OMAHA, Neb., Feb. 22, 2024 (GLOBE NEWSWIRE) — On February 22, 2024, Greystone Housing Impact Investors LP (NYSE:GHI) (the “Partnership”) announced financial results for the three months and year ended December 31, 2023.
Financial Highlights
The Partnership reported the following results as of and for the three months ended December 31, 2023:
Net income of $0.24 per Beneficial Unit Certificate (“BUC”), basic and diluted
Cash Available for Distribution (“CAD”) of $0.27 per BUC
Total assets of $1.51 billion
The Partnership reported the following results for the year ended December 31, 2023:
Net income of $2.07 per BUC, basic and diluted
CAD of $1.93 per BUC
In December 2023, the Partnership announced that the Board of Managers of Greystone AF Manager LLC declared a quarterly distribution to the Partnership’s BUC holders of $0.44 per BUC. The distribution consisted of a regular quarterly cash distribution of $0.37 per BUC and a supplemental distribution payable in the form of additional BUCs equal in value to $0.07 per BUC. The supplemental distribution of additional BUCs was paid at a ratio of 0.00415 BUCs for each issued and outstanding BUC as of the record date. The distribution was paid on January 31, 2024, to BUC holders of record as of the close of trading on December 29, 2023. While the Board has not yet declared any distributions for subsequent quarters, the Board currently intends to declare an additional supplemental distribution of $0.07 per BUC payable in the form of additional BUCs during the first quarter of 2024.
During 2023, the Board of Managers of Greystone AF Manager LLC declared distributions totaling $1.69 per BUC, consisting of cash distributions of $1.48 per BUC and distributions in the form of additional BUCs of $0.21 per BUC.
Management Remarks
“Our positive results for 2023 demonstrate continued strong returns from our investments. The sale of Suites on Paseo puts us in a position to redeploy the Partnership’s investment capital into our core multifamily and joint venture equity investment strategies,” said Kenneth C. Rogozinski, the Partnership’s Chief Executive Officer.
“The Partnership and the Board of Managers continue to demonstrate our focus on generating attractive returns on our investments that allow us to distribute value to our unitholders,” Rogozinski added.
Recent Investment and Financing Activity
The Partnership reported the following updates for the fourth quarter of 2023:
Advanced funds on Mortgage Revenue Bond (“MRB”) and taxable MRB investments totaling $24.6 million.
Advanced funds on Governmental Issuer Loan (“GIL”) and property loan investments totaling $25.3 million.
Advanced funds to joint venture equity investments totaling $16.1 million, which includes funds advanced to two new joint venture equity investments, Freestone Greenville and Freestone Ladera.
Sold the Suites on Paseo MF Property for gross proceeds of $40.7 million and a reported gain on sale of $10.4 million.
Freddie Mac executed the forward purchase of one GIL investment during the quarter. The Partnership’s GIL and property loan investments totaling $53.4 million associated with construction financing of an affordable multifamily project were settled in full at par plus accrued interest.
Completed a new secured financing transaction (the “TEBS Residual Financing”) secured by its residual interests in three Freddie Mac Tax Exempt Bond Securitization financings (“TEBS Financings”) for gross proceeds of $61.5 million with most of the funds used to pay down existing variable-rate corporate debt with a higher interest rate and a shorter maturity.
Received TOB trust financing proceeds totaling $34.0 million as leverage on various investment fundings.
The Partnership reported the following updates for the year ended December 31, 2023:
The Partnership realized investment income and gains on sale of joint venture equity investments totaling $25.0 million, resulting in approximately $0.95 of net income and CAD per BUC after related expenses and allocation of Tier 2 income to the Partnership’s general partner.
In addition, the Partnership has issued 2,250,000 Series B Preferred Units to date in 2024. The Partnership issued 1,750,000 Series B Preferred Units, with a stated value of $17.5 million, to a financial institution in exchange for 1,750,000 previously outstanding Series A Preferred Units. The Partnership also issued 500,000 Series B Preferred Units to a new institutional investor for gross proceeds of $5.0 million. The Series B Preferred Units are non-cumulative, non-convertible, and non-voting units of limited partnership interests in the Partnership with an annual distribution rate of 5.75%, which is an attractive cost of capital for the Partnership. The earliest potential redemption date for the newly issued Series B Preferred Units is early 2030, with certain exceptions.
Investment Portfolio Updates
The Partnership announced the following updates regarding its investment portfolio:
All affordable multifamily 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 December 31, 2023.
The Partnership continues to execute its hedging strategy, primarily through interest rate swaps, to reduce the impact of recently volatile market interest rates. The Partnership received net payments under its interest rate swap portfolio of approximately $1.9 million and $6.0 million during the three months and year ended December 31, 2023, respectively.
Two joint venture equity investment properties have stabilized operations and two additional properties have begun leasing activities as of December 31, 2023. In addition, two properties began leasing activities in February 2024. Seven 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 Thursday, February 22, 2024 at 4:30 p.m. Eastern Time to discuss the Partnership’s Fourth Quarter 2023 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=I7WQ3gSq
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 on business operations, employment, and financial conditions; current financial conditions within the banking industry, including the effects of recent failures of financial institutions, liquidity levels, and responses by the Federal Reserve, Department of the Treasury, and the Federal Deposit Insurance Corporation to address these issues; 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; 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 we operate, which may be unfavorably impacted by increases in mortgage interest rates, slowing economic growth, 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; persistent inflationary trends, 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 further interest rate increases and lead to 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
December 31,
For the Years Ended
December 31,
2023
2022
2023
2022
Revenues:
Investment income
$
20,010,343
$
16,550,321
$
82,266,198
$
61,342,533
Property revenues
1,034,638
2,069,764
4,567,506
7,855,506
Other interest income
4,078,934
3,409,750
17,756,044
11,875,538
Other income
60,702
–
310,916
–
Total revenues
25,184,617
22,029,835
104,900,664
81,073,577
Expenses:
Real estate operating (exclusive of items shown below)
573,255
1,174,488
2,663,868
4,738,160
Provision for credit losses
(466,000
)
–
(2,347,000
)
–
Depreciation and amortization
313,626
660,903
1,537,448
2,717,415
Interest expense
16,849,384
14,119,180
69,066,763
43,559,873
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