Supplemental Financial Report for the Quarter Ended June 30, 2025
©2025 Greystone & Co. II LLC. All rights reserved. References to the term "Greystone," refer to Greystone & Co. II LLC and/or its affiliated companies, as applicable.
TABLE OF CONTENTS
Letter from the CEO
3
Quarterly Fact Sheet 5
Financial Performance Information 6
Appendices 18
Important Disclosure Notices 22
Other Partnership Information 23
Letter from the CEOI am pleased to report Greystone Housing Impact Investors LP's operating results for the second quarter of 2025. We reported the following financial results as of and for the three months ended June 30, 2025:
Total revenues of $23.6 million.
Net loss of $7.1 million or $0.35 per Beneficial Unit Certificate ("BUC"), basic and diluted.
Cash Available for Distribution ("CAD") of $5.7 million or $0.25 per BUC.
Total assets of $1.48 billion.
Total Mortgage Revenue Bond ("MRB") and Governmental Issuer Loan ("GIL") investments of $1.13 billion.
The difference between reported net income and CAD is primarily due to the treatment of provisions for credit losses and unrealized losses on the Partnership's interest rate derivative positions. A reconciliation of net income to CAD is included on page 20 of this report.
We reported the following notable transactions during the second quarter of 2025:
Advances and acquisitions of MRB, taxable MRB, GIL, taxable GIL and property loan investments totaled approximately $47.6 million.
Redemptions and sales of MRB, taxable MRB, GIL, taxable GIL and property loan investments totaled approximately $70.6 million.
Advances to market-rate joint venture equity investments totaled approximately $3.1 million.
Gross proceeds from the sale of Vantage at Helotes totaled approximately $17.1 million, inclusive of return of capital and accrued preferred return.
Amended both secured lines of credit to extend maturities and increased overall borrowing capacity by $30.0 million.
Other highlights of our investment portfolio include the following:
We continue to execute our hedging strategy, primarily through interest rate swaps, to reduce the impact of changing market interest rates.
Six current market-rate joint venture equity investment properties have completed construction, with two properties having previously achieved 90% occupancy. Three of our joint venture equity investments are currently under construction or in development, with none having experienced material supply chain disruptions for either construction materials or labor to date.
During the second quarter we focused on extending the maturity date for both our corporate credit lines and increased our total borrowing capacity by $30.0 million. These changes demonstrate our strong relationships with bank lenders and provide us with additional capacity for effectively managing our capital and liquidity needs.
We continue to focus our investing activity on lending associated with low income housing tax credit projects. We continue to see investment opportunities in this area, particularly from the broader Greystone Affordable business platform that has the ability to provide construction financing, permanent financing, and tax credit equity placement. In July, we received an additional capital commitment of approximately $60 million for the BlackRock construction lending joint venture from a second institutional investor. This dedicated pool of capital is a powerful new tool for us to serve the needs of our affordable housing developer relationships.
We continue to monitor legislative activity and assess the potential impact to our operations. We believe the municipal bond market emerged relatively unscathed from the One Big Beautiful Bill Act with no significant changes enacted as part of that legislation. The act included some technical changes to the low income housing tax credit program which we believe may have a marginally positive impact on our lending business. We also continue to monitor the Congressional appropriations process, particularly in regard to funding of programs for the Department of Housing and Urban Development, which may impact property operations in the affordable housing space.
Thank you for your continued support of Greystone Housing Impact Investors LP!
Kenneth C. Rogozinski Chief Executive Officer
Second Quarter 2025 Fact SheetPARTNERSHIP DETAILS
(As of June 30, 2025)
Greystone Housing Impact Investors LP was formed for the purpose of acquiring a portfolio of MRBs that are issued to provide construction and/or permanent financing of affordable multifamily residential and commercial properties. The Partnership has also invested in GILs, which, similar to MRBs, provide financing for affordable multifamily properties. We expect and believe the interest paid on the MRBs and GILs to be excludable from gross income for federal income tax purposes. In addition, we have invested in equity interests in multifamily, market rate properties throughout the U.S. We
Symbol (NYSE) Most Recent Quarterly Distribution per BUC (1) | $ | GHI 0.30 |
BUC Price | $ | 11.32 |
Year to Date Annualized Yield (2) | 11.8% | |
BUCs Outstanding | 23,171,226 | |
Market Capitalization 52-week BUC price range | $ | $262,298,278 $10.12 to $15.27 |
continue to pursue a business strategy of acquiring additional MRBs
and GILs on a leveraged basis, and other investments.
Partnership Financial Information for Q2 2025 ($'s in 000's, except per BUC amounts)
6/30/2025 | 12/31/2024 | |
Total Assets | $1,480,636 | $1,579,700 |
Leverage Ratio (3) | 74% | 75% |
Q2 2025 | YTD 2025 | |
Total Revenues | $23,591 | $48,716 |
Net Income (loss) | $(7,071) | $(3,745) |
Cash Available for Distribution ("CAD") (4) | $5,709 | $12,848 |
Cash Distributions declared, per BUC (1) | $0.30 | $0.67 |
(1)The distribution was paid on July 31, 2025 for BUC holders of record as of June 30, 2025. The distribution is payable to BUC holders of record as of the last business day of the quarter and GHI trades ex-dividend one day prior to the record date, with a payable date of the last business day of the subsequent month.
(2)The annualized yield calculation is based on year-to-date distributions declared of $0.67 per BUC.
(3)Our overall leverage ratio is calculated as total outstanding debt divided by total assets using cost adjusted for paydowns and allowances for MRBs, GILs, property loans, taxable MRBs and taxable GILs, and initial cost for deferred financing costs and real estate assets.
(4)Management utilizes a calculation of Cash Available for Distribution ("CAD") to assess the Partnership's operating performance. This is a non-GAAP financial measure. See the Important Disclosure Notices in the Appendices for important information regarding non-GAAP measures. A reconciliation of our GAAP net income (loss) to CAD is provided on page 20 of this report.
Operating Results Summary | |||||
(Dollar amounts in thousands, except per BUC information) | |||||
Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | |
Total revenues | $ 21,969 | $ 24,345 | $ 22,586 | $ 25,125 | $ 23,591 |
Total expenses | (17,860) | (28,279) | (12,371) | (21,573) | (29,335) |
Gain on sale of real estate assets | 64 | - | - | - | - |
Gain on sale of mortgage revenue bonds | 1,012 | - | 1,208 | - | - |
Gain on sale of investments in unconsolidated entities | 7 | - | 61 | 5 | 196 |
Earnings (losses) from investments in unconsolidated entities | (15) | (704) | (1,315) | (233) | (1,526) |
Income tax (expense) benefit | 1 | 2 | (36) | 3 | 3 |
Net income (loss) | $ 5,178 | $ (4,636) | $ 10,133 | $ 3,327 | $ (7,071) |
Per BUC operating metrics: Net income (loss) | $ 0.19 | $ (0.23) | $ 0.39 | $ 0.11 | $ (0.35) |
Cash available for distribution | $ 0.27 | $ 0.27 | $ 0.18 | $ 0.31 | $ 0.25 |
Per BUC distribution information: Cash distributions declared | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.30 |
Weighted average BUCs outstanding | 23,083,387 | 23,085,261 | 23,115,162 | 23,171,226 | 23,171,226 |
BUCs outstanding, end of period | 23,085,261 | 23,085,261 | 23,171,226 | 23,171,226 | 23,171,226 |
(Dollar amounts in thousands)
Mortgage Investments to Total Assets Profile
(Dollar amounts in thousands)
Note: Mortgage Investments include the Partnership's Mortgage Revenue Bonds, Governmental Issuer Loans, Taxable Mortgage Revenue Bonds, Taxable Governmental Issuer Loans, and Property Loans that share a first mortgage with the Governmental Issuer Loans.
Debt and Equity Profile(Dollar amounts in thousands)
Debt Financing
(Dollar amounts in thousands)
(1) The variable-rate debt financing is hedged through our interest rate swap agreements. Though the variable rate indices may differ, these interest rate swaps have effectively synthetically fixed the interest rate of the related debt financing.
(2) The securitized assets and related debt financings each have variable interest rates. Though the variable rate indices may differ, the Partnership is largely hedged against rising interest rates.
(3) A majority of the securitized assets in this category as of June 30, 2025 have maturity dates in 2025.
Debt Investments Activity (1)(Dollar amounts in thousands)
Quarterly Activity | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
Investment Purchases | $ 102,905 $ | 58,003 $ | 68,810 $ | 60,610 $ | 47,376 |
Sales and Redemptions (10,281) (57,339) (13,267) (114,760) (72,581) Net Investment Activity 92,624 664 55,543 (54,150) (25,205) Net Debt (Proceeds) Repayment (88,657) 1,233 (48,134) 47,343 34,181 Net Capital Deployed $ 3,967 $ 1,897 $ 7,409 $ (6,807) $ 8,976
(1) The reported amounts include investment activity related to the Construction Lending JV.
Market-Rate JV Equity Investments Activity(Dollar amounts in thousands)
Quarterly Activity | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | |||||
JV Equity Contributions | $ | 11,669 | $ | 10,443 | $ | 11,156 | $ | 7,709 $ | 3,095 |
Return of JV Equity Contributions - - - (13,488) (12,901) Net Investment Activity 11,669 10,443 11,156 (5,779) (9,805) Net Debt Proceeds (10,000) (14,000) (9,500) - 7,000 Net Capital Deployed $ 1,669 $ (3,557) $ 1,656 $ (5,779) $ (2,805)
Net Book Value WaterfallNote: Per unit data derived from weighted average BUCs outstanding during the period, except for the Net Book Values, which are based on shares outstanding on the stated date, including unvested restricted units. Numbers may not sum due to rounding.
Interest Rate Sensitivity AnalysisThe interest rate sensitivity table below represents the change in interest income from investments, net of interest on debt and settlement payments for interest rate derivatives over the next twelve months, assuming an immediate parallel shift in the SOFR yield curve and the resulting implied forward rates are realized as a component of this shift in the curve and assuming management does not adjust its strategy in response. The amounts in the table below do not consider any potential unrealized gains or losses from derivatives in determining the net interest income impact.
Description | - 100 basis points | - 50 basis points | + 50 basis points | + 100 basis points | + 200 basis points |
TOB Debt Financings | $3,990,411 | $1,995,206 | $(1,995,206) | $(3,990,411) | $(7,980,822) |
Other Financings & Derivatives | (2,492,532) | (1,246,266) | 1,246,266 | 2,492,532 | 4,985,064 |
Variable Rate Investments | (502,050) | (251,025) | 251,025 | 502,050 | 1,004,100 |
Net Interest Income Impact | $995,829 | $497,915 | $(497,915) | $(995,829) | $(1,991,658) |
Per BUC Impact (1) | $0.043 | $0.021 | $(0.021) | $(0.043) | $(0.086) |
(1) The net interest income impact per BUC calculated based on 23,171,226 BUCs outstanding as of June 30, 2025.
Total Revenue & Gain on Sale Trends(Dollar amounts in thousands)
Operating Expense Trends
(Dollar amounts in thousands)
(1) This Item includes unrealized gains and losses on the Partnership's interest rate derivative instruments that are non-cash income (expense) in the period reported. For Q2 2025, non-cash unrealized losses on derivatives totaled approximately $2.1 million.
Since June 1, 2023, the sum of "Salaries and benefits" and "General and administrative" expenses as a percentage of Total Assets has averaged approximately 0.23% per quarter.
Tax Income Information Related to Beneficial Unit CertificatesThe following table summarizes tax-exempt and taxable income as percentages of total income allocated to the Partnership's BUCs on Schedule K-1 for tax years 2022 to 2024. This disclosure relates only to income allocated to the Partnership's BUCs and does not consider an individual unitholder's basis in the BUCs or potential return of capital as such matters are dependent on the individual unitholders' specific tax circumstances. The disclosure also assumes that the individual unitholder can utilize all allocated losses and deductions, even though such items may be limited depending on the unitholder's specific tax circumstances. Such amounts are for all BUC holders in the aggregate during the year. Income is allocated to individual investors monthly and amounts allocated to individual investors may differ from these percentages due to, including, but not limited to, BUC purchases and sales activity and the timing of significant transactions during the year.
2024(1) | 2023 | 2022 | |
Tax-exempt income | n/a | 40% | 25% |
Taxable income | n/a | 60% | 75% |
n/a | 100% | 100% |
(1) The Partnership generated a net taxable loss for BUC holders for tax year 2024 due to the allocation of net rental real estate losses on the Partnership's JV Equity Investments and the lack of JV Equity property gains on sale during the year. As a class, the BUC holders were allocated approximately $16.8 million of net tax-exempt interest income and approximately $21.4 million of net taxable losses for tax year 2024.
Unrelated Business Taxable IncomeCertain allocations of income and losses may be considered Unrelated Business Taxable Income ("UBTI") for certain tax-exempt unitholders.
UBTI-related items are reported in Box 20V and in the footnotes to each BUC holder's Schedule K-1. The rules around UBTI are complex, so please consult your tax advisor.
AppendicesOperating Results Detail | |||||
(Dollar amounts in thousands, except per BUC information) | |||||
Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | |
Revenues: | |||||
Investment income | $ 19,827 | $ 21,821 | $ 20,056 | $ 21,878 | $ 20,825 |
Other interest income | 2,071 | 2,235 | 2,200 | 2,288 | 2,558 |
Contingent interest income | - | - | - | - | 208 |
Other income | 71 | 289 | 330 | 959 | - |
Total revenues | 21,969 | 24,345 | 22,586 | 25,125 | 23,591 |
Expenses: | |||||
Provision for credit losses | 20 | (226) | (24) | (172) | 9,053 |
Depreciation and amortization | 6 | 6 | 6 | 4 | 2 |
Interest expense | 14,898 | 15,489 | 15,841 | 14,135 | 14,226 |
Net result from derivative transactions | (1,885) | 7,897 | (8,240) | 3,036 | 1,379 |
General and administrative | 4,821 | 5,113 | 4,788 | 4,570 | 4,675 |
Total expenses | 17,860 | 28,279 | 12,371 | 21,573 | 29,335 |
Other Income: | |||||
Gain on sale of real estate assets | 64 | - | - | - | - |
Gain on sale of mortgage revenue bonds | 1,012 | - | 1,208 | - | - |
Gain on sale of investments in unconsolidated entities | 7 | - | 61 | 5 | 196 |
Earnings (losses) from investments in unconsolidated entities | (15) | (704) | (1,315) | (233) | (1,526) |
Income (loss) before income taxes | 5,177 | (4,638) | 10,169 | 3,324 | (7,074) |
Income tax expense (benefit) | (1) | (2) | 36 | (3) | (3) |
Net income (loss) | 5,178 | (4,636) | 10,133 | 3,327 | (7,071) |
Redeemable preferred unit distributions and accretion | (741) | (741) | (741) | (761) | (1,030) |
Net income (loss) available to partners | $ 4,437 | $ (5,377) | $ 9,392 | $ 2,566 | $ (8,101) |
Net income (loss) available to partners allocated to: | |||||
General partner | $ 44 | $ (54) | $ 391 | $ 25 | $ 8 |
Limited partners - BUCs | 4,324 | (5,399) | 8,938 | 2,484 | (8,185) |
Limited partners - Restricted units | 69 | 76 | 63 | 57 | 76 |
Net income (loss) available to partners | $ 4,437 | $ (5,377) | $ 9,392 | $ 2,566 | $ (8,101) |
(Dollar amounts in thousands, except per BUC information) | |||||
Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | |
Net income (loss) | $ 5,178 | $ (4,636) | $ 10,133 | $ 3,327 | $ (7,071) |
Unrealized (gains) losses on derivatives, net | (211) | 9,695 | (6,979) | 3,883 | 2,143 |
Depreciation expense | 6 | 6 | 6 | 4 | 3 |
Provision for credit losses | 189 | (226) | (24) | (172) | 9,053 |
Amortization of deferred financing costs | 460 | 360 | 466 | 382 | 387 |
Restricted unit compensation expense | 558 | 565 | 436 | 234 | 505 |
Deferred income taxes | (1) | (1) | 1 | 1 | (1) |
Redeemable Preferred Unit distributions and accretion | (741) | (741) | (741) | (761) | (1,030) |
Tier 2 Income allocable to the General Partner | - | - | (310) | - | (93) |
Recovery of prior credit loss | (17) | (17) | (17) | (17) | 79 |
Bond premium, discount and amortization, net of cash received | 879 | 499 | (91) | 25 | 238 |
(Earnings) losses from investments in unconsolidated entities | 15 | 704 | 1,315 | 233 | 1,496 |
Total Cash Available for Distribution | $ 6,315 | $ 6,208 | $ 4,195 | $ 7,139 | $ 5,709 |
Weighted average number of BUCs outstanding, basic | 23,083,387 | 23,085,261 | 23,115,162 | 23,171,226 | 23,171,226 |
Net income (loss) per BUC, basic | $ 0.19 | $ (0.23) | $ 0.39 | $ 0.11 | $ (0.35) |
Total CAD per BUC, basic | $ 0.27 | $ 0.27 | $ 0.18 | $ 0.31 | $ 0.25 |
Cash Distributions declared, per BUC | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.30 |
Trailing five quarter totals: | |
Net income per BUC, basic | $ 0.11 |
Total CAD per BUC, basic | $ 1.28 |
Cash Distributions declared, per BUC | $ 1.78 |
(1) See the Important Disclosure Notices in the Appendices for important information regarding non-GAAP measures.
Balance Sheet Summary (Dollar amounts in thousands, except per BUC information) | |||||
6/30/2024 | 9/30/2024 | 12/31/2024 | 3/31/2025 | 6/30/2025 | |
Assets: Cash | $ 34,036 | $ 37,374 | $ 14,703 | $ 51,389 | $ 47,469 |
Restricted cash | 16,861 | 10,446 | 16,603 | 13,066 | 11,099 |
Interest receivable | 7,193 | 7,104 | 7,446 | 7,127 | 7,005 |
Mortgage revenue bonds, at fair value | 1,002,052 | 1,032,891 | 1,026,484 | 1,022,564 | 1,004,463 |
Governmental issuer loans, net | 213,446 | 205,639 | 225,164 | 160,467 | 121,162 |
Property loans, net | 61,358 | 53,835 | 55,135 | 47,409 | 52,837 |
Investments in unconsolidated entities | 157,941 | 168,743 | 179,410 | 167,989 | 153,895 |
Real estate assets, net | 4,716 | 4,716 | 4,906 | 3,552 | 3,552 |
Other assets | 31,038 | 28,501 | 49,849 | 63,920 | 79,153 |
Total assets | $ 1,528,641 | $ 1,549,249 | $ 1,579,700 | $ 1,537,483 | $ 1,480,635 |
Liabilities Accounts payable, accrued expenses and other liabilities | $ 21,215 | $ 24,724 | $ 23,481 | $ 21,562 | $ 22,838 |
Distribution payable | 8,704 | 8,704 | 8,997 | 8,744 | 7,236 |
Secured lines of credit | 41,250 | 44,400 | 68,852 | 58,500 | 44,000 |
Debt financing, net | 1,052,526 | 1,062,408 | 1,093,273 | 1,056,520 | 1,030,041 |
Mortgages payable, net | 1,690 | 1,690 | 1,664 | 310 | 310 |
Total liabilities | 1,125,385 | 1,141,926 | 1,196,267 | 1,145,636 | 1,104,425 |
Redeemable preferred units | 77,395 | 77,401 | 77,406 | 97,399 | 97,402 |
Partners' capital | 325,861 | 329,922 | 306,027 | 294,448 | 278,808 |
Total liabilities and partners' capital | $ 1,528,641 | $ 1,549,249 | $ 1,579,700 | $ 1,537,483 | $ 1,480,635 |
Net book value per BUC(1) | $ 13.98 | $ 14.15 | $ 13.15 | $ 12.59 | $ 11.83 |
(1) Based on total BUCs and unvested restricted unit awards outstanding as of each date presented.
Important Disclosure NoticesForward-Looking Statements
All statements in this document other than statements of historical facts, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. When used, statements which are not historical in nature, including those containing words such as "anticipate," "estimate," "should," "expect," "believe," "intend," and similar expressions, are intended to identify forward-looking statements. We have based forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. This document may also contain estimates and other statistical data made by independent parties and by us relating to market size and growth and other industry data. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not independently verified the statistical and other industry data generated by independent parties contained in this supplement and, accordingly, we cannot guarantee their accuracy or completeness. In addition, projections, assumptions and estimates of our future performance and the future performance of the industries in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described under the headings "Item 1A Risk Factors" in our 2024 Annual Report on Form 10-K for the year ended December 31, 2024. These forward-looking statements are subject to various risks and uncertainties and Greystone Housing Impact Investors LP (the "Partnership") expressly disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Most, but not all, of the selected financial information furnished herein is derived from the Greystone Housing Impact Investors LP's consolidated financial statements and related notes prepared in conformity with generally accepted accounting principles in the United States of America ("GAAP") and management's discussion and analysis of financial condition and results of operations included in the Partnership's reports on Forms 10-K and 10-Q. The Partnership's annual consolidated financial statements were subject to an independent audit, dated February 20, 2025.
Disclosure Regarding Non-GAAP Measures
This document refers to certain financial measures that are identified as non-GAAP. We believe these non-GAAP measures are helpful to investors because they are the key information used by management to analyze our operations. This supplemental information should not be considered in isolation or as a substitute for the related GAAP measures.
Please see the consolidated financial statements we filed with the Securities and Exchange Commission on Forms 10-K and 10-Q. Our GAAP consolidated financial statements can be located upon searching for the Partnership's filings at https://www.sec.gov.
Other Partnership Information Corporate Office: Transfer Agent:14301 FNB Parkway Equiniti Trust Company, LLC
Suite 211 28 Liberty Street, Floor 53
Omaha, NE 68154 New York, NY 10005
Phone: 402-952-1235 [email protected]
Investor & K-1 Services: 855-428-2951 Phone: 718-921-8124 Web Site: https://www.ghiinvestors.com 800-937-5449
K-1 Services Email: [email protected]
Ticker Symbol (NYSE): GHI
Corporate Counsel: Independent Accountants:Barnes & Thornburg LLP PwC
11 S. Meridian Street 1 North Wacker Drive
Indianapolis, IN 46204 Chicago, Illinois 60606
Board of Managers of Greystone AF Manager LLC:(acting as the directors of Greystone Housing Impact Investors LP)
Stephen Rosenberg Chairman of the Board
Jeffrey M. Baevsky Manager
Drew C. Fletcher Manager
Steven C. Lilly Manager
W. Kimball Griffith Manager
Deborah A. Wilson Manager
Robert K. Jacobsen Manager
Corporate Officers:Kenneth C. Rogozinski Chief Executive Officer Jesse A. Coury Chief Financial Officer