Greystone Housing Impact Investors reports Q2 2024 earnings By Investing.com

During the second quarter earnings call, Greystone Housing Impact Investors LP (NYSE: GHC) reported a net income of $0.19 per unit and cash available for distribution (CAD) of $0.27 per unit. The company also noted a non-cash unrealized gain of $211,000 from its interest rate swap portfolio.

The CEO, Ken Rogozinski, provided an update on the company’s financial health, including a regular quarterly cash distribution of $0.37 per unit, and discussed market conditions, the investment pipeline, and strategies for hedging interest rate risk.

Key Takeaways

• Greystone Housing Impact Investors LP announced net income of $0.19 per unit and CAD of $0.27 per unit for Q2 2024.
• The company recognized a non-cash unrealized gain of $211,000 from interest rate swaps.
• A regular quarterly cash distribution of $0.37 per unit was announced.
• The investment portfolio comprises $1.3 billion in affordable multifamily investments and $158 million in joint venture equity investments.
• Physical occupancy rate for their mortgage revenue bond portfolio stands at 91.9%.
• Leverage ratio is reported at 73%, with the company monitoring interest rate risk.
• Gross issuance for the year is expected to exceed $400 billion, with year-to-date fund and ETF flows totaling $11.5 billion.

Company Outlook

• The muni investment grade index ended the first half of 2024 in the red but improved in July.
• The high-yield muni index was up by 4.2%.
• The company is actively working with clients to deliver cost-effective capital and is pursuing new joint venture equity investments.

Bearish Highlights

• Market conditions showed higher U.S. treasury yields, with the muni investment grade index ending the first half of 2024 in the negative.

Bullish Highlights

• The company has a robust investment pipeline and is seeing an increase in fund and ETF flows.
• Predicted total municipal issuance for the year is over $400 billion.

Misses

• No specific misses were discussed during the earnings call.

Q&A Highlights

• The company is optimizing gross potential rent to take advantage of Freddie Mac loan upsizing opportunities.
• There is a potential for appreciation in the value of their mortgage revenue bonds (MRBs), with a reversal in rates.
• Management is comfortable with a low single-digit interest rate and is not planning to increase rate exposure.
• Capital raising efforts will be targeted and driven by specific investment opportunities.

In summary, Greystone Housing Impact Investors LP presented a stable financial outlook for the second quarter of 2024, with…