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Greystone Housing Impact Investors (GHI) 6 Nov 24 2024 Q3 Earnings call transcript

AInvestThursday, Nov 7, 2024 5:51 am ET
1min read

In Greystone Housing Impact Investors LP's Q3 2024 earnings call, management provided a detailed update on the company's performance, highlighting its financial results, investment portfolio, and market conditions. Here are the key takeaways from the call.

Financial Performance

For the third quarter of 2024, Greystone Housing Impact Investors LP reported a net loss of $0.23 per unit and $0.27 of cash available for distribution (CAD) per unit. This loss was primarily attributed to a noncash unrealized loss of $9.7 million from interest rate swaps, which impacted the partnership's net income. Despite this loss, the company's book value per unit increased by $0.17 from June 30th, primarily due to an increase in the fair value of its mortgage revenue bond portfolio.

Investment Portfolio

Greystone Housing Impact Investors LP's investment portfolio consisted of $1.32 billion in affordable multifamily investments and $169 million in joint venture equity investments. The company reported no forbearance requests for multifamily mortgage revenue bonds and no material supply chain or labor disruptions for its Vantage joint venture equity investments. The company also discussed its plans to list two of its Vantage properties for sale and its ongoing construction projects with the Freestone Development Group.

Market Conditions and Outlook

The call also touched on market conditions, with Kenneth Rogozinski, the company's CEO, discussing the rise in interest rates and their impact on the muni market. Despite these challenges, the company remains optimistic about its future, citing opportunities in affordable construction lending and its strategic partnership with BlackRock Impact Opportunities. The company also plans to continue its merchant build joint venture equity strategies for market rate multifamily development properties.

Investor Questions

During the Q&A session, investors and analysts asked about the potential impact of the upcoming change in administration on fiscal policy and the company's capital deployment strategies. Ken Rogozinski provided insights into the company's investment philosophy and its approach to capital deployment, emphasizing the importance of accretive investments and the potential for growth in the BlackRock Construction Lending JV. The company also addressed concerns about its share price and the potential for share buybacks.

Conclusion

Greystone Housing Impact Investors LP's Q3 2024 earnings call provided a comprehensive update on the company's financial performance, investment portfolio, and market conditions. Despite the challenges faced in the current market, the company remains optimistic about its future, with a focus on strategic investments and partnerships. As the company looks towards the future, it will be interesting to see how it navigates the changing landscape of the housing market and capitalizes on opportunities for growth.

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