ATAX America First Multifamily Investors

Chad Daffer CEO
Craig Allen CFO
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

I would like to welcome everyone to America First Multifamily Investors L.P. NASDAQ's Ticker Symbol, ATAX First Quarter of 2019 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. After management presents its overview of Q1 2019, you will be invited to participate in a question-and-answer session.

As a reminder, this conference call is being recorded. and First team, Conference Quarter ATAX welcome you Call. of ATAX to of behalf its thank management and On XXXX Earnings

Private not provisions results and statements to uncertainties Litigation During ATAX, of could Such cause Securities statements comments forward-looking call, future that of materially are historical events the XXXX. from actual are statements. or and risk this pursuant forward-looking differ Act facts, Safe are to made subject the made the Harbor are to conference Reform which regarding these

Forward-looking statements by terms. use and like words plan, of similar expect, intend, can be other identified may, should, focus

results are cautioned those expressed differ implied today's competitive, of economic, materially by You as or business, forward-looking or the these actual that regulatory today. and speak could statements to only Changes factors made in statements from date. other projections forward-looking ATAX cause

documents take Officer turn participation for during please now ATAX include would ATAX Commission. ATAX the more and which advantage periodic and operating you aware Daffer, to base reports in about informed. that may do, For and of to want under FD information beliefs Thank if this ATAX the interest you to may session. ATAX. your the be be Internal detailed its measures, full Chief will call will other Chad to ATAX. explained they you Executive impact from Today's factors like encourage is We question-and-answer and call. not that non-GAAP make you and of SEC and will change, over review I upon Regulation Exchange the the risks Securities necessarily filed other discussion time-to-time business, projections these expectations and with by

Chad Daffer

unchanged million financial Open in will the $X first thoughts of call. the In At Good this afternoon, CFO, challenge or results. increase Federal the my these to like and afternoon, Vantage some the in partnership the to I'll compared partnership Allen, being Tim with assets for then transactions. quarter a I'd remain sale present XXXX hike construction, in reported forward the a strong and questions. January at or of the $X.XX earnings the administrative X.X% revenue Mortgage quarter curve [ph] partnership invested available economy, share start to XX XXXX, per over Allen, ATAX's This tariffs to turn with the the of the at Vantage first X% quarters, segment. In previous Fed results, XX time investments to year and left BUC. the Providing and This the multifamily. first notable past million first look two the first time, bond contingent Thank sale. Craig in this with general evaluation Craig $XX.X stages [ph] cash are for rates, distribution decrease CFO in year ATAX's call currently partnership Academic in income interest for to expenses few treasury quarter present With results, we'll you, fourth assets, is leverage by supportive interest fundamental the all at of percent, and product numbers financial with average welcome to quarter recognized with of in at you Fund the quarter X.XX% on the December X% moderately quarter stabilization partnership credits yields strong continued total in San your exceeding sourcing gross of of and domestic located Texas. growth Revenue to ATAX's increasing Then target partnership points. in Unemployment rate a with of approximately are expectations first the sale first narrowing XXXX inflation falling quarter moving X.XX%. X.X% spreads basis X.X%. forward Antonio, earnings taking to to muted of acceptable to continue hourly to Brooks two from operator. Vantage the X.X%, asset the facilitated Committee flatten Market with new Bond to of yield XXXX In near

Craig Allen

statement increased to versus to notable some you Thanks, by balance you Assets year. Chad. million December about Talk a Total the last of do through end What $XXX the to I'd with little million $XX XX book value. up some about sheet. as on million $XXX XX of discussion the income like XXXX walk and transactions then bit on is March at

revenue these bonds. of revenue at total revenue units under management. assets. right ’XX, December bonds approximated March assets. about Every XX% the mortgage bonds total to ownership of portfolio, when up back assets end throughout about Again, the million, of in of approximating that about increasing XX now of we XX of XXXX, mortgage bonds mortgage represents comprised and bond all mortgage United Looking At our back our XX go and efforts bonds we total started if of the to bonds were mortgage XX% way we revenue revenue XX,XXX percentage of mortgage states mortgage States about represents to own also the we talk $XXX revenue quarter revenue

in of one XX the two XX-Q. Note for million year, bond week in the for April in first this revenue million, in $X.X event first quarter in we that's value. and $X.X the mortgage about the had revenue redeemed we QX million, we in had about XXXX first total additional a about subsequent the where acquired was in one mortgage bonds for bond then quarter of redeemed Also and $X.X During

total $XX Vantage and on the two talked of aspect found Another one two is in little represents units invested XXX a own. Last different states, of Nebraska, about where $XX Carolina balance well. unconsolidated loan property was about in one investment $XX in making Texas, in million. in Tennessee, value three up student it's both in is total we South properties as and Florida. positions The Nebraska, million our one nine It's management located talked million and in entities. under two entities. two units equity The in a Those bit $XX as At about the invested quarter million projects X,XXX sheet in one unconsolidated of we've and our the MF invested of this about our properties million investment inception MF invested since the are the we in in projects states, investments we XXXX. quarter about the own assets - about we those properties XXXX, investments in million about investing since are $XX.X these that Vantage about in assets. of Chad $X.X in called Vantage we dollars started first products. XX year In bit the in March little in equity equity California,

have Sam Houston, April Vantage that of north happened Houston a surrounded invested or a at in We another of Vantage of subsequent XXX we Vantage just its - event we The first National acquired project, the in project another the multifamily in Texas, April week by Forest. located kind project XXXX in unit Conroe,

up versus to to the Every quarter of a would the Vantage percentage at general at our mix this million shift It $X million invested our that Vantage And would event loan that's the we Vantage concerted event. Today we been we revenue about considered XXX,XXX XXXX really this a did XX% about that variable. a $X.X units Again San was transaction are of about about the too. investment paid shy a as XX% at to and a at Chad that a Brooks. $X convert just had other this shy little and units was to in taxable successful more approximately XXXX between be sheet contingent that million. Back Brooks of bonds. Based under equity first have been in we be commitment achieving well like mortgage more variable debt variable have be our transpired of that so taxable April say in in We debt interest XXX a we a and balance think that sale we've at of as through XXXX effort spoke total to of events And invested $X multifamily be we unit was rate, about look of the our and XX.X% much we've our interest bit has portfolio we in partner. to quarter sale in fixed about XXXX. we October to gradually - to this XX%, income just since take variable. the recognized Conroe of taxable in that. total project fixed, units of in XX, variable, from XX% effort of total million fixed. Vantage is debt When management, again, we it of in of consider project we concerted XX% fairly rate. a located variable have from approximating X fine had point XXXX contingent QX Our fixed ATAX, We tune that considered financing at at about Antonio, the we Vantage upon the year Texas. and of income Tier about in that

of sensitivity you every quarter sensitivity rate way shock is rate XX-Q. table portfolio basis page to the XX is we interest thing is rates increase other shock March that what all The sensitivity at on in we will looks rates. look our we the a and interest point XXX interest in measure like What and we the interest do of if

if do treatment for all interest banks that too. hypothetical, XX it's very and we up felt, again, we slightly once that at do months points as similar had counteract shock to to the just XXX well measures this ATAX So go but increase basis nothing the rates

million if basis in a available cap. cash about QX for $X.X $X.XXX $X.XXX increase to point distribution we or of about rates decrease $X.X realize CAD for would were XXX million, our to or So

value we income something excuse net for previous reported per of BUC $X.XX and XXXX and of be where QX actively in quarter the dilutive basis Total time The value then look per an per to of and equity. XXXX, them Xrd was for of we fashion. you magnitude that March The underlying $X.XX At to in the quarter reported book counteract - distribution BUC per we XXXX from $XX.X rates increase is versus well the and me parameters take to utilize of we December we quarter each increase to per - when answer in on increase available same XX clearly again XXXX we reported was we At And some per in again, our within to as happy it's an unit, present XX XXXX communicate compared you unit and at the your was XXXX. quarter quarter we for our book then December an each of this value revenue So over $X.XX of to would then action the million. BUC annual we $X.XX we and so internally we'd $X.XX QX questions them. and the that for an XXXX increase $X.XX that BUC. per be million, you work manage $X.XX $X.XX would BUC. cash of to management ask finally something that basic both which $XX.X QX that in take and as consider we acceptable,


Instructions] open. [Operator now is John our comes Barr line Mozart America from the first Your [ph] of question you. First And line Thank with

Unidentified Analyst

are guys. you Hi, doing today? How

Chad Daffer

Good John. How are you?

Unidentified Analyst

housekeeping. distributions there and I no of and roughly five income I in years? and first a - of reason were and dividends for prior now component relative why my the dividends XX% dividends guys income noticed about guess on any year's or there qualified the ordinary contradistinction ‘XX. qualified was to Good. interest taxable right large about in K-X interest with of and to XXXX Is I’ve this question you Couple been years that consisted so

Craig Allen

same Craig. is Vantage truly contingent we a taxable the sale considered of in of This at a to Braunfels New at year, at the New gain. sale, there was considered the but talked Sure. to Vantage much this on a not Vantage Brooks be contingent sale Braunfels be sale - in Yeah, the interest XXXX was that income January as and considered think would gain just of that the as on be be interest about and to yet

For me to…

Unidentified Analyst

partners the an BUC’s take multiplied able calculate of the outstanding what contingent this as my approximation units at to would years least and number that allocable able interest, would of would interest limited Be to to divide to give be by interest this me to contingent that amount the by and relative the relative interest be what transaction?

Craig Allen

mean, that that be way would that Yeah, a I would rough - to be calculate.

reported we've contingent units the and sale would you interests of your Brooks times total position, for for in be and allocable January be - yes. example would in could the then For by Vantage - at ease divided what calculation

Unidentified Analyst

enough. fair That's

Chad Daffer

call off-line, You a good… us got direct, we and

Unidentified Analyst

Sure. I too occupy now. don't want longer to much

here kind nice see of and range CAD, - cetera. like, got go in the a trend got kind you that's back one fact a right right your kind And - chart other quarters nice of of calculations per XXXX, questions, four of this roughly cumulative income BUC in - you've Let's you excess like prior quick in years – broader the right to and December et assets here, look sheet I got $X.XX - a five get and back to my if distributions that's and the you've you do of and CAD look there cumulative or there. performance

of unusual CAD transaction the you've [indiscernible] in else, sale in - have a of you that kind go of as you you $X.XX excess guys CAD. or to in I'm guess speak terms bag $X.XX where your is or forward [ph] unless property, so distributions to this – of I know into got look You maybe you stand a on – where something the excess as

you it's at So in a I shot and broad up operating be - that been zero consider into you know investors a that but boost transactions of crank trying - how on that CAD, question, what normally let but these handle are it? kind do kind to not new I've I'll might activity, of to take I

Chad Daffer

there. to a try number Yeah, I I'll of think answer John, questions

in that distribution I plan a think our off and anything and of think exceeded executing continue long-term. don't the I payment - since that XXXX board on And really our the near foresee and unit our can is, with team have I the to will above holders as the changing that talking direction the the and of basis paid of the it's to currently. reinvest for and year-over-year see management benefit as we're you where continue investors future. we've CAD CAD over be anytime that $X.XX by of

Unidentified Analyst

to to dropped our be I CAD so property the to guess, what the probably Okay. mean, and And finally would too. on year, if computation interest a income then fallen the what on little take I sales, be short income have look normalized the you there would have CAD? at I sales revenue but net tried bit would side and have sales - I assess are if considered before, speak property know, the property and a contingent would we this dropped, exclude you outside

Chad Daffer

since sale into allow I that to I equity projects, to normalized projects so considered of we've XXXX be Well, would us think into equity - from invest voters new direct think forward. point asked those the

our us evaluate then little You as quarter those don't ability stabilize or sometimes predict be - like know, will if Vantage that's be it's the ATAX can for we know will invest and be asset class bit and those and to units lumpy. them recognized. stabilize, construct to which a by tough But to I the sale, sold have in assets for a earnings continue units we scientific not. term with

kind would as up moves be given so when we've and a close. know, for or any if quicker you guidance assets and than future of And those on sale not it little if sometimes others

predict bit or be recognize it's in ongoing an quarter. not assets of understand So the basis loss bonds knowing bond, not to we a that little tough which sold on gain or the which may each to portfolio

Unidentified Analyst

any CAD quarter there - your from that and $X.XXX With do game on rate I quarter? you it or the for and of time plan per other when arbitrage, operations mean, sensitive interest $X.XXX products to your borrowing? estate a per ever kind foresee CAD to CAD real get take just equal would without lending would is a rate what interest equal guys

Chad Daffer

You the know, between differentiate we and two. I think try don't

$X.XXX annually, is goal and John. quarter a Our $X.XX

Unidentified Analyst

up All Okay. work Appreciate enough. Keep good Bye-bye. Fair guys. right. it. the Good quarter, calculator.

Chad Daffer

Thank you.

Craig Allen

John. Thanks,


Thank you. I right. [Operator on any time, am phone further All Instructions] It at is not this line. showing questions the

today's you. session. question-and-answer for So great day. This you thank does conference. participating and does today's Ladies conclude conclude Thank that in program. have today's Everyone gentlemen, a