Greystone Housing Impact Investors Reports First Quarter 2025 Financial Results

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 $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.

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 $0.37 per BUC. The distribution was paid on April 30, 2025, to BUC holders of record as of the close of trading on March 31, 2025.

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 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 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 $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, basic and diluted, and CAD per BUC, based on the number of BUCs outstanding on the date of sale.

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 75% to the limited partners 
      and BUC holders, as a class, and 25% to the General 
      Partner. This adjustment represents 25% of Tier 2 
      income due to the General Partner. There was no Tier 
      2 income for the three months ended March 31, 2025 
      and 2024. 
 
(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 $0.07 per BUC for outstanding BUCs as of the record 
      date of March 28, 2024. 
 
 

MEDIA CONTACT:

Karen Marotta

Greystone

212-896-9149

Karen.Marotta@greyco.com

INVESTOR CONTACT:

Andy Grier

Investors Relations

402-952-1235

(END) Dow Jones Newswires

May 07, 2025 08:15 ET (12:15 GMT)