Greystone Housing Impact Investors LP Reports 8.1% Revenue Decline, Net Loss in Q3 2024

Greystone Housing Impact Investors LP reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant changes in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenues decreased to $24.3 million from $26.5 million in the same period of 2023, a decline of approximately 8.1%. This drop was attributed to a reduction in property revenues following the sale of the Suites on Paseo MF Property in December 2023. Investment income, however, increased to $21.8 million, up from $20.5 million year-over-year. Total expenses rose sharply to $28.3 million from $16.8 million, leading to a net loss of $4.6 million, contrasting with a net income of $9.7 million in the prior year. The loss was impacted by unrealized losses on derivatives amounting to $9.7 million.

For the nine months ended September 30, 2024, total revenues also fell to $68.7 million from $79.7 million, a decrease of 13.8%. Investment income for this period was $60.9 million, slightly down from $62.3 million in 2023. The net income for the nine months was $11.2 million, a significant decline from $47.8 million in the previous year, primarily due to unrealized losses on derivatives and a reclassification of gains on the sale of mortgage revenue bonds.

The Partnership's total assets increased to $1.55 billion as of September 30, 2024, compared to $1.51 billion at the end of 2023. Total liabilities also rose to $1.14 billion from $1.08 billion, while total partners' capital decreased to $329.9 million from $349.3 million. The Partnership's debt financing net increased to $1.06 billion, reflecting ongoing financing activities.

Strategically, the Partnership has been active in acquisitions, including mortgage revenue bonds (MRBs) and governmental issuer loans (GILs), while also managing its investments in unconsolidated entities. The Partnership's focus remains on financing affordable multifamily housing, with a total of 12,030 residential rental units financed as of September 30, 2024.

The financial results indicate a challenging environment, with rising interest rates impacting both revenues and expenses. The Federal Reserve's recent rate cuts may provide some relief, but ongoing geopolitical conflicts and inflationary pressures continue to pose risks to the Partnership's operating results.