Greystone Housing Impact Investors LP : Financial Supplemental Report - Q4 2024

Published: 2025-03-05 17:10:54 ET GHI

Supplemental Financial Report for the Quarter Ended December 31, 2024

Partnership Financial Information

TABLE OF CONTENTS

Letter from the CEO

Quarterly Fact Sheet

Financial Performance Information

Appendices

Important Disclosure Notices

Other Partnership Information

Supplemental Financial Report for the Quarter Ended December 31, 2024

Letter from the CEO

I am pleased to report Greystone Housing Impact Investors LP's operating results for the fourth quarter of 2024. We reported the following financial results as of and for the three months ended December 31, 2024:

The difference between reported net income per BUC and CAD per BUC is primarily due to the treatment of unrealized gains on our interest rate derivative positions. Unrealized gains of approximately $7.0 million are included in net income for the three months ended December 31, 2024. Unrealized gains are a result of the impact of increased market interest rates on the calculated fair value of our interest rate derivative positions. Unrealized gains and losses do not affect our cash earnings and are added back to net income when calculating CAD. We received net cash from our interest rate derivative positions totaling approximately $1.3 million during the fourth quarter.

We reported the following financial results for the year ended December 31, 2024:

We reported the following notable transactions during the fourth quarter of 2024:

Supplemental Financial Report for the Quarter Ended December 31, 2024

In January 2025, we received proceeds from the sale of Vantage at Tomball located in Tomball, Texas, totaling $14.2 million, inclusive of the Partnership's initial investment commitment made in August 2020. We estimate that we will not recognize any gain, loss, or CAD upon sale.

Other highlights of our investment portfolio include the following:

2024 was a challenging year from a number of different perspectives. The conditions in the multifamily markets, both higher interest rates and operating expenses, presented challenges to our joint venture equity investments. Interest rate volatility also impacted the efficiency of some of our securitization transactions. However, we are encouraged by the opportunities that we are starting to see in 2025. 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.

We continue to observe that traditional bank affordable housing lenders are offering fewer loans or imposing more restrictive terms on borrowers, creating new opportunities for us to pursue beyond our normal pipeline. We will continue to strategically work with strong sponsors on new investment opportunities where traditional sources of capital may not currently be available. We will also continue to seek to develop new relationships, particularly with those sponsors that are existing clients of Greystone and its affiliates.

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

Kenneth C. Rogozinski

Chief Executive Officer

Supplemental Financial Report for the Quarter Ended December 31, 2024

Fourth Quarter 2024 Fact Sheet

PARTNERSHIP DETAILS

(As of December 31, 2024)

Symbol (NYSE)

GHI

Most Recent Quarterly Distribution per BUC (1)

0.37

BUC Price

10.25

Year to Date Annualized Yield (2)

15.1%

BUCs Outstanding

23,171,226

Market Capitalization

$237,505,067

52-week BUC price range

$10.12 to $17.31

Partnership Financial Information for Q4 2024

($'s in 000's, except per BUC amounts)

12/31/2024

12/31/2023

Total Assets

$1,579,700

$1,513,401

Leverage Ratio (3)

75%

72%

Q4 2024

YTD 2024

Total Revenues

$22,586

$91,271

Net Income

$10,133

$21,323

Cash Available for Distribution ("CAD") (4)

$4,195

$21,947

Cash Distributions declared, per BUC (1)

$0.370

$1.478

BUCs Distributions declared, per BUC (1)

$0.070

Greystone Housing Impact Investors LP was formed for the primary purpose 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.

(1)

(2)

(3)

(4)

The distribution was paid on January 31, 2025 for BUC holders of record as of December 31, 2024. 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. The quarter-to-date distribution consists of the regular quarterly cash distribution of $0.37 per outstanding BUC. The year-to-date distributions consist of $1.48 per BUC of regular quarterly cash distributions plus a supplemental distribution payable in the form of additional BUCs equal to $0.07 per BUC. The year-to-date amounts above have been retroactively adjusted to reflect the BUCs distribution as of the beginning of the periods presented.

The annualized yield calculation is based on year-to-date distributions declared of $1.55 per BUC.

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.

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.

Supplemental Financial Report for the Quarter Ended December 31, 2024

Operating Results Summary

(Dollar amounts in thousands, except per BUC information)

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Total revenues

25,185

22,371

21,969

24,345

22,586

Total expenses

(29,327)

(11,667)

(17,860)

(28,279)

(12,371)

Gain on sale of real estate assets

10,363

Gain on sale of mortgage revenue bonds

1,012

1,208

Gain on sale of investments in unconsolidated entities

Earnings (losses) from investments in unconsolidated

entities

(18)

(107)

(15)

(704)

(1,315)

Income tax (expense) benefit

(36)

Net income (loss)

6,204

10,648

5,178

(4,636)

10,133

Per BUC operating metrics(1):

Net income (loss)

0.24

0.42

0.19

(0.23)

0.39

Cash available for distribution

0.27

0.23

0.27

0.18

Per BUC distribution information(1):

Cash distributions declared

0.37

BUC distributions declared

0.07

Total distributions declared

0.44

0.37

Weighted average BUCs outstanding

22,852,500

23,000,754

23,083,387

23,085,261

23,115,162

BUCs outstanding, end of period

22,897,187

23,057,328

23,085,261

23,171,226

Supplemental Financial Report for the Quarter Ended December 31, 2024

Asset Profile

(Dollar amounts in thousands)

Supplemental Financial Report for the Quarter Ended December 31, 2024

Mortgage Investments to Total Assets Profile

(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.

Supplemental Financial Report for the Quarter Ended December 31, 2024

Debt and Equity Profile

(Dollar amounts in thousands)

Supplemental Financial Report for the Quarter Ended December 31, 2024

Debt Financing

(Dollar amounts in thousands)

Disclaimer

Greystone Housing Impact Investors LP published this content on March 05, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 05, 2025 at 22:10:54.551.