Greystone Housing Impact Investors LP(US:GHI)2024-11-06 13:47Financial Performance - The company reported a significant increase in Cash Available for Distribution (CAD), reaching $X million, representing a Y% increase compared to the previous quarter[5]. - Total revenues decreased to $24,345,550 for the three months ended September 30, 2024, down from $26,474,136 in 2023, a decline of approximately 8.06%[16]. - Net income (loss) for the three months ended September 30, 2024, was $(4,635,707), compared to a net income of $9,729,378 in 2023, indicating a significant decrease[16]. - The net income (loss) available to partners for the three months ended September 30, 2024, was $(5,377,183), compared to $9,029,222 in 2023, reflecting a substantial decline[16]. - Comprehensive income (loss) for the three months ended September 30, 2024, was $12,942,251, compared to a loss of $(38,295,371) in 2023, showing a positive shift in performance[18]. - The net income (loss) for the nine months ended September 30, 2024, was $(7,192,418), compared to a net income of $53,132,243 for the same period in 2023[113]. Assets and Liabilities - The total assets of the company as of the reporting date were $X billion, reflecting a Z% growth year-over-year[5]. - Total assets increased to $1,549,249,185 as of September 30, 2024, up from $1,513,400,702 at December 31, 2023, representing a growth of approximately 2.37%[15]. - Total liabilities rose to $1,141,926,732 as of September 30, 2024, compared to $1,081,662,446 at December 31, 2023, marking an increase of approximately 5.58%[15]. - Total liabilities rose to $1,075,272,545 as of September 30, 2024, up from $1,028,660,379 as of December 31, 2023, indicating an increase of about 4.5%[56]. Investment and Financing Activities - Investment income for the three months ended September 30, 2024, was $21,820,973, compared to $20,537,399 for the same period in 2023, reflecting an increase of 6.25%[16]. - The partnership made advances on mortgage revenue bonds totaling $(141,175,652), compared to $(119,452,688) in the previous year, indicating an increase of about 18.2%[25]. - Proceeds from debt financing amounted to $186,595,000, down from $236,292,000 in the prior year, a decrease of about 21.0%[25]. - The Partnership's total cash and cash equivalents decreased from $58,917,793 to $37,374,268, a decline of approximately 36.6%[26]. - The Partnership's total debt financing, net, as of September 30, 2024, is approximately $1.06 billion[174]. Credit Losses and Risk Management - The allowance for credit losses for governmental issuer loans decreased from $(1,294,000) to $(1,063,000), a reduction of about 17.83%[15]. - The Partnership's allowance for credit losses at the end of September 30, 2024, totaled $3.254 million, down from $4.097 million at the beginning of the period[125]. - The current provision for credit losses for the three months ended September 30, 2024, was a recovery of $226,000, compared to a recovery of $562,000 for the same period in 2023[129]. - The decrease in the allowance for credit losses is attributed to GIL and property loan redemptions and updates of market data used in the estimation model[130]. Market and Economic Conditions - The company has noted the impact of elevated inflation levels on interest rates and market volatility, which may affect future performance[11]. - The Partnership's operating expenses may be adversely impacted by the recent inflationary environment, potentially reducing net operating results[39]. - The Federal Reserve reduced the federal funds rate by 50 basis points on September 18, 2024, in response to declining year-over-year inflation rates[38]. Strategic Initiatives - The company is actively pursuing a Construction Lending Joint Venture with BlackRock Impact Opportunities to finance affordable multifamily housing properties across the United States[5]. - The company anticipates a continued focus on market expansion, particularly in regions with high demand for affordable housing[10]. - The company has outlined a forward-looking strategy that includes potential acquisitions to enhance its portfolio and market presence[10]. - The company plans to continue its focus on diversity, equity, and inclusion initiatives as part of its corporate strategy[6]. Debt and Financing Agreements - The Partnership is required to maintain a minimum liquidity of not less than $6.3 million and a minimum consolidated tangible net worth of $200.0 million under the Secured Credit Agreement[146]. - The variable rate for the General LOC is equal to SOFR + 3.50%, subject to an all-in floor of 3.75%[142]. - The Partnership was in compliance with all covenants related to its financing agreements as of September 30, 2024[163]. Derivative Instruments - For the three months ended September 30, 2024, the net result from derivative transactions was $7,897,016, compared to a net loss of $(7,209,385) for the same period in 2023[177]. - The Partnership's interest rate swaps had a notional amount of $392,782,208 with a fair value asset of $2,704,180 and a liability of $(3,166,639) as of September 30, 2024[179]. - The total unrealized gains on derivatives for the nine months ended September 30, 2024, were $4,880,661, compared to $(6,820,894) for the same period in 2023[177]. Preferred Units and Equity Commitments - The Partnership redeemed $10.0 million of Series A Preferred Units in April 2024[190]. - As of September 30, 2024, there are 7,750,000 redeemable preferred units outstanding, totaling $77,500,000[192]. - The Series A-1 Preferred Units have a total purchase price of $55,000,000 with a distribution rate of 3.00%[191].