UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                       ----------------------------------

                                    FORM 10-K
                ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
                       -----------------------------------

   For the fiscal year ended December 31, 1999 Commission file number 1-11060

                       AMERICAN INSURED MORTGAGE INVESTORS
             (Exact name of registrant as specified in it's charter)

California                                                   13-3180848
(State or other jurisdiction of                              (I.R.S. Employer
Incorporation or organization)                               Identification No.)

                              11200 Rockville Pike
                            Rockville, Maryland 20852
                                 (301) 816-2300
               (Address, including zip code, and telephone number,
        including area code, of registrant's principal executive offices)

                      ------------------------------------

           Securities registered pursuant to Section 12(b) of the Act:

                                                        Name of each exchange on
     Title of each class                                    which registered
----------------------------------                      ------------------------
Depositary Units of Limited                              American Stock Exchange
     Partnership Interest

           Securities registered pursuant to Section 12(g) of the Act:

                                      None
                      ------------------------------------

     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
Registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

     As of February 17, 2000, 10,000,125 depositary units of limited partnership
interest were  outstanding and the aggregate  market value of such units held by
non-affiliates of the Registrant on such date was $24,345,945.

                       Documents incorporated by Reference

                                      None


<PAGE>





                       AMERICAN INSURED MORTGAGE INVESTORS

                         1999 ANNUAL REPORT ON FORM 10-K

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                      PART I                                                            PAGE
                                     --------                                                           ----
<S>               <C>                                                                                    <C>
Item 1.           Business                                                                                4
Item 2.           Properties                                                                              5
Item 3.           Legal Proceedings                                                                       5
Item 4.           Submission of Matters to a Vote of Security Holders                                     5


                                     PART II
                                ----------------
Item 5.           Market for Registrant's Securities and Related Security Holder Matters                  6
Item 6.           Selected Financial Data                                                                 7
Item 7.           Management's Discussion and Analysis of Financial Condition and Results of
                     Operations                                                                           8
Item 7A.          Qualitative and Quantitative Disclosures About Market Risk                             11
Item 8.           Financial Statements and Supplementary Data                                            12
Item 9.           Changes in and Disagreements with Accountants on Accounting and Financial
                     Disclosure                                                                          12

                                    PART III
                                ----------------
Item 10.          Directors and Executive Officers of the Registrant                                     12
Item 11.          Executive Compensation                                                                 13
Item 12.          Security Ownership of Certain Beneficial Owners and Management                         14
Item 13.          Certain Relationships and Related Transactions                                         14


                                     PART IV
                                ----------------
Item 14.          Exhibits, Financial Statement Schedules and Reports on Form 8-K                        14
                  Signatures                                                                             16
</TABLE>


<PAGE>
                                     PART I
ITEM 1.    BUSINESS


FORWARD-LOOKING  STATEMENTS.  When used in this Annual Report on Form 10-K,  the
words  "believes,"   "anticipates,"   "expects,"   "contemplates,"  and  similar
expressions  are  intended to identify  forward-looking  statements.  Statements
looking forward in time are included in this Annual Report on Form 10-K pursuant
to the "safe harbor" provision of the Private  Securities  Litigation Reform Act
of 1995. Such statements are subject to certain risks and  uncertainties,  which
could cause actual  results to differ  materially.  Accordingly,  the  following
information contains or may contain forward-looking  statements: (1) information
included  or  incorporated  by  reference  in this  Annual  Report on Form 10-K,
including,  without  limitation,  statements  made  under  Item 7,  Management's
Discussion and Analysis of Financial  Condition and Results of  Operations,  (2)
information  included or  incorporated  by  reference  in future  filings by the
Partnership  with the  Securities  and Exchange  Commission  including,  without
limitation,  statements with respect to growth,  projected  revenues,  earnings,
returns and yields on its portfolio of mortgage  assets,  the impact of interest
rates, costs and business strategies and plans and (3) information  contained in
written  material,  releases and oral statements  issued by or on behalf of, the
Partnership,  including, without limitation,  statements with respect to growth,
projected  revenues,  earnings,  returns and yields on its portfolio of mortgage
assets, the impact of interest rates,  costs and business  strategies and plans.
Factors which may cause actual results to differ materially from those contained
in the forward-looking  statements identified above include, but are not limited
to (i) regulatory and litigation  matters,  (ii) interest rates, (iii) trends in
the economy,  (iv) prepayment of mortgages and (v) defaulted mortgages.  Readers
are cautioned not to place undue reliance on these  forward-looking  statements,
which speak only of the date hereof. The Partnership undertakes no obligation to
publicly   revise  these   forward-looking   statements  to  reflect  events  or
circumstances  occurring  after the date hereof or to reflect the  occurrence of
unanticipated events.


Development and Description of Business
---------------------------------------
     Information  concerning the business of American Insured Mortgage Investors
(the "Partnership") is contained in Part II, Item 7, Management's Discussion and
Analysis of Financial  Condition and Results of Operations  and in Notes 1, 5, 6
and 7 of the Notes to Financial Statements of the Partnership (filed in response
to Item 8 hereof),  all of which are incorporated by reference herein.  See also
Schedule IV-Mortgage Loans on Real Estate for the table of the Insured Mortgages
(as defined below) invested in by the Partnership as of December 31, 1999, which
is hereby incorporated by reference herein.

Employees
---------
     The  Partnership  has no  employees.  The  business of the  Partnership  is
managed  by  CRIIMI,  Inc.  (the  "General  Partner"),  while its  portfolio  of
mortgages is managed by AIM Acquisition Partners,  L.P. (the "Advisor") pursuant
to an advisory  agreement (the "Advisory  Agreement").  The General Partner is a
wholly-owned subsidiary of CRIIMI MAE Inc. ("CRIIMI MAE").

     The general  partner of the Advisor is AIM  Acquisition  Corporation  ("AIM
Acquisition")  and the  limited  partners  include,  but are not limited to, AIM
Acquisition,  The Goldman Sachs Group, L.P., Sun America  Investments,  Inc. and
(successor to Broad, Inc.)CRI/AIM Investment,  L.P., an affiliate of CRIIMI MAE.
AIM Acquisition is a Delaware corporation that is primarily owned by Sun America
Investments, Inc. and The Goldman Sachs Group, L.P.

     Under the  Advisory  Agreement,  the Advisor  will  render  services to the
Partnership,  including but not limited to, the management of the  Partnership's
portfolio of mortgages and the disposition of the Partnership's mortgages.  Such
services  will be subject to the review and  ultimate  authority  of the General
Partner.  However, the General Partner is required to receive the consent of the
Advisor prior to taking certain significant  actions,  including but not limited
to the  disposition of mortgages,  any transaction or agreement with the General
Partner,  or its  affiliates,  or any material  change as to policies  regarding
distributions  or  reserves of the  Partnership.  The  Advisor is  permitted  to
delegate the performance of services  pursuant to a sub-advisory  agreement (the
"Sub-Advisory Agreement").  The delegation of such services will not relieve the
Advisor of its obligation to perform such services.  CRIIMI MAE Services Limited
Partnership  ("CMSLP"),  an affiliate of CRIIMI MAE,  manages the  Partnership's
portfolio,  pursuant to the Sub-Advisory Agreement. The general partner of CMSLP
is CRIIMI MAE Services, Inc., an affiliate of CRIIMI MAE.


Competition
-----------
     In disposing of mortgage investments, the Partnership competes with private
investors,  mortgage  banking  companies,  mortgage  brokers,  state  and  local
government agencies, lending institutions, trust funds, pension funds, and other
entities,  some with similar  objectives to those of the Partnership and some of
which are or may be  affiliates of the  Partnership,  its General  Partner,  the
Advisor, CMSLP or their respective  affiliates.  Some of these entities may have
substantially  greater capital  resources and experience in disposing of Federal
Housing Administration ("FHA") insured mortgages than the Partnership.

     CRIIMI MAE and its affiliates also may serve as general partners,  sponsors
or managers of real estate limited partnerships,  REITS or other entities in the
future.  The  Partnership  may attempt to dispose of mortgage  investments at or
about the same time that CRIIMI MAE, one or more of the "AIM Funds"  (defined as
the Partnership,  American  Insured  Mortgage  Investors - Series 85, L.P. ("AIM
85"),  American  Insured  Mortgage  Investors  L.P.  - Series 86 ("AIM  86") and
American Insured Mortgage  Investors L.P. - Series 88 ("AIM 88")),  and/or other
entities sponsored or managed by CRIIMI MAE or its affiliates, are attempting to
dispose  of  mortgages.  As a result  of  market  conditions  that  could  limit
dispositions, CMSLP and its affiliates could be faced with conflicts of interest
in determining  which mortgages would be disposed of. Both CMSLP and the General
Partner,  however,  are  subject to their  fiduciary  duties in  evaluating  the
appropriate action to be taken when faced with such conflicts.


ITEM 2.         PROPERTIES

     Although the  Partnership  does not own the  underlying  real  estate,  the
mortgages  underlying the  Partnership's  mortgage  investments are non-recourse
first liens on the respective multifamily residential developments.


ITEM 3.         LEGAL PROCEEDINGS

     There are no  material  legal  proceedings  to which the  Partnership  is a
party.


ITEM 4.         SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     No matters were submitted to the security holders to be voted on during the
fourth quarter of 1999.
<PAGE>
                                     PART II

ITEM 5.   MARKET FOR REGISTRANT'S SECURITIES AND RELATED SECURITY HOLDER MATTERS

Principal Market and Market Price for Units and Distributions
-------------------------------------------------------------
     The Units are traded on the American Stock Exchange ("AMEX") with a trading
symbol of "AIA". The high and low trade prices for the Units as reported on AMEX
and the distributions, as applicable, for each quarterly period in 1999 and 1998
were as follows:

<TABLE>
<CAPTION>                                                                                     Amount of
                                                                1999                         Distribution
    Quarter Ended                                      High              Low                   Per Unit
   --------------                                    --------          -------               ------------
   <S>                                               <C>               <C>                   <C>
   March 31                                          $ 2 7/8           $ 2 1/2               $   0.17 (1)
   June 30                                             2 3/4             2 3/8                   0.05
   September 30                                        2 9/16            2 3/8                   0.05
   December 31                                         2 5/8             2 3/8                   0.09 (2)
                                                                                             --------
                                                                                             $   0.36
                                                                                             ========


                                                                                              Amount of
                                                                1998                         Distribution
     Quarter Ended                                     High              Low                   Per Unit
   ---------------------                             ---------         --------              ------------
   <S>                                               <C>               <C>                   <C>
   March 31                                          $ 3 1/2           $ 3 1/4               $   0.07
   June 30                                             3 1/2             3 1/4                   0.07
   September 30                                        3 11/16           3 5/16                  1.06 (3)
   December 31                                         3 15/16           2 5/8                   0.09
                                                                                             --------
                                                                                             $   1.29
                                                                                             ========
</TABLE>

(1)  This amount  includes  approximately  $0.12 per Unit due to  redemption  of
     debentures  received from the assignment of the mortgage on Portervillage I
     Apartments.  This amount was received from an affiliate of the Partnership,
     AIM  85.  The  debenture  was  issued  to AIM 85,  since  the  mortgage  on
     Portervillage  I Apartments was owned 50% by the Partnership and 50% by AIM
     85.

(2)  This amount includes approximately $0.04 per Unit representing net proceeds
     from the prepayment of the mortgage on Lakeside Apartments.

(3)  This amount includes approximately $0.99 per Unit representing net proceeds
     from the prepayment of the mortgage on Water's Edge Apartments.

     There are no material legal restrictions upon the Partnership's  present or
future ability to make  distributions  in accordance  with the provisions of the
partnership agreement.


                                               Approximate Number of Unitholders
       Title of Class                                as of December 31, 1999
---------------------------                          -----------------------
Depositary Units of Limited
   Partnership Interest                                        7,600

<PAGE>

ITEM 6.  SELECTED FINANCIAL DATA
         (Dollars in thousands, except per Unit amounts)

<TABLE>
<CAPTION>                                                    For the years ended December 31,
                                              1999          1998         1997         1996         1995
                                            --------      -------      -------      --------    -------
<S>                                         <C>           <C>          <C>          <C>         <C>
Income                                      $ 2,354       $ 3,191      $ 3,415      $ 3,445     $ 3,626

Net gains (losses) from
 mortgage dispositions                           67         1,290           --         (146)         --

Net earnings                                  1,925         3,978        2,879        2,758       3,041

Net earnings per Limited
  Partnership Unit - Basic (1)              $   0.19      $  0.39      $  0.28      $   0.27     $  0.30

Distributions per Limited
  Partnership Unit (1)(2)                   $   0.36      $  1.29      $  0.29      $   0.30     $  0.32



                                                                   As of December 31,
                                              1999         1998          1997          1996         1995
                                            --------     --------      --------      --------     --------
<S>                                         <C>          <C>           <C>           <C>          <C>
Total assets                                $ 26,416     $ 28,735      $ 38,551      $ 38,385     $ 39,415

Partners' equity                              25,422       27,750        37,661        37,590       38,493

(1)  Calculated  based upon the weighted  average number of Limited  Partnership
     Units outstanding.
(2)  Includes  distributions  due the Unitholders for the  Partnership's  fiscal
     years ended  December 31, 1999,  1998,  1997,  1996, and 1995 which were
     paid  subsequent  to each  year  end.  See  Notes 7 and 8 of the  Notes  to
     Financial Statements.
</TABLE>

     The selected  income data presented  above for the years ended December 31,
1999, 1998 and 1997 and the balance sheet data as of December 31, 1999 and 1998,
are derived from and are qualified by reference to the  Partnership's  financial
statements  which have been included  elsewhere in this Form 10-K.  The selected
income data for the years ended December 31, 1996 and 1995 and the balance sheet
data as of December 31, 1997,  1996 and 1995 are derived from audited  financial
statements  not  included  in  this  Form  10-K.  This  data  should  be read in
conjunction with the Financial Statements and the Notes thereto.

<PAGE>
                                     PART II

ITEM 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
           AND RESULTS OF OPERATIONS

General
-------
     The  following  discussion  and analysis  contains  statements  that may be
considered  forward  looking.  These  statements  contain  a number of risks and
uncertainties  as  discussed  herein  and in Item 1 of this Form 10-K that could
cause actual results to differ materially.

     The American  Insured  Mortgage  Investors (the  "Partnership")  was formed
under the Uniform Limited Partnership Act in the State of California on July 12,
1983.  During the period  from March 1, 1984 (the  initial  closing  date of the
Partnership's  public  offering)  through  December 31, 1984,  the  Partnership,
pursuant  to its  public  offering  of  10,000,000  depositary  units of limited
partnership  interest  ("Units"),  raised  a  total  of  $200,000,000  in  gross
proceeds.  In addition,  the initial limited partner  contributed  $2,500 to the
capital  of the  Partnership  and  received  125  Units of  limited  partnership
interest in exchange therefor.

     CRIIMI,  Inc. (the "General Partner") holds a partnership  interest of 2.9%
and is a wholly  owned  subsidiary  of  CRIIMI  MAE  Inc.  ("CRIIMI  MAE").  AIM
Acquisition  Partners,  L.P.  (the  "Advisor")  serves  as  the  advisor  to the
Partnership pursuant to an advisory agreement (the "Advisory Agreement").

     The general  partner of the Advisor is AIM  Acquisition  Corporation  ("AIM
Acquisition")  and the  limited  partners  include,  but are not limited to, AIM
Acquisition,  The Goldman  Sachs  Group,  L.P.,  Sun America  Investments,  Inc.
(successor to Broad, Inc.) and CRI/AIM Investment,  L.P., an affiliate of CRIIMI
MAE. AIM  Acquisition is a Delaware  corporation  that is primarily owned by Sun
America Investments, Inc. and The Goldman Sachs Group, L.P.

     Under the  Advisory  Agreement,  the Advisor  will  render  services to the
Partnership,  including but not limited to, the management of the  Partnership's
portfolio of mortgages and the disposition of the Partnership's mortgages.  Such
services  will be subject to the review and  ultimate  authority  of the General
Partner.  However, the General Partner is required to receive the consent of the
Advisor prior to taking certain significant  actions,  including but not limited
to the  disposition of mortgages,  any transaction or agreement with the General
Partner,  or its  affiliates,  or any material  change as to policies  regarding
distributions  or  reserves of the  Partnership.  The  Advisor is  permitted  to
delegate the performance of services  pursuant to a sub-advisory  agreement (the
"Sub-Advisory Agreement").  The delegation of such services will not relieve the
Advisor of its obligation to perform such services.  CRIIMI MAE Services Limited
Partnership  ("CMSLP"),  an affiliate of CRIIMI MAE,  manages the  Partnership's
portfolio,  pursuant to the Sub-Advisory Agreement. The general partner of CMSLP
is CRIIMI MAE Services, Inc., an affiliate of CRIIMI MAE.


Year 2000
---------
     During the transition from 1999 to 2000, the Partnership did not experience
any significant problems or errors in its information  technology ("IT") systems
or date-sensitive  embedded  technology that controls certain systems.  Based on
operations   since  January  1,  2000,  the  Partnership  does  not  expect  any
significant  impact to its  business,  operations,  or financial  condition as a
result of the Year 2000 issue.  However,  it is possible that the full impact of
the date change has not been fully  recognized.  The Partnership is not aware of
any  significant  Year 2000  problems  affecting  third  parties  with which the
Partnership interfaces directly or indirectly.

Mortgage Investments
--------------------
     Prior  to  the  expiration  of the  Partnership's  reinvestment  period  in
November  1988,  the  Partnership  was engaged in the  business  of  originating
mortgage loans  ("Originated  Insured  Mortgages") and acquiring  mortgage loans
("Acquired  Insured  Mortgages" and, together with Originated Insured Mortgages,
referred to herein as "Insured Mortgages").  In accordance with the terms of the
partnership  agreement,  the Partnership is no longer authorized to originate or
acquire Insured Mortgages and, consequently,  its primary objective is to manage
its  portfolio of mortgage  investments,  all of which are insured under Section
221(d)(4)  or Section 231 of the National  Housing Act of 1937,  as amended (the
"National Housing Act"). The Partnership is a liquidating  partnership and as it
continues  to  liquidate  its  mortgage   investments   and  investors   receive
distributions of return of capital and taxable gains,  investors should expect a
reduction in earnings and distributions due to the decreasing mortgage base. The
partnership agreement states that the Partnership will terminate on December 31,
2008,  unless  previously  terminated  under the  provisions of the  Partnership
Agreement.

     As of  December  31,  1999,  the  Partnership  had  invested  in 12 Insured
Mortgages, with an aggregate amortized cost of approximately $23 million, a face
value  of  approximately  $28  million  and a fair  value of  approximately  $27
million, as discussed below.

Investment in Insured Mortgages
-------------------------------
     The Partnership's  investment in Insured Mortgages  consists of FHA-insured
mortgage loans ("FHA-Insured Loans") and participation certificates evidencing a
100% undivided  beneficial interest in government insured multifamily  mortgages
issued or sold  pursuant  to Federal  Housing  Administration  ("FHA")  programs
("FHA-Insured   Certificates").   The  mortgages   underlying  the   FHA-Insured
Certificates and FHA-Insured  Loans are non-recourse  first liens on multifamily
residential developments.

     The  following is a discussion of the types of the  Partnership's  mortgage
investments, along with the risks related to each type of investment:

Investment in FHA-Insured Loans
-------------------------------
     Listed below is the Partnership's aggregate investment in FHA-Insured Loans
as of December 31, 1999 and 1998:

<TABLE>
<CAPTION>                                                                   December 31,
                                                                   1999                     1998
                                                               ------------             ------------
<S>                                                            <C>                      <C>
Number of
  Acquired Insured Mortgages                                              3                        3
  Originated Insured Mortgage                                             1                        1
Amortized Cost                                                 $ 12,751,028             $ 12,891,015
Face Value                                                       14,941,299               15,170,295
Fair Value                                                       14,215,731               15,238,597

</TABLE>

     All of the  FHA-Insured  Loans were  current with respect to the payment of
principal and interest as of February 25, 2000.

     In addition to base  interest  payments  received from  Originated  Insured
Mortgages,  the  Partnership  is  entitled  to  additional  interest  based on a
percentage of the net cash flow from the underlying  development  and of the net
proceeds  from the  refinancing,  sale or other  disposition  of the  underlying
development (referred to as  "Participations").  During the years ended December
31, 1999,  1998 and 1997,  the  Partnership  received  $0,  $52,526 and $61,988,
respectively,  from the  Participations.  These amounts, if any, are included in
mortgage  investment  income  on  the  accompanying  statements  of  income  and
comprehensive income.

Investment in FHA-Insured Certificates
--------------------------------------
     Listed  below is the  Partnership's  aggregate  investment  in  FHA-Insured
Certificates as of December 31, 1999 and 1998:

<TABLE><CAPTION>
                                                                            December 31,
                                                                   1999                     1998
                                                               ------------             ------------
<S>                                                            <C>                      <C>
Number of mortgages (1)                                                   8                        9
Amortized Cost                                                 $ 10,655,445             $ 11,099,580
Face Value                                                       12,835,126               13,440,088
Fair Value                                                       12,468,348               13,458,100
</TABLE>

(1)  In November  1999,  the mortgage on Lakeside  Apartments  was prepaid.  The
     Partnership received net proceeds of approximately $384,000, and recognized
     a gain of  approximately  $67,000 for the year ended  December  31, 1999. A
     distribution  of $0.04 per Unit related to this  prepayment was declared in
     December 1999 and paid to Unitholders in February 2000.

     All of the  FHA-Insured  Certificates  were  current  with  respect  to the
payment of principal and interest as of February 25, 2000.

Results of Operations
---------------------
1999 versus 1998
----------------
     Net  earnings  decreased  for 1999 as compared to 1998  primarily  due to a
reduction  in  mortgage  investment  income and a decrease  in gains on mortgage
dispositions, as discussed below.

     Mortgage  investment income decreased for 1999 as compared 1998,  primarily
due to the  disposition of the mortgages on  Portervillage I Apartments in March
1998,  Waters Edge  Apartments  in  September  1998 and Lakeside  Apartments  in
November 1999.

     Interest and other income decreased for 1999 as compared to 1998, primarily
due to the timing of temporary investment of mortgage disposition proceeds prior
to distributions.

     Asset  management  fees to related  parties  decreased for 1999 as compared
1998, due to the reduction in the mortgage base.

     General and  administrative  expenses  increased for 1999 as compared 1998,
primarily  due to increased  temporary  employment  costs and an increase in the
cost structure of certain expenses.

     Gains on mortgage  dispositions  decreased  for 1999 as compared  1998.  In
1999, a gain of approximately  $67,000 was recognized from the prepayment of the
mortgage on Lakeside  Apartments.  In 1998, a gain of approximately $1.1 million
was recognized  from the  prepayment of the mortgage on Waters Edge  Apartments.
Also  in  1998,  a gain  of  approximately  $200,000  was  recognized  from  the
assignment  of the  mortgage  on  Portervillage  I  Apartments.  The  assignment
proceeds  were issued in the form of a 9.5%  debenture.  This mortgage was owned
50% by the  Partnership  and 50% by an  affiliate of the  Partnership,  American
Insured Mortgage  Investors - Series 85, L.P. ("AIM 85"). The debenture,  with a
face value of $2,296,098, was issued to AIM 85 and earned interest semi-annually
on January 1 and July 1. In January 1999, the debenture was redeemed and the net
proceeds of  approximately  $1.1 million were  received and  distributed  by the
Partnership.

1998 versus 1997
----------------
     Net earnings  increased  for 1998 as compared to 1997  primarily  due to an
increase in gains on mortgage dispositions.  In 1998, gains were realized on the
prepayment of the mortgage on Waters Edge  Apartments  and the assignment of the
mortgage on  Portervillage I Apartments,  as discussed  above. No mortgages were
disposed of during 1997.

     The increase in net earnings was partially offset by a decrease in mortgage
investment  income,  caused by the reduction in the mortgage  base, as discussed
previously.

Liquidity and Capital Resources
-------------------------------

     On October 5, 1998,  CRIIMI  MAE,  the parent of the General  Partner,  and
CRIIMI  MAE  Management,  Inc.,  an  affiliate  of CRIIMI  MAE and  provider  of
personnel  and  administrative  services  to the  Partnership,  filed  voluntary
petitions for relief under chapter 11 of title 11 of the United States Code (the
"Bankruptcy  Code").  Such  bankruptcy  filings could result in certain  adverse
effects to the Partnership.  For example, as a debtor-in-possession,  CRIIMI MAE
will not be permitted to provide any available capital to the General Partner or
to the general partner of CMSLP, the Partnership's sub-advisor, without approval
from the bankruptcy court. Even though this restriction or potential loss of the
availability of a potential  capital resource could adversely affect the General
Partner  and the  Partnership,  CRIIMI MAE has not  historically  represented  a
significant  source of capital for the General Partner or the Partnership.  Such
bankruptcy filings could also result in the potential need to replace CRIIMI MAE
Management,  Inc. as a provider of personnel and administrative  services to the
Partnership.  Furthermore,  the bankruptcy filings could negatively impact CMSLP
which could result in the need to obtain  another  party to perform the services
currently  performed  by CMSLP,  as  subadvisor,  pursuant  to the  Sub-Advisory
Agreement.

     On December  23, 1999,  CRIIMI MAE and CRIIMI MAE  Management,  Inc.  filed
their Amended Joint Plan of  Reorganization  and proposed  disclosure  statement
with the  United  States  Bankruptcy  Court for the  District  of  Maryland,  in
Greenbelt,  Maryland (the "Bankruptcy  Court"). The filing of such Amended Joint
Plan of Reorganization  and proposed  disclosure  statement on December 23, 1999
was filed with the full  support of the official  committee  of Equity  Security
Holders in the  CRIIMI MAE  Chapter  11 case,  which is a  co-proponent  of such
Amended  Joint  Plan of  Reorganization.  On or about  February  11,  2000,  the
Official  Committee  of  Unsecured  Creditors of CRIIMI MAE filed its own second
amended plan of reorganization and second amended proposed disclosure statement,
which,  in general,  provides for the liquidation of the assets of CRIIMI MAE. A
hearing  has been  scheduled  for April 25 and April  26,  2000 on the  proposed
disclosure statements filed with the Bankruptcy Court. There can be no assurance
at this time that CRIIMI  MAE's  Amended  Joint Plan of  Reorganization  will be
confirmed and consummated.

     The  Partnership's   operating  cash  receipts, derived  from  payments  of
principal and interest on Insured Mortgages  plus cash receipts from interest on
short-term  investments,  are the Partnership's principal sources of cash flows,
and were sufficient for the years ended December 31, 1999, 1998 and 1997 to meet
operating  requirements.  The  Partnership  anticipates  its  cash  flows  to be
sufficient to meet operating expense requirements for 2000.

     The basis for paying  distributions  to  Unitholders  is net proceeds  from
mortgage  dispositions,  if any, and cash flow from  operations,  which includes
regular  interest  income and principal from Insured  Mortgages after paying all
expenses of the Partnership.  Although  Insured  Mortgages yield a fixed monthly
mortgage payment once purchased,  the cash distributions paid to the Unitholders
will vary during each period due to (1) the fluctuating yields in the short-term
money  market  where the  monthly  mortgage  payment  receipts  are  temporarily
invested prior to the payment of quarterly  distributions,  (2) the reduction in
the asset base resulting  from monthly  mortgage  payments  received or mortgage
dispositions, (3) variations in the cash flow attributable to the delinquency or
default  of  Insured  Mortgages  and  professional  fees and  foreclosure  costs
incurred in connection  with those Insured  Mortgages and (4)  variations in the
Partnership's operating expenses.

     Since the  Partnership  is obligated to distribute the Proceeds of Mortgage
Prepayments,  Sales and  Insurance  of  Insured  Mortgages  (as  defined  in the
partnership  agreement)  to its  Unitholders,  the  size  of  the  Partnership's
portfolio  will continue to decrease.  The magnitude of the decrease will depend
upon the size of the Insured Mortgages,  which are prepaid, sold or assigned for
insurance proceeds.

Cash Flow - 1999 versus 1998
----------------------------
     Net cash provided by operating activities decreased for 1999 as compared to
1998 primarily due to a reduction in mortgage investment income.

     Net cash provided by investing activities decreased for 1999 as compared to
1999, due to the decrease in proceeds from mortgage dispositions.

     Net cash used in  financing  activities  decreased  for 1999 as compared to
1998  due to a  decrease  in  distributions  paid to  partners  as a  result  of
decreases discussed above.

Cash Flow - 1998 versus 1997
----------------------------
     Net cash provided by operating activities decreased for 1998 as compared to
1997  primarily  due  to  an  increase  in  due  from  affiliate,  as  discussed
previously,  and a reduction  in net  earnings  (excluding  gains from  mortgage
dispositions) in 1998.

     Net cash provided by investing activities increased for 1998 as compared to
1997  due to  proceeds  received  from  the  prepayment  and  assignment  of two
mortgages in 1998.

     Net cash used in  financing  activities  increased  for 1998 as compared to
1997 primarily due to larger distributions to Unitholders in 1998 related to the
prepayment of one mortgage.


ITEM 7A. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

     The Partnership's  principal market risk is exposure to changes in interest
rates in the U.S.  Treasury  market,  which  coupled with the related  spread to
treasury investors required for the Partnership's Insured Mortgages,  will cause
fluctuations in the market value of the Partnership's assets.

     The  table  below  provides  information  about the  Partnership's  Insured
Mortgages,  all of which were entered into for purposes other than trading.  The
table  presents  anticipated  principal  and interest  cash flows based upon the
assumptions  used in  determining  the fair  value of these  securities  and the
related weighted average interest rates by expected maturity.

<TABLE>
<CAPTION>
                                                                                                  Fair
                    2000       2001       2002       2003       2004     Thereafter   Total       Value
                  -------    -------    -------    -------    -------    ----------  -------     -------
<S>               <C>        <C>        <C>        <C>        <C>        <C>         <C>         <C>
Insured Mortgages
(in millions)     $  3.7     $  3.6     $  3.6     $  3.4     $  3.9     $  24.9     $  43.1     $  26.7

Average Interest     7.48%      7.48%      7.48%      7.49%      7.49%       7.53%        --          --
Rate
</TABLE>


ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The information required by this Item is set forth in this Annual Report on
Form 10-K commencing on page 17.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
            FINANCIAL DISCLOSURE

         None.


                                    PART III

ITEM 10.   DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

(a), (b), (c) and (e)

     The Partnership has no officers or directors.  CRIIMI, Inc. holds a general
partnership  interest of 2.9%. The affairs of the Partnership are managed by the
General Partner, which is wholly owned by CRIIMI MAE, a corporation whose shares
are listed on the New York Stock Exchange.

     The  general  partner of the  Advisor is AIM  Acquisition  and the  limited
partners  include,  but are not limited to, AIM  Acquisition,  The Goldman Sachs
Group,  L.P., Sun America  Investments,  Inc. and CRI/AIM  Investment,  L.P., an
affiliate  of CRIIMI  MAE.  Pursuant to the terms of certain  amendments  to the
partnership agreement, the General Partner is required to receive the consent of
the Advisor  prior to taking  certain  significant  actions,  including  but not
limited to the  disposition of mortgages,  any transaction or agreement with the
General  Partner,  or its  affiliates,  or any  material  change as to  policies
regarding  distributions or reserves of the Partnership.  CMSLP, an affiliate of
CRIIMI MAE, manages the  Partnership's  portfolio,  pursuant to the Sub-Advisory
Agreement.  The  general  partner  of CMSLP is CRIIMI  MAE  Services,  Inc.,  an
affiliate of CRIIMI MAE.


     The General  Partner is also the general  partner of AIM 85, AIM 86 and AIM
88, limited  partnerships  with  investment  objectives  similar to those of the
Partnership.

     The  following  table  sets  forth  information  concerning  the  executive
officers  and  directors  of  CRIIMI MAE,  the sole  shareholder  of the General
Partner as of March 15, 2000:

Name                                      Age                    Position
----                                      ---                    --------

William B. Dockser                        63           Chairman of the Board

H. William Willoughby                     53           President, Secretary
                                                         and Director

Cynthia O. Azzara                         40           Senior Vice President,
                                                         Chief Financial Officer
                                                         and Treasurer

David B. Iannarone                        39           Senior Vice President and
                                                         General Counsel

Brian L. Hanson                           38           Senior Vice President

Garrett G. Carlson, Sr.                   62           Director

G. Richard Dunnells                       62           Director

Robert Merrick                            54           Director

Robert E. Woods                           52           Director


     William B.  Dockser  has  served as  Chairman  of the Board of the  General
Partner  since 1991.  Mr.  Dockser has been  Chairman of the Board of CRIIMI MAE
since 1989 and Chairman of the Board of CRIIMI MAE Financial  Corporation  since
1995. Mr. Dockser is also the founder of C.R.I.,  Inc.  ("CRI"),  serving as its
Chairman of the Board since 1974.

     H. William  Willoughby has served as President and Secretary of the General
Partner since 1991.  Mr.  Willoughby has been President of CRIIMI MAE since 1990
and a Director and  Secretary of CRIIMI MAE since 1989.  He has also served as a
director of CRIIMI MAE Financial Corporation since 1995. Mr. Willoughby has been
a director of CRI since 1974,  Secretary of CRI from 1974 to 1990 and  President
of CRI since 1990.

     Cynthia  O.  Azzara has served as Chief  Financial  Officer of the  General
Partner since 1994. Ms. Azzara has served as Chief  Financial  Officer of CRIIMI
MAE since 1994. She has also served as Senior Vice President of CRIIMI MAE since
1995 and Treasurer of CRIIMI MAE since 1997,  Accounting and Finance Departments
of CRI from 1985 to June 1995.

     David B.  Iannarone  has served as Senior  Vice  President  of the  General
Partner since March 1998.  Mr.  Iannarone has served as Senior Vice President of
CRIIMI  MAE since  March  1998;  General  Counsel of CRIIMI MAE since July 1996;
Counsel-Securities     and    Finance    for    Federal    Deposit     Insurance
Corporation/Resolution Trust Corporation from 1991 to July 1996.

     Brian L. Hanson has served as Senior Vice President of the General  Partner
since March 1998.  Mr. Hanson has served as Senior Vice  President of CRIIMI MAE
since March 1998;  Group Vice  President  of CRIIMI MAE from March 1996 to March
1998;  Chief  Operating  Officer,  Director of Asset  Operations  and  Portfolio
Director of JCF Partners, Lanham, Maryland from 1991 to March 1996.

     Garrett G. Carlson, Sr. has served as Director of the General Partner since
1989. Mr. Carlson has served as Director of CRIIMI MAE since 1989;  President of
Can-American  Realty Corp.  and Canadian  Financial  Corp.  since 1979 and 1974,
respectively; President of Garrett Real Estate Development since 1982; President
of the Satellite  Broadcasting  Corporation since 1996; Chairman of the Board of
SCA Realty Holdings Inc. from 1985 to 1995; Vice Chairman of Shelter Development
Corporation  Ltd. from 1983 to 1995 and member of the board of Bank Windsor from
1992 to 1994.

     G.  Richard  Dunnells has served as Director of the General  Partner  since
1991.  Mr.  Dunnells has served as Director of CRIIMI MAE since 1991;  Firm-wide
Hiring  Partner of the law firm of Holland & Knight since 1995;  Chairman of the
Washington, D.C. law firm of Dunnells & Duvall from 1989 to 1993; Senior Partner
of such law firm from 1973 to 1993; Special Assistant to the Under-Secretary and
Deputy  Assistant  Secretary for Housing and Urban Renewal and Deputy  Assistant
Secretary for Housing  Management with the U.S.  Department of Housing and Urban
Development  from 1969 to 1973;  President's  Commission on Housing from 1981 to
1982.

     Robert J. Merrick has served as Director of the General Partner since 1997.
Mr.  Merrick  has served as  Director  of CRIIMI MAE since  1997,  Chief  Credit
Officer and Director of MCG Credit  Corporation  since February 1998;  Executive
Vice President from 1985 and Chief Credit Officer of Signet Banking  Corporation
through 1997, also served as Chairman of the Credit Policy  Committee and member
of  the  Asset  and  Liability  Committee  and  Management   Committee;   Credit
Officer-Virginia Banking Corporation, an affiliate of Signet Bank/Virginia, from
1980 to 1984; Senior Vice President of Bank of Virginia from 1976 to 1980.

     Robert E. Woods has served as Director of the General  Partner  since 1998.
Mr. Woods has served as Director of CRIIMI MAE since 1998; Managing Director and
head of loan syndications for the Americas at Societe  Generale,  New York since
1997; Managing Director, head of Real Estate Capital Markets and Mortgage-backed
Securities   division,   Citicorp   from  1991  to  1997,   Head  of  Citicorp's
syndications, private placements, money markets and asset-backed businesses from
1985 to 1990.


          (d)  There is no family  relationship  between any of the officers and
               directors of the General Partner.

          (f)  Involvement in certain legal proceedings.

               None.

          (g)  Promoters and control persons.

               Not applicable.

          (h)  Section 16 (a) Beneficial  Ownership Reporting  Compliance -Based
               solely  on its  review  of Forms 3 and 4 and  amendments  thereto
               furnished to the Partnership,  and written  representations  from
               certain  reporting  persons  that no Form 5's were  required  for
               those  persons,  the  Partnership  believes  that  all  reporting
               persons  have  filed  on a  timely  basis  Forms  3, 4,  and 5 as
               required in the fiscal year ended December 31, 1999.


ITEM 11. EXECUTIVE COMPENSATION

     The  Partnership  does not  have any  directors  or  officers.  None of the
directors  or officers  of the General  Partner  receive  compensation  from the
Partnership,  and the General  Partner does not receive  reimbursement  from the
Partnership for any portion of their  salaries.  Other  information  required by
Item 11 is hereby  incorporated  by  reference  herein to Note 7 of the Notes to
Financial Statements of the Partnership.


ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

(a)  The following table sets forth certain information regarding the beneficial
     ownership of Units as of February  17,  2000,  by holders of more than five
     percent (5%) of the Partnership's Units.

<TABLE>
<CAPTION>
                                                                  Number of            Percent of
                  Name                       Address                Units                Class
                 ------                     ---------             ---------           ------------
     <S>                             <C>                           <C>                   <C>
     Financial and Investment        417 St. Joseph Street
     Management Group, Ltd.          P.O. Box 40                   917,967               9.18%
                                     Suttins Bay, MI 49682
</TABLE>

(b)  The following table sets forth certain information regarding the beneficial
     ownership  of the  Partnership's  Units  as of  February  17,  2000 by each
     director  of the  General  Partner,  each  named  executive  officer of the
     General  Partner,  and by affiliates of the  Partnership.  Unless otherwise
     indicated,  each  Unitholder  has sole  voting  and  investment  power with
     respect to the Units beneficially owned.

                             Amount and Nature
                                 of Units                    Percentage of Units
Name                        Beneficially Owned                   Outstanding
----                        ------------------               -------------------
William B. Dockser                5,000                               *
CRIIMI MAE                       12,045                               *

*    Less than 1%

(c)  There are no arrangements known to the Partnership,  the operation of which
     may  at  any  subsequent  date  result  in  a  change  in  control  of  the
     Partnership.


ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

(a)  Transactions with management and others.

     Note 7 of the Notes to Financial  Statements of the Partnership  contains a
     discussion of the amounts,  fees and other  compensation paid or accrued by
     the  Partnership  to the directors  and  executive  officers of the General
     Partner  and their  affiliates,  and is hereby  incorporated  by  reference
     herein.

(b)  Certain business relationships.

     Other  than  as set  forth  in  Item  11 of this  report  which  is  hereby
     incorporated  by  reference   herein,   the  Partnership  has  no  business
     relationship  with entities of which the General Partner of the Partnership
     are officers, directors or equity owners.

(c)  Indebtedness of management.

     None.

(d)  Transactions with promoters.

     Not applicable.

                                     PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

         (a)(1)   Financial Statements:
                                                                           Page
Description                                                               Number
-----------                                                               ------
Balance Sheets as of December 31, 1999 and 1998.............................19

Statements of Income and Comprehensive Income for the years
     ended December 31, 1999, 1998 and 1997.................................20

Statements of Changes in Partners' Equity for the years
     ended December 31, 1999, 1998 and 1997.................................21

Statements of Cash Flows for the years ended December 31, 1999,
     1998 and 1997..........................................................22

Notes to Financial Statements...............................................23

         (a)(2)   Financial Statement Schedules:

         IV - Mortgage Loans on Real Estate.................................29

          All other schedules have been omitted  because they are  inapplicable,
          not  required,  or  the  information  is  included  in  the  Financial
          Statements or Notes thereto.

         (a)(3)   Exhibits:

          4.0  Amended and  Restated  Certificates  of Limited  Partnership  are
               incorporated  by reference  to Exhibit  4(a) to the  Registration
               Statement  on Form S-11 (No.  33-6747)  dated June 25, 1986 (such
               Registration  Statement, as amended, is referred to herein as the
               "Registration Statement").

          4.1  Agreement of Limited  Partnership,  incorporated  by reference to
               Exhibit 3 to the Registration Statement.

          4.2  Form of Depository Receipt,  incorporated by reference to Exhibit
               4(b) to the Registration Statement.

          4.3  Amendment  to the  Amended  and  Restated  Agreement  of  Limited
               Partnership   of  the   Partnership   dated  February  12,  1990,
               incorporated  by reference  to Exhibit 4(c) to the  Partnership's
               Annual Report on Form 10-K for the year ended December 31, 1989.

          4.4  Amendments  to  Partnership  Agreement  dated  August  16,  1991,
               incorporated  by reference to Exhibit 28(c) to the  Partnership's
               Annual Report on Form 10-K for the year ended December 31, 1991.

         10.0  Origination and Acquisition  Services Agreement,  dated September
               1,  1983,  between  the  Partnership  and  IFI,  incorporated  by
               reference to Exhibit 10(b) to the registration  statement on Form
               S-11 (No.  2-85476)  dated  November 30, 1983 (such  registration
               statement,  as amended,  is  referred  to herein as the  "Initial
               Registration Statement").

         10.1  Management Services  Agreement,  dated November 30, 1983, between
               the  Partnership  and IFI,  incorporated  by reference to Exhibit
               10(c) to the Initial Registration Statement.

         10.2  Disposition Services Agreement,  dated November 30, 1983, between
               the  Partnership  and IFI,  incorporated  by reference to Exhibit
               10(d) to the Initial Registration Statement.

         10.3  Agreement,  dated  November 30, 1983,  among the former  managing
               general  partner,   the  former  associate  general  partner  and
               Integrated,  incorporated  by reference  to Exhibit  10(e) to the
               Initial Registration Statement.

         10.4  Reinvestment  Plan,  incorporated  by reference to the Prospectus
               contained in the Registration Statement.

         10.5  Mortgage Note dated March 26, 1986 between Mastic  Associates and
               IFI,   incorporated   by  reference  to  Exhibit   10(l)  to  the
               Partnership's  Annual  Report  on Form  10-K for the  year  ended
               December 31, 1986.

         10.6  Mortgage dated March 26, 1986 between Mastic  Associates and IFI,
               incorporated  by reference to Exhibit 10(m) to the  Partnership's
               Annual Report on Form 10-K for the year ended December 31, 1986.

         10.7  Mortgagor/Mortgagee Agreement dated March 26, 1986 between Mastic
               Associates and IFI, incorporated by reference to Exhibit 10(n) to
               the  Partnership's  Annual Report on Form 10-K for the year ended
               December 31, 1986.

         10.8  Lease  Agreement  dated as of December  10, 1984 between NHP Land
               Associates,   as  Landlord  and  Mastic  Associates,  as  Tenant,
               incorporated  by reference to Exhibit 10(o) to the  Partnership's
               Annual Report on Form 10-K for the year ended December 31, 1986.

         10.9  Purchase  Agreement  among AIM  Acquisition,  the former managing
               general partner,  the former corporate  general partner,  IFI and
               Integrated  dated as of December 1, 1990,  as amended  January 9,
               1991,   incorporated   by  reference  to  Exhibit  28(a)  to  the
               Partnership's  Annual  Report  on Form  10-K for the  year  ended
               December 31, 1990.

         10.10 Purchase  Agreement  among CRIIMI,  Inc.,  AIM  Acquisition,  the
               former managing  general partner,  the former  corporate  general
               partner,  IFI and  Integrated  dated as of December  13, 1990 and
               executed as of  September 6, 1991,  incorporated  by reference to
               Exhibit 28(b) to the Partnership's Annual Report on Form 10-K for
               the year ended December 31, 1990.

         10.11 Sub-Management  Agreement  by and  between  AIM  Acquisition  and
               CRI/AIM Management,  Inc. dated as of March 1, 1991, incorporated
               by reference to Exhibit 28(d) to the Partnership's  Annual Report
               on Form 10-K for the year ended December 31, 1992.

      27.  Financial Data Schedule (filed herewith).

          (b)  Reports on Form 8-K filed  during the last  quarter of the fiscal
               year: None


           All other items are not applicable.


                                     PART IV
                                   SIGNATURES

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934, Registrant has duly caused this Report to be signed on its
behalf by the undersigned,  thereunto duly authorized.

                                                     AMERICAN INSURED MORTGAGE
                                                     INVESTORS (Registrant)

                                                     By:    CRIIMI, Inc.
                                                            General Partner

/s/ March 1, 2000                                    /s/ William B. Dockser
---------------------------                          ---------------------------
DATE                                                 William B. Dockser
                                                     Chairman of the Board


/s/ March 1, 2000                                    /s/ H. William Willoughby
---------------------------                          ---------------------------
DATE                                                 H. William Willoughby
                                                     President and Secretary


/s/ March 1, 2000                                    /s/ Cynthia O. Azzara
---------------------------                          ---------------------------
DATE                                                 Cynthia O. Azzara
                                                     Senior Vice President,
                                                     Chief Financial Officer and
                                                     Treasurer


/s/ March 1, 2000                                    /s/ Garrett G. Carlson, Sr.
---------------------------                          ---------------------------
DATE                                                 Garrett G. Carlson, Sr.
                                                     Director


/s/ March 1, 2000                                    /s/ G. Richard Dunnells
---------------------------                          ---------------------------
DATE                                                 G. Richard Dunnells
                                                     Director


/s/ March 1, 2000                                    /s/ Robert J. Merrick
---------------------------                          ---------------------------
DATE                                                 Robert J. Merrick
                                                     Director


/s/ March 1, 2000                                    /s/ Robert E. Woods
---------------------------                          ---------------------------
DATE                                                 Robert E. Woods
                                                     Director
<PAGE>












                       AMERICAN INSURED MORTGAGE INVESTORS



                              Financial Statements

                        as of December 31, 1999 and 1998

                             and for the Years Ended

                        December 31, 1999, 1998, and 1997






<PAGE>

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


To the Partners of American Insured Mortgage Investors:

     We have  audited  the  accompanying  balance  sheets  of  American  Insured
Mortgage Investors (the "Partnership") as of December 31, 1999 and 1998, and the
related  statements  of income and  comprehensive  income,  changes in partners'
equity and cash flows for the years  ended  December  31,  1999,  1998 and 1997.
These  financial   statements  and  the  schedule  referred  to  below  are  the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements and the schedule based on our audits.

     We conducted our audits in accordance  with  auditing  standards  generally
accepted in the United States.  Those standards require that we plan and perform
the audit to obtain reasonable  assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.  An
audit also includes  assessing the accounting  principles  used and  significant
estimates  made by  management,  as well as  evaluating  the  overall  financial
statement  presentation.  We believe that our audits provide a reasonable  basis
for our opinion.

     In our opinion,  the financial statements referred to above present fairly,
in all  material  respects,  the  financial  position of the  Partnership  as of
December 31, 1999 and 1998, and the results of its operations and its cash flows
for the years  ended  December  31,  1999,  1998 and 1997,  in  conformity  with
accounting principles generally accepted in the United States.

     Our  audits  were made for the  purpose  of forming an opinion on the basic
financial statements taken as a whole. Schedule IV-Mortgage Loans on Real Estate
as of  December  31,  1999 is  presented  for  purposes  of  complying  with the
Securities and Exchange Commission's rules and regulations and is not a required
part of the basic  financial  statements.  The  information in this schedule has
been  subjected  to the auditing  procedures  applied in our audits of the basic
financial  statements  and, in our  opinion,  is fairly  stated in all  material
respects in relation to the basic financial statements taken as a whole.



Arthur Andersen LLP
Vienna, VA
March 6, 2000
<PAGE>
                       AMERICAN INSURED MORTGAGE INVESTORS

                                 BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                  December 31,      December 31,
                                                                      1999              1998
                                                                  ------------      ------------
<S>                                                                <C>               <C>
                                     ASSETS

Investment in FHA-Insured Loans, at amortized cost,
  net of unamortized discount:
    Originated insured mortgages                                   $ 4,936,416       $ 4,994,145
    Acquired insured mortgages                                       7,814,612         7,896,870
                                                                   -----------       -----------
                                                                    12,751,028        12,891,015

Investment in FHA-Insured Certificates,
  at fair value                                                     12,468,348        13,458,100

Cash and cash equivalents                                              982,930           958,375

Receivables and other assets                                           213,468           279,302

Due from Affiliate                                                           -         1,148,049
                                                                  ------------      ------------

      Total assets                                                $ 26,415,774      $ 28,734,841
                                                                  ============      ============




                        LIABILITIES AND PARTNERS' EQUITY

Distributions payable                                                $ 926,891         $ 926,891

Accounts payable and accrued expenses                                   67,190            58,060
                                                                     ---------         ---------
      Total liabilities                                                994,081           984,951
                                                                     ---------         ---------
Partners' equity:
  Limited partners' equity, 10,000,125 Units authorized,
    issued and outstanding                                          28,865,520        30,596,406
  General partners' deficit                                         (5,256,730)       (5,205,036)
  Accumulated other comprehensive income                             1,812,903         2,358,520
                                                                  ------------      ------------
      Total Partner's equity                                        25,421,693        27,749,890
                                                                  ------------      ------------
      Total liabilities and partners' equity                      $ 26,415,774      $ 28,734,841
                                                                  ============      ============


</TABLE>

                   The accompanying notes are an integral part
                         of these financial statements.
<PAGE>

                       AMERICAN INSURED MORTGAGE INVESTORS

                  STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


<TABLE>
<CAPTION>
                                                            For the years ended December 31,
                                                         1999             1998             1997
                                                       -----------      -----------      -----------
<S>                                                    <C>              <C>              <C>
Income:
  Mortgage investment income                           $ 2,325,545      $ 2,987,164      $ 3,376,465
  Interest and other income                                 28,431          204,152           38,282
                                                       -----------      -----------      -----------
                                                         2,353,976        3,191,316        3,414,747
                                                       -----------      -----------      -----------

Expenses:
  Asset management fee to related parties                  240,997          319,794          343,092
  General and administrative                               255,145          183,621          192,218
                                                       -----------      -----------      -----------
                                                           496,142          503,415          535,310
                                                       -----------      ------------     -----------
Earnings before mortgage dispositions                    1,857,834        2,687,901        2,879,437

Gains on mortgage dispositions                              67,150        1,290,352                -
                                                       -----------      -----------      -----------
     Net earnings                                      $ 1,924,984      $ 3,978,253      $ 2,879,437
                                                       ===========      ===========      ===========
Other comprehensive income                                (545,617)        (603,504)         177,991
                                                       -----------      -----------      -----------
Comprehensive income                                   $ 1,379,367      $ 3,374,749      $ 3,057,428
                                                       -----------      -----------      -----------

Net earnings allocated to:
  Limited partners - 97.1%                             $ 1,869,159      $ 3,862,884      $ 2,795,933
  General Partner -   2.9%                                  55,825          115,369           83,504
                                                       -----------      -----------      -----------
                                                       $ 1,924,984      $ 3,978,253      $ 2,879,437
                                                       ===========      ===========      ===========


Net earnings per Limited Partnership Unit - Basic           $ 0.19           $ 0.39           $ 0.28
                                                            ======           ======           ======
</TABLE>


                   The accompanying notes are an integral part
                         of these financial statements.
<PAGE>

                       AMERICAN INSURED MORTGAGE INVESTORS

                    STATEMENTS OF CHANGES IN PARTNERS' EQUITY

             For the years ended December 31, 1999, 1998, and 1997

<TABLE>
<CAPTION>
                                                                                               Accumulated
                                                                                                  Other               Total
                                                           General            Limited         Comprehensive         Partners'
                                                           Partner            Partners            Income             Equity
                                                           -------            --------        -------------        ----------
<S>                                                    <C>                <C>                 <C>                <C>

Balance, January 1, 1997                               $ (4,932,018)      $ 39,737,785        $  2,784,033        $ 37,589,800

Net Earnings                                                 83,504          2,795,933                  -           2,879,437

  Adjustment to unrealized gains on
     investments in insured mortgages                             -                  -             177,991             177,991
  Distributions paid or accrued of $0.29 per Unit,
     including return of capital of $0.01 per Unit          (86,614)        (2,900,035)                 -           (2,986,649)
                                                       ------------       ------------        ------------        ------------
Balance, December 31, 1997                               (4,935,128)        39,633,683           2,962,024          37,660,579

Net Earnings                                                115,369          3,862,884                   -           3,978,253

  Adjustment to unrealized gains on
     investments in insured mortgages                             -                  -            (603,504)           (603,504)
  Distributions paid or accrued of $1.29 per Unit,
     including return of capital of $0.90 per Unit         (385,277)       (12,900,161)                  -         (13,285,438)
                                                       ------------       ------------        ------------        ------------
Balance, December 31, 1998                               (5,205,036)        30,596,406           2,358,520          27,749,890

Net Earnings                                                 55,825          1,869,159                  -            1,924,984

  Adjustment to unrealized gains on
     investments in insured mortgages                             -                  -            (545,617)           (545,617)
  Distributions paid or accrued of $0.36 per Unit,
     including return of capital of $0.17 per Unit         (107,519)        (3,600,045)                  -          (3,707,564)
                                                       ------------       ------------        ------------        ------------
Balance, December 31, 1999                             $ (5,256,730)      $ 28,865,520        $  1,812,903        $ 25,421,693
                                                       ============       ============        ============        ============



Limited Partnership Units outstanding - Basic, as of
    December 31, 1999, 1998, and 1997                                       10,000,125
                                                                            ==========
</TABLE>


                   The accompanying notes are an integral part
                         of these financial statements.
<PAGE>

                       AMERICAN INSURED MORTGAGE INVESTORS

                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                        For the years ended December 31,
                                                                                     1999            1998             1997
                                                                                 -----------     ------------     ------------
<S>                                                                              <C>             <C>              <C>
Cash flows from operating activities:
   Net earnings                                                                  $ 1,924,984     $ 3,978,253      $ 2,879,437
   Adjustments to reconcile net earnings to net cash provided by
    operating activities:
    Gains on mortgage dispositions                                                   (67,150)     (1,290,352)               -
    Changes in assets and liabilities:
      Decrease (increase) in receivables and other assets                             65,834         117,899          (36,561)
      Increase (decrease) in accounts payable and accrued expenses                     9,130          (8,422)          (7,991)
                                                                                 -----------     -----------      -----------
        Net cash provided by operating activities                                  1,932,798       2,797,378        2,834,885
                                                                                 -----------     ------------     -----------
Cash flows from investing activities:
   Proceeds from disposition of mortgages                                            383,582      10,195,241                -
   Debenture proceeds received from affiliate                                      1,148,049               -                -
   Receipt of mortgage principal from scheduled payments                             267,690         269,339          271,593
                                                                                 -----------     -----------      -----------
        Net cash provided by investing activities                                  1,799,321      10,464,580          271,593
                                                                                 -----------     -----------      -----------
Cash flows from financing activities:
   Distributions paid to partners                                                 (3,707,564)    (13,182,450)      (2,883,662)
                                                                                 -----------     -----------      -----------
Net increase in cash and cash equivalents                                             24,555          79,508          222,816
                                                                                 -----------     -----------      -----------
Cash and cash equivalents, beginning of year                                         958,375         878,867          656,051
                                                                                 -----------     -----------      -----------
Cash and cash equivalents, end of year                                           $   982,930     $   958,375      $   878,867
                                                                                 ===========     ===========      ===========
Non cash investing activity:
   50% share of debenture received from HUD in exchange for the                  $      -        $ 1,148,049      $     -
   mortgage on Portervillage I Apartments (Debenture is held by
   an affiliate, AIM 85)
</TABLE>


                The accompanying notes are an integral part
                       of these financial statements.

<PAGE>

                       AMERICAN INSURED MORTGAGE INVESTORS

                          NOTES TO FINANCIAL STATEMENTS

1.       ORGANIZATION

     American Insured Mortgage  Investors (the  "Partnership")  was formed under
the Uniform Limited Partnership Act in the state of California on July 12, 1983.

     CRIIMI,  Inc. (the "General Partner") holds a partnership  interest of 2.9%
and is a wholly  owned  subsidiary  of  CRIIMI  MAE  Inc.  ("CRIIMI  MAE").  AIM
Acquisition  Partners  L.P.  (the  "Advisor")  serves  as  the  advisor  to  the
Partnership.  The general partner of the Advisor is AIM Acquisition  Corporation
("AIM  Acquisition") and the limited partners  include,  but are not limited to,
AIM Acquisition,  The Goldman Sachs Group, L.P., Sun America  Investments,  Inc.
(successor to Broad,  Inc.)and CRI/AIM Investment,  L.P., an affiliate of CRIIMI
MAE. AIM  Acquisition is a Delaware  corporation  that is primarily owned by Sun
America Investments, Inc. and The Goldman Sachs Group, L.P.

     Under the  Advisory  Agreement,  the Advisor  will  render  services to the
Partnership,  including but not limited to, the management of the  Partnership's
portfolio of mortgages and the disposition of the Partnership's mortgages.  Such
services  will be subject to the review and  ultimate  authority  of the General
Partner.  However, the General Partner is required to receive the consent of the
Advisor prior to taking certain significant  actions,  including but not limited
to the  disposition of mortgages,  any transaction or agreement with the General
Partner,  or its  affiliates,  or any material  change as to policies  regarding
distributions  or  reserves of the  Partnership.  The  Advisor is  permitted  to
delegate the performance of services  pursuant to a sub-advisory  agreement (the
"Sub-Advisory Agreement").  The delegation of such services will not relieve the
Advisor of its obligation to perform such services.  CRIIMI MAE Services Limited
Partnership  ("CMSLP"),  an affiliate of CRIIMI MAE,  manages the  Partnership's
portfolio,  pursuant to the Sub-Advisory Agreement. The general partner of CMSLP
is CRIIMI MAE Services, Inc., an affiliate of CRIIMI MAE.

     Prior  to  the  expiration  of the  Partnership's  reinvestment  period  in
November  1988,  the  Partnership  was engaged in the  business  of  originating
mortgage loans  ("Originated  Insured  Mortgages") and acquiring  mortgage loans
("Acquired  Insured  Mortgages" and, together with Originated Insured Mortgages,
referred to herein as "Insured Mortgages").  In accordance with the terms of the
Partnership  Agreement,  the Partnership is no longer authorized to originate or
acquire Insured Mortgages and, consequently,  its primary objective is to manage
its  portfolio of mortgage  investments,  all of which are insured under Section
221(d)(4) or Section 231 of the National Housing Act. The Partnership  Agreement
states  that the  Partnership  will  terminate  on  December  31,  2008,  unless
previously terminated under the provisions of the partnership agreement.

     On October 5, 1998,  CRIIMI  MAE,  the parent of the General  Partner,  and
CRIIMI  MAE  Management,  Inc.,  an  affiliate  of CRIIMI  MAE and  provider  of
personnel  and  administrative  services  to the  Partnership,  filed  voluntary
petitions for relief under chapter 11 of title 11 of the United States Code (the
"Bankruptcy  Code").  Such  bankruptcy  filings could result in certain  adverse
effects to the Partnership.  For example, as a debtor-in-possession,  CRIIMI MAE
will not be permitted to provide any available capital to the General Partner or
to the general partner of CMSLP, the Partnership's sub-advisor, without approval
from the bankruptcy court. Even though this restriction or potential loss of the
availability of a potential  capital resource could adversely affect the General
Partner  and the  Partnership,  CRIIMI MAE has not  historically  represented  a
significant  source of capital for the General Partner or the Partnership.  Such
bankruptcy filings could also result in the potential need to replace CRIIMI MAE
Management,  Inc. as a provider of personnel and administrative  services to the
Partnership.  Furthermore,  the bankruptcy filings could negatively impact CMSLP
which could result in the need to obtain  another  party to perform the services
currently  performed  by CMSLP,  as  subadvisor,  pursuant  to the  Sub-Advisory
Agreement.

     On December  23, 1999,  CRIIMI MAE and CRIIMI MAE  Management,  Inc.  filed
their Amended Joint Plan of  Reorganization  and proposed  disclosure  statement
with the  United  States  Bankruptcy  Court for the  District  of  Maryland,  in
Greenbelt,  Maryland (the "Bankruptcy  Court"). The filing of such Amended Joint
Plan of Reorganization  and proposed  disclosure  statement on December 23, 1999
was filed with the full  support of the official  committee  of Equity  Security
Holders in the  CRIIMI MAE  Chapter  11 case,  which is a  co-proponent  of such
Amended  Joint  Plan of  Reorganization.  On or about  February  11,  2000,  the
Official  Committee  of  Unsecured  Creditors of CRIIMI MAE filed its own second
amended plan of reorganization and second amended proposed disclosure statement,
which,  in general,  provides for the liquidation of the assets of CRIIMI MAE. A
hearing  has been  scheduled  for April 25 and April  26,  2000 on the  proposed
disclosure statements filed with the Bankruptcy Court. There can be no assurance
at this time that CRIIMI  MAE's  Amended  Joint Plan of  Reorganization  will be
confirmed and consummated.


2.SIGNIFICANT ACCOUNTING POLICIES

     Method of Accounting
     --------------------
          The  Partnership's  financial  statements  are prepared on the accrual
     basis of  accounting  in  accordance  with  generally  accepted  accounting
     principles.  The  preparation  of financial  statements in conformity  with
     generally  accepted  accounting  principles  requires  management  to  make
     estimates and  assumptions  that affect the reported  amounts of assets and
     liabilities  at the  date of the  financial  statements  and  the  reported
     amounts of  revenues  and  expenses  during the  reporting  period.  Actual
     results could differ from those estimates.

     Reclassification
     ----------------
          Certain  amounts  in the  financial  statements  for  the  year  ended
     December  31, 1997 have been  reclassified  to conform to the 1998 and 1999
     presentation.

     Investment in Insured Mortgages
     -------------------------------
          The  Partnership's  investment  in Insured  Mortgages  is comprised of
     FHA-insured   mortgage  loans   ("FHA-Insured   Loans")  and  participation
     certificates  evidencing a 100% undivided beneficial interest in government
     insured  multifamily  mortgages  issued or sold pursuant to programs of the
     Federal Housing  Administration ("FHA") ("FHA-Insured  Certificates").  The
     mortgages underlying the FHA-Insured Certificates and FHA-Insured Loans are
     non-recourse first liens on multifamily residential developments.

          Payment of principal  and  interest on  FHA-Insured  Certificates  and
     FHA-Insured Loans is insured by the United States Department of Housing and
     Urban Development ("HUD") pursuant to Title 2 of the National Housing Act.

          As of December 31, 1999,  the weighted  average  remaining term of the
     Partnership's  investments in FHA-Insured  Certificates is approximately 22
     years.  However, the partnership agreement states that the Partnership will
     terminate in approximately 9 years, on December 31, 2008, unless previously
     terminated  under  the  provisions  of the  Partnership  Agreement.  As the
     Partnership  is  anticipated  to terminate  prior to the  weighted  average
     remaining term of its FHA-Insured  Certificates,  the Partnership  does not
     have the  ability or intent,  at this time,  to hold these  investments  to
     maturity. Consequently, the General Partner believes that the Partnership's
     FHA-Insured  Certificates  should be  included  in the  Available  for Sale
     category.   Although  the   Partnership's   FHA-Insured   Certificates  are
     classified  as Available  for Sale for financial  statement  purposes,  the
     General Partner does not intend to voluntarily sell these assets other than
     those  which  may be sold as a  result  of a  default  or those  which  are
     eligible  to be put to FHA at the  expiration  of 20 years from the date of
     the final endorsement.

          In connection  with this  classification,  as of December 31, 1999 and
     1998, all of the Partnership's  investments in FHA-Insured Certificates are
     recorded at fair value,  with the net unrealized  gains and losses on these
     investments  reported  as  other  comprehensive  income  and as a  separate
     component of  partners'  equity.  Subsequent  increases or decreases in the
     fair value of  FHA-Insured  Certificates  classified  as Available for Sale
     will be included as a separate  component  of  partners'  equity.  Realized
     gains and losses on  FHA-Insured  Certificates  classified as Available for
     Sale will continue to be reported in earnings.  The  amortized  cost of the
     investments in this category is adjusted for  amortization  of discounts to
     maturity. Such amortization is included in mortgage investment income.

          As of December 31, 1999 and 1998,  Investment in FHA-Insured  Loans is
     recorded at amortized cost.

          Gains from  dispositions  of mortgage  investments are recognized upon
     the receipt of cash or debentures.

          Losses on dispositions of mortgage  investments are recognized when it
     becomes  probable  that  a  mortgage  will  be  disposed  of and  that  the
     disposition  will  result  in a loss.  In the  case of  Originated  Insured
     Mortgages  fully  insured by HUD, the  Partnership's  maximum  exposure for
     purposes of  determining  the loan losses would  generally be an assignment
     fee charged by HUD  representing  approximately  1% of the unpaid principal
     balance of the Originated Insured Mortgage at the date of default, plus the
     unamortized   balance  of  acquisition  fees  and  closing  costs  paid  in
     connection with the acquisition of the Originated  Insured Mortgage and the
     loss of 30 days accrued interest.

          Since Acquired Insured Mortgages were purchased at a discount from the
     unpaid principal balance of the mortgage,  the Partnership's  investment in
     the  Acquired  Insured  Mortgages  is less than the  amount  that  would be
     recovered from HUD in the event of a default.  Therefore,  the  Partnership
     would experience no loan losses on discounted Acquired Insured Mortgages in
     the case of a default.

     Cash and Cash Equivalents
     -------------------------
          Cash and cash  equivalents  consist of time and demand  deposits  with
     original maturities of four months or less.

     Income Taxes
     ------------
          No provision has been made for Federal, state or local income taxes in
     the accompanying  Statements of income and comprehensive  income since they
     are the personal responsibility of the Unitholders

     Statements of Cash Flows
     ------------------------
          No cash payments were made for interest expense during the years ended
     December 31, 1999,  1998 and 1997.  Since the  statements of cash flows are
     intended  to reflect  only cash  receipt  and cash  payment  activity,  the
     statements of cash flows do not reflect  operating  activities  that affect
     recognized  assets and liabilities  while not resulting in cash receipts or
     cash payments.


3.       FAIR VALUE OF FINANCIAL INSTRUMENTS

          The following  estimated  fair values of the  Partnership's  financial
     instruments are presented in accordance with generally accepted  accounting
     principles  which  define  fair  value as the  amount at which a  financial
     instrument  could be exchanged  in a current  transaction  between  willing
     parties,  other than in a forced or liquidation  sale. These estimated fair
     values, however, do not represent the liquidation value or the market value
     of the Partnership.

<TABLE>
<CAPTION>                                     As of December 31, 1999            As of December 31, 1998
                                             Amortized          Fair             Amortized          Fair
                                               Cost             Value              Cost             Value
                                          ------------      ------------      ------------       -----------
<S>                                       <C>               <C>               <C>                <C>
Investment in FHA-Insured
   Loans:
   Originated Insured Mortgage            $  4,936,416      $  4,496,672      $  4,994,145       $  5,048,745
   Acquired Insured Mortgages                7,814,612         9,719,059         7,896,870         10,189,852
                                          ------------      ------------      ------------       ------------
                                          $ 12,751,028      $ 14,215,731      $ 12,891,015       $ 15,238,597
                                          ============      ============      ============       ============

Investment in FHA-Insured
   Certificates                           $ 10,655,445      $ 12,468,348      $ 11,099,580       $ 13,458,100
                                          ============      ============      ============       ============

Cash and cash equivalents                 $    982,930      $    982,930      $    958,375       $    958,375

Accrued interest receivable               $    190,403      $    190,403      $    195,172       $    195,172

</TABLE>

     The following  methods and assumptions were used to estimate the fair value
     of each class of financial instrument:

     Investment in FHA-Insured Certificates and FHA-Insured Loans
     ------------------------------------------------------------
          The fair value of the FHA-Insured  Certificates and FHA-Insured  Loans
     is based on the quoted market price from an investment banking  institution
     which trades these instruments as part of its day-to-day activities.

     Cash and cash equivalents and accrued interest receivable
     ---------------------------------------------------------
          The  carrying  amount  approximates  fair  value  because of the short
     maturity of these instruments.


4.       COMPREHENSIVE INCOME

          Comprehensive  Income  includes net earnings as currently  reported by
     the   Partnership   adjusted   for  other   comprehensive   income.   Other
     comprehensive income for the Partnership is changes in unrealized gains and
     losses related to the  Partnership's  mortgages  accounted for as available
     for sale.  The table below  breaks out other  comprehensive  income for the
     periods  presented  into the  following two  categories:  (1) the change to
     unrealized gains and losses that relate to mortgages which were disposed of
     during the period with the resulting realized gain or loss reflected in net
     earnings   (reclassification   adjustments)  and  (2)  the  change  in  the
     unrealized gain or loss related to those investments that were not disposed
     of during the period.
<TABLE>
<CAPTION>

                                                               1999              1998             1997
                                                           -----------       -----------      -----------
<S>                                                        <C>               <C>              <C>
Reclassification adjustment for(gains)
   losses included in net income                           $  (67,656)       $       --       $       --
Unrealized holding gains (losses) arising
   during the period                                         (477,961)         (603,504)         177,991
                                                           -----------       -----------      -----------
Net adjustment to unrealized gains (losses) on mortgages   $ (545,617)       $ (603,504)      $  177,991
                                                           ===========       ===========      ===========
</TABLE>

5.    INVESTMENT IN FHA-INSURED LOANS

     Listed below is the Partnership's aggregate investment in FHA-Insured Loans
as of December 31, 1999 and 1998:

<TABLE>
<CAPTION>                                                                   December 31,
                                                                   1999                     1998
                                                               ------------             ------------
<S>                                                            <C>                      <C>
Number of
  Acquired Insured Mortgages                                              3                        3
  Originated Insured Mortgage                                             1                        1
Amortized Cost                                                 $ 12,751,028             $ 12,891,015
Face Value                                                       14,941,299               15,170,295
Fair Value                                                       14,215,731               15,238,597

</TABLE>

          All of the FHA-Insured  Loans were current with respect to the payment
     of principal and interest as of February 25, 2000.

          In addition to base interest payments received from Originated Insured
     Mortgages,  the  Partnership is entitled to additional  interest based on a
     percentage of the net cash flow from the underlying  development and of the
     net  proceeds  from  the  refinancing,  sale or  other  disposition  of the
     underlying development (referred to as "Participations").  During the years
     ended  December  31,  1999,  1998 and 1997,  the  Partnership  received $0,
     $52,526 and $61,988, respectively, from the Participations.  These amounts,
     if any,  are  included in mortgage  investment  income on the  accompanying
     statements of income and comprehensive income.


6.    INVESTMENT IN FHA-INSURED CERTIFICATES

     Listed  below is the  Partnership's  aggregate  investment  in  FHA-Insured
Certificates as of December 31, 1999 and 1998:

<TABLE>
<CAPTION>                                                                   December 31,
                                                                   1999                     1998
                                                               ------------             ------------
<S>                                                            <C>                      <C>
Number of mortgages (1)                                                   8                        9
Amortized Cost                                                 $ 10,655,445             $ 11,099,580
Face Value                                                       12,835,126               13,440,088
Fair Value                                                       12,468,348               13,458,100
</TABLE>

(1)  In November  1999,  the mortgage on Lakeside  Apartments  was prepaid.  The
     Partnership received net proceeds of approximately $384,000, and recognized
     a gain of  approximately  $67,000 for the year ended  December  31, 1999. A
     distribution  of $0.04 per Unit related to this  prepayment was declared in
     December 1999 and paid to Unitholders in February 2000.

     All of the  FHA-Insured  Certificates  were  current  with  respect  to the
payment of principal and interest as of February 25, 2000.

7.    TRANSACTIONS WITH RELATED PARTIES

     The principal  officers of the General Partner for the years ended December
31,  1999,  1998 and 1997 did not  receive  fees for  serving as officers of the
General  Partner,  nor are any fees  expected to be paid to the  officers in the
future.

     The General Partner, CMSLP and certain affiliated entities have, during the
years ended December 31, 1999, 1998 and 1997, earned or received compensation or
payments for services from the Partnership as follows:

<TABLE>
<CAPTION>                COMPENSATION PAID OR ACCRUED TO RELATED PARTIES
                         -----------------------------------------------
                                                                                 For the year ended December 31,
               Name of Recipient           Capacity in Which Served/Item        1999          1998          1997
         -------------------------------   -----------------------------     ----------    ----------    ----------
         <S>                               <C>                               <C>           <C>           <C>
         CRIIMI, Inc. (1)                  General Partner/Distribution      $  107,519    $  385,277    $   86,614

         AIM Acquisition Partners,L.P.(2)  Advisor/Asset Management Fee         240,997       319,794       343,092

         CRIIMI MAE Management, Inc.       Affiliate of General
                                           Partner/Expense                       37,347        40,569        36,226

         American Insured Mortgage         Affiliate of Partnership/
          Investors L.P. - Series 85       Reimbursement of Debenture                --     1,148,049            --
                                           Proceeds
</TABLE>

(1)  The General Partner,  pursuant to amendments to the Partnership  Agreement,
     effective   September  6,  1991,   is  entitled  to  receive  2.9%  of  the
     Partnership's income, loss, capital and distributions,  including,  without
     limitation, the Partnership's adjusted cash from operations and proceeds of
     mortgage   prepayments,   sales  or  insurance  (both  as  defined  in  the
     partnership agreement).

(2)  The Advisor,  pursuant to the partnership  agreement,  effective October 1,
     1991,  is  entitled  to an  Asset  Management  Fee  equal to 0.95% of Total
     Invested  Assets  (as  defined  in the  Partnership  Agreement).  CMSLP  is
     entitled  to a fee  equal  to  0.28%  of  Total  Invested  Assets  from the
     Advisor's Asset  Management Fee. Of the amounts paid to the Advisor,  CMSLP
     earned a fee equal to $71,024,  $94,245,  and  $101,112 for the years ended
     December  31, 1999,  1998 and 1997,  respectively.  The limited  partner of
     CMSLP is a  wholly-owned  subsidiary  of CRIIMI  MAE Inc.  which  filed for
     protection under Chapter 11 of the U.S. Bankruptcy Code.

8.       DISTRIBUTIONS TO UNITHOLDERS

     The  distributions  paid or accrued to  Unitholders on a per Unit basis for
the years ended December 31, 1999, 1998 and 1997 are as follows:

Quarter Ended                         1999          1998          1997
-------------                        ------        ------        ------
March 31                             $ 0.17(1)     $ 0.07        $ 0.07
June 30                                0.05          0.07          0.07
September 30                           0.05          1.06 (3)      0.07
December 31                            0.09 (2)      0.09          0.08
                                     ------        ------        ------
                                     $ 0.36        $ 1.29        $ 0.29
                                     ======        ======        ======

(1)  This amount  includes  approximately  $0.12 per Unit due to  redemption  of
     debentures  received from the assignment of the mortgage on Portervillage I
     Apartments.  This amount was received from an affiliate of the Partnership,
     American  Insured  Mortgage  Investors  - Series 85, L.P.  ("AIM 85").  The
     debenture  was issued to AIM 85,  since the  mortgage  on  Portervillage  I
     Apartments was owned 50% by the Partnership and 50% by AIM 85.

(2)  This amount includes approximately $0.04 per Unit representing net proceeds
     from prepayment of the mortgage on Lakeside Apartments.

(3)  This amount includes approximately $0.99 per Unit representing net proceeds
     from the prepayment of the mortgage on Water's Edge Apartments.

     The basis for paying  distributions  to  Unitholders  is net proceeds  from
mortgage  dispositions,  if any, and cash flow from  operations,  which includes
regular interest income and principal from Insured  Mortgages.  Although Insured
Mortgages  yield a fixed  monthly  mortgage  payment  once  purchased,  the cash
distributions  paid to the Unitholders will vary during each year due to (1) the
fluctuating  yields in the  short-term  money market where the monthly  mortgage
payment  receipts  are  temporarily  invested  prior to the payment of quarterly
distributions,  (2) the  reduction  in the asset  base  resulting  from  monthly
mortgage payments received or mortgage dispositions,  (3) variations in the cash
flow  attributable  to the  delinquency  or  default of  Insured  Mortgages  and
professional  fees and  foreclosure  costs  incurred  in  connection  with those
Insured Mortgages and (4) variations in the Partnership's operating expenses.

9.       PARTNERS' EQUITY

     Depositary  Units  representing  economic  rights  in  limited  partnership
interests  ("Units") were issued at a stated value of $20. A total of 10,000,000
Units were issued for an aggregate  capital  contribution  of  $200,000,000.  In
addition,  the initial limited partner  contributed $2,500 to the capital of the
Partnership and received 125 Units in exchange therefor.


10.      SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

     The following is a summary of unaudited quarterly results of operations for
the years ended December 31, 1999, 1998 and 1997:

         (In Thousands, Except Per Unit Data)




<TABLE>
<CAPTION>                                                                    1999
                                                                        Quarter ended
                                                   March 31         June 30    September 30     December 31
                                                   --------        --------    ------------     -----------
<S>                                                <C>             <C>             <C>           <C>
Income                                             $   599         $   591         $  583        $  581
Net earnings                                           460             479            455           531
Gain on mortgage dispositions                           --              --             --            67
Net earnings per Limited Partnership Unit - Basic  $  0.04         $  0.05         $ 0.04        $ 0.06
</TABLE>





<TABLE>
<CAPTION>                                                                    1998
                                                                        Quarter ended
                                                   March 31         June 30    September 30    December 31
                                                   --------        --------    ------------    -----------
<S>                                                <C>             <C>             <C>            <C>
Income                                             $   887         $   837        $   803        $   664
Net earnings                                           951             698          1,763            566
Gain on mortgage dispositions                          200              --          1,090             --
Net earnings per Limited Partnership Unit - Basic  $  0.09         $  0.07        $  0.17        $  0.06
</TABLE>




<TABLE>
<CAPTION>                                                                    1997
                                                                        Quarter ended
                                                   March 31         June 30    September 30     December 31
                                                   --------        --------    ------------     -----------
<S>                                                <C>             <C>             <C>             <C>
Income                                             $   901         $   840         $   836         $   838
Net earnings                                           758             701             708             712
Net earnings per Limited Partnership Unit - Basic  $  0.07         $  0.07         $  0.07         $  0.07
</TABLE>

<PAGE>
                       AMERICAN INSURED MORTGAGE INVESTORS
                   SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE
                                DECEMBER 31, 1999
<TABLE>
<CAPTION>
                                                                       Interest        Face              Net         Annual Payment
                                            Maturity       Put          Rate on      Amount of      Carrying Value   (Principal and
Development Name/Location                    Date         Date(1)     Mortgage(5)   Mortgage(3)     (3)(6)(8)(9)     Interest)(5)(7)
-------------------------                 -----------   -----------   -----------   ------------    --------------   ---------------
<S>                                         <C>           <C>           <C>         <C>             <C>              <C>
Originated Insured Mortgages
----------------------------
Investment in FHA-Insured Loans
  (carried at amortized cost)(2)
      Creekside Village, Beaverton, OR      11/25            --         7.75%       $  4,936,415    $  4,936,416     $  442,754
Total Investment in FHA-Insured Loans -                                             ------------    ------------
  Originated Insured Mortgages                                                         4,936,415       4,936,416
                                                                                    ------------    ------------

Acquired Insured Mortgages
--------------------------
Investment in FHA-Insured Loans
  (carried at amortized cost)(2)
    Eastdale Apts., Montgomery, AL           3/23         10/01         7.5%           6,392,866       4,970,003        592,406
    North River Place, Chillecothe, OH      10/21         12/01         7.5%           2,993,803       2,332,593        279,509
    Town Park Apts., Rockingham, NC         10/22         10/02         7.5%             618,215(4)      512,016         56,755(4)
                                                                                    ------------    ------------
Total Investment in FHA-Insured Loans -
  Acquired Insured Mortgages                                                          10,004,884       7,814,612
                                                                                    ------------    ------------


Total Investment in FHA-Insured Loans                                                 14,941,299      12,751,028
                                                                                    ------------    ------------
Acquired Insured Mortgages
--------------------------
Investment in FHA-Insured Certificates
  (carried at fair value)

Bay Pointe Apts., Lafayette, IN              2/23         10/02         7.5%        $  2,005,166(4) $  1,947,813     $  185,272(4)
Baypoint Shoreline Apts, Duluth, MN          1/22         10/01         7.5%             946,479(4)      919,448         87,967(4)
Berryhill Apts., Grass Valley, CA            1/21         11/02         7.5%           1,223,861(4)    1,189,081        115,899(4)
Brougham Estates II, Kansas City, KS        11/22          3/02         7.5%           2,519,834(4)    2,447,602        230,860(4)
College Green Apts., Wilmington, NC          3/23          2/02         7.5%           1,354,862(4)    1,315,970        123,455(4)
Fox Run Apts., Dothan, AL                   10/19         11/99         7.5%           1,194,069(4)    1,160,391        116,242(4)
Kaynorth Apts., Lansing, MI                  4/23          9/02         7.5%           1,838,685(4)    1,785,887        167,318(4)
Westbrook Apts., Kokomo, IN                 11/22          9/02         7.5%           1,752,170(4)    1,702,156        163,177(4)
                                                                                    ------------    ------------
  Total Investment in FHA-Insured Certificates                                        12,835,126      12,468,348
                                                                                    ------------    ------------
  TOTAL INVESTMENT IN INSURED MORTGAGES                                             $ 27,776,425    $ 25,219,376
                                                                                    ============    ============

See notes to Schedule IV - Mortgage Loans on Real Estate
</TABLE>

<PAGE>
                       AMERICAN INSURED MORTGAGE INVESTORS

              NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE

(1)  Under the  Section  221 program of the  National  Housing  Act of 1937,  as
     amended,  a mortgagee has the right to assign a mortgage  ("put") to FHA at
     the  expiration  of 20 years  from the  date of  final  endorsement  if the
     mortgage is not in default at such time.  Any mortgagee  electing to assign
     an  FHA-insured  mortgage to FHA will receive,  in exchange  therefor,  HUD
     debentures  having  a  total  face  value  equal  to the  then  outstanding
     principal balance of the FHA-insured  mortgage plus accrued interest to the
     date of assignment. These HUD debentures will mature 10 years from the date
     of assignment  and will bear  interest at the "going  Federal rate" at such
     date. This assignment  procedure is applicable to an insured mortgage which
     had a firm  or  conditional  FHA  commitment  for  insurance  on or  before
     November 30, 1983. The Partnership  anticipates  that each eligible insured
     mortgage,  for which a  prepayment  has not occurred and which has not been
     sold,  will be assigned to FHA at the  expiration of 20 years from the date
     of final  endorsement.  The  Partnership,  therefore,  does not  anticipate
     holding any eligible  insured  mortgage  beyond the  expiration of 20 years
     from final  endorsement  of that  insured  mortgage.  The  Partnership  has
     initiated its request to put these mortgages to FHA as they become due.

(2)  Inclusive of closing costs and acquisition fees.

(3)  Prepayment  of these  insured  mortgages  would be  based  upon the  unpaid
     principal balance at the time of prepayment.

(4)  These  amounts  represent the  Partnership's  50% interest in these insured
     mortgages.  The  remaining  50% interest  was acquired by American  Insured
     Mortgage Investors - Series 85, L.P. ("AIM 85").

(5)  In addition, the servicer of the insured mortgages (primarily  unaffiliated
     third  parties) is entitled to receive  compensation  for certain  services
     rendered  in an  amount  up to ten  basis  points  (0.10%)  of  the  unpaid
     principal balance of the insured mortgages.

(6)  The  mortgages  underlying  the  Partnership's  investment  in  FHA-Insured
     Certificates  and  FHA-Insured  Loans  are  non-recourse   first  liens  on
     multifamily residential developments.

(7)  Principal  and interest  are payable at level  amounts over the life of the
     Insured Mortgages.

(8)  A reconciliation of the carrying value of Insured Mortgages,  for the years
     ended December 31, 1999 and 1998, is as follows:
<TABLE>
<CAPTION>
                                                                1999                        1998
                                                            -----------                 -----------
<S>                                                         <C>                         <C>
Beginning balance                                           $26,349,115                 $37,274,896

  Gain on mortgage dispositions                                  67,150                   1,290,352
  Proceeds from disposition of  mortgages                      (383,582)                (11,343,290)(1)
  Principal receipts on Insured Mortgages                      (267,690)                   (269,339)
  Adjustment to unrealized gains on
    investment in Insured Mortgages                            (545,617)                   (603,504)
                                                            -----------                 -----------
Ending balance                                              $25,219,376                 $26,349,115
                                                            ===========                 ===========

(1)  This amount  represents  cash proceeds of $10,195,241  (as reflected in the
     Statements of Cash Flows) and non-cash proceeds of $1,148,049.
</TABLE>

(9)  The tax basis of the Insured Mortgages was approximately  $22.2 million and
     $22.9 million as of December 31, 1999 and 1998, respectively.