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AMERICAN MORTGAGE ACCEPTANCE COMPANY
REPORTS FOURTH QUARTER AND YEAR-END RESULTS FOR 2004
NEW YORK, NY - March 2, 2005 - American Mortgage Acceptance Company (AMAC or the Company) (AMEX: AMC) today announced financial results for its fourth quarter and year ended December 31, 2004.
AMAC had a very solid year in 2004, both from an operational and a financial perspective, said Stuart J. Boesky, Chairman and Chief Executive Officer of AMAC. For the first time, we broadened our investment focus and completed financing transactions in the office and retail sectors. This was made possible through the addition of our new Chief Operating Officer, John Garth, who joined the Company in May. In addition, we continued to diligently manage our loan portfolio and diversified our capital sources. Looking to 2005, we will aim to grow our market share in the bridge and mezzanine lending industry and will continue to explore ways to expand our product offerings and revenue sources.
For the three and twelve months ended December 31, 2004, AMAC had total revenues of approximately $4.1 million and $15.9 million, respectively. AMACs revenues for the three and twelve months ended December 31, 2004, represented increases of approximately 5.4% and 5.7% as compared to $3.9 million and $15.1 million for the three and twelve months ended December 31, 2003, respectively.
AMAC had net income for the three and twelve months ended December 31, 2004, of approximately $1.3 million and $11.3 million, respectively, representing decreases of approximately 59.7% and 5.1% as compared to net income of approximately $3.3 million and $11.9 million for the three and twelve months ended December 31, 2003, respectively. On a per share basis (basic and diluted), net income was $0.16 and $1.35 for the three and twelve months ended December 31, 2004, respectively, representing decreases of approximately 60.0% and 11.2% as compared to net income per share of $0.40 and $1.52 for the three and twelve months ended December 31, 2003, respectively. The decrease in net income for the three and twelve months ended December 31, 2004, resulted predominantly from non-cash depreciation expense recognition for assets re-classified as real estate owned - held and used. The depreciation recorded in 2004 included deductions, recorded in accordance with accounting rules, to include depreciation for the entire period since the properties were initially foreclosed. The incremental amounts recorded in 2004 that applied to prior periods totaled approximately $585,000, which represented $0.07 on a per share basis for the year.
Funds from Operations (FFO) for the three and twelve months ended December 31, 2004, which excludes the depreciation costs recognized, was approximately $3.1 million and $13.4 million, or $0.37 and $1.61 on a per share basis (basic and diluted), respectively. During the three and twelve months ended December 31, 2003, FFO was equal to net income, as AMAC did not record depreciation expense for any of its real estate owned.
AMACs present quarterly dividend on an annualized basis is $1.60 per share, representing an approximate 9.6% yield on the $16.62 per share closing price on March 1, 2005.
Portfolio Investment Activity
In December 2004, the Company provided a $1.9 million fixed-rate mezzanine loan for the acquisition of The Champaign Office Park, a 237,701 square-foot office complex located in Champaign, Illinois. The loan, which has a term of seven years with a 30-year amortization, bears interest at a rate of approximately 10.7% per year. The office complex, featuring 12 one-story buildings, was constructed in phases between 1987 and 1999 and has consistently been over 95% leased since construction completion.
Also, over the course of the fourth quarter, AMAC purchased six Fannie Mae DUS certificates with an aggregate face amount of approximately $27.7 million. The Fannie Mae DUS certificates are secured by properties in California, Indiana, New York, South Carolina, Tennessee, and Washington and were purchased at a weighted average yield of approximately 5.5% to AMAC.
The following information was filed by American Mortgage Acceptance Co on Wednesday, March 2, 2005 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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