Greystone Housing Impact Investors LP : Financial Supplemental Report - Q1 2025

Published: 2025-05-08 20:08:39 ET GHI

Published on 05/08/2025 at 20:08

Supplemental Financial Report for the Quarter Ended March 31, 2025

TABLE OF CONTENTS

Letter from the CEO Quarterly Fact Sheet

Financial Performance Information

Appendices

Important Disclosure Notices

Other Partnership Information

I am pleased to report Greystone Housing Impact Investors LP's operating results for the first quarter of 2025. We reported the following financial results as of and for the three months ended March 31, 2025:

Total revenues of $25.1 million.

Net income of $0.11 per Beneficial Unit Certificate ("BUC"), basic and diluted.

Cash Available for Distribution ("CAD") of $0.31 per BUC.

Total assets of $1.54 billion.

Total Mortgage Revenue Bond ("MRB") and Governmental Issuer Loan ("GIL") investments of $1.18 billion.

The difference between reported net income per BUC and CAD per BUC is primarily due to the treatment of unrealized gains on the Partnership's interest rate derivative positions. Unrealized losses of approximately $3.9 million are included in net income for the three months ended March 31, 2025. Unrealized losses are a result of the impact of decreased market interest rates on the calculated fair value of the Partnership's interest rate derivative positions. Unrealized gains and losses do not affect our cash earnings and are added back to net income when calculating the Partnership's CAD. The Partnership received net cash from its interest rate derivative positions totaling approximately $847,000 during the first quarter.

We reported the following notable transactions during the first quarter of 2025:

Advanced funds on MRB and taxable MRB investments totaling $21.5 million, offset by an MRB redemption of approximately $10.4 million.

Advanced funds on GIL and taxable GIL investments totaling $39.1 million.

GIL, taxable GIL, and property loan redemptions and paydowns totaling approximately $102.7 million.

Advanced funds to joint venture equity investments totaling $5.6 million.

Received proceeds of $14.2 million upon sale of Vantage at Tomball, inclusive of return of capital and accrued preferred return.

Issued $20 million Series B Preferred Units with an annual distribution rate of 5.75% to an existing investor.

In May 2025, the managing member of Vantage at Helotes sold the property to a governmental entity who in turn leased the property to a nonprofit entity. That non-profit entity financed its purchase of the leasehold interest by issuing tax-exempt and taxable bonds. The Partnership received gross proceeds of approximately $17.1 million, inclusive of the return of capital contributions and accrued preferred return. The Partnership expects to recognize investment income of approximately $1.8 million and a gain on sale of approximately $163,000 in the second quarter of 2025, before

settlement of final proceeds and expenses. The Partnership expects to recognize approximately $0.08 of net income per BUC and CAD per BUC, basic and diluted, based on the number of BUCs outstanding on the date of sale.

Other highlights of our investment portfolio include the following:

The Partnership continues to execute its hedging strategy, primarily through interest rate swaps, to reduce the impact of changing market interest rates.

Six joint venture equity investment properties have completed construction, with three properties having previously achieved 90% occupancy. Four of the Partnership's joint venture equity investments are currently under construction or in development, with none having experienced material supply chain disruptions for either construction materials or labor to date.

Overall macroeconomic and interest rate volatility as well as investor demand for low income housing tax credits continue be a challenge for new development opportunities for our sponsor clients. The conditions in the multifamily markets, both higher interest rates and operating expenses, also present challenges to our joint venture equity investments. However, we are encouraged by the opportunities that we continue to see. The dedicated pool of capital that we have from the new BlackRock construction lending joint venture is a powerful new tool for us to serve the needs of our affordable housing developer relationships.

Thank you for your continued support of Greystone Housing Impact Investors LP!

Kenneth C. Rogozinski Chief Executive Officer

PARTNERSHIP DETAILS Greystone Housing Impact Investors LP was formed for the purpose

Symbol (NYSE)

Most Recent Quarterly Distribution per BUC (1)

GHI 0.37

BUC Price

12.33

Year to Date Annualized Yield (2)

12.0%

BUCs Outstanding

23,171,226

Market Capitalization

$285,701,217

52-week BUC price range

$10.12 to $16.29

(As of March 31, 2025)

of acquiring a portfolio of MRBs that are issued to provide construction and/or permanent financing of affordable multifamily residential and commercial properties. The Partnership has also invested in GILs, which, similar to MRBs, provide financing for affordable multifamily properties. We expect and believe the interest paid on the MRBs and GILs to be excludable from gross income for federal income tax purposes. In addition, we have invested in equity interests in multifamily, market rate properties throughout the U.S. We

continue to pursue a business strategy of acquiring additional MRBs

and GILs on a leveraged basis, and other investments.

Partnership Financial Information for Q1 2025 ($'s in 000's, except per BUC amounts)

3/31/2025

12/31/2024

Total Assets

$1,537,483

$1,579,700

Leverage Ratio (3)

74%

75%

Q1 2025

Total Revenues $25,125

Net Income $3,327

Cash Available for Distribution ("CAD") (4) $7,139 Cash Distributions declared, per BUC (1) $0.37

(1) The distribution was paid on April 30, 2025 for BUC holders of record as of March 31, 2025. The distribution is payable to BUC holders of record as of the last business day of the quarter and GHI trades ex-dividend one day prior to the record date, with a payable date of the last business day of the subsequent month.

(2) The annualized yield calculation is based on year-to-date distributions declared of $0.37 per BUC.

(3) Our overall leverage ratio is calculated as total outstanding debt divided by total assets using cost adjusted for paydowns and allowances for MRBs, GILs, property loans, taxable MRBs and taxable GILs, and initial cost for deferred financing costs and real estate assets.

(4) Management utilizes a calculation of Cash Available for Distribution ("CAD") to assess the Partnership's operating performance. This is a non-GAAP financial measure. See the Important Disclosure Notices in the Appendices for important information regarding non-GAAP measures. A reconciliation of our GAAP net income (loss) to CAD is provided on page 20 of this report.

Disclaimer

Greystone Housing Impact Investors LP published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 22:20 UTC.