Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Greystone Housing Impact Investors LP (NYSE:GHI) reported no forbearance requests for multi-family mortgage revenue bonds, with all borrowers current on principal and interest payments.
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Physical occupancy for stabilized mortgage revenue bond portfolio was at 89.5% as of March 30, 2025.
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The company successfully sold the Vantage at Holous property to a local housing authority and nonprofit, generating proceeds of $17.1 million.
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GHI’s unrestricted cash and cash equivalents increased significantly to $51.4 million as of March 31, 2025, up from $14.7 million at the end of 2024.
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The company issued $20 million of Series B preferred units in March 2025, enhancing its liquidity position.
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GHI reported a GAAP net income of $3.3 million, which was significantly impacted by $3.9 million of non-cash unrealized losses on interest rate derivatives.
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The book value per unit decreased by $0.56 from December 31, 2024, primarily due to a decrease in the fair value of the mortgage revenue bond portfolio.
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The municipal bond market underperformed, with investment-grade tax-exempt bonds being the worst-performing US fixed income asset class in Q1 2025.
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Insurance costs significantly impacted the profitability of certain asset sales, such as the Vantage at Tomball property.
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The company faces potential interest rate risk, with 16.6% of its debt financing exposed to variable rates without designated hedging.
Q: Are any proposed shifts from federal to state to local governments likely to affect unique credit ratings and evaluations? A: Ken Rogozinski, CEO, mentioned that it’s still early in the process. The administration’s “skinny budget” includes proposals that echo back to the first Trump administration, such as the elimination of the community development block grant program. There is also a potential change in the allocation of Section 8 funding from a federal-based program to a state-based program. However, it’s uncertain how these proposals will play out through Congress, especially with the slim Republican majority in the House.
Q: Have tariffs changed how you are thinking about the BlackRock JV business in the near term given the impact on construction costs? A: Ken Rogozinski, CEO, stated that they haven’t seen significant changes from sponsors in terms of their pro forma based on higher tariffs on construction materials. Two of the larger loans being evaluated involve construction types less affected by tariffs, such as high-rise construction with concrete and steel, and an act rehab transaction with minimal wood framing.
