Greystone Housing Impact Investors LP Earnings Call: Balancing Triumphs and Trials

Greystone Housing Impact Investors Lp ((GHI)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call of Greystone Housing Impact Investors LP painted a picture of both triumphs and trials. On one hand, the company celebrated successful property sales and an increase in cash reserves, showcasing strategic financial maneuvers. On the other hand, challenges such as a decrease in book value, unrealized losses, and adverse market conditions were highlighted, presenting a balanced view of the company’s current standing.

No Forbearance Requests

Greystone Housing Impact Investors LP reported that all borrowers are current on their principal and interest payments as of March 31, 2025. Notably, there have been no forbearance requests for multifamily mortgage revenue bonds, indicating a stable financial position among their borrowers.

Vantage Property Sales

The company successfully sold the Vantage at Tomball project in January 2025 and the Vantage at Helotes earlier this week. The sale of Vantage at Helotes was particularly significant as it was acquired by a local housing authority and a non-profit using tax-exempt bonds, highlighting a strategic move in property sales.

Preferred Return from Vantage Refinancing

Greystone received $2.2 million in investment income from the refinancing of Vantage at Loveland’s original construction loan. This contributed approximately $0.10 per unit, marking a positive financial impact from the refinancing activities.

Increased Unrestricted Cash

The company’s unrestricted cash and cash equivalents saw a significant increase, rising to $51.4 million as of March 31, from $14.7 million at the end of December. This surge was attributed to property sales and the issuance of Series B preferred units.

Successful Series B Preferred Units Issuance

In March 2025, Greystone successfully issued $20 million of Series B preferred units, further strengthening their financial position and providing additional capital for future investments.

Decreased Book Value Per Unit

Despite the positive developments, the book value per unit decreased by $0.56 from December 31. This decline was primarily due to a decrease in the fair value of the mortgage revenue bond portfolio and a disparity between GAAP net income and distributions declared.

Significant Unrealized Losses on Interest Rate Derivatives

The company faced $3.9 million in non-cash unrealized losses on interest rate derivatives, negatively impacting GAAP net income by approximately $0.17 per unit. This highlights the challenges posed by interest rate fluctuations.

Insurance Cost Impact on Vantage Sales

Insurance costs significantly affected the profitability of the Vantage at Tomball sale, with costs increasing 3.5 times the original underwriting, underscoring the impact of rising insurance expenses on property sales.

Muni Market Challenges

Investment-grade tax-exempt bonds emerged as the worst-performing U.S. fixed income asset class in Q1 2025, with municipal bond yields rising significantly. This presents a challenging environment for Greystone’s bond investments.

Forward-Looking Guidance

Looking ahead, Greystone Housing Impact Investors LP reported a GAAP net income of $3.3 million, translating to $0.11 per unit, with cash available for distribution standing at $7.1 million or $0.31 per unit. The company’s book value per unit decreased to $12.59, primarily due to a drop in the fair value of their mortgage revenue bond portfolio. Despite the challenges, the company maintains a robust unrestricted cash position and a substantial debt investment portfolio.

In conclusion, the earnings call of Greystone Housing Impact Investors LP reflects a balanced narrative of achievements and challenges. While the company has made significant strides in property sales and cash reserves, it faces hurdles such as decreased book value and unrealized losses. Investors will be keen to see how the company navigates these challenges in the coming quarters.