Greystone Housing Impact Investors LP : Q1 2025 Supplemental Report
GHI
Published on 05/08/2025 at 20:08
Supplemental Financial Report for the Quarter Ended March 31, 2025
©2025 Greystone & Co. II LLC. All rights reserved. References to the term "Greystone," refer to Greystone & Co. II LLC and/or its affiliated companies, as applicable.
TABLE OF CONTENTS
Letter from the CEO
3
Quarterly Fact Sheet
5
Financial Performance Information
6
Appendices
18
Important Disclosure Notices
22
Other Partnership Information
24
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.
(Dollar amounts in thousands, except per BUC information)
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Total revenues
$
22,371
$
21,969
$
24,345
$
22,586
$
25,125
Total expenses
(11,667
)
(17,860
)
(28,279
)
(12,371
)
(21,573
)
Gain on sale of real estate assets
-
64
-
-
-
Gain on sale of mortgage revenue bonds
-
1,012
-
1,208
-
Gain on sale of investments in unconsolidated entities
50
7
-
61
5
Earnings (losses) from investments in unconsolidated entities
(107
)
(15
)
(704
)
(1,315
)
(233
)
Income tax (expense) benefit
1
1
2
(36
)
3
Net income (loss)
$
10,648
$
5,178
$
(4,636
)
$
10,133
$
3,327
Per BUC operating metrics(1):
Net income (loss)
$
0.42
$
0.19
$
(0.23
)
$
0.39
$
0.11
Cash available for distribution
$
0.23
$
0.27
$
0.27
$
0.18
$
0.31
Per BUC distribution information(1):
Cash distributions declared
$
0.37
$
0.37
$
0.37
$
0.37
$
0.37
BUC distributions declared
0.07
-
-
-
-
Total distributions declared
$
0.44
$
0.37
$
0.37
$
0.37
$
0.37
Weighted average BUCs outstanding
23,000,754
23,083,387
23,085,261
23,115,162
23,171,226
BUCs outstanding, end of period
23,057,328
23,085,261
23,085,261
23,171,226
23,171,226
(1)Per BUC metrics are presented as initially reported and have not been retrospectively adjusted for subsequent distributions payable in the form of additional BUCs.
(Dollar amounts in thousands)
(Dollar amounts in thousands)
Note: Mortgage Investments include the Partnership's Mortgage Revenue Bonds, Governmental Issuer Loans, Taxable Mortgage Revenue Bonds, Taxable Governmental Issuer Loans, and Property Loans that share a first mortgage lien with the Governmental Issuer Loans.
(Dollar amounts in thousands)
(Dollar amounts in thousands)
(1)The variable-rate debt financing is hedged through our interest rate swap agreements. Though the variable rate indices may differ, these interest rate swaps have effectively synthetically fixed the interest rate of the related debt financing.
(2)The securitized assets and related debt financings each have variable interest rates. Though the variable rate indices may differ, the Partnership is largely hedged against rising interest rates.
(3)A majority of the securitized assets in this category as of March 31, 2025 have maturity dates in 2025.
(Dollar amounts in thousands)
Quarterly Activity
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Investment Purchases
$
36,371
$
102,905
$
58,003
$
68,810
$
60,610
Sales and Redemptions
(120,050
)
(10,281
)
(57,339
)
(13,267
)
(114,760
)
Net Investment Activity
(83,679
)
92,624
664
55,543
(54,150
)
Net Debt (Proceeds) Repayment
53,348
(88,657
)
1,233
(48,134
)
47,343
Net Capital Deployed
$
(30,331
)
$
3,967
$
1,897
$
7,409
$
(6,807
)
(Dollar amounts in thousands)
Quarterly Activity
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
JV Equity Contributions
$
6,960
$
11,669
$
10,443
$
11,156
$
7,709
Return of JV Equity Contributions
-
-
-
-
(13,488
)
Net Investment Activity
6,960
11,669
10,443
11,156
(5,779
)
Net Debt Proceeds
-
(10,000
)
(14,000
)
(9,500
)
-
Net Capital Deployed
$
6,960
$
1,669
$
(3,557
)
$
1,656
$
(5,779
)
Note: Per unit data derived from weighted average BUCs outstanding during the period, except for the Net Book Values, which are based on shares outstanding on the stated date, including unvested restricted units. Numbers may not sum due to rounding.
The interest rate sensitivity table below represents the change in interest income from investments, net of interest on debt and settlement payments for interest rate derivatives over the next twelve months, assuming an immediate parallel shift in the SOFR yield curve and the resulting implied forward rates are realized as a component of this shift in the curve and assuming management does not adjust its strategy in response. The amounts in the table below do not consider any potential unrealized gains or losses from derivatives in determining the net interest income impact.
Description
- 100 basis points
- 50 basis points
+ 50 basis points
+ 100 basis points
+ 200 basis points
TOB Debt Financings
$4,446,791
$2,223,396
$(2,223,396)
$(4,446,791)
$(8,893,583)
Other Financings & Derivatives
(2,447,159)
(1,223,580)
1,223,580
2,447,159
4,894,319
Variable Rate Investments
(799,382)
(399,691)
399,691
799,382
1,598,765
Net Interest Income Impact
$1,200,250
$600,125
$(600,125)
$(1,200,250)
$(2,400,499)
Per BUC Impact (1)
$0.052
$0.026
$(0.026)
$(0.052)
$(0.104)
(1) The net interest income impact per BUC calculated based on 23,171,226 BUCs outstanding as of March 31, 2025.
(Dollar amounts in thousands)
(Dollar amounts in thousands)
(1) This Item includes unrealized gains and losses on the Partnership's interest rate derivative instruments that are non-cash income (expense) in the period reported. For Q1 2025, non-cash unrealized losses on derivatives totaled approximately $3.9 million.
Since April 1, 2023, the sum of "Salaries and benefits" and "General and administrative" expenses as a percentage of Total Assets has averaged approximately 0.24% per quarter.
The following table summarizes tax-exempt and taxable income as percentages of total income allocated to the Partnership's BUCs on Schedule K-1 for tax years 2022 to 2024. This disclosure relates only to income allocated to the Partnership's BUCs and does not consider an individual unitholder's basis in the BUCs or potential return of capital as such matters are dependent on the individual unitholders' specific tax circumstances. The disclosure also assumes that the individual unitholder can utilize all allocated losses and deductions, even though such items may be limited depending on the unitholder's specific tax circumstances. Such amounts are for all BUC holders in the aggregate during the year. Income is allocated to individual investors monthly and amounts allocated to individual investors may differ from these percentages due to, including, but not limited to, BUC purchases and sales activity and the timing of significant transactions during the year.
2024(1)
2023
2022
Tax-exempt income
n/a
40
%
25
%
Taxable income
n/a
60
%
75
%
n/a
100
%
100
%
(1) The Partnership generated a net taxable loss for BUC holders for tax year 2024 due to the allocation of net rental real estate losses on the Partnership's JV Equity Investments and the lack of JV Equity property gains on sale during the year. As a class, the BUC holders were allocated approximately $16.8 million of net tax-exempt interest income and approximately $21.4 million of net taxable losses for tax year 2024.
Unrelated Business Taxable Income
Certain allocations of income and losses may be considered Unrelated Business Taxable Income ("UBTI") for certain tax-exempt unitholders.
UBTI-related items are reported in Box 20V and in the footnotes to each BUC holder's Schedule K-1. The rules around UBTI are complex, so please consult your tax advisor.
(Dollar amounts in thousands, except per BUC information)
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Revenues:
Investment income
$
19,272
$
19,827
$
21,821
$
20,056
$
21,878
Other interest income
3,004
2,071
2,235
2,200
2,288
Other income
95
71
289
330
959
Total revenues
22,371
21,969
24,345
22,586
25,125
Expenses:
Provision for credit losses
(806
)
20
(226
)
(24
)
(172
)
Depreciation and amortization
6
6
6
6
4
Interest expense
13,804
14,898
15,489
15,841
14,135
Net result from derivative transactions
(6,268
)
(1,885
)
7,897
(8,240
)
3,036
General and administrative
4,931
4,821
5,113
4,788
4,570
Total expenses
11,667
17,860
28,279
12,371
21,573
Other Income:
Gain on sale of real estate assets
-
64
-
-
-
Gain on sale of mortgage revenue bonds
-
1,012
-
1,208
-
Gain on sale of investments in unconsolidated entities
50
7
-
61
5
Earnings (losses) from investments in unconsolidated entities
(107
)
(15
)
(704
)
(1,315
)
(233
)
Income (loss) before income taxes
10,647
5,177
(4,638
)
10,169
3,324
Income tax expense (benefit)
(1
)
(1
)
(2
)
36
(3
)
Net income (loss)
10,648
5,178
(4,636
)
10,133
3,327
Redeemable preferred unit distributions and accretion
(767
)
(741
)
(741
)
(741
)
(761
)
Net income (loss) available to partners
$
9,881
$
4,437
$
(5,377
)
$
9,392
$
2,566
Net income (loss) available to partners allocated to:
General partner
$
98
$
44
$
(54
)
$
391
$
25
Limited partners - BUCs
9,725
4,324
(5,399
)
8,938
2,484
Limited partners - Restricted units
58
69
76
63
57
Net income (loss) available to partners
$
9,881
$
4,437
$
(5,377
)
$
9,392
$
2,566
(Dollar amounts in thousands, except per BUC information)
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Net income (loss)
$
10,648
$
5,178
$
(4,636
)
$
10,133
$
3,327
Unrealized (gains) losses on derivatives, net
(4,604
)
(211
)
9,695
(6,979
)
3,883
Depreciation expense
6
6
6
6
4
Provision for credit losses
(806
)
189
(226
)
(24
)
(172
)
Amortization of deferred financing costs
367
460
360
466
382
Restricted unit compensation expense
332
558
565
436
234
Deferred income taxes
3
(1
)
(1
)
1
1
Redeemable Preferred Unit distributions and accretion
(767
)
(741
)
(741
)
(741
)
(761
)
Tier 2 Income allocable to the General Partner
-
-
-
(310
)
-
Recovery of prior credit loss
(17
)
(17
)
(17
)
(17
)
(17
)
Bond premium, discount and amortization, net of cash received
(40
)
879
499
(91
)
25
(Earnings) losses from investments in unconsolidated entities
107
15
704
1,315
233
Total Cash Available for Distribution
$
5,229
$
6,315
$
6,208
$
4,195
$
7,139
Weighted average number of BUCs outstanding, basic
23,000,754
23,083,387
23,085,261
23,115,162
23,171,226
Net income (loss) per BUC, basic
$
0.42
$
0.19
$
(0.23
)
$
0.39
$
0.11
Total CAD per BUC, basic
$
0.23
$
0.27
$
0.27
$
0.18
$
0.31
Cash Distributions declared, per BUC
$
0.37
$
0.37
$
0.37
$
0.37
$
0.37
BUCs Distributions declared, per BUC (2)
$
0.07
$
-
$
-
$
-
$
-
Trailing five quarter totals:
Net income per BUC, basic
$
0.88
Total CAD per BUC, basic
$
1.26
Cash Distributions declared, per BUC
$
1.85
BUCs Distributions declared, per BUC
$
0.07
(1)See the Important Disclosure Notices in the Appendices for important information regarding non-GAAP measures. Per BUC metrics are presented as initially reported and have not been retrospectively adjusted for future distributions payable in the form of additional BUCs.
(2)See the Important Disclosure Notices in the Appendices for information regarding the BUCs distributions declared.
(Dollar amounts in thousands, except per BUC information)
3/31/2024
6/30/2024
9/30/2024
12/31/2024
3/31/2025
Assets:
Cash
$
56,255
$
34,036
$
37,374
$
14,703
$
51,389
Restricted cash
14,672
16,861
10,446
16,603
13,066
Interest receivable
7,847
7,193
7,104
7,446
7,127
Mortgage revenue bonds, at fair value
942,746
1,002,052
1,032,891
1,026,484
1,022,564
Governmental issuer loans, net
204,391
213,446
205,639
225,164
160,467
Property loans, net
51,678
61,358
53,835
55,135
47,409
Investments in unconsolidated entities
145,131
157,941
168,743
179,410
167,989
Real estate assets, net
4,716
4,716
4,716
4,906
3,552
Other assets
25,983
31,038
28,501
49,849
63,920
Total assets
$
1,453,419
$
1,528,641
$
1,549,249
$
1,579,700
$
1,537,483
Liabilities
Accounts payable, accrued expenses and other liabilities
$
20,863
$
21,215
$
24,724
$
23,481
$
21,562
Distribution payable
8,672
8,704
8,704
8,997
8,744
Secured lines of credit
16,500
41,250
44,400
68,852
58,500
Debt financing, net
978,475
1,052,526
1,062,408
1,093,273
1,056,520
Mortgages payable, net
1,690
1,690
1,690
1,664
310
Total liabilities
1,026,200
1,125,385
1,141,926
1,196,267
1,145,636
Redeemable preferred units
87,389
77,395
77,401
77,406
97,399
Partners' capital
339,830
325,861
329,922
306,027
294,448
Total liabilities and partners' capital
$
1,453,419
$
1,528,641
$
1,549,249
$
1,579,700
$
1,537,483
Net book value per BUC(1)
$
14.59
$
13.98
$
14.15
$
13.15
$
12.59
(1)Based on total BUCs and unvested restricted unit awards outstanding as of each date presented.
Forward-Looking Statements
All statements in this document other than statements of historical facts, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. When used, statements which are not historical in nature, including those containing words such as "anticipate," "estimate," "should," "expect," "believe," "intend," and similar expressions, are intended to identify forward-looking statements. We have based forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. This document may also contain estimates and other statistical data made by independent parties and by us relating to market size and growth and other industry data. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not independently verified the statistical and other industry data generated by independent parties contained in this supplement and, accordingly, we cannot guarantee their accuracy or completeness. In addition, projections, assumptions and estimates of our future performance and the future performance of the industries in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described under the headings "Item 1A Risk Factors" in our 2024 Annual Report on Form 10-K for the year ended December 31, 2024. These forward-looking statements are subject to various risks and uncertainties and Greystone Housing Impact Investors LP (the "Partnership") expressly disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Most, but not all, of the selected financial information furnished herein is derived from the Greystone Housing Impact Investors LP's consolidated financial statements and related notes prepared in conformity with generally accepted accounting principles in the United States of America ("GAAP") and management's discussion and analysis of financial condition and results of operations included in the Partnership's reports on Forms 10-K and 10-Q. The Partnership's annual consolidated financial statements were subject to an independent audit, dated February 20, 2025.
Disclosure Regarding Non-GAAP Measures
This document refers to certain financial measures that are identified as non-GAAP. We believe these non-GAAP measures are helpful to investors because they are the key information used by management to analyze our operations. This supplemental information should not be considered in isolation or as a substitute for the related GAAP measures.
Please see the consolidated financial statements we filed with the Securities and Exchange Commission on Forms 10-K and 10-Q. Our GAAP consolidated financial statements can be located upon searching for the Partnership's filings at https://www.sec.gov.
Other Information
On December 13, 2023, the Partnership declared a supplemental distribution payable in the form of additional BUCs equal to $0.07 per BUC (the "Fourth Quarter 2023 BUCs Distribution"). The Fourth Quarter 2023 BUCs Distribution was paid at a ratio of 0.00415 BUCs for each issued and outstanding BUC as of the record date of December 29, 2023, which represents an amount per BUC based on the closing price of the BUCs on the NYSE on December 12, 2023. The Fourth Quarter 2023 BUCs Distribution was completed on January 31, 2024.
On March 13, 2024, the Partnership declared a supplemental distribution payable in the form of additional BUCs equal to $0.07 per BUC (the "First Quarter 2024 BUCs Distribution", collectively with the Fourth Quarter 2023 BUCs Distribution, the "BUCs Distributions"). The First Quarter 2024 BUCs Distribution was paid at a ratio of 0.00417 BUCs for each issued and outstanding BUC as of the record date of March 28, 2024, which represents an amount per BUC based on the closing price of the BUCs on the NYSE on March 12, 2024. The First Quarter 2024 BUCs Distribution was completed on April 30, 2024.
There were no fractional BUCs issued in connection with the BUCs Distributions. All fractional BUCs resulting from the BUCs Distributions received cash for such fraction based on the market value of the BUCs on the record date.
Unless noted otherwise herein, the BUCs Distributions have been applied retroactively to all net income per BUC, distributions per BUC and similar per BUC disclosures for all periods indicated in this supplemental financial report.
Corporate Office:
Transfer Agent:
14301 FNB Parkway
Equiniti Trust Company, LLC
Suite 211
48 Wall Street, Floor 23
Omaha, NE 68154
New York, NY 10005
Phone:
402-952-1235
Investor & K-1 Services:
855-428-2951
Phone: 718-921-8124
Web Site:
https://www.ghiinvestors.com
800-937-5449
K-1 Services Email:
Ticker Symbol (NYSE):
GHI
Corporate Counsel:
Independent Accountants:
Barnes & Thornburg LLP
PwC
11 S. Meridian Street
1 North Wacker Drive
Indianapolis, IN 46204
Chicago, Illinois 60606
Board of Managers of Greystone AF Manager LLC:
(acting as the directors of Greystone Housing Impact Investors LP)
Stephen Rosenberg
Chairman of the Board
Jeffrey M. Baevsky
Manager
Drew C. Fletcher
Manager
Steven C. Lilly
Manager
W. Kimball Griffith
Manager
Deborah A. Wilson
Manager
Robert K. Jacobsen
Manager
Corporate Officers:
Kenneth C. Rogozinski
Chief Executive Officer
Jesse A. Coury
Chief Financial Officer
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.