Greystone Housing Impact Investors LP (GHI) Q3 2024 earnings summary

Executive summary

• Reported a GAAP net loss of $4.6 million ($0.23 per unit) for Q3 2024, mainly due to $9.7 million in non-cash unrealized losses on interest rate derivatives, compared to net income of $9.7 million in Q3 2023.

• Cash Available for Distribution (CAD) was $6.2 million ($0.27 per unit), up 11% year-over-year, supporting a regular quarterly cash distribution of $0.37 per unit paid in October.

• Book value per unit increased to $14.15 as of September 30, 2024.

• Revenues for Q3 2024 were $24.3 million, down 8% year-over-year, mainly from lower property loan and GIL balances and the sale of a property.

• Total assets stood at $1.55 billion as of September 30, 2024.

Financial highlights

• Net loss driven by unrealized losses from interest rate swaps, not impacting cash flows; net cash received from derivatives was $1.8 million in Q3.

• Interest rate swaps generated a positive cash spread, expected to add $2.8 million in cash payments over six months.

• Debt financing outstanding was $1.06 billion, with a leverage ratio of 74%.

• Unit price at $12.19, a 14% discount to book value.

• Distributions declared per unit were $0.37 for Q3 2024.

Outlook and guidance

• Management remains focused on accretive investments that meet or exceed the current dividend yield (~12.5%) and executing its core investment strategy amid ongoing volatility.

• Plans to deploy new capital from the BlackRock JV and a new Construction Lending JV, with an initial $8.3 million capital commitment.

• The Partnership plans to fund $198 million in remaining investment commitments, primarily for construction and rehabilitation of affordable housing.

• No significant change in core investment strategy; dividend policy remains based on CAD and portfolio earnings power.