American Church Mortgage is a REIT whose revenues are derived primarily from interest income earned from loans to churches and other nonprofit religious organizations. The company will use the proceeds from the sale of the certificates principally to fund mortgage loans to churches and other nonprofit religious organizations and to buy bonds issued by those organizations. Some of the proceeds may be used to pay down our line of credit, redeem our equity securities and repay maturing certificates.
As of June 30, American Church Mortgage had 64 mortgage loans outstanding in the aggregate principal amount of $29.4 million and own church bonds having a face value of $7.7 million. The company is based in the leased offices of the underwriter, American Investors Group, and is not separately charged for rent or related expenses. The advisor incurs our occupancy expense and many of our operating expenses in exchange for the advisory fee.
Since its inception, American has underwritten about 204 church bond financings, in which about $388 million in first mortgage bonds have been sold to public investors. The average size of church bond financings underwritten by American since its inception is approximately $1.9 million.
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