SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

|X|   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 1999

                                       OR

|_|   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

                         Commission File Number 0-23972

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                  (Formerly American Mortgage Investors Trust)
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

       Massachusetts                                             13-6972380
-------------------------------                              -------------------
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

 625 Madison Avenue, New York, New York                             10022
----------------------------------------                          ----------
(Address of principal executive offices)                          (Zip Code)

Registrant's telephone number, including area code (212)421-5333

      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 |_|
<PAGE>

                         PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                                 Balance Sheets
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                               =============        ============
                                                                               September 30,        December 31,
                                                                                    1999                1998
                                                                               -------------        ------------
<S>                                                                            <C>                 <C>
ASSETS
Investments in mortgage loans                                                  $  29,009,478       $  45,965,488
Investments in GNMA certificates-
  available for sale                                                               9,676,340          10,303,002
Investment in subordinated commercial
  mortgage-backed security-trading                                                35,623,708                   0
Receivable from broker                                                            38,933,730                   0
Cash and cash equivalents                                                         20,183,836           2,953,125
Deferred costs (net of accumulated
  amortization of $50,000)                                                            27,113               4,723
Accrued interest receivable                                                          400,525             766,702
Other assets                                                                         113,853                   0
                                                                               -------------       -------------
Total assets                                                                   $ 133,968,583       $  59,993,040
                                                                               =============       =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
  Accounts payable and accrued expenses                                        $     140,166       $      73,372
  Due to Advisor and affiliates                                                      226,854           1,715,094
  Payable for subordinated commercial
    mortgage-backed security purchased                                            35,622,358                   0
  Accrued interest payable                                                           841,626                   0
  Distributions payable                                                            1,391,503                   0
  Government security sold short                                                  38,193,276                   0
                                                                               -------------       -------------
Total liabilities                                                                 76,415,783           1,788,466
                                                                               -------------       -------------

Commitments and contingencies

Shareholders' equity:
  Shares of beneficial interest; $.10 par value; 12,500,000 shares
    authorized; 4,213,826 issued and 3,838,630 outstanding, and 4,172,790
    issued and 3,839,245 outstanding in 1999 and 1998,
    respectively                                                                     421,383             417,280
  Treasury shares of beneficial interest;
    375,196 and 333,545 shares in 1999 and
    1998, respectively                                                               (37,520)            (33,355)
  Additional paid-in capital                                                      68,840,500          68,849,730
  Distributions in excess of net income                                          (11,560,157)        (11,191,614)
  Accumulated other comprehensive income (loss)                                     (111,406)            162,533
                                                                               -------------       -------------
Total shareholders' equity                                                        57,552,800          58,204,574
                                                                               -------------       -------------
Total liabilities and shareholders' equity                                     $ 133,968,583       $  59,993,040
                                                                               =============       =============
</TABLE>

                 See accompanying notes to financial statements


                                      -2-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                              Statements of Income
                                   (Unaudited)

<TABLE>
<CAPTION>
                                    =============================     =============================
                                         Three Months Ended                Nine Months Ended
                                            September 30,                     September 30,
                                    -----------------------------     -----------------------------
                                       1999              1998            1999              1998
                                    -----------------------------     -----------------------------
<S>                                 <C>               <C>             <C>               <C>
Revenues:
  Interest income:
    Mortgage loans                  $   465,994       $   787,949     $ 1,484,986       $ 2,436,018
    REMIC and GNMA
      certificates                      195,315           217,714         591,859           681,283
    Subordinated commercial
      mortgage-backed
      security                           10,187                 0          10,187                 0
    Note receivable                      58,926                 0          85,786                 0
    Cash  and cash equivalents          221,459            31,336         580,373            82,955
  Other income                           19,000                 0         219,190                 0
                                    -----------       -----------     -----------       -----------

    Total revenues                      970,881         1,036,999       2,972,381         3,200,256
                                    -----------       -----------     -----------       -----------

Expenses:
  Interest                                6,061                 0           6,061                 0
  General and administrative            250,841           186,345         687,104           494,778
  Amortization                                0                 0               0             5,000
  Organization costs                     16,405                 0         364,818                 0
                                    -----------       -----------     -----------       -----------

    Total expenses                      273,307           186,345       1,057,983           499,778
                                    -----------       -----------     -----------       -----------

Other gain (loss):

  Realized gain (loss) on sale
   of GNMA certificates                    (485)            7,265            (902)            6,648

  Gain on repayment of
    mortgage loans                            0                 0       3,273,202                 0
                                    -----------       -----------     -----------       -----------

  Total other gain (loss)                  (485)            7,265       3,272,300             6,648
                                    -----------       -----------     -----------       -----------

  Net income                        $   697,089       $   857,919     $ 5,186,698       $ 2,707,126
                                    ===========       ===========     ===========       ===========

  Net income per share
    (basic and diluted)             $       .18       $       .22     $      1.35       $       .70
                                    ===========       ===========     ===========       ===========

  Weighted average
    shares outstanding
    (basic and diluted)               3,838,630         3,845,453       3,843,044         3,845,043
                                    ===========       ===========     ===========       ===========
</TABLE>

                 See accompanying notes to financial statements


                                      -3-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                  Statement of Changes in Shareholders' Equity
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                         Treasury Shares of
                                         Shares of Beneficial Interest   Beneficial Interest       Additional
                                         -----------------------------   -------------------        Paid-in
                                              Shares       Amount        Shares       Amount        Capital
                                              ------       ------        ------       ------        -------
<S>                                          <C>          <C>           <C>          <C>          <C>
Balance at January 1, 1999                   4,172,790    $ 417,280     (333,545)    $(33,355)    $68,849,730

Comprehensive income:
Net income                                           0            0            0            0               0
Other comprehensive loss:
  Net unrealized loss on first
    mortgage bonds:
  Net unrealized holding loss
    arising during the period
  Add: reclassification adjustment
    for losses included in net income
Other comprehensive loss
Comprehensive income
Issuance of shares of beneficial
  interest                                      41,036        4,103            0            0         629,834
Purchase of treasury shares                          0            0      (41,651)      (4,165)       (639,064)
Distributions                                        0            0            0            0               0
                                             ---------    ---------     --------     --------     -----------
Balance at September 30, 1999                4,213,826    $ 421,383     (375,196)    $(37,520)    $68,840,500
                                             =========    =========     ========     ========     ===========

<CAPTION>
                                                                        Accumulated
                                         Distributions                      Other
                                           in Excess     Comprehensive  Comprehensive
                                         of Net Income       Income      Income (Loss)     Total
                                         -------------   -------------  -------------    -----------
<S>                                       <C>              <C>            <C>            <C>
Balance at January 1, 1999                $(11,191,614)                   $  162,533     $58,204,574

Comprehensive income:
Net income                                   5,186,698     $5,186,698              0       5,186,698
Other comprehensive loss:
  Net unrealized loss on first
    mortgage bonds:
  Net unrealized holding loss
    arising during the period                                (274,841)
  Add: reclassification adjustment
    for losses included in net income                             902
                                                           ----------
Other comprehensive loss                                     (273,939)      (273,939)       (273,939)
Comprehensive income                                       $4,912,759
                                                           ==========
Issuance of shares of beneficial
  interest                                           0                             0         633,937
Purchase of treasury shares                          0                             0        (643,229)
Distributions                               (5,555,241)                            0      (5,555,241)
                                          ------------                    ----------     -----------
Balance at September 30, 1999             $(11,560,157)                   $ (111,406)    $57,552,800
                                          ============                    ==========     ===========
</TABLE>

See accompanying notes to financial statements.


                                      -4-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                            Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                          ===============================
                                                                 Nine Months Ended
                                                                   September 30,
                                                          -------------------------------
                                                              1999               1998
                                                          ------------       ------------
<S>                                                       <C>                <C>
Cash flows from operating activities:
  Net income                                              $  5,186,698       $  2,707,126
                                                          ------------       ------------
Adjustments to reconcile net income to net cash
  provided by operating activities
    Gain on repayment of mortgage loans                     (3,273,202)                 0
    Amortization expense - organization costs                        0              5,000
    Amortization expense - loan premium and
      origination costs                                        271,936            376,082
    Accretion of REMIC and GNMA discount                       (17,414)           (20,298)
    Accretion of discount on subordinated commercial
      mortgage-backed security                                  (1,350)                 0
    Gain on sale of REMIC Certificates                               0             (7,560)
    Loss on sale of GNMA Certificates                              902                912

Changes in operating assets and liabilities:
  Investment in subordinated commercial
    mortgage-backed security                               (35,622,358)                 0
  Receivable from broker                                   (38,933,730)                 0
  Accrued interest receivable                                  366,177           (257,228)
  Other assets                                                (113,853)                 0
  Due to Advisor and affiliates                             (1,488,240)           399,792
  Accounts payable and accrued expenses                         66,794             22,387
  Accrued interest payable                                     841,626                  0
  Government security sold short                            38,193,276                  0
  Payable for subordinated commercial
    mortgage-backed security purchased                      35,622,358                  0
                                                          ------------       ------------
      Total adjustments                                     (4,087,078)           519,087
                                                          ------------       ------------
  Net cash provided by operating activities                  1,099,620          3,226,213
                                                          ------------       ------------

Cash flows from investing activities:
  Increase in investment in mortgage loans                    (829,204)                 0
  Proceeds from repayments of mortgage loans                20,791,203            202,608
  Increase in notes receivable                              (1,900,000)                 0
  Repayment of notes receivable                              1,900,000                  0
  Increase in deferred costs                                   (27,113)                 0
  Principal repayments of GNMA Certificates                    369,235            233,583
  Principal repayments of REMIC Certificates                         0          1,386,745
                                                          ------------       ------------
  Net cash provided by investing activities                 20,304,121          1,822,936
                                                          ------------       ------------

Cash flows from financing activities:
  Distributions paid to shareholders                        (4,163,738)        (4,163,738)
  Proceeds from issuance of shares of beneficial
    interest                                                   633,937          1,013,799
  Purchase of treasury shares                                 (643,229)        (1,013,777)
                                                          ------------       ------------
  Net cash used in financing activities                     (4,173,030)        (4,163,716)
                                                          ------------       ------------
Net increase in cash and cash equivalents                   17,230,711            885,433
Cash and cash equivalents at the beginning
  of the period                                              2,953,125          1,840,715
                                                          ------------       ------------
Cash and cash equivalents at the end
  of the period                                           $ 20,183,836       $  2,726,148
                                                          ============       ============
</TABLE>

                See accompanying notes to financial statements.


                                      -5-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                            Statements of Cash Flows
                                   (continued)
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                           =============================
                                                                                 Nine Months Ended
                                                                                    September 30,
                                                                           -----------------------------
                                                                               1999              1998
                                                                           -----------       -----------
<S>                                                                        <C>               <C>
Supplemental schedule of non-cash investing and financing activities:
Decrease in deferred costs                                                 $     4,723       $         0
Increase in investments in mortgage loans                                       (4,723)                0
                                                                           -----------       -----------

                                                                           $         0       $         0
                                                                           ===========       ===========

Distributions to shareholders declared                                     $(5,555,241)      $(4,163,738)

Increase in distributions payable
     to shareholders                                                         1,391,503                 0
                                                                           -----------       -----------

Distributions paid to shareholders                                         $(4,163,738)      $(4,163,738)
                                                                           ===========       ===========
</TABLE>

                See accompanying notes to financial statements.


                                      -6-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                         Notes to Financial Statements
                               September 30, 1999
                                  (Unaudited)

Note 1 - General

American Mortgage Acceptance Company (formerly American Mortgage Investors
Trust) (the "Company") was formed on June 11, 1991 as a Massachusetts business
trust for the primary purpose of investing in government-insured mortgages and
guaranteed mortgage-backed certificates. The Company elected to be treated as a
real estate investment trust ("REIT") under the Internal Revenue Code of 1986,
as amended. The Company is organized and operates as one business segment,
investment in mortgages and mortgage-backed securities.

On April 6, 1999, the Company received the necessary consent from its
shareholders to approve proposals (the "Proposals") to, among other things,
restructure the Company from a closed-ended, finite-life REIT to a publicly
traded, open-ended, infinite-life operating REIT. In addition to restructuring
the Company, the Proposals, among other matters, permit the Company to modify
its investment objectives, to incur a specified amount of indebtedness and to
list the Company's shares on a national exchange.

As a result of the adoption of the Proposals, the Company was liable for the
transaction expenses. Such expenses amounted to approximately $365,000 and are
classified as organization costs in the accompanying statements of income.

Effective April 26, 1999, upon authorization by the Board of Trustees, the
Company's name was changed from American Mortgage Investors Trust to American
Mortgage Acceptance Company. The Company's shares commenced trading on the
American Stock Exchange on July 1, 1999 under the symbol "AMC".

The Company's new business plan as a publicly traded REIT focuses on three types
of mortgage products: 1) origination of participating FHA insured multifamily
mortgages, 2) origination of construction and permanent mortgage financing for
affordable multifamily housing pursuant to a new venture with Fannie Mae, and 3)
acquisition of subordinated interests in commercial mortgage-backed securities.

The current composition of the Company's investment portfolio reflects the
recent change in the Company's business plan and is not comparable to its
investment portfolio prior to April 1999. Furthermore, the Company is still in
the process of implementing its new business plan and, therefore, the current
portfolio should not be considered indicative of the composition of the
portfolio that might be expected in the future.

The Company is governed by a board of trustees comprised of two independent
trustees and one trustee who is affiliated with Related Capital Company
("Related"). The Company has engaged Related AMI Associates, Inc. (the
"Advisor"), an affiliate of Related, to manage its day-to-day affairs.

The accompanying financial statements have been prepared without audit. In the
opinion of management, the financial statements contain all adjustments
(consisting of only normal recurring adjustments) necessary to present fairly
the financial position of the Company as of September 30, 1999, the results of
its operations for the three and nine months ended September 30, 1999 and 1998
and its cash flows for the nine months ended September 30, 1999 and 1998.
However, the operating results for the interim periods may not be indicative of
the results for the full year.


                                      -7-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                         Notes to Financial Statements
                               September 30, 1999
                                  (Unaudited)

Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted. It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1998.

Management of the Company has made a number of estimates and assumptions
relating to the reporting of assets and liabilities, the disclosure of
contingent assets and liabilities and the reporting of revenues and expenses to
prepare these financial statements in conformity with generally accepted
accounting principals. Actual results could differ from those estimates.

Pursuant to the Redemption Plan which became effective November 30, 1994, the
Company was required to redeem eligible shares presented for redemption for cash
to the extent it had sufficient net proceeds from the sale of shares under the
Reinvestment Plan. As a result of the adoption of the Proposals, the Company's
Reinvestment Plan and Redemption Plan have been terminated, effective with the
distribution for the quarter ended March 31, 1999. The final reinvestment of
shares occurred on May 15, 1999. The final redemption of shares occurred on May
24, 1999.

The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments
and Hedging Activities". This statement establishes accounting and reporting
standards for derivative instruments, including certain derivative instruments
embedded in other contracts, and for hedging activities. It is effective for the
Company beginning with the first quarter of 2001. Company management is
currently evaluating the impact that this statement will have on its hedging
strategies and is currently unable to predict the effect, if any, it will have
on the Company's financial statements.

Certain prior year amounts have been reclassified to conform with current year
presentation.


                                      -8-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                               September 30, 1999
                                   (Unaudited)

Note 2 - Investments in Mortgage Loans

Information relating to investments in mortgage loans as of September 30, 1999
and December 31, 1998 is as follows:

<TABLE>
<CAPTION>
                                                                                                                       Accum
                        Date of                                                                                       -ulated
                        Invest-                                                                                         Amor-
                         ment/                          Amounts Advanced                                              tization -
                         Final   Interest     ------------------------------------         Out-                      Additional
                         Matu    Rate on                                    Total        standing       Origi-        Loans and
               Descrip   -rity   Mortgage     Mortgage      Additional     Amounts         Loan         nation         Origina-
Property        -tion    Date    Loan (A)      Loans         Loans (B)     Advanced       Balance        Costs        tion Costs
--------       -------  ------   --------     --------      ----------     --------       -------       ------        ----------
<S>            <C>      <C>      <C>        <C>            <C>           <C>            <C>            <C>            <C>
The Cove       308      12/93    7.625%-    $ 6,800,000    $   840,500   $ 7,640,500    $         0    $         0    $         0
Apts           Apt      1/29     9.129%
Houston, TX    Units             (C)
(J)

Oxford on      405      12/93    7.625%-      9,350,000      1,156,000    10,506,000              0              0              0
Greenridge     Apt.     1/29     9.129%
Apts           Units             (C)
Houston, TX
(J)

Town &         330      4/94     7.375%-      9,348,000      1,039,000    10,387,000     10,016,366        603,895        633,608
Country IV     Apt.     5/29     9.167%
Apts           Units    (D)      (E)(F)
Urbana, IL

Columbiana     204      4/94     (H)          9,106,099        563,000     9,669,099      9,593,491        537,558        394,030
Lakes Apts     Apt.     11/35
Columbia,      Units    (G)
SC

Stony Brook    125      12/95    7.75%-       8,500,000        763,909     9,263,909      9,190,083        413,492        317,769
Village II     Apt.     6/37     9.128%
Apts           Units    (G)      (I)
East Haven,
CT
                                            -------------------------------------------------------------------------------------
Total                                       $43,104,099    $ 4,362,409   $47,466,508    $28,799,940    $ 1,554,945    $ 1,345,407
                                            =====================================================================================

<CAPTION>
                                              Interest
                                               Earned         Less
                 Balance at   Balance at       by the         1999         Net
                  September    December       Company         Amor-      Interest
Property          30, 1999    31, 1998(K)     for 1999       tization     Earned
--------         ----------   -----------     --------       --------    --------
<S>            <C>            <C>            <C>           <C>         <C>
The Cove       $         0    $ 7,343,073    $   117,242   $    16,789 $   100,453
Apts
Houston, TX
(J)

Oxford on                0     10,096,915        155,267        23,090     132,177
Greenridge
Apts
Houston, TX
(J)

Town &           9,986,653     10,134,960        316,332        87,008     229,324
Country IV
Apts
Urbana, IL

Columbiana       9,737,019      9,014,698        597,412        79,060     518,352
Lakes Apts
Columbia,
SC

Stony Brook      9,285,806      9,375,842        570,667        65,987     504,680
Village II
Apts
East Haven,
CT
               -------------------------------------------------------------------
Total          $29,009,478    $45,965,488    $ 1,756,920   $   271,934 $ 1,484,986
               ===================================================================
</TABLE>


                                      -9-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                               September 30, 1999
                                   (Unaudited)

On March 1, 1999, Cove Apartments L.L.C. (the "Cove Obligor"), the owner of Cove
Apartments ("Cove"), sold Cove to a third party for $10.25 million. The Cove
Obligor then fully repaid its outstanding debt due to the Company totaling
$8,676,849 including the outstanding balance of an FHA first mortgage loan in
the amount of $6,558,872, an $840,500 additional loan, a $327,944 prepayment
premium due the Company on the FHA loan, an $814,465 sales proceeds
participation payment and accrued Base Interest and Additional Interest through
the repayment date of $135,068 resulting in a gain on the repayment in the
amount of $1,224,968.

On March 1, 1999, Oxford Apartments, L.L.C. (the "Oxford Obligor"), the owner of
Oxford on Greenridge Apartments ("Oxford"), sold Oxford to a third party for
$15.25 million. The Oxford Obligor then fully repaid its outstanding debt due to
the Company totaling $12,288,813 including the outstanding balance of an FHA
first mortgage loan in the amount of $9,018,450, a $1,156,000 additional loan, a
$450,922 prepayment premium due the Company on the FHA loan, a $1,483,664 sales
proceeds participation payment and accrued Base Interest and Additional Interest
through the repayment date of $179,777 resulting in a gain on the repayment in
the amount of $2,048,234.

The Town and Country mortgage loan is considered an impaired loan, as it has not
performed in accordance with the contractual terms of the loan agreement. No
allowance for loan losses has been provided for this loan.

On April 29, 1999, the Company made its final advance, in the amount of
$829,204, on the Columbiana Originated Mortgage. At the time of the final
advance, construction loan extension fees in the amount of $195,958 were
received by the Company and $122,418 were waived. The fees received are
classified as other income in the accompanying statements of operations.

(A) The minimum interest rate shown represents base interest, which is fully
insured by HUD ("Base Interest"). The additional interest rate represents
interest which is not contingent upon cash flow and is secured by partnership
interests in the partnerships which own the Developments ("Additional
Interest").

(B) Additional loans are non-interest bearing.

(C) In addition to the interest rate, the Company was entitled to 30% of the
cash flow remaining after payment of Base Interest and Additional Interest and
35% of net sale or refinancing proceeds.

(D) The Originated Mortgage has a term of 35 years, subject to mandatory
prepayment at any time after 12 years and upon one year's notice.

(E) In addition to the interest rate, the Company is entitled to 30% of the cash
flow remaining after payment of Base Interest and Additional Interest.

(F) The operations of Town and Country have not been able to support the payment
of Additional Interest which amounted to $370,863 at September 30, 1999.
Accordingly, the accrued interest income that was deemed uncollectible was
reversed from interest income from mortgage loans. The amount of accrued
interest income reversed during the three and nine months ended September 30,
1999 and 1998 was $41,145 and $0 and $287,235 and $0, respectively.


                                      -10-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                               September 30, 1999
                                   (Unaudited)

(G) The Originated Mortgages have terms of 40 years, subject to mandatory
prepayment at any time after 10 years and upon one year's notice.

(H) The interest rates for Columbiana are 7.9%-8.678% during the permanent loan
period and 7.4% during the construction period. In addition to the interest rate
during the permanent loan period, the Company will be entitled to 25% of the
cash flow remaining after payment of 8.678% interest. The operations of
Columbiana had not been able to support the payment of Additional Interest for
the period October 1, 1997 through June 30, 1998 which amounted to $48,760.
Accordingly, the accrued interest income that was deemed uncollectible was
reversed from interest income from mortgage loans in the fourth quarter of 1998.
As a result of the final advance and conversion of the construction loan to a
permanent loan during the second quarter of 1999, Columbiana was able to repay
construction period advances from the developer as well as Additional Interest
due to the Company through the second quarter. As a result, the Additional
Interest which had been reversed from interest income in previous quarters was
recorded as interest income in the second quarter of 1999.

(I) In addition to the interest rate, the Company is entitled to 40% of the cash
flow remaining after payment of Base and Additional Interest.

(J) On March 1, 1999 the outstanding debt due to the Company was fully repaid
(see above).

(K) Aggregate cost for federal income tax purposes is $47,121,296.


                                      -11-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                               September 30, 1999
                                   (Unaudited)

Note 3 - Investments in GNMA Certificates-Available for Sale

Information relating to investments in GNMA Certificates as of September 30,
1999 and December 31, 1998 is as follows:

<TABLE>
<CAPTION>
                                          Date Pur-
                                           chased                 Original                                  Accumulated
                                           /Final      Stated  Purchase Price  Principal at  (Discount) at  Amortization
                              Certificate  Payment    Interest   Including       September     September    at September
Seller                        Number        Date        Rate     (Discount)      30, 1999       30, 1999      30, 1999
------                        ------        ----        ----     ----------      --------       --------      --------
<S>                           <C>          <C>         <C>      <C>             <C>            <C>            <C>
GNMA Certificates

Bear Stearns                  0355540      7/27/94     7.125%   $ 2,407,102     $2,548,512     $(235,737)     $  102,954
                                           3/15/29

Malone Mortgage               0382486      7/28/94     8.500%     2,197,130      2,144,349        (8,041)          3,666
                                           8/15/29

Goldman Sachs                 0328502      7/29/94     8.250%     3,928,615      3,573,406        (3,348)          1,661
                                           7/15/29

SunCoast Capital Group, Ltd.  G22412       6/23/97     7.000%     1,981,566      1,391,509        (9,132)          4,566
                                           4/20/27
                                                                ----------------------------------------------------------
Total                                                           $10,514,413     $9,657,776     $(256,258)     $  112,847
                                                                ==========================================================

<CAPTION>
                                                 Unrealized                                 Interest
                               Loan Origination    Loss at     Balance at    Balance at       Earned                    Net
                              Costs at September  September    September      December    by the Company    1999      Interest
Seller                            30, 1999        30, 1999      30, 1999      31, 1998       for 1999     Accretion    Earned
------                            --------        --------      --------      --------       --------     ---------    ------
<S>                             <C>              <C>           <C>           <C>             <C>           <C>        <C>
GNMA Certificates

Bear Stearns                    $    78,845      $ (15,945)    $2,478,629    $ 2,589,414     $136,609      $14,993    $151,602


Malone Mortgage                      72,829        (12,166)     2,200,637      2,252,798      137,012          533     137,545


Goldman Sachs                       121,707        (59,160)     3,634,266      3,761,846      222,836          243     223,079


SunCoast Capital Group, Ltd.              0        (24,135)     1,362,808      1,698,944       77,989        1,644      79,633

                              ------------------------------------------------------------------------------------------------
Total                           $   273,381      $(111,406)    $9,676,340    $10,303,002     $574,446      $17,413    $591,859
                              ================================================================================================
</TABLE>



                                      -12-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                               September 30, 1999
                                   (Unaudited)

The amortized cost, unrealized gain and fair value for the investment in GNMA
Certificates at September 30, 1999 and December 31, 1998 were as follows:

                                              September 30,         December 31,
                                                  1999                 1998
                                              -------------         ------------

Amortized cost                                 $ 9,787,746          $10,140,469
Gross unrealized gain (loss)                      (111,406)             162,533
                                               -----------          -----------
Fair Value                                     $ 9,676,340          $10,303,002
                                               ===========          ===========

For the nine months ended September 30, 1999, there were gains and losses of
$1,532 and $2,434, respectively, (including acquisition fees and expenses) on
principal repayments of GNMAs.

Note 4 - Investment in Subordinated Commercial Mortgage-Backed Security-Trading
and Short Sales

On September 30, 1999, for settlement on October 1, 1999, the Company acquired a
"BB+" rated subordinated commercial mortgage-backed security ("CMBS") from a
Chase Manhattan Bank-First Union Nation Bank Commercial Mortgage Trust. The CMBS
investment, which was purchased for $35,622,358, has a face amount of
$50,399,711 and an annual coupon rate of 6.4%. The Company purchased the CMBS
investment using cash and debt provided through a repurchase facility (see Note
5).

At the date of acquisition, the Company elected to designate its CMBS investment
as a trading asset. Such securities are carried at their estimated fair value,
with the net unrealized gains or losses included in earnings. Interest income is
recognized as it becomes receivable, and includes accretion of discounts,
computed using the effective yield method, after considering estimated
prepayments and credit losses. Actual credit loss and prepayment experience will
be reviewed periodically and effective yields will be adjusted if necessary.


                                      -13-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                               September 30, 1999
                                   (Unaudited)

As of September 30, 1999, the 205 mortgage loans underlying the CMBS interest
held by the Company were secured by 217 properties of the types and in the
states identified below:

Property Type            Percentage (1)
-------------            --------------

Multifamily                    35%
Retail                         25
Office                         18
Health Care                     4
Hospitality                     4
Mixed Use                       4
Other                          10

State                    Percentage (1)
-----                    --------------

CA                             23%
NY                             19
FL                              6
PA                              6
Others (2)                     46

(1) Based on a percentage of the total unpaid principal balance of the
underlying loans.

(2) No other state comprises more than 5% of the total.

The fair value of the Company's CMBS investment is generally estimated by
management based on market prices provided by certain dealers who make a market
in these financial instruments. The market for CMBS investments periodically
suffers from a lack of liquidity. Accordingly, the fair value reported may not
necessarily be indicative of the amount the Company could realize in a current
sale.

At September 30, 1999, the un-leveraged, un-hedged, weighted average yield to
maturity of the Company's CMBS investment was approximately 15%.

The yield to maturity on the Company's CMBS interest depends on, among other
things, the rate and timing of principal payments, the pass-through rate and
interest rate fluctuations. The subordinated CMBS interest owned by the Company
provides credit support to the more senior interests of the related commercial
securitization. Cash flow from the mortgages underlying the CMBS interest
generally is allocated first to the senior interests, with the most senior
interest having a priority entitlement to cash flow. Remaining cash flow is
allocated generally among the other CMBS interests in order of their relative
seniority. To the extent that there are defaults and unrecoverable losses on the
underlying mortgages, resulting in reduced cash flows, the most subordinate CMBS
interest will bear this loss first. To the extent there are losses in excess of
the most subordinated interest's stated entitlement to principal and interest,
then the remaining CMBS interests will bear such losses in order of their
relative subordination. There is, therefore no assurance that the yield to
maturity discussed above will be achieved.

On September 30, 1999, the Company entered into an agreement (the "Agreement")
with ARCap Investors, L.L.C. ("ARCap"), a privately held investment fund which
is managed by an entity controlled by Apollo ARCap, L.L.C. and RemiCap
Investments, L.L.C. ARCap acquired


                                      -14-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                               September 30, 1999
                                   (Unaudited)

from a Chase Manhattan Bank-First Union National Bank Commercial Mortgage Trust
(the "Chase-First Union Trust") all of the commercial mortgage backed securities
that are subordinate to the CMBS investment (the "Subordinate Bonds") acquired
by the Company. Under the Agreement, the Company has the right to acquire a
portion of the Subordinate Bonds from ARCap and to exchange a portion or all of
the CMBS investment and Subordinate Bonds for a preferred equity interest in
ARCap. Furthermore, the Company has the right to participate on the same terms
with ARCap in any subsequent resecuritization by ARCap of the Chase-First Union
Trust bond issuance. In connection with such resecuritization, ARCap has the
right to cause the Company to choose between three alternative options: (i) to
sell the CMBS investment to ARCap; (ii) to participate with ARCap in the
resecuritization; or (iii) to exchange the CMBS investment for a preferred
equity position in ARCap.

On September 30, 1999, for settlement on October 1, 1999, the Company entered
into a contract to sell a security that it did not own at the time of the sale,
at a specified price, at a specified time ("Short Sale"). The Company is
utilizing this contract as a means of mitigating the potential financial
statement impact of changes in the fair value of its CMBS investment due to
changes in interest rates. This contract involved the sale of U.S. Treasury
Notes with a face amount of $39,327,000 borrowed from Bear Stearns & Co., Inc.
("Bear Stearns") for net proceeds of $39,028,841. Bear Stearns will retain
$38,933,730 of proceeds from the sale until the Company replaces the borrowed
security. Risks in these contracts arise from the possible inability of
counterparties to meet the terms of their contracts and from movements in
securities values and interest rates. If the market value of the securities
involved in the short sale increases, the Company may be required to meet a
"margin call". The Company accounts for its liability to return the borrowed
security under its Short Sale contract at its market value, with unrealized
gains or losses recorded in earnings. Income earned on the proceeds on deposit
with Bear Stearns will be included in interest income from cash and cash
equivalents and interest due on securities borrowed under the Short Sale is
included in interest expense.

The Company is exposed to credit loss in the event of nonperformance by the
broker that holds a deposit as collateral for securities sold short. However the
Company does not anticipate nonperformance by such broker.

Note 5 - Repurchase Facility

On September 30, 1999, the Company entered into a repurchase facility (the
"Repurchase Facility") with Bear Stearns, whereby Bear Stearns, on October 1,
1999, advanced $19,568,000 (55% of the purchase price) in cash towards the
purchase of a CMBS investment (see Note 4). The Repurchase Facility has a
variable interest rate based on the one-month LIBOR rate plus 1.5%, which is
adjusted on the first day of each month, and terminates on March 17, 2000. The
Repurchase Facility is collateralized by the Company's CMBS investment and
contains restrictions based on the then current market value of such investment
as calculated by Bear Stearns. A decline in the market value of the CMBS
investment could result in cash flow from such investment being diverted to
reduce the outstanding borrowing, the requirement to post additional collateral,
or the sale of such investment.

Note 6 - Related Party Transactions

Prior to the adoption of the Proposals, the Company had an agreement with the
Advisor pursuant to which the Advisor received compensation consisting primarily
of (i) asset management fees calculated as .625% of total assets invested by the
Company; (ii) a subordinated incentive fee based on the economic gain on the
sale of Mortgage Investments; (iii) reimbursement of certain administrative and
other costs incurred by the Advisor on behalf of the Company; and (iv) certain
other fees. In addition, with respect to Mortgage Loans acquired by the


                                      -15-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                               September 30, 1999
                                   (Unaudited)

Company, the Advisor was entitled to receive loan placement fees paid by
borrowers equal to up to 1.5% of the principal amount of each mortgage loan.

As a result of the adoption of the Proposals (see Note 1), the Board of Trustees
amended the Advisory Agreement between the Company and the Advisor to, among
other matters, reflect the Proposals and change the Advisory Agreement's fee
structure to (a) eliminate the acquisition and disposition fees currently
payable to the Advisor; (b) modify the annual asset management fee payable to
the Advisor as set forth below; and (c) include an annual incentive fee payable
to the Advisor as also set forth below. The modified annual asset management fee
is calculated as follows: (i) .355% for investments in Mortgage Loans; (ii)
 .355% for certain investment grade investments; (iii) .750% for certain
non-investment grade investments; (iv) 1.000% for unrated investments; and (v)
 .625% for investments held prior to the adoption of the Proposals. The annual
incentive fee is calculated as follows: subject to a minimum annual distribution
being made to shareholders from cash available for distribution of approximately
$1.45 per Share, the Advisor will be entitled to receive incentive compensation
for each fiscal year in an amount equal to the product of (A) 25% of the dollar
amount by which (1)(a) Funds From Operations of the Company (before the
incentive fee) per Share (based on the weighted average number of Shares
outstanding) plus (b) gains (or minus losses) from debt restructuring and sales
of property per Share (based on the weighted average number of Shares
outstanding), exceed (2) an amount equal to (a) the weighted average of the
price per Share of the initial offering (i.e. $20 per Share) and the prices per
Share of any secondary offerings by the Company multiplied by (b) the ten-year
U.S. Treasury rate plus two percent per annum multiplied by (B) the weighted
average number of Shares outstanding during such fiscal year. For any period
less than a fiscal year during which the amended Advisory Agreement is in
effect, the incentive fee will be prorated according to the proportion which
such period bears to a full fiscal year, taking into account, however, the
Company's cash available for distribution for the entire fiscal year.

In addition, the Advisory Agreement's fee structure was also changed so that
with respect to the first $100 million of new Mortgage Loans acquired by the
Company, the Advisor will receive origination points paid by borrowers equal to
up to 1% of the principal amount of each Mortgage Loan and the Company will
receive origination points paid by borrowers in excess of 1%. After the first
$100 million of additional Mortgage Loans is acquired, the Company will retain
100% of the origination points paid by borrowers.

The costs incurred to related parties for the three and nine months ended
September 30, 1999 and 1998 were as follows:

<TABLE>
<CAPTION>
                                 Three Months Ended           Nine Months Ended
                                    September 30,               September 30,
                              -------------------------     -----------------------
                                1999            1998          1999          1998
                              -------------------------     -----------------------
<S>                           <C>             <C>           <C>           <C>
Expense reimbursement         $  76,028       $  31,944     $ 152,521     $ 100,029
Asset management fees            63,485          90,329       205,588       272,118
Incentive management fee        (18,522)              0        81,139             0
                              ---------       ---------     ---------     ---------
                              $ 120,991       $ 122,273     $ 439,248     $ 372,147
                              =========       =========     =========     =========
</TABLE>


                                      -16-
<PAGE>

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                          Notes to Financial Statements
                               September 30, 1999
                                   (Unaudited)

Asset management fees, the incentive management fee and expense reimbursements
owed to the Advisor and its affiliates amounting to approximately $221,000 and
$1,327,000 were accrued and unpaid at September 30, 1999 and December 31, 1998,
respectively.

On May 19, 1999, the Company made a loan in the amount of $1,900,000 to
Patterson Hope '98 Urban Renewal L.L.C. (the "Borrower"), an entity in which an
affiliate of the Advisor is a member. The note bore interest at 12% which was
payable, along with the principal, at maturity on September 15, 1999. The note
was secured by all of the membership interest in the Borrower, was guaranteed by
Related Capital Company and could be prepaid in whole or in part at any time. In
September 1999 the loan was repaid and the Advisor and the Company each received
origination points (fees) in the amount of $19,000.

Note 7 - Earnings Per Share

Basic net income per share in the amount $.18 and $.22 and $1.35 and $.70 for
the three and nine months ended September 30, 1999 and 1998, respectively,
equals net income for the periods ($697,089 and $857,919 and $5,186,698 and
$2,707,126, respectively), divided by the weighted average number of shares
outstanding for the periods (3,838,630 and 3,845,453 and 3,843,044 and
3,845,043, respectively).

As the Company has only one type of equity security outstanding at September 30,
1999, diluted net income per share is the same as basic net income per share.

Note 8 - Commitments and Contingencies

The Company is currently in the process of completing a $250 million loan
venture with Federal National Mortgage Association ("Fannie Mae") which has
agreed to fund the origination of $250 million of Delegated Underwriter and
Servicer loans for apartment properties that qualify for low income housing tax
credits under Section 42 of the Internal Revenue Code. Fannie Mae is the
nation's largest source of financing for home mortgages and the largest investor
in multifamily mortgages. Under the proposed transaction, the Company will
originate and contract for individual loans of up to $6 million dollars each
over a two-year period and will work with American Property Financing, which
will underwrite and service the loans for Fannie Mae. Each property in the
transaction will benefit from 9% low income housing tax credits for no less than
90% of its units. The Company will guaranty a first loss position of up to 10%
of the pool of $250 million and will receive guaranty and other fees.


                                      -17-
<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.

Liquidity and Capital Resources

American Mortgage Acceptance Company (formerly American Mortgage Investors
Trust) (the "Company") was formed on June 11, 1991 as a Massachusetts business
trust for the primary purpose of investing in government-insured mortgages and
guaranteed mortgage-backed certificates.

On April 6, 1999, the Company received the necessary consent from its
shareholders to approve proposals (the "Proposals") to, among other things,
restructure the Company from a closed-ended, finite-life REIT to a publicly
traded, open-ended, infinite-life operating REIT. In addition to restructuring
the Company, the Proposals, among other matters, permit the Company to modify
its investment objectives, to incur a specified amount of indebtedness and to
list the Company's shares on a national exchange.

As a result of the adoption of the Proposals, the Company was liable for the
transaction expenses. Such expenses amounted to approximately $365,000 and are
classified as organization costs in the accompanying statements of income.

Effective April 26, 1999, upon authorization by the Board of Trustees, the
Company's name was changed from American Mortgage Investors Trust to American
Mortgage Acceptance Company. The Company's shares commenced trading on the
American Stock Exchange on July 1, 1999 under the symbol "AMC".

The Company's new business plan as a publicly traded REIT focuses on three types
of mortgage products: 1) origination of participating FHA insured multifamily
mortgages, 2) origination of construction and permanent mortgage financing for
affordable multifamily housing pursuant to a new venture with Fannie Mae, and 3)
acquisition of subordinated interests in commercial mortgage-backed securities.

The current composition of the Company's investment portfolio reflects the
recent change in the Company's business plan and is not comparable to its
investment portfolio prior to April 1999. Furthermore, the Company is still in
the process of implementing its new business plan and, therefore, the current
portfolio should not be considered indicative of the composition of the
portfolio that might be expected in the future.

Also as a result of the adoption of the Proposals, the Board of Trustees amended
the Advisory Agreement between the Company and the Advisor to, among other
matters, reflect the Proposals and change the Advisory Agreement's fee structure
to (a) eliminate the acquisition and disposition fees currently payable to the
Advisor; (b) modify the annual asset management fee payable to the Advisor as
set forth below; and (c) include an annual incentive fee payable to the Advisor.
The modified annual asset management fee is calculated as follows: (i) .355% for
investments in Mortgage Loans; (ii) .355% for certain investment grade
investments; (iii) .750% for certain non-investment grade investments; (iv)
1.000% for unrated investments; and (v) .625% for investments held prior to the
adoption of the Proposals.

In addition, the Advisory Agreement's fee structure was also changed so that
with respect to the first $100 million of new Mortgage Loans acquired by the
Company, the Advisor will receive origination points paid by borrowers equal to
up to 1% of the principal amount of each Mortgage Loan and the Company will
receive origination points paid by borrowers in excess of 1%. After the first
$100 million of additional Mortgage Loans is acquired, the Company will retain
100% of the origination points paid by borrowers.

These changes are intended to make such fees comparable to fees paid by other
publicly traded, open-ended infinite-life REITs with investment strategies
similar to the Company's new investment strategy.


                                      -18-
<PAGE>

As of September 30, 1999, the Company owned three participating FHA insured
mortgage loans, three uninsured additional loans to the developers of the
underlying properties, four GNMA Certificates, one subordinated commercial
mortgage-backed security and had net assets of approximately $57,553,000. For a
description of the Company's investments, see notes 2, 3 and 4 of Notes to
Financial Statements.

Due to the recent change in the Company's business plan, the current composition
of the Company's investment portfolio should not be considered indicative of the
composition of the portfolio that might be expected in the future.

During the nine months ended September 30, 1999, cash and cash equivalents
increased approximately $17,231,000 primarily due to cash provided by operating
activities ($1,100,000) and principal repayments of mortgage loans and GNMA
Certificates ($21,160,000) which exceeded distributions paid to shareholders
($4,164,000) and an increase in investment in mortgage loans ($829,000).
Included in the adjustments to reconcile the net income to cash provided by
operating activities is a gain on repayment of mortgage loans ($3,273,000) and
net amortization ($254,000).

Net unrealized losses on GNMA investments included in shareholders' equity
pursuant to Statement of Financial Accounting Standards No. 115 aggregated
$111,406 at September 30, 1999. This represents a decrease of $273,939 in the
unrealized gain for the nine months ended September 30, 1999, of which a
decrease of $6,905 is attributable to the sale of securities (which resulted in
a net realized loss of $902) and a decrease of $267,034 is attributable to a
decrease in market prices for the investments held at September 30, 1999 and
December 31, 1998. As of November 4, 1999, the net unrealized loss was
approximately $130,689.

The yield on the GNMA Certificates will depend, in part, upon the rate and
timing of principal prepayments on the underlying mortgages in the asset pool.
Generally, as market interest rates decrease, mortgage prepayment rates increase
and the market value of interest rate sensitive obligations like the GNMA
Certificates increases. As market interest rates increase, mortgage prepayment
rates tend to decrease and the market value of interest rate sensitive
obligations like the GNMAs tends to decrease. The effect of prepayments on yield
is greater the earlier a prepayment of principal is received. Due to the
complexity of the GNMA structure and the uncertainty of future economic and
other factors that affect interest rates and mortgage prepayments, it is not
possible to predict the effect of future events upon the yield to maturity or
the market value of the GNMA Certificates upon any sale or other disposition or
whether the Company, if it chose to, would be able to reinvest proceeds from
prepayments at favorable rates relative to the coupon rate.

The yield on the mortgage loans will depend, in part, on when, and if, the
Company disposes of the mortgage loans prior to maturity or the obligor fully
repays the outstanding debt. The mortgage loans have fixed interest rates, the
base amount of which is insured by HUD, resulting in a minimal amount of
interest rate risk. The effects of prepayment on yield is greater the earlier a
prepayment of principal is received. Due to the uncertainty of future economic
and other factors that affect interest rates and mortgage prepayments, it is not
possible to predict the effects of future events upon the yield to maturity or
the market value of the mortgage loans upon any sale or other disposition or
whether the Company, if it chose to, would be able to reinvest proceeds from
prepayments at favorable rates relative to the current mortgage loan rates. As
described below, two mortgage loans were repaid and the Company is still in the
process of reinvesting the proceeds of such repaid mortgage loans.

The operations of Town and Country have not been able to support the payment of
Additional Interest which amounted to $370,863 at September 30, 1999.
Accordingly, the accrued interest income that was deemed uncollectible was
reversed from interest income from mortgage


                                      -19-
<PAGE>

loans. The amount of accrued interest income reversed during the three and nine
months ended September 30, 1999 and 1998 was $41,145 and $0 and $287,235 and $0,
respectively.

The yield to maturity on the Company's CMBS interest depends on, among other
things, the rate and timing of principal payments, the pass-through rate and
interest rate fluctuations. The subordinated CMBS interest owned by the Company
provides credit support to the more senior interests of the related commercial
securitization. Cash flow from the mortgages underlying the CMBS interest
generally is allocated first to the senior interests, with the most senior
interest having a priority entitlement to cash flow. Remaining cash flow is
allocated generally among the other CMBS interests in order of their relative
seniority. To the extent that there are defaults and unrecoverable losses on the
underlying mortgages, resulting in reduced cash flows, the most subordinate CMBS
interest will bear this loss first. To the extent there are losses in excess of
the most subordinated interest's stated entitlement to principal and interest,
then the remaining CMBS interests will bear such losses in order of their
relative subordination. There is, therefore no assurance that the yield to
maturity discussed above will be achieved.

On September 30, 1999, the Company entered into an agreement (the "Agreement")
with ARCap Investors, L.L.C. ("ARCap"), a privately held investment fund which
is managed by an entity controlled by Apollo ARCap, L.L.C. and RemiCap
Investments, L.L.C. ARCap acquired from a Chase Manhattan Bank-First Union
National Bank Commercial Mortgage Trust (the "Chase-First Union Trust") all of
the commercial mortgage backed securities that are subordinate to the CMBS
investment (the "Subordinate Bonds") acquired by the Company. Under the
Agreement, the Company has the right to acquire a portion of the Subordinate
Bonds from ARCap and to exchange a portion or all of the CMBS investment and
Subordinate Bonds for a preferred equity interest in ARCap. Furthermore, the
Company has the right to participate on the same terms with ARCap in any
subsequent resecuritization by ARCap of the Chase-First Union Trust bond
issuance. In connection with such resecuritization, ARCap has the right to cause
the Company to choose between three alternative options: (i) to sell the CMBS
investment to ARCap; (ii) to participate with ARCap in the resecuritization; or
(iii) to exchange the CMBS investment for a preferred equity position in ARCap.

On September 30, 1999, for settlement on October 1, 1999, the Company entered
into a contract to sell a security that it did not own at the time of the sale,
at a specified price, at a specified time ("Short Sale"). The Company is
utilizing this contract as a means of mitigating ("Hedging") the potential
financial statement impact of changes in the fair value of its CMBS investment
due to changes in interest rates. This contract involved the sale of U.S.
Treasury Notes with a face amount of $39,327,000 borrowed from Bear Stearns &
Co., Inc. ("Bear Stearns") for net proceeds of $39,028,841. Bear Stearns will
retain $38,933,730 of proceeds from the sale until the Company replaces the
borrowed security. Risks in these contracts arise from the possible inability of
counterparties to meet the terms of their contracts and from movements in
securities values and interest rates. If the market value of the securities
involved in the short sale increases, the Company may be required to meet a
"margin call". The Company accounts for its liability to return the borrowed
security under its Short Sale contract at its market value, with unrealized
gains or losses recorded in earnings. Income earned on the proceeds on deposit
with Bear Stearns will be included in interest income from cash and cash
equivalents and interest due under the Short Sale is included in interest
expense.

The Company is exposed to credit loss in the event of nonperformance by the
broker that holds a deposit as collateral for securities sold short. However the
Company does not anticipate nonperformance by such broker.

On September 30, 1999, the Company entered into a repurchase facility (the
"Repurchase Facility") with Bear Stearns, whereby Bear Stearns, on October 1,
1999, advanced $19,568,000 (55% of the purchase price) in cash towards the
purchase of a CMBS investment. The Repurchase Facility has a variable interest
rate based on the one-month LIBOR rate plus 1.5%, which is adjusted on the first
day of each month, and terminates on March 17, 2000. The Repurchase Facility is
collateralized by the Company's CMBS investment and contains restric-


                                      -20-
<PAGE>

tions based on the then current market value of such investment as calculated by
Bear Stearns. A decline in the market value of the CMBS investment could result
in cash flow from such investment being diverted to reduce the outstanding
borrowing, the requirement to post additional collateral, or the sale of such
investment.

In order to qualify as a REIT under the Internal Revenue Code, as amended, the
Company must, among other things, distribute at least 95% of its taxable income.
The Company believes that it is in compliance with the REIT-related provisions
of the Code.

The Company expects that cash generated from the Company's investments will be
sufficient to pay all of the Company's expenses and to make distributions to its
shareholders in amounts sufficient to retain the Company's REIT status in the
foreseeable future.

Pursuant to the Redemption Plan which became effective November 30, 1994, the
Company was required to redeem eligible shares presented for redemption for cash
to the extent it had sufficient net proceeds from the sale of shares under the
Reinvestment Plan. As a result of the adoption of the Proposals, the Company's
Reinvestment Plan and Redemption Plan have been terminated, effective with the
distribution for the quarter ended March 31, 1999. The final reinvestment of
shares occurred on May 15, 1999. The final redemption of shares occurred on May
24, 1999.

On March 1, 1999, Cove Apartments L.L.C. (the "Cove Obligor"), the owner of Cove
Apartments ("Cove"), sold Cove to a third party for $10.25 million. The Cove
Obligor then fully repaid its outstanding debt due to the Company totaling
$8,676,849 including the outstanding balance of an FHA first mortgage loan in
the amount of $6,558,872, an $840,500 additional loan, a $327,944 prepayment
premium due the Company on the FHA loan, an $814,465 sales proceeds
participation payment and accrued Base Interest and Additional Interest through
the repayment date of $135,068 resulting in a gain on the repayment in the
amount of $1,224,968.

On March 1, 1999, Oxford Apartments, L.L.C. (the "Oxford Obligor"), the owner of
Oxford on Greenridge Apartments ("Oxford"), sold Oxford to a third party for
$15.25 million. The Oxford Obligor then fully repaid its outstanding debt due to
the Company totaling $12,288,813 including the outstanding balance of an FHA
first mortgage loan in the amount of $9,018,450, a $1,156,000 additional loan, a
$450,922 prepayment premium due the Company on the FHA loan, a $1,483,664 sales
proceeds participation payment and accrued Base Interest and Additional Interest
through the repayment date of $179,777 resulting in a gain on the repayment in
the amount of $2,048,234.

On May 19, 1999, the Company made a loan in the amount of $1,900,000 to
Patterson Hope '98 Urban Renewal L.L.C. (the "Borrower"), an entity in which an
affiliate of the Advisor is a member. The note bore interest at 12% which was
payable, along with the principal, at maturity on September 15, 1999. The note
was secured by all of the membership interest in the Borrower, was guaranteed by
Related Capital Company and could be prepaid in whole or in part at any time. In
September 1999 the loan was repaid and the Advisor and the Company each received
origination points (fees) in the amount of $19,000.

The Company is currently in the process of completing a $250 million loan
venture with Federal National Mortgage Association ("Fannie Mae") which has
agreed to fund the origination of $250 million of Delegated Underwriter and
Servicer loans for apartment properties that qualify for low income housing tax
credits under Section 42 of the Internal Revenue Code. Fannie Mae is the
nation's largest source of financing for home mortgages and the largest investor
in multifamily mortgages. Under the proposed transaction, the Company will
originate and contract for individual loans of up to $6 million dollars each
over a two-year period and will work with American Property Financing, which
will underwrite and service the loans for Fannie Mae. Each property in the
transaction will benefit from 9% low income housing tax credits for no less than
90%


                                      -21-
<PAGE>

of its units. The Company will guaranty a first loss position of up to 10% of
the pool of $250 million and will receive guaranty and other fees.

Management is not aware of any trends or events, commitments or uncertainties,
which have not otherwise been disclosed that will or are likely to impact
liquidity in a material way.

Results of Operations

The net income for the three and nine months ended September 30, 1999 and 1998
was $697,089 and $857,919 and $5,186,698 and $2,707,126, respectively. The total
of the annual operating expenses of the Company may not exceed the greater of
(i) 2% of the Average Invested Assets of the Company or (ii) 25% of the
Company's net income, unless such excess is approved by the Independent
Trustees. On an annualized basis, there was no such excess for the nine months
ended September 30, 1999 and 1998.

Interest income from mortgage loans decreased approximately $322,000 and
$951,000 for the three and nine months ended September 30, 1999 as compared to
1998 primarily due to the reversal of Additional Interest in 1999 relating to
Town and Country and the repayment of the Cove and Oxford mortgage loans on
March 1, 1999.

Interest income from REMIC and GNMA Certificates decreased approximately $22,000
and $89,000 for the three and nine months ended September 30, 1999 as compared
to 1998 primarily due to the repayment of one of the REMICs in October 1998 and
a decrease in the balances of the GNMA Certificates due to principal payments
received since September 30, 1998.

Interest income from note receivable in the amounts of approximately $59,000 and
$86,000 was recorded for the three and nine months ended September 30, 1999
relating to a loan made in May 1999 which was repaid in September 1999.

Interest income from cash and cash equivalents increased approximately $190,000
and $497,000 for the three and nine months ended September 30, 1999 as compared
to 1998 primarily due to proceeds from the repayment of the Cove and Oxford
mortgage loans on March 1, 1999 which were temporarily invested in 1999.

Other income in the amount of approximately $19,000 and $219,000 was recorded
for the three and nine months ended September 30, 1999 relating primarily to the
receipt of construction loan extension fees with respect to Columbiana mortgage
loan in the second quarter of 1999 and origination points (fees) relating to the
note receivable in the third quarter of 1999.

General and administrative expenses increased approximately $43,000 and $171,000
for the three and nine months ended September 30, 1999 as compared to 1998
primarily due to an incentive fee payable to the Advisor in the nine months and
an increase in the reimbursements of certain administrative and other costs
incurred by the Advisor on behalf of the Company, an increase in the estimate
for accounting and an increase in public relations expenses due to the
restructuring of the Company.

Distributions

Of the total distributions of $5,555,241 and $4,163,738 for the nine months
ended September 30, 1999 and 1998, respectively, $368,543 ($.10 per share or 7%)
and $1,456,612 ($.38 per share or


                                      -22-
<PAGE>

35%), respectively, represented a return of capital determined in accordance
with generally accepted accounting principles. As of September 30, 1999, the
aggregate amount of the distributions made since the commencement of the initial
public offering representing a return of capital, in accordance with generally
accepted accounting principles, totaled $11,551,566. The portion of the
distributions which constituted a return of capital was significant during the
initial acquisition stage in order to maintain level distributions to
shareholders.

Management expects that cash flow from operations will be sufficient to fund the
Company's operating expenses and to make distributions as determined by the
Board of Trustees on a quarterly basis.

Recently Issued Accounting Standards

The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments
and Hedging Activities". This statement establishes accounting and reporting
standards for derivative instruments, including certain derivative instruments
embedded in other contracts, and for hedging activities. It is effective for the
Company beginning with the first quarter of 2001. Company management is
currently evaluating the impact that this statement will have on its hedging
strategies and is currently unable to predict the effect, if any, it will have
on the Company's financial statements.

Forward-Looking Statements

Certain statements made in this report may constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements include statements regarding the intent, belief or
current expectations of the Company and its management and involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among other things, the
following: general economic and business conditions, which will, among other
things, affect the availability and creditworthiness of prospective tenants,
lease rents and the terms and availability of financing; adverse changes in the
real estate markets including, among other things, competition with other
companies; risks of real estate development and acquisition; governmental
actions and initiatives; and environment/safety requirements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company 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.

Year 2000 Compliance

The year 2000 compliance issue concerns the potential inability of certain
computerized systems to accurately record dates after 1999. The Company utilizes
the computer services of an affiliate of the Advisor. The affiliate of the
Advisor has upgraded its computer information systems to be year 2000 compliant
and beyond. The affiliate of the Advisor recently underwent a conversion of its
financial systems applications and upgraded all of its non-compliant, in-house
software and hardware inventory. The work stations which experienced problems
during the testing process were corrected with an upgrade patch. The costs
incurred by the Advisor are not being charged to the Company. The most likely
worst case scenario that the Company faces is that computer operations will be
suspended for a few days to a week at January 1, 2000. The Company's contingency
plan is to have a complete backup done on December 31, 1999 and to have both
electronic and printed reports generated for all critical data up to and
including December 31, 1999.

With regard to third parties, the Company's Advisor is in the process of
evaluating the potential adverse impact that could result from the failure of
material service providers to be year 2000 compliant. A detailed survey and
assessment was sent to material third parties in the fourth quarter of 1998. The
Company has received assurances from a majority of the third parties with which
it interacts that these third parties have addressed the year 2000 issues and is
evaluating these assurances for their adequacy and accuracy. In cases where the
Company has not received assurances from third parties, it is initiating further
mail and/or phone inquiries. The Company relies heavily on third parties and is
vulnerable to the failures of third


                                      -23-
<PAGE>

parties to address their year 2000 issues. There can be no assurance given that
the third parties will adequately address their issues.

Inflation

Inflation did not have a material effect on the Company's results for the
periods presented.

Quantitative and Qualitative Disclosures About Market Risk

Market risk is the exposure to loss resulting from changes in interest rates,
changes in spreads on CMBS, foreign currency exchange rates, commodity prices
and equity prices. The primary market risks to which the investments of the
Company are exposed are interest rate risk and CMBS spread risk, which are
highly sensitive to many factors, including governmental monetary and tax
policies, domestic and international economic and political considerations and
other factors beyond the control of the Company.

Changes in the general level of interest rates can affect the net interest
income of the Company.

The Company is further exposed to interest rate risk through its short term
financing through a repurchase facility at a rate that is based on the one-month
LIBOR. The repurchase facility into which the Company has entered is for a term
of 30 days terminates on March 17, 2000. Changes in interest rates may increase
the Company's cost of financing its investments. Furthermore, if the Company
were unable to replace its short term financing, it may be forced to sell its
assets in order to pay down its repurchase facility at a time when the market
for the sale of such assets is unfavorable. If this were to occur, the company
could realize substantial losses.

The investments of the Company are also exposed to spread risk. The price of a
fixed income security is generally determined by adding an interest rate spread
to a benchmark interest rate, such as the U.S. Treasury rate. As the spread on a
security widens (or increases), the price (or value) of the security falls. As
spreads on CMBS widen, the fair value of the Company's portfolio falls. Spread
widening in the market for CMBS can occur as a result of market concerns over
the stability of the commercial real estate market, excess supply of CMBS, or
general credit concerns in other markets.

The Company has entered into a contract to sell a security that it did not own
at the time of the sale, at a specified price at a specified time (short sales).
The Company utilizes this contract as a means of mitigating ('hedging') the
potential financial statement impact of changes in the fair value of its CMBS
investment due to changes in interest rates. As the value of the Company's CMBS
declines (increases) with increases (decreases) in interest rates, the value of
the contract increases (decreases). There can be no guarantee, however, that the
change in value of the contract will completely offset the change in value of
the fixed-rate interest earning asset. This contract involves the short sale of
a U.S. Treasury security. Risks in this contract arises from the possible
inability of the counterparty to meet the terms of its contract and from
movements in securities values and interest rates. If the market value of the
security involved in the short sale increases, the Company may be required to
meet a 'margin call'.


                                      -24-
<PAGE>

                           PART II. OTHER INFORMATION

Item 1. Legal Proceedings

      The Company is not a party to any material pending legal proceedings.

Item 2. Changes in Securities - None

Item 3. Defaults Upon Senior Securities - None

Item 4. Submission of Matters to a Vote of Security Holders

On February 12, 1999, definitive consent solicitation materials ("Consent
Statement") were sent to shareholders of record on February 5, 1999 with respect
to various proposals (the "Proposals") to restructure the Company from a
closed-ended, finite-life real investment trust ("REIT") to a publicly traded,
open-ended, infinite-life operating REIT.

As of April 6, 1999 each of the Proposals was approved by shareholders holding
more than 50% of the outstanding shares of the Company. As of April 12, 1999,
the last day on which consent ballots could be submitted, the final tabulation
for each of the Proposals was as set forth below (rounded to the nearest whole
share; 3,790,936 total shares outstanding):

I. To authorize an amendment to the Company's Board of Trustees to immediately
list the Company's Shares for trading on the American Stock Exchange.

                      REFUSE TO
CONSENT               CONSENT             ABSTAIN            UNVOTED
-------               -------             -------            -------
2,161,801 (57.03%)    434,708 (11.47%)    218,496 (5.76%)    975,931 (25.74%)

II. To authorize an amendment to the Company's Declaration that would clarify an
ambiguity in the Declaration of Trust so as to confirm the Board of Trustees'
authority to issue various types of debt and equity securities in addition to
additional shares of beneficial interest which the Board of Trustees is
currently authorized to issue.

                      REFUSE TO
CONSENT               CONSENT             ABSTAIN            UNVOTED
-------               -------             -------            -------
2,122,658 (56.00%)    458,005 (12.08%)    234,342 (6.18%)    975,931 (25.74%)

III. To authorize an amendment to the Declaration of Trust that would authorize
the Company's Board of Trustees to incur permanent debt up to an amount equal to
50% of the Company's Total Market Value (as defined in the Consent Statement)
measured at the time debt is incurred and to incur additional debt under working
capital line(s) of credit.

                      REFUSE TO
CONSENT               CONSENT             ABSTAIN            UNVOTED
-------               -------             -------            -------
2,059,709 (54.34%)    517,147 (13.64%)    238,149 (6.28%)    975,931 (25.74%)

IV. To authorize an amendment to the Declaration of Trust that would authorize
the Company's Board of Trustees to reinvest proceeds from repayments and
dispositions of the Company's assets.

                      REFUSE TO
CONSENT               CONSENT             ABSTAIN            UNVOTED
-------               -------             -------            -------
2,137,364 (56.39%)    451,630 (11.91%)    226,011 (5.96%)    975,931 (25.74%)


                                      -25-
<PAGE>

V. To authorize an amendment to the Declaration of Trust that would change the
Company from a finite-life, closed-ended REIT to an open-ended, infinite-life
REIT.

                      REFUSE TO
CONSENT               CONSENT             ABSTAIN            UNVOTED
-------               -------             -------            -------
2,119,398 (55.91%)    456,029 (12.03%)    239,578 (6.32%)    975,931 (25.74%)

VI. To authorize an amendment to the Declaration of Trust that would change the
Company's investment policy as described in the Consent Statement.

                      REFUSE TO
CONSENT               CONSENT             ABSTAIN            UNVOTED
-------               -------             -------            -------
2,107,579 (55.60%)    471,514 (12.44%)    235,912 (6.22%)    975,931 (25.74%)

VII. To authorize an amendment to the Declaration of Trust that would require
the consent of both a majority of the Board of Trustees and the holders of a
majority of the Shares to terminate the Company.

                      REFUSE TO
CONSENT               CONSENT             ABSTAIN            UNVOTED
-------               -------             -------            -------
2,149,391 (56.70%)    441,564 (11.65%)    224,050 (5.91%)    975,931 (25.74%)

VIII. To authorize various conforming amendments to the Declaration of Trust to
reflect the Company's new investment policy and other items discussed in the
Consent Statement.

                      REFUSE TO
CONSENT               CONSENT             ABSTAIN            UNVOTED
-------               -------             -------            -------
2,135,107 (56.32%)    446,078 (11.77%)    233,820 (6.17%)    975,931 (25.74%)

IX. To adopt an incentive share option plan.

                      REFUSE TO
CONSENT               CONSENT             ABSTAIN            UNVOTED
-------               -------             -------            -------
2,099,373 (55.38%)    472,983 (12.48%)    242,649 (6.40%)    975,931 (25.74%)

A proxy and proxy statement soliciting the vote of the Company's shareholders
for the Company's annual meeting of shareholders was sent to shareholders on or
about May 1, 1999. Such meeting was held on June 16, 1999. Peter T. Allen,
Arthur P. Fisch and J. Michael Fried were reelected as trustees (2,051,030
shares voted for reelection and 55,693 shares voted against reelection).

Item 5. Other Information - None


                                      -26-
<PAGE>

Item 6. Exhibits and Reports on Form 8-K

      (a)   Exhibits

            3.4   (c) Second Amended and Restated Declaration of Trust, dated as
                  of April 6, 1999 (incorporated by reference to Exhibit 3.4 (c)
                  in the Company's March 31, 1999 Quarterly Report on Form
                  10-Q).

            10    (y) Supplemental Mortgage Note by Columbiana Lakes Limited
                  Partnership, dated as of April 1, 1999 (filed herewith).

            10    (z) Amended and Restated Advisory Services Agreement,
                  effective as of April 6, 1999 (filed herewith).

            27    Financial Data Schedule (filed herewith).

      (b)   Reports on Form 8-K

            Current report on Form 8-K relating to the commencement of trading
            on the American Stock Exchange on July 1, 1999 was dated July 1,
            1999 and was filed on July 9, 1999.

            Current Report Form 8-K relating to the dismissal of the accounting
            firm of KPMG LLP and the retention of the accounting firm of
            Deloitte & Touche LLP as the Company's independent auditor to audit
            the Company's financial statements was dated September 9, 1999 and
            was filed on September 15, 1999.


                                      -27-
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                      AMERICAN MORTGAGE ACCEPTANCE COMPANY
                                  (Registrant)

Date: November 12, 1999

                                       By: /s/ Stuart J. Boesky
                                           ------------------------------------
                                           Stuart J. Boesky
                                           President and Chief Operating Officer

Date: November 12, 1999

                                       By: /s/ John B. Roche
                                           ------------------------------------
                                           John B. Roche
                                           Senior Vice President and
                                           Chief Financial Officer

Date: November 12, 1999

                                       By: /s/ Richard A. Palermo
                                           ------------------------------------
                                           Richard A. Palermo
                                           Vice President, Treasurer, Controller
                                           and Chief Accounting Officer