ATAX America First Multifamily Investors

Chad Daffer CEO
Craig Allen CFO
Call transcript
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Hello and I would like to welcome everyone to America First Multifamily Investors, L.P. NASDAQ's ticker symbol ATAX Second Quarter of 2019 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. After management presents its overview of Q2 2019, you will be invited to participate in a question-and-answer session.

As a reminder, this conference call is being recorded.

and second team, conference quarter ATAX welcome you call. of ATAX to of behalf its thank management and On XXXX earnings

not results and uncertainties During ATAX, could cause statements comments call, future that materially are historical events from actual are statements. or and risks this forward-looking differ facts, to made subject the are to conference which regarding these

Private XXXX. pursuant statements the Safe the are of of Act made to Securities forward-looking Reform Such provisions Litigation Harbor

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

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

Securities detailed from they more business, ATAX other review For other and do, about by which change, projections factors not be ATAX time-to-time you may its ATAX informed. Exchange documents information risks expectations reports if necessarily base impact that the may and beliefs the and and filed Commission. upon periodic will Internal please these with

will include this We that and full take to question-and-answer will non-GAAP be the session. call. Regulation aware under explained ATAX encourage make during you the operating to you measures, want is SEC discussion and Today's FD advantage of

interest and to now would I your like the ATAX. ATAX. for Chief Daffer, Chad over in Executive conference turn you call participation Officer Thank to of

Chad Daffer

and At the CFO, the to like rates, a we share Then taking second ATAX will call. I'd your earnings forward to and end, interest to notable ATAX questions. Thank financial XXXX partnership Allen, transactions. you. on This thoughts Good the results. look present second few welcome of the quarter Craig afternoon, my afternoon, economy,

business spending the driven rate policy slower continues the strong the and the quarter. concerns household growth. trade given levels. of remained Labor some show well historically data for starting positive at by expansion to threat to spending to weakness continued unemployment be with perform growing Economic markets U.S. low second with global over Economic

to continued X%. Market Inflation at trend Federal target Committee of Open the

this Fed citing and of with funds committee's maximum first by the economy. of since XX the supportive uncertainty the time December was price [FMOC] stability. points, rate global the weakness cycle XXXX for global of data, Given rate basis This in the lowered for employment and goals cut trade new

U.S. X.XX%, at move points two-year first The of markets moving since of the yield in The Treasury the of by a downward quarter. yield XX down quarter X.XX%. significant the opened experienced start a basis a rates treasury to

XX-year points the as at quarter consistently X.XX%, of With maintaining XX opening two-tenths basis XX moving X.XX%, the down spread to points. well this basis treasury

convert the of extend this and from volatility level revenue portfolio, through the XXXX, flattening partnership year The current rate rate cycles. fall variable of rate curve leveraged rate the mortgage January to from allowed the to rate maturities fixed variable yield variable of this on XX% on X fixed mode the bond and rate XX% the mode on of defined the XX% strategy continued fixed to in XX% the interest and a the This of portfolio, the as rate of of call. in partnership’s set motion variable exposure follow mitigating --

Craig? second Allen, financial turn CFO performance. ATAX this Craig quarter At the to partnership like presentation time, to XXXX I'd call the for over of

Craig Allen

details some little Chad the few quarter give you upon a has to for Chad. give benefits unitholder. through those you, into I'd I'll been idea exciting quarter. the But us. and a a out bit that as It's you and Thank second an events walk you touched point highlights. like of few a of quarter more how exciting the

were $X XXXX total at XX, Our June assets billion.

tuning the at of the fine Back XX%. assets Looking at of effort back we've million. December number, present bonds-to-total about XXXX, our January our $X as back by in $XXX assets increased proxy balance when of on XXXX, to of approximately Since January XXXX, XX.X% Xst were XX.X% bonds-to-assets. Xst billion. At sheet of total just total that a we June mortgage constant assets our to mortgage XX, about revenue we XXXX, revenue were total started remains

in quarter, we for mortgage in year-to-date revenue revenue and bonds we a purchases that about June thus had the four about a bond two revenue up million XX bonds, million XX,XXX At revenue total on far bonds about XX we mortgage purchased during states XXth, purchased units, that mortgage basis approximately and mortgage $XX.X bonds. had revenue of bonds Mortgage we've of $XX.X comprised making invested-in those total.

unchanged of Another sheet the properties project, each own look we quarter multifamily properties, or is as that real MF Suites located Nebraska, At we the remain balance then another or in properties have MF are with two at student sale, a housing one fund. aspect end and June, project the California XX/XX. in estate on we that which located we of The Lincoln, a for

$XX have about properties of We to MF units. million million total XXX $XX approximately represents and that

we've talk our in or in in our State State in the of the one are representing our invested located assets approximately about in Florida. located investment we of Texas, unconsolidated one as about two Carolina quarters and Nebraska, units also advantage Tennessee, investments. State June entities South previous At in is XX, Vantage of $XX.X in quarter comprised of referred Each to X,XXX XXXX located two in of XX that which projects, four million the

of with a Stanley. had One occur was banking Morgan QX of year this relationship transactions significant new investment we the that in

a bonds. which Avalon amount increasing this options executed the financing or approximately Village became debt total ability or Bond revenue Morgan we Tender liquidity the finance do and engaged Stanley in to the our debt May they Tender mortgage was well. as TOB or with thus Option the million financing financing, The of investment term and has $XX.X leveraged of Option at second bank In year, Bond ATAX

ratios Chad financing had debt XXXX we financing rate as rate fixed variable debt debt where we of financing the XXXX, nature. back were variable If in inversed fixed June approximately that was our XX.X% our mentioned of was and of versus was to XX.X% XX.X% that In our go XX.X% financing.

of that few had to you about. I'd subsequent like We a note events talk a little bit

The first is lines credit. the of extension of our

have right We Des now of credit Iowa. of Bankers lines two Trust out with Moines,

sources relationship The of first we provide this and XXXX May and have two liquidity. with ATAX -- they of since

is that line acquisition an in first credit of amount an of line The million. is acquisition and $XX unsecured the

a X-K We've source of this of repricing of for been it out relationship maturity of June Again, and issued bonds. we’ve the extension short-term line with And to the line mortgage acquisition that our an XXXX. funding use provides extended through credit. the We've is, of revenue since amending XXXX. credit us of

amount line In our Bankers the addition, extended to we Trust credit $XX also the operating in of of XXXX with million. maturity for of June

was next subsequent new Bank. The with financing debt option event a that have we Mizuho

with mortgage in Mizuho the and the during revenue bonds. bonds South July We an greater quarter. and debt than in we is million quarter entered two provides bank And with Option third financing we within Tender Mizuho $XX.X financed a of that us financed financing that July. mortgage Bond also Pointe in [Rose] us approximately and previous into liquidity it the provides amount options now debt revenue So, investment the investment bank is the

XXXX Freddie fixed financings of on two MXX MXX -- and addition, May from converted to from to the variable of TEBS In financing. debt and date refinanced MXX And we We we XXXX. with MXX from extended Mac, MXX TEBS rate rate. maturity August

MXX, on million July represents XXXX. we about and of by years. debt $XX.X extended XXXX And occurred So, July XXXX. September about years. This extended our financing extended -- And this to maturities we the we majority X.X from therefore, about in of X of X.X

this with its In addition, variable of And extended from a this did also financing, to was origination July unilateral rate We Mac. extended June financing we date debt our of this of years a right in for TEBS XXXX. MXX XXXX. had extend Freddie we again, five

approximately XXXX. now $XX.X So worth on to MXX we've financing extended debt of million

June little rate to a variable it restate July variable he is our XXst, debt. was is I our bit, of And debt XX% that important enough XX% but and of at now was So thought rate. XX.X% XX% mentioned. XXXX XX% debt upon had Chad is, rate XX, was fixed touched what now rate that and And this I approximately fixed

a As opportunities our to of present will continue variable we banking investment as versus into opportunities the themselves well for opportunities on future, basis. rate fixed look a diversification as to finance relationships, at

basis points. table. happen of rates talk we and we page on rate quarter interest show interest interest our a XX look our We QX increase as at well, about were to always XXX take if Each would sensitivity you rate XX-Q sensitivity what our

we our still points, This purposes And maturity that we period, find interest increase in nothing decrease XXX will $X.XXX sensitivity, $X.X interest quarter We this by that million again, this all rate to our is and And do by acceptable XX-month that of of XXXX. response income no were a within to did this to interest of because this some exception. about in react the CAD. analysis about nothing rates reflects simultaneously net increase if of of caps assumes or limits, occur to over the it August that. and basis for

on and $XX was on flat basis revenue basis, million, Total for a the $XX.X quarter XXXX. comparable a in year-to-date million

BUC. for unit per QX basis, BUC BUC, same $X.XX On for year ended year-to-date XXXX were compared a per was per $X.XX the per XXXX. June total $X.XX Our the and last of income to quarter at XXXX

you, basis, ended Our $X.XX XXXX. XXXX, six per for was unit in cash the year-to-date $X.XX each to XXXX, $X.XX available of of CAD XXXX first On XXXX. June the for BUC our in months 'XX for every and of distribution, per quarter report and quarter of a versus our QX we which CAD BUC was per or

book tell our the of per quarter And XXXX, of value unit. And compared to was finally, per ‘XX. at we each BUC, end net book $X.XX XX/XX at you $X.XX of June our per value unit was what

be questions this you take happy to we'd any that, have that at With might time.

Chad Daffer

We all support you ATAX. of you speaking call. next thank to like you. We'd to Thank your with forward look for


Ladies program. That for in today's your does and gentlemen, thank conference. the participation you conclude

You may day. all Good disconnect.