The following is a summary of the Greystone Housing Impact Investors (GHI) Q3 2024 Earnings Call Transcript:
Financial Performance:
Greystone Housing Impact Investors reported a net loss of $0.23 per unit in Q3 2024.
Cash Available for Distribution (CAD) was $0.27 per unit.
Book value as of Q3 end was $14.15 per unit, representing an increase from Q2, primarily due to the increase in the fair value of the mortgage revenue bond portfolio.An unrealized loss of $9.7 million from interest rate derivatives significantly impacted the reported net loss.
Interest rate swap portfolio is expected to bring in approx. $2.8 million over the next six months, benefiting CAD by an additional $0.12 per unit.
Business Progress:
The company holds $1.32 billion in affordable multifamily investments, with no forbearance requests and all payments current.
Joint venture equity investments continue to perform well, with active construction and leasing, and projects nearing completion.
New joint venture with BlackRock Impact Opportunities for construction lending, to fulfill market gap as commercial banks pull back.
Replacement of variable rate debt with fixed rate debt to mitigate exposure to interest rate changes.
Opportunities:
Prospects for accretive investments in construction loans via BlackRock JV and JV equity investments for market rate multifamily properties.
Risks:
Net loss influenced by non-cash unrealized losses on interest rate derivatives.
Exposure to interest rate volatility, despite measures to hedge against it.
Market price of units significantly discounting from net book value, raising concerns on future investment attractiveness and liquidity.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
