Exhibit 99.2 Pro Forma Financial Statements

 

American Housing Income Trust, Inc.

Unaudited Pro Forma Condensed Consolidated Balance Sheet

As of June 30, 2016

 

		Historical Amounts (A)			The NNMP Homes in New Mexico (B)			Pro Forma Adjustments				Pro Forma Amounts
Assets
Investment in real estate
Land		$	6,510,384		$	330,463		$	–			$	6,840,847
Buildings and improvements			4,156,708			1,002,537			–				5,159,245
			10,667,092			1,333,000			–				12,000,092
Less: accumulated depreciation			(283,624	)		–			–				(283,624	)
Investment in real estate, net			10,383,468			1,333,000			–				11,716,468
Cash			8,420			–			–				8,420
Accounts receivable			1,550			–			–				1,550
Other assets			213,213			–			–				213,213
Equipment, Net			4,876			–			–				4,876
Total Assets		$	10,611,527		$	1,333,000		$	–				11,944,527
Liabilities and Shareholders’ Equity
Liabilities:
Accounts payable and accrued liabilities		$	208,525		$	–		$	–			$	208,525
Due to related parties			265,030			–			–				265,030
Prepaid rent received			23,853			–			–				23,853
Notes payable			5,126,657			203,678			–				5,330,335
Total Liabilities			5,624,065			203,678			–				5,827,743
Shareholders’ Equity:
Preferred Stock			–			–			–				–
Preferred Stock – Series A			–			–			–				–
Common Stock			82,883			–			–				82,883
Additional paid-in Capital			15,109,807			1,129,322			(1,129,322	)(C)			15,109,807
Accumulated Deficit			(10,737,132	)		–			–				(10,737,132	)
Total American Housing Income Trust Inc.’s Shareholders’ Equity			4,455,558			1,129,322			(1,129,322	)			4,455,558
Non-controlling Interest			531,904			–			1,129,322	(C)			1,661,226
Total Shareholders’ Equity			4,987,462			1,129,322			–				6,116,784
Total Liabilities and Shareholders’ Equity		$	10,611,527		$	1,333,000		$	–			$	11,944,527

 

 

 

See notes to pro forma condensed consolidated balance sheet

  

 

 

 

American Housing Income Trust, Inc.

NOTES TO UNAUDITED PRO FORMA CONDENSED

CONSOLIDATED BALANCE SHEET

 

A.    Represents the unaudited historical consolidated balance sheet of the Company as of June 30, 2016, as contained in the consolidated financial statements filed in the Company’s Form 10-Q filed on August 15, 2016.

 

B.	Represents the pro forma adjustments to reflect the acquisition of six single family residences, four apartments and sixteen mobile homes spaces (the “Homes”) located in New Mexico as if the acquisition had occurred on June 30, 2016.

 

The sources of funding for the acquisition of the Homes from Northern NM Properties, LLC (the “Limited Partner”) were as follows:

 

Assumption of promissory notes by UPREIT (1)	$           203,678
Issuance of 500,614 UPREIT Units to the Limited Partner	$         1,129,322
Total consideration	$         1,333,000

 

(1)   The principal balance outstanding at the time of assumption was $203,678, which approximates fair value. The table below summarizes the interest rates and maturity dates of the promissory notes assumed:

 

Principal Amount	Interest (per annum)	Maturity Dates
$         127,400	2.985%	April 1, 2028
76,278	6%	April 28, 2018
$         203,678

 

The preliminary allocation of the purchase price was as follows:

 

Land	$           330,463
Buildings and improvements	1,002,537
Total	$         1,333,000

 

C.

Represents the non-controlling interest in the limited partnership. Pursuant to the Limited Partnership Agreement of the UPREIT, the Company and the Limited Partner will hold 5,006 UPREIT Units and 500,614 UPREIT Units, respectively. The Company will receive 5,006 UPREIT Units, representing a 1% interest in the limited partnership, in consideration for $nil consideration. The Limited Partner will receive 500,614 UPREIT Units in consideration for the Homes.

 

 

 

 

 

 

 

 

 

American Housing Income Trust, Inc.

Unaudited Pro Forma Condensed Consolidated Statement of Operations

For the Six Months Ended June 30, 2016

 

		Historical Amounts (A)				The NNMP Homes in New Mexico (B)						Pro Forma Adjustments			Pro Forma Amounts
Revenues:
Rental revenue		$		327,382		$		53,307			$	–			$		380,689
Other income				133				–				–					133
Total revenue				327,515				53,307				–					380,822
Expenses:
Depreciation				65,395				–				18,565	(E)				83,960
General and administrative				2,814,098				12,534				–					2,826,632
Interest expense				195,488				–				4,200	(F)				199,688
Total expenses				3,074,981				12,534				22,765					3,110,280
Net income (loss) before other items				(2,747,466)				40,773				(22,765)					(2,729,458)
Gain on sale of properties				4,981				–				–					4,981
Net income (loss)				(2,742,485)				40,773				(22,765)					(2,724,477)
Less: net income attributable to non-controlling interest				–				–				–					–
Net income (loss) attributable to common stockholders		$		(2,742,485)			$	40,773			$	(22,765)			$		(2,724,477)

 

 

 

See notes to pro forma condensed consolidated statements of operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Housing Income Trust, Inc.

Unaudited Pro Forma Condensed Consolidated Statement of Operations

For the Year Ended December 31, 2015

 

		Historical Amounts (C)				The NNMP Homes in New Mexico (D)				Pro Forma Adjustments		Pro Forma Amounts
Revenues:
Rental revenue		$	465,765			$	104,645		$	–		$	570,410
Interest income			9,364				–			–			9,364
Other income			7,297				–			–			7,297
Total revenue			482,426				104,645			–			587,071
Expenses:
Depreciation			105,863				–			37,131	(E)		142,994
General and administrative			2,623,592				39,807			–			2,663,399
Interest expense			265,688				–			9,211	(F)		274,899
Acquisition expense			325,000				–			–			325,000
Total expenses			3,320,143				39,807			46,342			3,406,292
Net income (loss) before other items			(2,837,717)				64,838			(46,342)			(2,819,221)
Gain on sale of properties			71,293				–			–			71,293
Net income (loss)			(2,766,424)				64,838			(46,342)			(2,747,928)
Less: net income (loss) attributable to non-controlling interest			–				–			–			–
Net income (loss) attributable to common stockholders		$	(2,766,424)			$	64,838		$	(46,342)		$	(2,747,928)

 

 

 

See notes to pro forma condensed consolidated statements of operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Housing Income Trust, Inc.

NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

A.       Represents historical income from operations included in the consolidated statement of operations of the Company for the six months ended June 30, 2016, as contained in the consolidated financial statements filed in the Company’s Form 10-Q filed on August 15, 2016.

B.       Represents the historical revenue and certain expenses of the six single family residences, four apartments and sixteen mobile home spaces (the “Homes”) located in New Mexico for the six month period ended June 30, 2016.

 

C.       Represents historical income from operations included in the consolidated statement of operations of the Company for the year ended December 31, 2015, as contained in the consolidated financial statements filed in the Company’s Form 10-K filed on March 30, 2016.

D.       Represents the historical revenue and certain expenses of the Homes located in New Mexico for the year ended December 31, 2015.

E.        Represents depreciation based on the preliminary purchase price allocations which are attributable as follows:

 

	Estimated useful life	Six months Ended June 30, 2016	Year ended December 31, 2015
Buildings and improvements	27 years	$              18,565	$              37,131

F.        Represent interest expense on borrowings of $203,678 assumed in connection with the acquisition of the Homes located in New Mexico.