November 11, 1998
Dear Investor:
Our records indicate that we have not yet received your consent to the
proposed merger of America First Tax Exempt Mortgage Fund Limited Partnership
(the "Fund") with America First Tax Exempt Investors, L.P. We are writing to
let you know that we have extended the deadline for voting for your
convenience.
While we want to provide all investors with the opportunity to express their
views on the proposal, continuing solicitations impose additional expenses on
the Partnership. We ask that you return your consent card as soon as possible
so that we can complete this process in a timely and efficient manner.
For your information, we have included summary financial information for the
Fund that has been updated through September 30, 1998.
If you have any questions, please call me at 1-800-283-2357.
Sincerely,
Maurice E. Cox, Jr.
Executive Vice President
MEC/cca
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SUMMARY FINANCIAL INFORMATION
The following table sets forth certain financial data of America First
Tax Exempt Mortgage Fund Limited Partnership (the "Fund") that has been
derived from the audited financial statements of the Fund as of and for the
five-year period ended December 31, 1997. The financial statements as of
December 31, 1997 and 1996 and for each of the three years in the period ended
December 31, 1997 have been audited by PricewaterhouseCoopers LLP, independent
accountants for the Fund, and have been incorporated by reference into the
Consent Solicitation Statement/Prospectus dated September 22, 1998, relating
to the proposed merger of the Fund and America First Tax Exempt Investors,
L.P. The unaudited data presented as of and for the nine months ended
September 30, 1998 and 1997 have been derived from the unaudited financial
statements of the Fund, which, in the opinion of the General Partner, include
all adjustments, consisting of normal recurring adjustments, necessary for a
fair statement of the results for such interim periods. The results of
operations for the nine months ended September 30, 1998 will not necessarily
be indicative of the results of operations for the full year ending
December 31, 1998.
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<CAPTION>
For the Nine Months
Ended September 30,
(Unaudited) For the Year Ended December 31,
------------------------ ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1998 1997 1997 1996 1995 1994 1993
------------------------ ---------------------------------------------------------------
Mortgage bond investment income $ 4,500,059 $ 4,640,665 $ 6,169,500 $ 6,134,812 $ 6,159,236 $ 5,973,373 $ 5,461,438
Rental Income 0 0 0 0 0 0 5,148,252
Interest income on temporary cash
investments 38,300 39,288 53,554 47,247 42,319 24,046 31,700
Contingent interest income 86,107 110,229 124,682 154,539 166,940 211,319 192,343
General and administrative expenses (604,959) (535,559) (678,487) (648,784) (585,926) (478,438) (1,033,708)
Real estate operating expenses 0 0 0 0 0 0 (2,457,071)
Depreciation 0 0 0 0 0 0 (1,205,631)
Interest expense 0 0 0 0 0 0 (400,931)
Net income $ 4,019,507 $ 4,254,623 $ 5,669,249 $ 5,687,814 $ 5,782,569 $ 5,730,300 $ 5,736,392
Net income, basic and diluted, per
Beneficial Unit Certificate (BUC) $ .40 $ .42 $ .56 $ .56 $ .57 $ .56 $ .56
Total cash distributions paid or
accrued per BUC $ .41 $ .41 $ .54 $ .54 $ .54 $ .54 $ .7350
Investment in tax-exempt mortgage
bonds at estimated fair value $ 71,126,000 $ 66,026,000 $ 71,126,000 $ 66,026,000 $ 66,026,000 $ 66,026,000 $ 66,026,000
Total assets $ 73,103,192 $ 68,052,580 $ 73,213,016 $ 68,014,454 $ 67,698,916 $ 67,379,656 $ 67,137,170
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