynorth
Apartments with a face value of approximately $1.7 million. This mortgage was
put to HUD under the Section 221 program of the National Housing Act. AIM 84
expects to receive a 5.75% debenture in exchange for this mortgage claim within
the next six months. Since this debenture is not expected to provide adequate
cash flow to fund the Partnership's operating expenses, the Partnership, upon
receiving the consent of the Advisor, plans to sell the debenture. Once AIM 84
receives the proceeds from the sale of this last debenture, it expects to
dissolve and terminate. Dissolution and termination of the Partnership could
occur as early as the first quarter of 2004.
A final liquidating distribution will be declared after all of the
debenture proceeds are received by the Partnership, which is expected to be in
early 2004. This distribution will consist of the net proceeds from the
Partnership's assets less amounts required to satisfy and discharge any existing
Partnership obligations and expenses, and complete all other acts required to
liquidate and wind up AIM 84's business affairs (the "Liquidation Proceeds").
In connection with the expected disposition of the last remaining debenture
and the expected termination and dissolution of the Partnership, the Liquidation
Proceeds will be distributed to unitholders in accordance with the terms of its
Partnership Agreement, as amended. This final distribution will be based on the
Partnership's remaining net assets, and such distribution to unitholders is
likely to be substantially less than the amount referenced in limited partners'
equity in the Partnership's financial statements.
-table follows-
2
AMERICAN INSURED MORTGAGE INVESTORS
STATEMENTS OF INCOME
(Unaudited)
For the three months ended For the nine months ended
September 30, September 30,
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2003 2002 2003 2002
----------- ---------- ---------- ------------
Income:
Mortgage investment income $ 64,515 $ 410,377 $ 497,088 $ 1,421,441
Interest and other income 204,605 22,702 421,145 29,285
----------- ---------- ---------- -----------
269,120 433,079 918,233 1,450,726
----------- ---------- ---------- -----------
Expenses:
Asset management fee to related parties 9,494 45,736 57,230 153,904
General and administrative 44,461 54,277 145,733 159,935
----------- ---------- ---------- -----------
53,955 100,013 202,963 313,839
----------- ---------- ---------- -----------
Net earnings before gains on mortgage dispositions 215,165 333,066 715,270 1,136,887
Gains on mortgage dispositions 627,469 95,540 2,700,656 95,540
----------- ---------- ---------- -----------
Net earnings $ 842,634 $ 428,606 $3,415,926 $ 1,232,427
=========== ========== ========== ===========
Net earnings allocated to:
Limited partners - 97.1% $ 818,198 $ 416,176 $3,316,864 $ 1,196,687
General Partner - 2.9% 24,436 12,430 99,062 35,740
----------- ---------- ---------- -----------
$ 842,634 $ 428,606 $3,415,926 $ 1,232,427
=========== =========== ========== ===========
Net earnings per unit of limited
partnership interest - basic $ 0.08 $ 0.04 $ 0.33 $ 0.12
=========== ========== ========== ===========
Limited partnership units outstanding - basic 10,000,125 10,000,125 10,000,125 10,000,125
=========== ========== ========== ===========
Balance Sheet Data: September 30, December 31,
2003 2002
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Investment in debentures $ 8,989,212 $ -
Due from affiliate 5,409,105 -
Investment in insured mortgages 1,714,975 15,474,110
Total assets 17,109,871 18,407,929