SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------------------------------------------------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
-------------------------------------------------------------------------------
February 28, 2003
(Date of Report (Date of Earliest Event Reported))
Municipal Mortgage & Equity, LLC
(Exact Name of Registrant as Specified in Its Charter)
Delaware 011-11981 52-1449733
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification Number)
218 North Charles Street, Suite 500 21201
Baltimore, Maryland (Zip Code)
(Address of Principal Executive Offices)
(443) 263-2900
(Registrant's Telephone Number, Including Area Code)
ITEM 5. OTHER EVENTS.
On February 28, 2003, Municipal Mortgage & Equity, LLC (the "Registrant"),
distributed an earnings package to Analysts. Attached is a copy of the package,
dated year end December 31, 2002, annexed hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
Exhibit No. Description of Document
99.1 Supplemental Information,
dated year end December 31,
2002
Exhibit 99.1
MUNICIPAL MORTGAGE & EQUITY, LLC
SUPPLEMENTAL INFORMATION
YEAR ENDED DECEMBER 31, 2002
TABLE OF CONTENTS
CAD Statement for the quarter
and year ended December 31, 2002 Page 5
Variance Analysis for CAD Page 6
Rolling Five Quarters - CAD Page 7
GAAP Income Statement for the quarter
and year ended December 31, 2002 Page 8
Variance Analysis for GAAP Page 9
Rolling Five Quarters - GAAP Page 10
Calculation of Diluted Earnings Per Share Page 11
CAD to GAAP reconciliation for the quarter
and year ended December 31, 2002 Page 12-13
Condensed Balance Sheets and Book Value Per Share Page 14
Leverage at December 31, 2002 Page 15
Summary of 4th Quarter 2002 Investment Activity Page 16
Participating Portfolio Property Net Operating
Income Trends Page 17
Units and Average Rents for Bond Portfolio Page 18-22
MUNICIPAL MORTGAGE & EQUITY, LLC
CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
(in thousands, except share and per share data)
(unaudited)
For the three months ended For the twelve months ended
December 31, December 31,
----------------------------- ---------------------------------
2002 2001 2002 2001
-------------- -------------- ----------------- ---------------
SOURCES OF CASH:
Interest on bonds, other bond related investments,
other notes and loans $ 22,596 $ 22,708 $ 92,267 $ 85,931
Interest on short-term investments 264 539 1,255 1,379
Loan servicing fees 1,711 1,962 6,823 6,982
Origination and syndication fees 5,463 4,131 16,947 15,769
Other income 4,155 1,345 12,543 7,147
Net gain on sales 1,637 381 1,986 203
------------- -------------- ----------------- ----------------
TOTAL SOURCES OF CASH 35,826 31,066 131,821 117,411
EXPENSES:
Salaries and benefits 6,475 6,379 22,678 21,381
Professional fees 1,472 1,549 4,960 5,501
Other operating expenses 1,880 1,720 7,059 6,065
Interest expense 9,899 7,101 34,223 29,651
Income taxes (443) (61) 143 744
------------- -------------- ----------------- ----------------
TOTAL EXPENSES 19,283 16,688 69,063 63,342
------------- -------------- ----------------- ----------------
CASH AVAILABLE FOR DISTRIBUTION 16,543 14,378 62,758 54,069
------------- -------------- ----------------- ----------------
LESS:
Cash allocable to preferred shareholders and term growth shares,
including preferred shareholders in a subsidiary company 2,994 3,376 12,130 12,503
------------- -------------- ----------------- ----------------
CASH AVAILABLE FOR DISTRIBUTION TO COMMON SHARES $ 13,549 $ 11,002 $ 50,628 $ 41,566
============= ============== ================= ================
CAD PER COMMON SHARE $ 0.53 $ 0.50 $ 2.00 $ 1.92
============= ============== ================= ================
CALCULATION OF CASH DISTRIBUTION:
CASH AVAILABLE FOR DISTRIBUTION
TO COMMON SHARES $ 13,549 $ 11,002 $ 50,628 $ 41,566
============= ============== ================= ================
ACTUAL AMOUNT PAID $ 11,304 $ 9,438 $ 44,498 $ 37,090
============= ============== ================= ================
PAYOUT RATIO 83.4% 85.8% 87.9% 89.2%
============= ============== ================= ================
COMMON SHARES OUTSTANDING 25,546,010 21,820,266
============= ==============
CASH DISTRIBUTION PER COMMON SHARE $ 0.4425 $ 0.4325 $ 1.7550 $ 1.7150
============= ============== ================= ================
The primary differences between Net Income as calculated under generally
accepted accounting principles ("GAAP") and Cash Available For Distribution
("CAD") result from the timing of income and expense recognition and non-cash
events. These differences between CAD and GAAP income include the treatment of
loan origination fees, which for CAD purposes are recognized when received but
for GAAP purposes are amortized over the life of the associated loan. In
addition, there are differences related to non-cash gains and losses associated
with bond valuations and sales, non-cash gains and losses associated with
changes in market value of derivative financial instruments, amortization of
goodwill and intangibles and capitalization of mortgage servicing rights, net of
deferred taxes for GAAP purposes, which are not included in the calculation of
CAD.
The common shares outstanding reported for Cash Available for Distribution
are the actual shares outstanding at the end of the quarter. For GAAP, the
weighted average shares outstanding during the period are reported for the basic
net income per share calculation. The weighted average shares outstanding for
diluted net income per share include the potential dilutive effect from the
exercise of options, vesting of restricted shares, conversion of the preferred
shares and provision for shares to be awarded under the Midland acquisition earn
out provision.
VARIANCE ANALYSIS FOR CAD
4th Quarter 2002 Compared to 4th Quarter 2001:
Total income for the fourth quarter of 2002 increased $4.8 million over the same
period last year due primarily to the following changes: (1) a $2.8 million
increase in other income due primarily to a $1.4 million increase in income on
the CAPREIT investments, a $0.5 million guarantee fee earned in the fourth
quarter of 2002, and a $0.6 million increase in cancellation, late and other
fees; (2) a $1.3 million increase in origination and syndication fees due
primarily to a $2.2 million increase in syndication fees related to an increase
in the volume of syndications closed, partially offset by a $0.9 million
decrease in origination fees; (3) a $1.3 million increase in gain on sales due
primarily to a $1.5 million gain on the sale of the Park Center bond and RITESSM
in the fourth quarter of 2002 versus a $2.5 million gain on the payoff of the
Emerald Hills bond, which was largely offset by losses from swap terminations,
in 2001; and (4) a $0.3 million decrease in interest on short-term investments
resulting from funding of operations as well as lower investment yields.
Total expenses for the fourth quarter increased $2.6 million over the same
period last year due primarily to the following changes: (1) a $2.8 million
increase in interest expense associated with an increase in financing costs
related to on-balance- sheet securitizations and larger average notes payable
balances outstanding during the quarter; (2) a $0.1 million increase in other
operating expenses and professional fees due primarily to software hosting and
other information system expenses that began in January 2002; and (3) a $0.4
million decrease in income tax expense due to a $1.2 million decrease in taxable
income earned at the Company's subsidiaries organized as corporations.
Fiscal Year 2002 Compared to Fiscal Year 2001:
Total income for the year ended December 31, 2002 increased $14.4 million over
the same period last year due primarily to the following changes: (1) a $6.3
million increase in collections of interest on bonds, other bond-related
investments, other notes and loans; (2) a $5.4 million increase in other income
due to a $3.3 million increase in income from the CAPREIT investments, a $1.0
million increase in asset management fees and advisory fees, a $0.5 million
guarantee fee earned in 2002 and a $0.5 million increase in cancellation, late
and other fees; (3) a $1.8 million increase in gain on sales due primarily to a
$1.5 million gain on the sale of the Park Center bond and RITESSM and a $0.2
million gain on the sale of US Treasuries in 2002 versus a $2.5 million gain on
the payoff of the Emerald Hills bond, which was largely offset by losses from
swap terminations, in 2001; and (4) a $1.2 million increase in origination and
syndication fees due to an increase in origination fees, partially offset by a
$0.6 million decrease in syndication fees.
Total expenses for the year ended December 31, 2002 increased $5.7 million over
the same period last year due primarily to the following changes: (1) a $1.3
million increase in salaries and benefits due to a $2.0 million increase in
salaries and other compensation, offset by a $0.7 million decrease in bonuses;
(2) a $0.5 million increase in other operating expenses and professional fees
due primarily to software hosting and other information system expenses; (3) a
$4.6 million increase in interest expense, primarily associated with an increase
in financing costs associated with on-balance sheet securitizations; and (4) a
$0.6 million decrease in income tax expense due to a $2.8 million decrease in
taxable income earned at the Company's subsidiaries organized as corporations.
MUNICIPAL MORTGAGE & EQUITY, LLC
CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
(in thousands, except share and per share data)
(unaudited)
Qtr Ended Qtr Ended Qtr Ended Qtr Ended Qtr Ended
12/31/02 09/30/02 06/30/02 03/31/02 12/31/01
------------- -------------- -------------- -------------- ---------------
SOURCES OF CASH:
Interest on bonds, other bond-related investments,
other notes and loans $ 22,596 $ 23,331 $ 23,377 $ 22,963 $ 22,708
Interest on short-term investments 264 260 244 487 539
Loan servicing fees 1,711 1,544 1,660 1,908 1,962
Origination and syndication fees 5,463 2,973 5,385 3,126 4,131
Other income 4,155 3,607 2,451 2,330 1,345
Net gain (loss) on sales 1,637 207 102 40 381
------------- -------------- -------------- -------------- ---------------
TOTAL SOURCES OF CASH 35,826 31,922 33,219 30,854 31,066
------------- -------------- -------------- -------------- ---------------
EXPENSES:
Salaries and benefits 6,475 5,446 5,930 4,827 6,379
Professional fees 1,472 884 1,967 637 1,549
Other operating expenses 1,880 1,756 1,697 1,726 1,720
Interest expense 9,899 8,134 7,900 8,290 7,101
Income taxes (443) (173) 345 414 (61)
------------- -------------- -------------- -------------- ---------------
TOTAL EXPENSES 19,283 16,047 17,839 15,894 16,688
------------- -------------- -------------- -------------- ---------------
CASH AVAILABLE FOR DISTRIBUTION 16,543 15,875 15,380 14,960 14,378
LESS:
Cash allocable to preferred shareholders and term
growth shares, including preferred shareholders
in a subsidiary company 2,994 2,994 2,995 3,147 3,376
------------- -------------- -------------- -------------- ---------------
CASH AVAILABLE FOR DISTRIBUTION
TO COMMON SHARES $ 13,549 $ 12,881 $ 12,385 $ 11,813 $ 11,002
============= ============== ============== ============== ===============
CAD PER COMMON SHARE $ 0.53 $ 0.51 $ 0.49 $ 0.47 $ 0.50
============= ============== ============== ============== ===============
CALCULATION OF CASH DISTRIBUTION:
CASH AVAILABLE FOR DISTRIBUTION
TO COMMON SHARES $ 13,549 $ 12,881 $ 12,385 $ 11,813 $ 11,002
============= ============== ============== ============== ===============
ACTUAL AMOUNT PAID $ 11,304 $ 11,154 $ 11,072 $ 10,968 $ 9,438
============= ============== ============== ============== ===============
PAYOUT RATIO 83.4% 86.6% 89.4% 92.8% 85.8%
============= ============== ============== ============== ===============
COMMON SHARES OUTSTANDING 25,546,010 25,349,585 25,308,022 25,213,482 21,820,266
============= ============== ============== ============== ===============
CASH DISTRIBUTION PER COMMON SHARE $ 0.4425 $ 0.4400 $ 0.4375 $ 0.4350 $ 0.4325
============= ============== ============== ============== ===============
Note: Certain prior quarter amounts have been reclassified to conform to the
12/31/02 presentation.
MUNICIPAL MORTGAGE & EQUITY, LLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
For the three months ended For the year ended
December 31, December 31,
--------------------------- ----------------------------
2002 2001 2002 2001
--------------------------- ----------------------------
INCOME:
Interest income
Interest on bonds and residual interest in bond securitizations $ 13,953 $ 17,311 $ 59,923 $ 53,443
Interest on loans 9,195 7,930 34,895 33,340
Interest on short-term investments 264 899 1,255 3,081
------------ ------------- -------------- --------------
Total interest income 23,412 26,140 96,073 89,864
------------ ------------- -------------- -------------
Fee income
Syndication fees 2,456 222 7,221 5,480
Origination fees 2,023 3,549 6,631 6,451
Loan servicing fees 1,711 1,962 6,823 6,982
Other income 2,143 1,311 8,322 10,043
------------ ------------- -------------- --------------
Total fee income 8,333 7,044 28,997 28,956
------------ ------------- -------------- --------------
Net gain on sales 5,032 1,327 8,558 8,222
------------ ------------- -------------- --------------
Total income 36,777 34,511 133,628 127,042
------------ ------------- -------------- --------------
EXPENSES:
Interest expense 10,366 7,228 36,596 30,696
Salaries and benefits 6,475 6,379 22,678 21,381
General and administrative 1,841 2,199 7,020 6,527
Professional fees 1,472 1,549 4,960 5,501
Amortization of goodwill and mortgage servicing rights 329 494 1,314 2,509
------------ ------------- -------------- --------------
Total expenses 20,483 17,849 72,568 66,614
------------ ------------- -------------- --------------
Net holding losses on derivatives (333) 2,691 (14,863) (5,572)
Impairments and valuation allowances related to investments (620) - (730) (3,256)
Net losses from equity investments in partnerships (1,341) (1,039) (3,057) (1,279)
Income tax expense (260) (351) (1,484) (1,383)
Income allocable to preferred shareholders in a subsidiary company (2,994) (2,961) (11,977) (10,779)
Cumulative effect on prior years of change in
accounting for derivatives - - - (12,277)
------------ ------------- -------------- --------------
Net income $ 10,746 $ 15,002 $ 28,949 $ 25,882
============ ============= ============== ==============
LESS:
Net income allocable to preferred shares
and term growth shares - 418 153 2,035
------------ ------------- -------------- --------------
Net income allocated to common shares $ 10,746 $ 14,584 $ 28,796 $ 23,847
============ ============= ============== ==============
EARNINGS PER COMMON SHARE:
Basic earnings per common share:
Basic earnings before cumulative effect of accounting change $ 0.42 $ 0.67 $ 1.16 $ 1.70
============ ============= ============== ==============
Basic earnings per common share $ 0.42 $ 0.67 $ 1.16 $ 1.12
============ ============= ============== ==============
Weighted average common shares outstanding 25,426,254 21,708,191 24,904,437 21,204,209
Diluted earnings per common share:
Diluted earnings before cumulative effect of accounting change $ 0.41 $ 0.65 $ 1.13 $ 1.66
============ ============= ============== ==============
Diluted earnings per common share $ 0.41 $ 0.65 $ 1.13 $ 1.09
============ ============= ============== ==============
Weighted average common shares outstanding 25,917,641 22,349,645 25,473,815 21,804,186
VARIANCE ANALYSIS FOR GAAP
4th Quarter 2002 compared to 4th Quarter 2001:
Total income for the fourth quarter of 2002 increased $2.3 million over the same
period last year due primarily to the following changes: (1) a $3.7 million
increase in gain on sales due primarily to a $1.4 million gain on the sale of
the Park Center bond and RITESSM and a $2.2 million gain on the payoff of the
Villa Hialeah bond; (2) a $2.7 million decrease in total interest income
primarily due to a $2.1 million decrease in collections of interest on bonds,
residual interests in bond securitizations, loans, and other notes, which was
largely a result of a one time contingent interest payment of $2.5 million
related to the payoff of the Emerald Hills bond in the fourth quarter of 2001,
and a decrease in interest on short-term investments resulting from funding of
operations as well as lower investment yields; (3) a $2.2 million increase in
syndication fees due to an increase in the volume of syndications closed; (4) a
$1.5 million decrease in origination fees due to a $0.7 million decrease in
conventional equity production and a $0.8 million decrease in permanent loan
production; and (5) a $0.8 million increase in other income due primarily to a
$0.2 million increase in asset management and advisory fees and a $0.4 million
increase in cancellation, late and other fees.
Total expenses for the fourth quarter of 2002 increased $2.6 million over the
same period last year due primarily to the following changes: (1) a $3.1 million
increase in interest expense associated with an increase in financing costs
related to on-balance-sheet securitizations and larger average notes payable
balances outstanding during the quarter; and (2) a $0.4 million decrease in
general and administrative expenses and professional fees related to a one time
charitable contribution made in the fourth quarter of 2001.
The Company also recorded: net holding losses for the change in market value of
the Company's derivative financial instruments of $0.3 million; $0.6 million of
impairments and valuation allowance expense; and $1.3 million of losses from
equity investments in partnerships in the fourth quarter of 2002.
Fiscal Year 2002 Compared to Fiscal Year 2001:
Total income for the year ended December 31, 2002 increased $6.6 million over
the same period last year due primarily to the following changes: (1) a $6.2
million increase in total interest income due to a $8.0 million increase in
collections of interest on bonds, residual interests in bond securitizations,
other notes and loans, offset by a decrease in interest on short-term
investments resulting from funding of operations as well as lower investment
yields; (3) a $1.7 million increase in syndication fees due to an increase in
the volume of syndications closed; and (4) a $1.7 million decrease in other
income primarily due to $3.3 million of income in 2001 associated with the Dynex
transaction, offset in part by an increase of $1.0 million in asset management
and advisory fees and a $0.2 million increase in commission fees in 2002.
Total expenses for the year ended December 31, 2002 increased $6.0 million over
the same period last year due primarily to the following changes: (1) a $5.9
million increase in interest expense associated with an increase in financing
costs related to on-balance sheet securitizations and larger average notes
payable balances outstanding during the year; (2) a $1.3 million increase in
salaries and benefits due to a $2.0 million increase in salaries and other
compensation, offset by a $0.7 million decrease in bonuses; and (3) a $1.2
million decrease in amortization expense due to changes in accounting guidelines
relating to amortization of goodwill.
The Company also recorded: net holding losses for the change in market value of
the Company's derivative financial instruments of $14.9 million for the year
ended December 31, 2002; $0.7 million of impairment in 2002 associated with a
subordinate bond investment compared to a $3.3 million impairment recorded in
2001 on two investments (Hunter's Glen and Buchanan Bay); and $3.1 million of
losses from equity investments in partnerships in 2002 versus $1.3 million of
similar losses recorded in 2001.
MUNICIPAL MORTGAGE & EQUITY, LLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
Qtr Ended Qtr Ended Qtr Ended Qtr Ended Qtr Ended
12/31/02 09/30/02 06/30/02 03/31/02 12/31/01
-------------- -------------- ------------- ------------ -------------
INCOME:
Interest income
Interest on bonds and residual interest in
bond securitizations $ 13,953 $ 15,409 $ 15,399 $ 15,162 $ 17,311
Interest on loans 9,195 8,676 8,594 8,430 7,930
Interest on short-term investments 264 260 244 487 899
-------------- -------------- ------------- ------------ -------------
Total interest income 23,412 24,345 24,237 24,079 26,140
-------------- -------------- ------------- ------------ -------------
Fee income
Syndication fees 2,456 767 2,380 1,618 222
Origination fees 2,023 2,014 1,505 1,089 3,549
Loan servicing fees 1,711 1,544 1,660 1,908 1,962
Other income 2,143 1,868 2,299 2,012 1,311
-------------- -------------- ------------- ------------ -------------
Total fee income 8,333 6,193 7,844 6,627 7,044
-------------- -------------- ------------- ------------ -------------
Net gain on sales 5,032 657 703 2,166 1,327
-------------- -------------- ------------- ------------ -------------
Total income 36,777 31,195 32,784 32,872 34,511
-------------- -------------- ------------- ------------ -------------
EXPENSES:
Interest expense 10,366 8,771 8,487 8,972 7,228
Salaries and benefits 6,475 5,446 5,930 4,827 6,379
General and administrative 1,841 1,756 1,697 1,726 2,199
Professional fees 1,472 884 1,967 637 1,549
Amortization of goodwill and mortgage servicing rights 329 334 333 318 494
-------------- -------------- ------------- ------------ -------------
Total expenses 20,483 17,191 18,414 16,480 17,849
-------------- -------------- ------------- ------------ -------------
Net holding gains (losses) on derivatives (333) (9,921) (7,721) 3,112 2,691
Impairments and valuation allowances related to
investments (620) - - (110) -
Net gains (losses) from equity investments in partnerships (1,341) (1,487) 94 (323) (1,039)
Income tax benefit (expense) (260) 635 (828) (1,031) (351)
Income allocable to preferred shareholders in a
subsidiary company (2,994) (2,994) (2,995) (2,994) (2,961)
-------------- -------------- ------------- ------------ -------------
Net income $ 10,746 $ 237 $ 2,920 $ 15,046 $ 15,002
============== ============== ============= ============ =============
LESS:
Net income allocable to preferred shares
and term growth shares - - - 153 418
-------------- -------------- ------------- ------------ -------------
Net income allocated to common shares $ 10,746 $ 237 $ 2,920 $ 14,893 $ 14,584
============== ============== ============= ============ =============
EARNINGS PER COMMON SHARE:
Basic earnings per common share:
Basic earnings before cumulative effect of
accounting change $ 0.42 $ 0.01 $ 0.12 $ 0.63 $ 0.67
============== ============== ============= ============ =============
Basic earnings per common share $ 0.42 $ 0.01 $ 0.12 $ 0.63 $ 0.67
============== ============== ============= ============ =============
Weighted average common shares outstanding 25,426,254 25,329,103 25,252,124 23,584,635 21,708,191
Diluted earnings per common share:
Diluted earnings before cumulative effect of
accounting change $ 0.41 $ 0.01 $ 0.11 $ 0.62 $ 0.65
============== ============== ============= ============ =============
Diluted earnings per common share $ 0.41 $ 0.01 $ 0.11 $ 0.62 $ 0.65
============== ============== ============= ============ =============
Weighted average common shares outstanding 25,917,641 25,916,151 25,835,808 24,200,030 22,349,645
Note: Certain prior quarter amounts have been reclassified to conform to the
12/31/02 presentation.
Municipal Mortgage & Equity, LLC
Reconciliation of Basic and Diluted EPS
For the three months ended December 31, 2002 For the three months ended December 31, 2001
Income Shares Per Share Income Shares Per Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
------------ --------------- --------------- ------------- --------------- --------------
(in thousands, except share and per share data)
Basic EPS
Income allocable to common shares $ 10,746 25,426,254 $ 0.42 $ 14,584 21,708,191 $ 0.67
========== ============
Effect of Dilutive Securities
Options and deferred shares - 402,817 - 508,689
Earnings contingency - 88,570 - 132,765
------------ --------------- ----------- ---------------
Diluted EPS
Income allocable to common shares
plus assumed conversions $ 10,746 25,917,641 $ 0.41 $ 14,584 22,349,645 $ 0.65
============ =============== ========== =========== =============== ============
For the year ended December 31, 2002 For the year ended December 31, 2001
Income Shares Per Share Income Shares Per Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
------------ --------------- ------------ ------------- --------------- --------------
(in thousands, except share and per share data)
Basic EPS
Income allocable to common shares $ 28,796 24,904,437 $ 1.16 $ 23,847 21,204,209 $ 1.12
========== ============
Effect of Dilutive Securities
Options and deferred shares - 447,594 - 496,450
Convertible preferred shares to
the extent dilutive - - 3 34,261
Earnings contingency - 121,784 - 69,266
------------ --------------- ----------- ---------------
Diluted EPS
Income allocable to common shares
plus assumed conversions $ 28,796 25,473,815 $ 1.13 $ 23,850 21,804,186 $ 1.09
============ =============== ========= =========== =============== ============
MUNICIPAL MORTGAGE & EQUITY, LLC
RECONCILIATION OF GAAP INCOME TO CASH AVAILABLE FOR DISTRIBUTION
(in thousands)
(unaudited)
For the three
months ended For the year ended
December 31, 2002 December 31, 2002
------------------- ------------------
INCOME:
Interest income
Interest on bonds and residual interest in bond securitization $ 13,953 $ 59,923
Interest on loans 9,195 34,895
Interest on short-term investments 264 1,255
----------------- -----------------
Total interest income 23,412 96,073
----------------- -----------------
Fee income
Syndication fees 2,456 7,221
Origination fees 2,023 6,631
Loan servicing fees 1,711 6,823
Other income 2,143 8,322
----------------- -----------------
Total fee income 8,333 28,997
----------------- -----------------
Net gain on sales 5,032 8,558
----------------- -----------------
Total income 36,777 133,628
----------------- -----------------
EXPENSES:
Interest expense 10,366 36,596
Salaries and benefits 6,475 22,678
General and administrative 1,841 7,020
Professional fees 1,472 4,960
Amortization of goodwill and mortgage servicing rights 329 1,314
----------------- -----------------
Total expenses 20,483 72,568
----------------- -----------------
Net holding losses on derivatives (333) (14,863)
Impairments and valuation allowances related to investments (620) (730)
Net losses from equity investments in partnerships (1,341) (3,057)
Income tax expense (260) (1,484)
Income allocable to preferred shareholders in a subsidiary company (2,994) (11,977)
----------------- -----------------
Net income $ 10,746 $ 28,949
================= =================
LESS:
Net income allocable to term growth shares - 153
----------------- -----------------
Net income allocated to common shares - GAAP Basis $ 10,746 $ 28,796
================= =================
Conversion to Cash Available for Distribution:
(1)Mark to market adjustments $ 333 $ 14,863
(2)Equity investments 2,836 6,603
(3)Net gain on sales (3,395) (6,572)
(3)Amortization of capitalized mortgage servicing fees 329 1,314
(4)Origination fees and other income, net 1,377 3,553
(5)Valuation allowances and other-than-temporary impairments 620 730
(6)Deferred tax expense 703 1,341
----------------- -----------------
Cash Available for Distribution (CAD) $ 13,549 $ 50,628
================= =================
Notes
-----
(1) For GAAP reporting, the Company records the non-cash change in fair value of
its investment in interest rate swaps and other derivative financial instruments
through net income. These non-cash gains and losses are not included in the
Company's calculation of CAD.
(2) For GAAP reporting, the Company accounts for various investments in
partnerships using the equity method of accounting. As a result, the Company's
allocable share of the net income or loss from the partnerships is reported in
income (losses) from equity investments in partnerships. The income from these
partnerships includes depreciation expense and changes in the fair value of
investments in derivatives. For GAAP reporting, distributions are treated as a
return of capital. For CAD reporting, the Company records the cash distributions
it receives from the partnerships as other income.
(3) For GAAP reporting, the Company recognizes non-cash gains and losses
associated with the sale of assets and the capitalization of mortgage servicing
rights. The capitalized mortgage servicing rights are amortized into expense
over the estimated life of the serviced loans. The non-cash gains and the
associated amortization expense are not included in CAD.
(4) Origination fees and certain other income amounts are recognized as income
when received for CAD purposes, but for GAAP reporting these items are deferred
and amortized into income over the life of the associated investment. This
adjustment represents the net difference, for the relevant period, between fees
taken into income when received for CAD and the amortization of fees recorded
for GAAP.
(5) For GAAP reporting, the Company records valuation allowances and
other-than-temporary impairments on its investments in loans, bonds and other
bond-related investments. Such non-cash charges do not affect the cash flow
generated from the operation of the underlying properties, distributions to
shareholders, or the tax-exempt status of the income of the financial obligation
under the bonds. Therefore, these items are not included in the calculation of
CAD.
(6) For GAAP reporting, the Company's income tax expense contains both a current
and a deferred component. Only the Company's current income tax expense is
reflected in CAD.
MUNICIPAL MORTGAGE & EQUITY, LLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2002 2001
---------------- ---------------
ASSETS:
Investment in tax-exempt bonds and residual interest
in bond securitizations $ 781,384 $ 629,755
Loans receivable, net 461,448 440,031
Investment in partnerships 99,966 5,393
Investment in derivative financial instruments 18,762 2,912
Cash, cash equivalents and interest receivable 59,902 113,232
Other assets 97,919 68,948
Goodwill 33,537 29,005
---------------- ---------------
TOTAL $ 1,552,918 $ 1,289,276
================ ===============
LIABILITIES AND EQUITY:
Notes payable $ 450,924 $ 420,063
Short-term debt 219,945 78,560
Long-term debt 147,357 134,881
Residual interest in bond securitizations 1,447 7,979
Investment in derivative financial instruments 49,359 18,646
Current liabilities 36,357 31,974
Preferred shareholders' equity in a subsidiary company 160,465 160,465
Shareholders' equity 487,064 436,708
---------------- ---------------
TOTAL $ 1,552,918 $ 1,289,276
================ ===============
BOOK VALUE PER COMMON SHARE $ 19.07 $ 19.31
================ ===============
MUNICIPAL MORTGAGE & EQUITY, LLC
ADJUSTED BALANCE SHEET
(in thousands)
(unaudited)
Adjusted
December 31, 2002 Adjustments December 31, 2002
-------------------- -------------- --------------------
Cash and cash equivalents $ 43,745 $ - $ 43,745
Investment in bonds and loans, net 1,210,787 (578,827)(1) 631,960
Off balance sheet assets - 282,437 (2) 282,437
Other assets 247,580 (33,537)(3) 214,043
-------------------- -------------- --------------------
Total net assets $ 1,502,112 $ (329,927) $ 1,172,185
==================== ============== ====================
Liabilities, including short-term debt $ 707,227 $ (500,439)(4) $ 206,788
Off balance sheet debt - 282,437 (2) 282,437
Long-term debt 147,357 - 147,357
-------------------- -------------- --------------------
Total liabilities $ 854,584 $ (218,002) $ 636,582
==================== ============== ====================
Leverage Ratio 54.3%
(1) Adjustments to bonds and loans:
Remove Midland loans from assets and liabilities $ 428,045
Remove Oxford from assets and liabilities 5,420
Adjustment to reflect CAD sale of pari passu taxable loans
accounted for as borrowings 16,646
Adjustment to reflect effect of highly leveraged obligations 128,716
--------------------
TOTAL $ 578,827
====================
(2) Off balance sheet assets includes the following:
FSA A Bonds $ 67,400
Other A Bonds 20,978
Demand Notes 16,247
P-Floats 177,812
--------------------
TOTAL $ 282,437
====================
(3) Remove goodwill $ 33,537
====================
(4) Adjustments to liabilities:
Remove other liabilities and normal accruals $ 36,357
Adjustment to reflect CAD sale of pari passu taxable loans
accounted for as borrowings 16,324
Remove Oxford from assets and liabilities 5,410
Remove Midland loans from assets and liabilities 442,348
--------------------
TOTAL $ 500,439
====================
MUNICIPAL MORTGAGE & EQUITY, LLC
2002 INVESTMENTS
FOURTH QUARTER
(In thousands)
BOND PRODUCTION: QUARTER YTD
PERMANENT BOND AMOUNT PRODUCTION
INTEREST -------------------------------- ---------------------------
PROPERTY CITY STATE RATE CONSTRUCTION PERMANENT CONSTRUCTION PERMANENT
------------------------------- ---------- ----- ---------- ---------------- --------------- --------------- -----------
City Views at Rosa Burney Park(1) Atlanta GA 6.950% 6,300 7,512
Jefferson at Town Lake (2) Austin TX 7.875% 25,150 25,150
Olathe Senior Apartments (3) Olathe KS 7.050% 8,150 8,150
Osborne Manor Apartments (3) Los Angeles CA 7.000% 5,680 5,680
Orchard Springs (4) Atlanta GA 6.600% 13,500 13,500
Sanger Trails (5) Sanger TX 7.050% 9,750 9,750
---------------- ---------------
TOTAL $ 68,530 $ 69,742 $ 133,746 $ 166,337
================ =============== ============== ============
(1) The Company's initial investment in these bonds was $1.3 million. The
Company earned a 1.25% origination fee on this deal.
(2) The Company's initial investment in these bonds was $5.9 million. The
Company earned a 1.25% origination fee on this deal.
(3) The Company's initial investment in these bonds was $51,000 per bond. The
Company earned a 1.25% origination fee on these deals.
(4) The Company earned a 2.00% origination fee on this deal.
(5) The Company earned a 1.25% origination fee on this deal.
CONSTRUCTION/PERMANENT LENDING, SYNDICATION AND OTHER PRODUCTION:
TOTAL FEES TOTAL FEES
RECOGNIZED RECOGNIZED
QUARTER THIS QUARTER YTD YTD
VOLUME FOR CAD VOLUME FOR CAD
--------------- --------------- ---------------------------
Tax Credit Equity Syndications (Equity Raised) $ 51,201 $ 2,455 $ 152,367 $ 7,220
Tax Credit Lending Production $ 83,158 $ - $ 176,056 $ -
Conventional Equity Production $ 14,657 $ 513 $ 47,643 $ 1,652
Taxable Construction Loan Production (generating a weighted
average spread of 1.21%) $ 111,513 $ 353 $ 338,202 $ 1,562
Taxable Permanent Loan Production $ 86,470 $ 1,216 $ 351,868 $ 4,486
Working Capital and Bridge Loans $ 28,722 $ 339 $ 76,154 $ 1,037
Equity Investment in CAPREIT Three M Venture $ - $ - $ 75,000 $ 750
OTHER INFORMATION:
Balance as of 12/31/02 of Midland Servicing Portfolio
under Management $ 1,090,200 $ 1,230
Balance as of 12/31/02 of Midland Equity Syndication Portfolio
under Management $ 833,425 $ 796
MUNICIPAL MORTGAGE & EQUITY, LLC
PARTICIPATING BOND PORTFOLIO
NET OPERATING INCOME - TREND
As of December 31, 2002
Q4 2001 Q3 2002 Q4 2002 Q4 '02/ Q4 '02/
Property Actual Actual Actual Q4 '01 Q3 '02
--------- -------- -------- -------- -------- -------
Alban 242,953 251,232 239,695 -1.3% -4.6%
Arlington 0 0 0 N/A N/A
Barkley Place 379,015 283,592 175,222 -53.8% -38.2%
Barrington at Beach Street 0 0 0 N/A N/A
Cobblestone 179,580 166,461 165,532 -7.8% -0.6%
Cool Springs 0 0 0 N/A N/A
Creekside 264,353 293,487 292,194 10.5% -0.4%
Crossings 192,690 165,207 153,686 -20.2% -7.0%
Gilman Meadows 178,290 170,899 165,822 -7.0% -3.0%
Hamilton Grove 208,703 258,127 197,781 -5.2% -23.4%
Jefferson Commons 429,576 274,546 284,837 -33.7% 3.7%
Lakeview 162,227 194,191 188,801 16.4% -2.8%
Mallard I 58,433 36,671 38,464 -34.2% 4.9%
Mallard II 133,411 89,399 118,246 -11.4% 32.3%
Montclair 305,474 341,419 276,820 -9.4% -18.9%
Newport Village 318,144 244,467 231,337 -27.3% -5.4%
Nicollet Ridge 394,316 406,483 374,248 -5.1% -7.9%
North Pointe 540,006 609,179 558,835 3.5% -8.3%
Palisades Park 264,106 249,431 247,662 -6.2% -0.7%
Riverset I 408,873 323,286 383,727 -6.2% 18.7%
Riverset II 170,854 142,037 182,374 6.7% 28.4%
Steeplechase Falls 370,708 412,236 353,705 -4.6% -14.2%
Meadows 171,553 155,713 145,208 -15.4% -6.7%
Timber Ridge 154,997 140,917 145,324 -6.2% 3.1%
Villas at LaRiviera 249,233 198,345 252,264 1.2% 27.2%
Whispering Lake 302,653 315,957 350,786 15.9% 11.0%
Winter Oaks 184,575 288,197 307,789 66.8% 6.8%
------------------------------------------ -----------------------
Total 6,264,723 6,011,479 5,830,360 -6.9% -3.0%
Same Store Growth 6,264,723 6,011,479 5,830,360 -6.9% -3.0%
Occupancy
----------------------------------------------------------
Month Ended Month Ended Month Ended Month Ended
Month/Year Apartment December 31, September 30, December 31, December 31,
Apartment Community Acquired Units 2002 2002 2001 2000
----------------------------------------------------------
Participating Mortgage Bonds:
Alban Place Sep-86 194 93.3% 95.4% 90.7% 86.1%
Cobblestone Aug-99 184 92.4% 93.5% 94.0% 96.2%
Creekside Village Nov-87 296 99.7% 99.7% 99.7% 99.0%
Crossings Jan-97 200 87.0% 94.0% 95.5% 92.5%
Jefferson Commons Dec-00 173 84.8% 82.7% 94.8% N/A
Lakeview Sep-87 180 91.7% 98.3% 97.2% 97.8%
North Pointe Sep-86 540 94.3% 95.0% 96.9% 94.3%
Timber Ridge Dec-00 168 94.0% 98.8% 96.4% N/A
Villas at LaRiviera Jun-99 199 97.5% 98.0% 96.5% 95.0%
---------
Subtotal Participating Mortgage Bonds 2,134
---------
Mortgage Bonds
Applewood (a.k.a. Paola) Jul-99 48 85.4% 95.8% 91.7% 95.8%
Buchanan Bay Mar-01 228 89.5% 86.4% 71.5% N/A
Charter House (2) Dec-96 ---- N/A N/A N/A N/A
Cielo Vista Aug-99 378 90.5% 93.7% 89.7% 91.0%
Country Club Jul-99 101 86.1% 85.1% 87.1% 92.1%
Delta Village Jun-99 80 97.5% 96.3% 93.8% 93.8%
Elmbrooke Aug-00 54 100.0% 100.0% 100.0% 83.3%
Florida A&M Feb-00 96 90.1% 90.6% 69.8% 94.8%
Gannon (Broward) Feb-98 315 96.8% 98.1% 97.5% 91.1%
Gannon (Dade) (3) Feb-98 1,252 97.0% 97.7% 93.9% 97.5%
Gannon (St. Louis) Feb-98 336 87.5% 89.6% 91.1% 93.8%
Gannon A Bond Feb-98 ---- N/A N/A N/A N/A
Hidden Valley Dec-96 82 89.0% 92.7% 87.8% 91.5%
Honey Creek Mar-99 656 91.8% 89.8% 91.6% 93.6%
Hunter's Glen Mar-01 383 74.4% 81.7% 87.7% N/A
Lake Piedmont Apr-98 648 88.6% 90.7% 85.0% 79.0%
Monroe (Oakmont, Towne Oak) Dec-98 364 97.3% 97.0% 98.4% 93.7%
Mountain View (Willowgreen) Nov-86 241 92.3% 95.9% 92.5% 97.5%
Northridge Park II Aug-87 128 84.4% 88.3% 97.7% 97.7%
Oakbrook Dec-96 170 98.2% 92.4% 95.9% 94.1%
Oklahoma City (4) Aug-98 772 91.6% 94.0% 88.1% 92.0%
Orangevale Apr-98 64 98.4% 100.0% 100.0% 100.0%
Parkwood Jun-99 180 95.6% 97.2% 97.2% 94.4%
Riverset II (1) Jan-96 ---- N/A N/A N/A N/A
Riverview Jun-00 228 97.8% 96.9% 17.0% N/A
Sahuarita Jun-99 52 90.4% 100.0% 75.0% 95.0%
Santa Fe Springs Jun-00 310 84.5% 89.7% 88.4% 95.5%
Shadowbrook Jun-99 193 97.9% 96.9% 96.4% 97.9%
Silver Springs Dec-99 250 92.4% 84.4% 86.4% N/A
Southwind Aug-00 88 100.0% 98.6% 96.6% 63.6%
Torries Chase Dec-96 99 91.9% 92.9% 99.0% 93.9%
Village Apartments May-00 210 96.2% 93.8% 84.8% 85.7%
Village at Stone Mountain Oct-97 722 86.1% 90.6% 93.1% 96.5%
Village Green Feb-00 200 89.5% 90.5% 89.5% 89.0%
Weatherstone Sep-00 100 87.0% 96.0% 40.0% N/A
Western Hills Dec-98 80 80.0% 83.8% 100.0% 92.5%
Willow Key Mar-99 384 96.1% 97.7% 98.2% 97.0%
Woodglen Dec-99 250 86.0% 87.2% 93.2% N/A
Woodmark Jun-99 173 96.5% 99.4% 97.7% 87.3%
---------
Subtotal Mortgage Bonds 9,915
---------
Participating Subordinate Mortgage Bonds:
Barkley Place May-87 156 94.2% 92.9% 92.9% 96.8%
Gilman Meadows Mar-87 125 93.6% 97.6% 94.4% 94.4%
Hamilton Chase Feb-87 300 91.7% 92.7% 94.0% 96.7%
Mallard Cove I & II Feb-87 198 96.5% 92.4% 87.4% 93.4%
Meadows Jan-88 200 95.0% 96.5% 98.5% 93.5%
Montclair Oct-86 159 93.1% 91.2% 90.6% 95.6%
Newport Village Dec-86 220 88.2% 90.0% 95.9% 99.5%
Nicollet Ridge Dec-87 339 94.4% 95.3% 90.0% 95.9%
Riverset II Jan-96 148 92.2% 94.0% 88.2% 95.0%
Steeplechase Oct-88 450 93.8% 95.3% 96.2% 93.6%
Whispering Lake Oct-87 384 88.5% 90.6% 88.3% 88.3%
---------
Subtotal Participating Subordinate Mortgage Bonds 2,679
---------
Avg. Monthly Rent
Per Apartment Unit
----------------------------------------------------------
Month Month Month Month
Ended Ended Ended Ended
Month/Year Apartment December 31, September 30, December 31, December 31,
Apartment Community Acquired Units 2002 2002 2001 2000
----------------------------------------------------------
Participating Mortgage Bonds:
Alban Place Sep-86 194 955 937 895 854
Cobblestone Aug-99 184 573 572 568 548
Creekside Village Nov-87 296 582 570 532 497
Crossings Jan-97 200 749 744 742 735
Jefferson Commons Dec-00 173 1,261 1,231 1,331 N/A
Lakeview Sep-87 180 703 698 684 660
North Pointe Sep-86 540 701 687 664 632
Timber Ridge Dec-00 168 497 496 491 N/A
Villas at LaRiviera Jun-99 199 708 704 656 596
---------
Subtotal Participating Mortgage Bonds 2,134
---------
Mortgage Bonds
Applewood (a.k.a. Paola) Jul-99 48 517 517 507 494
Buchanan Bay Mar-01 228 716 716 678 N/A
Charter House (2) Dec-96 ---- N/A N/A N/A N/A
Cielo Vista Aug-99 378 402 425 424 426
Country Club Jul-99 101 440 439 443 432
Delta Village Jun-99 80 581 583 562 511
Elmbrooke Aug-00 54 1,021 1,022 716 712
Florida A&M Feb-00 96 1,377 1,383 1,384 1,352
Gannon (Broward) Feb-98 315 678 674 651 629
Gannon (Dade) (3) Feb-98 1,252 755 753 731 705
Gannon (St. Louis) Feb-98 336 581 578 557 543
Gannon A Bond Feb-98 ---- N/A N/A N/A N/A
Hidden Valley Dec-96 82 601 553 538 519
Honey Creek Mar-99 656 550 551 563 529
Hunter's Glen Mar-01 383 580 579 568 N/A
Lake Piedmont Apr-98 648 483 481 472 461
Monroe (Oakmont, Towne Oak) Dec-98 364 487 481 478 452
Mountain View (Willowgreen) Nov-86 241 640 633 618 583
Northridge Park II Aug-87 128 1,023 1,032 1,036 971
Oakbrook Dec-96 170 449 442 446 446
Oklahoma City (4) Aug-98 772 485 484 472 462
Orangevale Apr-98 64 973 968 957 915
Parkwood Jun-99 180 473 469 455 442
Riverset II (1) Jan-96 ---- N/A N/A N/A N/A
Riverview Jun-00 228 657 656 676 N/A
Sahuarita Jun-99 52 552 552 552 540
Santa Fe Springs Jun-00 310 595 608 593 581
Shadowbrook Jun-99 193 483 482 476 460
Silver Springs Dec-99 250 790 796 783 N/A
Southwind Aug-00 88 713 677 680 666
Torries Chase Dec-96 99 511 505 488 472
Village Apartments May-00 210 568 568 492 466
Village at Stone Mountain Oct-97 722 759 747 722 698
Village Green Feb-00 200 635 634 635 628
Weatherstone Sep-00 100 804 805 800 N/A
Western Hills Dec-98 80 507 502 506 517
Willow Key Mar-99 384 684 672 641 616
Woodglen Dec-99 250 652 652 631 N/A
Woodmark Jun-99 173 680 680 696 671
---------
Subtotal Mortgage Bonds 9,915
---------
Participating Subordinate Mortgage Bonds:
Barkley Place May-87 156 2,056 2,050 2,097 2,021
Gilman Meadows Mar-87 125 1,016 1,020 1,032 976
Hamilton Chase Feb-87 300 622 615 607 590
Mallard Cove I & II Feb-87 198 717 732 762 713
Meadows Jan-88 200 605 603 606 596
Montclair Oct-86 159 1,844 1,833 1,841 1,774
Newport Village Dec-86 220 839 842 824 772
Nicollet Ridge Dec-87 339 937 941 939 892
Riverset II Jan-96 148 708 709 705 702
Steeplechase Oct-88 450 606 604 587 578
Whispering Lake Oct-87 384 648 647 648 644
---------
Subtotal Participating Subordinate Mortgage Bonds 2,679
---------
Occupancy
----------------------------------------------------------
Month Ended Month Ended Month Ended Month Ended
Month/Year Apartment December 31, September 30, December 31, December 31,
Apartment Community Acquired Units 2002 2002 2001 2000
----------------------------------------------------------
Subordinate Mortgage Bonds:
CAPREIT Sep-99 ---- N/A N/A N/A N/A
Cinnamon Ridge Jan-99 ---- N/A N/A N/A N/A
Farmington Meadows Aug-99 69 100.0% 98.6% 100.0% 100.0%
Independence Ridge Aug-96 336 75.3% 75.3% 83.9% 85.5%
Locarno Aug-96 110 90.0% 90.0% 92.7% 89.2%
Olde English Manor Nov-99 ---- N/A N/A N/A N/A
Peaks of Conyer Sep-01 260 87.7% 88.8% N/A N/A
Rillito Village Jul-00 ---- N/A N/A N/A N/A
Winter Oaks Nov-99 460 94.3% 93.7% 86.1% 92.2%
---------
Subtotal Subordinate Mortgage Bonds 1,235
---------
Other Bond Related Investments:
Briarwood Dec-98 600 95.0% 97.5% 97.3% 98.3%
Cinnamon Ridge Dec-97 264 92.4% 97.0% 95.8% 95.1%
Golfside Villas (f.k.a. Club West) Mar-99 194 99.5% 99.5% 100.0% 100.0%
Park at Landmark Sep-00 396 97.0% 99.0% 94.9% 100.0%
Poplar Glen Jun-97 191 96.3% 95.3% 98.4% 99.0%
RITES - Charter House Dec-96 280 91.4% 92.9% 89.3% 93.2%
RITES - Indian Lakes Jul-97 296 79.4% 86.8% 89.2% 93.6%
RITES - LaPaloma Apr-99 120 98.3% 98.3% 99.2% 96.7%
RITES - LeMirador (Coleman Senior) Apr-98 141 90.1% 85.8% 96.5% 99.3%
RITES - Museum Towers Apr-01 286 94.1% 94.1% 89.5% N/A
RITES - Olde English Manor Jun-98 264 93.9% 86.4% 91.3% 91.7%
RITES - Palisades Park Feb-98 304 92.8% 95.7% 99.3% 95.1%
RITES - Pavillion Apr-99 132 100.0% 100.0% 100.0% 98.5%
RITES - Queen Anne IV Jul-98 110 90.0% 93.6% 99.1% 92.7%
RITES - Rancho/Villas May-00 417 89.8% 90.2% 84.6% 87.8%
RITES - Rillito Village Aug-98 272 89.0% 92.6% 86.8% 90.1%
RITES - Riverset (1) Aug-88 352 92.2% 94.0% 88.2% 95.0%
RITES - Riverset II (1) Jan-96 ---- N/A N/A N/A N/A
RITES - Sienna (a.k.a. Italian Gardens) Apr-98 140 87.9% 82.9% 95.0% 100.0%
RITES - Sonterra May-98 156 92.3% 91.0% 76.3% 90.7%
RITES - Southgate Crossings Jun-97 215 94.0% 97.2% 100.0% 96.3%
RITES - Southwood Nov-97 1,286 79.4% 84.4% 82.0% 83.9%
---------
Subtotal Other Bond Related Investments 6,416
---------
Total Units/Weighted Average Investments 22,379 91.1% 92.6% 90.6% 93.0%
=========
Total/Same Stores (5) 2000 20,053 91.5% 93.0% 91.9% 93.0%
Total/Same Stores (5) 2001 22,119 91.2% 92.6% 90.6%
Construction/Substantial Rehab Properties and Other Investments
Arlington Dec-00 176 24.4% 9.7% N/A N/A
Barrington at Beach Street Oct-00 398 53.0% 44.5% 17.1% N/A
Bedford Park Oct-00 312 64.1% 67.9% 42.9% 65.1%
CAPREIT Joint Venture (6) Jun-02 6,279 93.5% 95.1% N/A N/A
CAPREIT TERA (7) Mar-01 2,942 93.0% 92.9% 92.0% N/A
Chancellor Nov-01 101 N/A N/A N/A N/A
Chancellor II Mar-02 46 N/A N/A N/A N/A
City Views at Rosa Burney Park Dec-02 180 N/A N/A N/A N/A
Cool Springs Aug-00 124 51.6% 44.4% 17.7% N/A
Coronel Village Apr-02 48 N/A N/A N/A N/A
Fort Branch Dec-00 250 60.8% 36.8% N/A N/A
Hidden Brooks Sep-01 201 85.6% 86.1% 87.1% N/A
Jefferson at Town Lake Dec-02 216 N/A N/A N/A N/A
Las Trojas Mar-02 49 N/A N/A N/A N/A
Lincoln Corner Dec-01 134 N/A N/A N/A N/A
Meridian at Bridgewater Nov-99 90 86.7% 83.3% 52.2% N/A
Mountain View Village Jun-02 220 N/A N/A N/A N/A
North White Road Nov-01 157 N/A N/A N/A N/A
Oak Grove Commons Dec-01 168 N/A N/A N/A N/A
Olathe Senior Residences Dec-02 144 N/A N/A N/A N/A
Osborne Place Manor Dec-02 50 N/A N/A N/A N/A
Penn Valley Dec-01 42 N/A N/A N/A N/A
Sanger Trails Dec-02 208 N/A N/A N/A N/A
Sycamore Senior Village Jun-02 300 N/A N/A 0.0% N/A
Village at Sun Valley May-00 276 70.7% 67.4% 32.6% N/A
Walnut Tree Mar-02 64 N/A N/A N/A N/A
---------
Subtotal Construction/Rehab Properties 13,175
---------
Total Units 35,554
=========
Avg. Monthly Rent
Per Apartment Unit
----------------------------------------------------------
Month Month Month Month
Ended Ended Ended Ended
Month/Year Apartment December 31, September 30, December 31, December 31,
Apartment Community Acquired Units 2002 2002 2001 2000
----------------------------------------------------------
Subordinate Mortgage Bonds:
CAPREIT Sep-99 ---- N/A N/A N/A N/A
Cinnamon Ridge Jan-99 ---- N/A N/A N/A N/A
Farmington Meadows Aug-99 69 814 814 814 814
Independence Ridge Aug-96 336 553 553 550 534
Locarno Aug-96 110 882 882 866 838
Olde English Manor Nov-99 ---- N/A N/A N/A N/A
Peaks of Conyer Sep-01 260 735 735 740 N/A
Rillito Village Jul-00 ---- N/A N/A N/A N/A
Winter Oaks Nov-99 460 558 554 547 520
---------
Subtotal Subordinate Mortgage Bonds 1,235
---------
Other Bond Related Investments:
Briarwood Dec-98 600 623 614 589 570
Cinnamon Ridge Dec-97 264 932 925 916 885
Golfside Villas (f.k.a. Club West) Mar-99 194 615 613 586 571
Park at Landmark Sep-00 396 1,084 1,091 1,046 954
Poplar Glen Jun-97 191 971 956 919 875
RITES - Charter House Dec-96 280 624 622 611 596
RITES - Indian Lakes Jul-97 296 800 785 774 738
RITES - LaPaloma Apr-99 120 629 621 620 589
RITES - LeMirador (Coleman Senior) Apr-98 141 834 842 814 832
RITES - Museum Towers Apr-01 286 1,363 1,363 1,355 N/A
RITES - Olde English Manor Jun-98 264 488 489 473 474
RITES - Palisades Park Feb-98 304 551 547 525 505
RITES - Pavillion Apr-99 132 652 660 655 619
RITES - Queen Anne IV Jul-98 110 1,102 1,099 1,085 957
RITES - Rancho/Villas May-00 417 492 492 483 474
RITES - Rillito Village Aug-98 272 453 445 447 450
RITES - Riverset (1) Aug-88 352 697 697 699 699
RITES - Riverset II (1) Jan-96 ---- N/A N/A N/A N/A
RITES - Sienna (a.k.a. Italian Gardens) Apr-98 140 810 799 807 832
RITES - Sonterra May-98 156 857 855 844 864
RITES - Southgate Crossings Jun-97 215 987 965 943 892
RITES - Southwood Nov-97 1,286 500 487 489 480
---------
Subtotal Other Bond Related Investments 6,416
---------
Total Units/Weighted Average Investments 22,379 688 684 681 636
=========
Total/Same Stores (5) 2000 20,053 675 671 659 636
Total/Same Stores (5) 2001 22,119 696 666 681
Construction/Substantial Rehab Properties and Other Investments
Arlington Dec-00 176 1,388 N/A N/A N/A
Barrington at Beach Street Oct-00 398 805 806 842 N/A
Bedford Park Oct-00 312 530 547 528 458
CAPREIT Joint Venture (6) Jun-02 6,279 755 741 N/A N/A
CAPREIT TERA (7) Mar-01 2,942 618 625 638 N/A
Chancellor Nov-01 101 N/A N/A N/A N/A
Chancellor II Mar-02 46 N/A N/A N/A N/A
City Views at Rosa Burney Park Dec-02 180 N/A N/A N/A N/A
Cool Springs Aug-00 124 1,932 1,946 1,958 N/A
Coronel Village Apr-02 48 N/A N/A N/A N/A
Fort Branch Dec-00 250 806 821 N/A N/A
Hidden Brooks Sep-01 201 1,024 1,036 1,050 N/A
Jefferson at Town Lake Dec-02 216 N/A N/A N/A N/A
Las Trojas Mar-02 49 N/A N/A N/A N/A
Lincoln Corner Dec-01 134 N/A N/A N/A N/A
Meridian at Bridgewater Nov-99 90 3,496 3,496 3,515 N/A
Mountain View Village Jun-02 220 N/A N/A N/A N/A
North White Road Nov-01 157 N/A N/A N/A N/A
Oak Grove Commons Dec-01 168 N/A N/A N/A N/A
Olathe Senior Residences Dec-02 144 N/A N/A N/A N/A
Osborne Place Manor Dec-02 50 N/A N/A N/A N/A
Penn Valley Dec-01 42 N/A N/A N/A N/A
Sanger Trails Dec-02 208 N/A N/A N/A N/A
Sycamore Senior Village Jun-02 300 N/A N/A N/A N/A
Village at Sun Valley May-00 276 683 681 643 N/A
Walnut Tree Mar-02 64 N/A N/A N/A N/A
---------
Subtotal Construction/Rehab Properties 13,175
---------
Total Units 35,554
=========
(1) The Company owns a participating bond, a participating subordinate bond and
a RITES interest collateralized by the Riverset property.
(2) The Company owns a non-participating bond and a RITES interest
collateralized by the Charter House property.
(3) The Dade Gannon Portfolio represents eight properties.
(4) The Oklahoma City Portfolio represents three properties.
(5) Same Store includes only properties reporting for all three quarters.
(6) CAPREIT Joint Venture represents twenty properties (not included previously
in CAPREIT Portfolio).
(7) The CAPREIT TERA Portfolio represents eleven properties.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MUNICIPAL MORTGAGE & EQUITY, LLC
Date: February 28, 2003 By: /s/ William S. Harrison____
William S. Harrison
SVP and Chief Financial Officer