Greystone Reports Strong Q2 2025 Earnings Amidst Muni Bond Market Underperformance

Greystone Housing Impact Investors LP (GHI) has reported Q2 2025 earnings with no forbearance requests for multifamily mortgage revenue bonds. All borrowers are current on principal and interest payments, and physical occupancy stands at 88.4%. The company has committed $26.3M in funding, signaling resilience amid the muni bond market's underperformance.

Greystone Housing Impact Investors LP (GHI) has released its Q2 2025 earnings report, showcasing resilience in the face of underperformance in the municipal bond market. The company reported no forbearance requests for multifamily mortgage revenue bonds, with all borrowers current on principal and interest payments. Physical occupancy for the stabilized mortgage revenue bond portfolio stood at 88.4%, indicating strong demand for multifamily housing [1].

Key highlights from the earnings report include:

- Funding Commitments: GHI has committed $26.3 million in funding, to be deployed over the next 12 months. This funding is expected to add to the income-producing asset base, signaling the company's commitment to growth despite market headwinds [1].
- Operational Performance: The company's Vantage joint venture equity investments have shown progress, with four properties completed and one under evaluation. The sale of the Vantage at Helotes property in May 2025 generated $17.1 million in proceeds [1].
- Credit Losses: GHI reported a provision for credit losses of $9.1 million during the second quarter, primarily related to three nonprofit owner mortgage revenue bonds in South Carolina. This provision was added back to net loss in calculating cash available for distribution (CAD) [1].
- Financial Results: The company reported a GAAP net loss of $7.1 million or $0.35 per unit, basic and diluted, and a CAD of $5.7 million or $0.25 per unit. Unrestricted cash and cash equivalents stood at $47.5 million, with $86 million available on secured lines of credit [1].
- Market Outlook: Management highlighted ongoing challenges in the municipal bond market, including heavy supply, negative returns, and high-profile distressed deals. The company is actively engaging with property owners for operational improvements and sales options to maximize collateral value [1].

Despite the challenging market conditions, GHI's steady liquidity position, expanded credit facilities, and strategic joint ventures position the company to navigate the current environment effectively. The partnership's focus on risk management and investment pipeline execution underscores its commitment to long-term success.

References:
[1] https://seekingalpha.com/news/4482829-greystone-outlines-26_3m-funding-commitments-and-signals-resilience-amid-muni-bond-market