Exhibit 99.1
AT THE COMPANY
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Brenda Abuaf, Corporate Communications
(800) 831-4826
AMERICAN MORTGAGE ACCEPTANCE COMPANY
REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2007
NEW YORK, NY - AUGUST 8, 2007 - American Mortgage Acceptance Company ("AMAC" or
the "Company") (AMEX: AMC) today announced financial results for the second
quarter and six months ended June 30, 2007.
SECOND QUARTER HIGHLIGHTS:
o Strong Revenue Growth: reported revenues of $15.3 million for the
second quarter, an increase of 111.2% year over year;
o Reported Adjusted Funds from Operations ("AFFO")* of approximately
$2.8 million or $0.33 per diluted share for the second quarter;
o Diversified Investment Activity: investment volume for the second
quarter increased approximately 64.0% year over year. AMAC originated
or acquired first mortgage and mezzanine loans, subordinated notes and
commercial mortgage backed securities ("CMBS") totaling approximately
$257.0 million secured by multifamily, office, hotel, retail and mixed
use properties; and
o Continued Portfolio Performance: investment portfolio continues to
perform well with no assets entering special servicing and no
impairments recorded during the quarter.
"We are pleased to report another solid quarter of operating and financial
results," said J. Larry Duggins, Chief Executive Officer of AMAC. "In this
increasingly volatile market, AMAC continues to successfully execute our
business plan and locate opportunities. In the second quarter, AMAC acquired
$115.3 million of investment grade CMBS at very attractive, accretive spreads.
Our earnings were in line with our expectations and the credit quality of our
assets remains stable."
FINANCIAL RESULTS
The table below summarizes AMAC's revenues, net income, FFO and adjusted FFO for
the three and six months ended June 30, 2007 and 2006. FFO for the three and six
months ended June 30, 2007 and 2006 were impacted by the change in the fair
value of derivative instruments, net of certain associated costs. Therefore, the
Company is reporting FFO both excluding ("Adjusted FFO") and including these
changes and costs.
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
------------------------------------ ------------------------------------
% %
(In thousands, except per share data) 2007 2006 CHANGE 2007 2006 CHANGE
---------- ---------- ---------- ---------- ---------- ----------
Revenues $ 15,312 $ 7,249 111.2% $ 27,813 $ 12,920 115.3%
Net Income $ 3,477 $ 5,215 (33.3%) $ 8,641 $ 7,384 17.0%
FFO* $ 3,477 $ 5,665 (38.6%) $ 5,366 $ 8,284 (35.2%)
Adjusted FFO* $ 2,808 $ 3,786 (25.8%) $ 4,727 $ 6,261 (24.5%)
Per Share Data (diluted):
Net Income $ 0.41 $ 0.63 (34.9%) $ 1.03 $ 0.89 15.7%
FFO* $ 0.41 $ 0.68 (39.7%) $ 0.64 $ 1.00 (36.0%)
Adjusted FFO* $ 0.33 $ 0.46 (28.3%) $ 0.56 $ 0.75 (25.3%)
* See footnotes (1) and (3) to the Selected Financial Data on page 4 for
a discussion of FFO and AFFO and a reconciliation from GAAP net
income.
INVESTMENT ACTIVITY
In the second quarter of 2007, a wholly owned subsidiary of AMAC originated
first mortgage and mezzanine loans, subordinated notes and CMBS bonds totaling
approximately $257.0 million, bringing AMAC's total origination for the first
six months of 2007 to approximately $370.3 million.
Second quarter investment and origination activity included:
o $115.3 million of investment grade CMBS;
o $110.1 million of mezzanine loans for office and mixed use properties;
o $23.4 million in subordinated notes for multifamily, retail and hotel
properties; and
o an $8.2 million first mortgage loan for a retail property.
MANAGEMENT CONFERENCE CALL
Management will conduct a conference call today at 10:00 a.m. Eastern Time to
review the Company's second quarter financial results for the period ended June
30, 2007. Investors, brokers, analysts, and shareholders wishing to participate
should call (800) 310-6649. A webcast of the presentation will be available live
and can be accessed through the Company's website, www.americanmortgageco.com.
To listen to the presentation via webcast, please go to the website's "Investor
Relations" section at least 15 minutes prior to the start of the presentation.
For interested individuals unable to join the conference call, a replay of the
call will be available through Sunday, August 12, 2007 at (888) 203-1112
(Passcode 5524393) or on our website, www.americanmortgageco.com, through
Thursday, November 8, 2007.
SUPPLEMENTAL FINANCIAL INFORMATION
For more detailed financial information, please access the Supplemental
Financial Package, which is available in the Investor Relations section of the
AMAC website at www.americanmortgageco.com.
ABOUT AMAC
AMAC is a real estate investment trust that specializes in originating and
acquiring mortgage loans and other debt instruments secured by multifamily and
commercial properties throughout the United States. AMAC invests in mezzanine,
construction and first mortgage loans, subordinated interests in first mortgage
loans, bridge loans, subordinate commercial mortgage backed securities, and
other real estate assets. For more information, please visit our website at
http://www.americanmortgageco.com or contact the Investor Relations Department
directly at (800) 831-4826.
2
AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except per share amounts)
=========== ===========
June 30, December 31,
2007 2006
----------- -----------
(Unaudited)
Balance Sheet Highlights
TOTAL ASSETS $ 956,513 $ 720,984
=========== ===========
CDO notes payable $ 362,000 $ 362,000
=========== ===========
Debt Facilities:
Repurchase facilities $ 403,124 $ 163,576
=========== ===========
Line of credit - related party $ 57,600 $ 15,000
=========== ===========
Mortgages payable on real estate owned $ - $ 39,944
=========== ===========
Preferred shares of subsidiary
(subject to mandatory repurchase) $ 25,000 $ 25,000
=========== ===========
TOTAL LIABILITIES $ 859,646 $ 635,976
=========== ===========
TOTAL SHAREHOLDERS' EQUITY $ 96,867 $ 85,008
=========== ===========
=====================================================
Three Months Ended Six Months Ended
June 30, June 30,
-----------------------------------------------------
2007 2006 2007 2006
-----------------------------------------------------
(Unaudited)
Income Statement Highlights
Total revenues $ 15,312 $ 7,249 $ 27,813 $ 12,920
=========== =========== =========== ===========
Income from continuing operations $ 3,477 $ 5,107 $ 5,110 $ 7,395
Income (loss) from discontinued
operations - 108 3,531 (11)
----------- ----------- ----------- -----------
Net income $ 3,477 $ 5,215 $ 8,641 $ 7,384
=========== =========== =========== ===========
Per share amounts (basic and diluted):
Income from continuing operations $ 0.41 $ 0.62 $ 0.61 $ 0.89
Income (loss) from discontinued
operations - 0.01 0.42 -
----------- ----------- ----------- -----------
Net income $ 0.41 $ 0.63 $ 1.03 $ 0.89
=========== =========== =========== ===========
Weighted average shares outstanding
Basic 8,403 8,304 8,402 8,304
=========== =========== =========== ===========
Diluted 8,403 8,304 8,402 8,305
=========== =========== =========== ===========
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AMERICAN MORTGAGE ACCEPTANCE COMPANY AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except per share amounts)
Funds from Operations ("FFO")(1), as calculated in accordance with the National
Association of Real Estate Investment Trusts ("NAREIT") definition, for the
three and six months ended June 30, 2007 and 2006, is summarized in the
following table:
=======================================================
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------------------------------
2007 2006 2007 2006
-------------------------------------------------------
Net Income $ 3,477 $ 5,215 $ 8,641 $ 7,384
Depreciation of real property(2) - 450 336 900
Gain on sale of real property(2) - - (3,611) -
----------- ----------- ----------- -----------
FFO $ 3,477 $ 5,665 $ 5,366 $ 8,284
=========== =========== =========== ===========
Adjusted FFO(3) $ 2,808 $ 3,786 $ 4,727 $ 6,261
=========== =========== =========== ===========
Cash flows from operating activities $ 3,646 $ 3,578 $ 5,275 $ 5,232
=========== =========== =========== ===========
Cash flows from investing activities $ (186,619) $ (130,507) $ (270,947) $ (130,274)
=========== =========== =========== ===========
Cash flows from financing activities $ 175,298 $ 129,943 $ 264,952 $ 117,520
=========== =========== =========== ===========
FFO per share (basic and diluted) $ 0.41 $ 0.68 $ 0.64 $ 1.00
=========== =========== =========== ===========
Adjusted FFO per share(3)
(basic and diluted) $ 0.33 $ 0.46 $ 0.56 $ 0.75
=========== =========== =========== ===========
Weighted average shares outstanding
Basic 8,403 8,304 8,402 8,304
=========== =========== =========== ===========
Diluted 8,403 8,304 8,402 8,305
=========== =========== =========== ===========
(1) FFO represents net income or loss (computed in accordance with generally
accepted accounting principles ("GAAP")), excluding gains (or losses) from
sales of property, excluding depreciation and amortization relating to real
property and including funds from operations for unconsolidated joint
ventures calculated on the same basis. AMAC calculates FFO in accordance
with the NAREIT definition. FFO does not represent cash generated from
operating activities in accordance with GAAP and is not necessarily
indicative of cash available to fund cash needs. FFO should not be
considered as an alternative to net income as an indicator of our operating
performance or as an alternative to cash flows as a measure of liquidity.
Our management considers FFO a supplemental measure of operating
performance, and, along with cash flows from operating activities,
financing activities, and investing activities, it provides investors with
an indication of the ability of the Company to incur and service debt, to
make capital expenditures, and to fund other cash needs. Since not all
companies calculate FFO in a similar fashion, our calculation, presented
above, may not be comparable to similarly titled measures reported by other
companies.
(2) Relates to properties sold in 2007 and 2006, which are included in
discontinued operations in our consolidated statements of income.
(3) Adjusted FFO excludes the change in fair value of derivative instruments,
net of certain associated costs.
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CERTAIN STATEMENTS IN THIS DOCUMENT MAY CONSTITUTE FORWARD-LOOKING STATEMENTS
WITHIN THE MEANING OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. THESE STATEMENTS ARE BASED ON MANAGEMENT'S
CURRENT EXPECTATIONS AND BELIEFS AND ARE SUBJECT TO A NUMBER OF FACTORS AND
UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
DESCRIBED IN THE FORWARD-LOOKING STATEMENTS. THESE RISKS AND UNCERTAINTIES ARE
DETAILED IN AMAC'S MOST RECENT ANNUAL REPORT ON FORM 10-K AND IN ITS OTHER
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION AND INCLUDE, AMONG OTHERS,
RISKS OF INVESTING IN NON-INVESTMENT GRADE COMMERCIAL REAL ESTATE INVESTMENTS;
COMPETITION IN ACQUIRING DESIRABLE INVESTMENTS; INTEREST RATE FLUCTUATIONS;
RISKS ASSOCIATED WITH INVESTMENTS IN REAL ESTATE GENERALLY AND THE PROPERTIES
WHICH SECURE MANY OF OUR INVESTMENTS; GENERAL ECONOMIC CONDITIONS AND ECONOMIC
CONDITIONS IN THE REAL ESTATE MARKETS SPECIFICALLY, PARTICULARLY AS THEY AFFECT
THE VALUE OF OUR ASSETS AND THE CREDIT STATUS OF OUR BORROWERS; DEPENDENCE ON
OUR ADVISOR FOR ALL SERVICES NECESSARY FOR OUR OPERATIONS; CONFLICTS WHICH MAY
ARISE AMONG US AND OTHER ENTITIES AFFILIATED WITH OUR ADVISOR THAT HAVE SIMILAR
INVESTMENT POLICIES TO OURS; RISKS ASSOCIATED WITH THE REPURCHASE AGREEMENTS WE
UTILIZE TO FINANCE OUR INVESTMENTS AND OUR ABILITY TO RAISE CAPITAL; RISKS
ASSOCIATED WITH FAILURE TO QUALIFY AS A REIT; AND RISKS ASSOCIATED WITH OUR
COLLATERALIZED DEBT OBLIGATION ("CDO") SECURITIZATION TRANSACTIONS, WHICH
INCLUDE, BUT ARE NOT LIMITED TO, THE INABILITY TO ACQUIRE ELIGIBLE INVESTMENTS
FOR A CDO ISSUANCE; INTEREST RATE FLUCTUATIONS ON VARIABLE-RATE SWAPS ENTERED
INTO TO HEDGE FIXED-RATE LOANS; THE INABILITY TO FIND SUITABLE REPLACEMENT
INVESTMENTS WITHIN REINVESTMENT PERIODS AND THE NEGATIVE IMPACT ON OUR CASH FLOW
THAT MAY RESULT FROM THE USE OF CDO FINANCINGS WITH OVER-COLLATERALIZATION AND
INTEREST COVERAGE REQUIREMENTS. SUCH FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF
THE DATE OF THIS DOCUMENT. AMAC EXPRESSLY DISCLAIMS ANY OBLIGATION OR
UNDERTAKING TO RELEASE PUBLICLY ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING
STATEMENTS CONTAINED HEREIN TO REFLECT ANY CHANGE IN AMAC'S EXPECTATIONS WITH
REGARD THERETO OR CHANGE IN EVENTS, CONDITIONS, OR CIRCUMSTANCES ON WHICH ANY
SUCH STATEMENT IS BASED.
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