Greystone Housing Impact Investors Reports 33.7% Revenue Decline to $91.3 Million in 2024

Greystone Housing Impact Investors LP (GHI) reported total revenues of $91.3 million for the year ended December 31, 2024, a decrease of $46.4 million (33.7%) compared to the $138.0 million reported in 2023. This decrease was primarily driven by a decline in investment income, partially offset by gains on the sale of real estate assets and mortgage revenue bonds. Net income for 2024 was $21.3 million, significantly lower than the $54.0 million reported in 2023, largely due to unrealized losses on the derivative instrument portfolio. The company's Cash Available for Distribution (CAD), a non-GAAP measure, was $21.9 million for 2024, compared to $44.1 million in 2023.

Significant changes compared to the previous fiscal year included a decrease in investment income, primarily due to GIL redemptions and lower balances in property loans and taxable MRBs and GILs. Offsetting this decrease were increases in interest income from new GIL investments and higher average interest rates, as well as gains from the sale of assets. The sale of the Suites on Paseo MF Property in December 2023 also impacted year-over-year comparisons. The company's overall leverage ratio was approximately 75% as of December 31, 2024.

During 2024, GHI engaged in various investment activities, including mortgage revenue bond advances and sales, governmental issuer loan acquisitions and advances, property loan acquisitions and advances, and investments in unconsolidated entities. The company also completed the 2024 PFA Securitization Transaction to finance credit-enhanced custodial receipts related to 14 mortgage revenue bonds. In terms of financing activities, GHI engaged in net borrowing on its Acquisition LOC and General LOC, received proceeds from TOB trust financings, and executed interest rate swaps. The company also sold 92,802 BUCs for gross proceeds of $1.5 million under a Sales Agreement.

Key operational developments included the sale of the company's last remaining MF Property investment in December 2023 and the formation of a joint venture with BlackRock Impact Opportunities to invest in construction loans for affordable multifamily housing. As of December 31, 2024, GHI had no employees, with operations managed by 16 employees of Greystone Manager. The company's investment portfolio consisted of mortgage revenue bonds, governmental issuer loans, property loans, and joint venture equity investments, primarily focused on affordable and market-rate multifamily and senior housing properties. The company's investments are geographically concentrated in Texas, California, and South Carolina.

GHI's outlook includes a continued focus on acquiring additional mortgage revenue bonds and governmental issuer loans to finance affordable housing, as well as strategic joint venture equity investments in market-rate properties. The company anticipates holding its GILs until maturity and will continue to assess opportunities to expand and reposition its existing portfolio. The company also plans to utilize leverage effectively to increase returns on its investments while managing risks associated with interest rate changes, inflation, and general economic conditions. The company acknowledges several risk factors, including defaults on mortgage loans, competitive pressures, economic conditions, and access to capital.