RBC ATAX comment 07-18-08

›RATINGS REVISION | COMMENT125 WEEKS 03MAR06 - 17JUL08Rel. S&P 500 HI-16JUN06 107.29 JULY 18, 2008HI/LO DIFF -30.55%100.00CLOSE 84.9790.00 America First Tax Exempt (NASDAQ: ATAX)80.00LO-28DEC07 74.51 Upgrading to Outperform - New Credit Facility Aids2006 2007 2008M A M J J A S O N D J F M A M J J A S O N D J F M A M J JHI-02FEB07 8.75HI/LO DIFF -51.66% Outlook8.007.00CLOSE 6.176.00Outperform (prev: Sector Perform)5.00Above Average RiskLO-18JUL08 4.23200 Price Target: 8.00 7.00Price: 6.17PEAK VOL. 268.7 Implied All-In Return: 38%100 VOLUME 120.5Market Cap (MM): 83Shares O/S (MM): 13.5Yield: 8.8%Dividend: 0.54P/BVPS: 0.8xBVPS: 7.85Tr. 12 ROE: 3.56%RBC Capital Markets Corp. ROE: NAAvg. Daily Volume (MM): 0.01Float (MM): 13.5Jason Arnold, CFA (Analyst) 3-Yr. Est. EPS Growth: 10.00%Institutional Ownership: 2%(415) 633-8594; jason.arnold@rbccm.com Represents forward 12-month estimated dividend distributionFY Dec 2006A 2007A 2008E 2009EEPS (Op) - FD 0.48 0.48 0.49 0.62 More Stable/Lower Cost Funding Strengthens ValuePrev. 0.43 PropositionP/E 12.9x 12.9x 12.6x 10.0xInvestment OpinionEPS (Op) - FD Q1 Q2 Q3 Q42007 0.13A 0.13A 0.13A 0.09A • Upgrading to Outperform: ATAX recently disclosed a new financing2008 0.10A 0.10E 0.14E 0.15Eagreement, which materially improves our outlook for the company. LowerPrev. 0.11E 0.12Eborrowing costs and more stable financing should support earnings growth,2009 0.15E 0.15E 0.16E 0.16Erelative to our previous ...