Greystone Housing Impact Investors Reports First Quarter 2025 Financial Results
- Quarterly distribution of $0.37 per BUC maintained
- Successfully raised $20 million through Series B Preferred Units at 5.75%
- Profitable sale of Vantage at Tomball generating $14.2 million in proceeds
- All MRB and GIL investments are current on payments with no forbearance requests
- Strong deployment of capital with $21.5M in MRB and $39.1M in GIL investments
- Net income of $0.11 per BUC affected by $3.9 million in unrealized losses on interest rate derivatives
- Significant redemptions and paydowns totaling $102.7 million in GIL and related investments
Insights
Greystone reports mixed Q1 results with $0.11 EPS, $0.31 CAD below $0.37 distribution, but promising property sales should boost Q2.
Greystone Housing Impact Investors LP's Q1 2025 results reveal some important nuances for investors tracking this affordable housing-focused investment vehicle. The headline net income of $0.11 per BUC appears concerning at first glance, especially when compared to the $0.37 quarterly distribution paid to unitholders on April 30. However, the more relevant Cash Available for Distribution (CAD) of $0.31 per BUC provides a clearer picture of distributable cash flow.
The $0.20 gap between net income and CAD primarily stems from $3.9 million in unrealized losses on interest rate derivatives—accounting entries that don't affect actual cash generation. Despite these paper losses, the Partnership actually received $847,000 in net cash from these derivative positions during the quarter.
The distribution coverage ratio (CAD/distribution) stands at approximately 0.84x, indicating the current distribution isn't fully covered by quarterly cash flow. This bears monitoring, though single-quarter coverage fluctuations are common in this sector.
On the investment front, the company shows active portfolio management with $21.5 million advanced on MRB investments and $39.1 million on GIL investments, partially offset by redemptions. The $14.2 million proceeds from the Vantage at Tomball sale demonstrates successful execution in their joint venture strategy.
Looking forward, the May 2025 sale of Vantage at Helotes is noteworthy, expected to generate approximately $1.8 million in investment income and contribute about $0.08 to both net income and CAD per BUC in Q2—a potentially significant boost to next quarter's results.
The company's $20 million Series B Preferred Units issuance at a 5.75% distribution rate provides additional investment capital while maintaining the capital structure without diluting existing unitholders. With total assets of $1.54 billion and continued execution of their hedging strategy, the company appears positioned to navigate the ongoing interest rate environment.
OMAHA, Neb., May 07, 2025 (GLOBE NEWSWIRE) -- On May 7, 2025, Greystone Housing Impact Investors LP (NYSE: GHI) (the “Partnership”) announced financial results for the three months ended March 31, 2025.
Financial Highlights
The Partnership reported the following results as of and for the three months ended March 31, 2025:
- 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 losses on the Partnership’s interest rate derivative positions. Unrealized losses of approximately
In March 2025, the Partnership announced that the Board of Managers of Greystone AF Manager LLC declared a regular quarterly distribution to the Partnership's BUC holders of
Management Remarks
“We continue to evaluate investment opportunities despite continuing market volatility,” said Kenneth C. Rogozinski, the Partnership’s Chief Executive Officer. “Our successful Series B Preferred Units issuance provides low-cost, non-dilutive capital for us to deploy into accretive investment opportunities. In addition, the dedicated pool of capital that we have from the new BlackRock construction lending joint venture is a powerful tool for us to serve our affordable housing developer relationship base.”
Recent Investment and Financing Activity
The Partnership reported the following updates for 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 net 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 of5.75% 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 non-profit 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
Investment Portfolio Updates
The Partnership announced the following updates regarding its investment portfolio:
- All MRB and GIL investments are current on contractual principal and interest payments and the Partnership has received no requests for forbearance of contractual principal and interest payments from borrowers as of March 31, 2025
- 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.
Earnings Webcast & Conference Call
The Partnership will host a conference call for investors on Wednesday, May 7, 2025 at 4:30 p.m. Eastern Time to discuss the Partnership’s First Quarter 2025 results.
For those interested in participating in the question-and-answer session, participants may dial-in toll free at (877) 407-8813. International participants may dial-in at +1 (201) 689-8521. No pin or code number is needed.
The call is also being webcast live in listen-only mode. The webcast can be accessed via the Partnership's website under “Events & Presentations” or via the following link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=a4hicNZA
It is recommended that you join 15 minutes before the conference call begins (although you may register, dial-in or access the webcast at any time during the call).
A recorded replay of the webcast will be made available on the Partnership’s Investor Relations website at http://www.ghiinvestors.com.
About Greystone Housing Impact Investors LP
Greystone Housing Impact Investors LP was formed in 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, seniors and student housing properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by its Second Amended and Restated Limited Partnership Agreement, dated December 5, 2022 (the “Partnership Agreement”), taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. Greystone Housing Impact Investors LP press releases are available at www.ghiinvestors.com.
Safe Harbor Statement
Certain statements in this press release are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of statements that include, but are not limited to, phrases such as “believe,” “expect,” “future,” “anticipate,” “intend,” “plan,” “foresee,” “may,” “should,” “will,” “estimates,” “potential,” “continue,” or other similar words or phrases. Similarly, statements that describe objectives, plans, or goals also are forward-looking statements. Such forward-looking statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Partnership. The Partnership cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, implied, or projected by such forward-looking statements. Risks and uncertainties include, but are not limited to: defaults on the mortgage loans securing our mortgage revenue bonds and governmental issuer loans; the competitive environment in which the Partnership operates; risks associated with investing in multifamily, student, senior citizen residential properties and commercial properties; general economic, geopolitical, and financial conditions, including the current and future impact of changing interest rates, inflation, and international conflicts (including the Russia-Ukraine war and the Israel-Hamas war) on business operations, employment, and financial conditions; uncertain conditions within the domestic and international macroeconomic environment, including monetary and fiscal policy and conditions in the investment, credit, interest rate, and derivatives markets; any effects on our business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; adverse reactions in U.S. financial markets related to actions of foreign central banks or the economic performance of foreign economies, including in particular China, Japan, the European Union, and the United Kingdom; the general condition of the real estate markets in the regions in which the Partnership operates, which may be unfavorably impacted by pressures in the commercial real estate sector, incrementally higher unemployment rates, persistent elevated inflation levels, and other factors; changes in interest rates and credit spreads, as well as the success of any hedging strategies the Partnership may undertake in relation to such changes, and the effect such changes may have on the relative spreads between the yield on investments and cost of financing; the aggregate effect of elevated inflation levels over the past several years, spurred by multiple factors including expansionary monetary and fiscal policy, higher commodity prices, a tight labor market, and low residential vacancy rates, which may result in continued elevated interest rate levels and increased market volatility; the Partnership’s ability to access debt and equity capital to finance its assets; current maturities of the Partnership’s financing arrangements and the Partnership’s ability to renew or refinance such financing arrangements; local, regional, national and international economic and credit market conditions; recapture of previously issued Low Income Housing Tax Credits in accordance with Section 42 of the Internal Revenue Code; geographic concentration of properties related to investments held by the Partnership; changes in the U.S. corporate tax code and other government regulations affecting the Partnership’s business; and the other risks detailed in the Partnership’s SEC filings (including but not limited to, the Partnership’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K). Readers are urged to consider these factors carefully in evaluating the forward-looking statements.
If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, the developments and future events concerning the Partnership set forth in this press release may differ materially from those expressed or implied by these forward-looking statements. You are cautioned not to place undue reliance on these statements, which speak only as of the date of this document. We anticipate that subsequent events and developments will cause our expectations and beliefs to change. The Partnership assumes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, unless obligated to do so under the federal securities laws.
| GREYSTONE HOUSING IMPACT INVESTORS LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||
| For the Three Months Ended March 31, | |||||||||
| 2025 | 2024 | ||||||||
| Revenues: | |||||||||
| Investment income | $ | 21,878,167 | $ | 19,272,345 | |||||
| Other interest income | 2,288,165 | 3,003,838 | |||||||
| Other income | 958,825 | 94,471 | |||||||
| Total revenues | 25,125,157 | 22,370,654 | |||||||
| Expenses: | |||||||||
| Provision for credit losses | (172,000 | ) | (806,000 | ) | |||||
| Depreciation | 3,542 | 5,967 | |||||||
| Interest expense | 14,134,816 | 13,803,935 | |||||||
| Net result from derivative transactions | 3,036,137 | (6,267,664 | ) | ||||||
| General and administrative | 4,570,261 | 4,930,388 | |||||||
| Total expenses | 21,572,756 | 11,666,626 | |||||||
| Other income: | |||||||||
| Gain on sale of investments in unconsolidated entities | 5,220 | 50,000 | |||||||
| Earnings (losses) from investments in unconsolidated entities | (233,334 | ) | (106,845 | ) | |||||
| Income before income taxes | 3,324,287 | 10,647,183 | |||||||
| Income tax benefit | (2,733 | ) | (1,198 | ) | |||||
| Net income | 3,327,020 | 10,648,381 | |||||||
| Redeemable Preferred Unit distributions and accretion | (760,679 | ) | (767,241 | ) | |||||
| Net income available to Partners | $ | 2,566,341 | $ | 9,881,140 | |||||
| Net income available to Partners allocated to: | |||||||||
| General Partner | $ | 25,611 | $ | 98,311 | |||||
| Limited Partners - BUCs | 2,483,685 | 9,725,097 | |||||||
| Limited Partners - Restricted units | 57,045 | 57,732 | |||||||
| $ | 2,566,341 | $ | 9,881,140 | ||||||
| BUC holders' interest in net income per BUC, basic and diluted | $ | 0.11 | $ | 0.42 | * | ||||
| Weighted average number of BUCs outstanding, basic | 23,171,226 | 23,000,754 | * | ||||||
| Weighted average number of BUCs outstanding, diluted | 23,171,226 | 23,000,754 | * | ||||||
| * | The amounts indicated above have been adjusted to reflect the distribution completed on April 30, 2024 in the form of additional BUCs at a ratio of 0.00417 BUCs for each BUC outstanding as of March 28, 2024 on a retroactive basis. |
Disclosure Regarding Non-GAAP Measures - Cash Available for Distribution
The Partnership believes that CAD provides relevant information about the Partnership’s operations and is necessary, along with net income, for understanding its operating results. To calculate CAD, the Partnership begins with net income as computed in accordance with GAAP and adjusts for non-cash expenses or income consisting of depreciation expense, amortization expense related to deferred financing costs, amortization of premiums and discounts, fair value adjustments to derivative instruments, provisions for credit and loan losses, impairments on MRBs, GILs, real estate assets and property loans, deferred income tax expense (benefit), and restricted unit compensation expense. The Partnership also adjusts net income for the Partnership’s share of (earnings) losses of investments in unconsolidated entities as such amounts are primarily depreciation expenses and development costs that are expected to be recovered upon an exit event. The Partnership also deducts Tier 2 income (see Note 22 to the Partnership’s condensed consolidated financial statements) distributable to the General Partner as defined in the Partnership Agreement and distributions and accretion for the Preferred Units. Net income is the GAAP measure most comparable to CAD. There is no generally accepted methodology for computing CAD, and the Partnership’s computation of CAD may not be comparable to CAD reported by other companies. Although the Partnership considers CAD to be a useful measure of the Partnership’s operating performance, CAD is a non-GAAP measure that should not be considered as an alternative to net income calculated in accordance with GAAP, or any other measures of financial performance presented in accordance with GAAP.
The following table shows the calculation of CAD (and a reconciliation of the Partnership’s net income, as determined in accordance with GAAP, to CAD) for the three months ended March 31, 2025 and 2024 (all per BUC amounts are presented giving effect to the BUCs Distributions described in Note 22 of the condensed consolidated financial statements on a retroactive basis for all periods presented):
| For the Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net income | $ | 3,327,020 | $ | 10,648,381 | ||||
| Unrealized (gains) losses on derivatives, net | 3,883,196 | (4,604,215 | ) | |||||
| Depreciation expense | 3,542 | 5,967 | ||||||
| Provision for credit losses (1) | (172,000 | ) | (806,000 | ) | ||||
| Amortization of deferred financing costs | 381,334 | 367,418 | ||||||
| Restricted unit compensation expense | 234,047 | 332,321 | ||||||
| Deferred income taxes | 1,227 | 2,998 | ||||||
| Redeemable Preferred Unit distributions and accretion | (760,679 | ) | (767,241 | ) | ||||
| Tier 2 income allocable to the General Partner (2) | - | - | ||||||
| Recovery of prior credit loss (3) | (16,967 | ) | (17,155 | ) | ||||
| Bond premium, discount and acquisition fee amortization, net of cash received | 25,220 | (40,475 | ) | |||||
| (Earnings) losses from investments in unconsolidated entities | 233,334 | 106,845 | ||||||
| Total CAD | $ | 7,139,274 | $ | 5,228,844 | ||||
| Weighted average number of BUCs outstanding, basic | 23,171,226 | 23,000,754 | ||||||
| Net income per BUC, basic | $ | 0.11 | $ | 0.42 | ||||
| Total CAD per BUC, basic | $ | 0.31 | $ | 0.23 | ||||
| Cash Distributions declared, per BUC | $ | 0.37 | $ | 0.368 | ||||
| BUCs Distributions declared, per BUC (4) | $ | - | $ | 0.07 | ||||
| (1) | The adjustments reflect the change in allowances for credit losses under the CECL standard which requires the Partnership to update estimates of expected credit losses for its investment portfolio at each reporting date. |
| (2) | As described in Note 22 to the Partnership’s condensed consolidated financial statements, Net Interest Income representing contingent interest and Net Residual Proceeds representing contingent interest (Tier 2 income) will be distributed |
| (3) | The Partnership determined there was a recovery of previously recognized impairment recorded for the Live 929 Apartments Series 2022A MRB prior to the adoption of the CECL standard effective January 1, 2023. The Partnership is accreting the recovery of prior credit loss for this MRB into investment income over the term of the MRB consistent with applicable guidance. The accretion of recovery of value is presented as a reduction to current CAD as the original provision for credit loss was an addback for CAD calculation purposes in the period recognized. |
| (4) | The Partnership declared the distribution completed on April 30, 2024 in the form of additional BUCs equal to |
MEDIA CONTACT:
Karen Marotta
Greystone
212-896-9149
Karen.Marotta@greyco.com
INVESTOR CONTACT:
Andy Grier
Investors Relations
402-952-1235
FAQ
What was GHI's net income per BUC for Q1 2025?
How much is GHI's quarterly distribution for Q1 2025?
What was the size of GHI's Series B Preferred Units issuance?
What is GHI's total asset value as of Q1 2025?
How much did GHI receive from the Vantage at Tomball sale?
