America First Tax Exempt Investors L.P. Reports Operating Results (10-K)
America First Tax Exempt Investors L.p. Beneficial has a market cap of $166.42 million; its shares were traded at around $5.73 with and P/S ratio of 7.97. The dividend yield of America First Tax Exempt Investors L.p. Beneficial stocks is 8.73%.
Highlight of Business Operations:Debt financing costs are capitalized and amortized on a straight-line basis over the stated maturity of the related debt financing agreement, which approximates the effective interest method. Bond issuance costs are capitalized and amortized on a straight-line basis over the stated maturity of the related tax-exempt mortgage revenue bonds, which approximates the effective interest method. As of December 31, 2010 and 2009, debt financing costs and bond issuance costs of $4.9 million and $2.4 million, respectively, were included in other assets. These costs are reduced on the balance sheet by the accumulated amortization of $932,000 and $1.7 million as of December 31, 2010 and 2009, respectively.
No provision has been made for income taxes because the unitholders are required to report their share of the Partnership's taxable income for federal and state income tax purposes. Certain of the Consolidated VIEs and wholly-owned subsidiaries of the Partnership are corporations that are subject to federal and state income taxes. At December 31, 2010 and 2009, the Company evaluated whether it was more likely than not that any deferred tax assets would be realized. The Company has recorded a full valuation allowance of approximately $13.9 million and $12.3 million at December 31, 2010 and 2009, respectively, against the deferred tax assets created at these entities by timing differences because the realization of these future benefits is not more likely than not.
Cross Creek - Cross Creek Apartments Holdings LLC is the owner of the Cross Creek Apartments. On January 1, 2010, Cross Creek Apartment Holdings LLC entered into a new operating agreement and admitted three new members. These new members committed approximately $2.2 million of capital payable in three installments including $563,000 on January 1, 2010. The new operating agreement and admission of new owner members constitutes a reconsideration event as outlined in consolidation guidance which triggers a re-evaluation of the holders of variable interests to determine the primary beneficiary of the VIE. The capital structure of the VIE consists of senior debt, subordinated loans and equity capital at risk. The senior debt is in the form of tax-exempt mortgage revenue bonds that are 100% owned by the Partnership and account for the majority of the VIE's total capital. As the bondholder, the Partnership is entitled to principal and interest payments and has certain protective rights as established by the bond documents. The three newly admitted members of this VIE are each unaffiliated with the Partnership and have contributed significant equity capital to the VIE. These members collectively control a 99% interest in the VIE. The other 1% member of this VIE is FAH, which is also unaffiliated with the Partnership. Additionally, this property is managed by Properties Management.
The following tables provide information about the six Consolidated VIEs in 2010 and the six VIEs consolidated in 2009 in the Partnership's financial statements under the provisions of the guidance on consolidations. These schedules also include information on the tax-exempt bonds owned by the Partnership which are eliminated in consolidation, as of December 31, 2010 and 2009, respectively. In addition to the tax-exempt bonds detailed below, the Partnership has made taxable loans to VIEs of $18.4 million and $14.4 million as of December 31, 2010 and 2009, respectively.
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