Greystone Housing Impact Investors LP(US:GHI)2024-05-08 12:46Financial Performance - Total revenues for the three months ended March 31, 2024, were $22,370,654, down 10.26% from $24,937,970 in the same period of 2023[16]. - Net income available to partners decreased to $9,881,140 for Q1 2024, a decline of 38.06% compared to $16,044,572 in Q1 2023[16]. - The company reported a comprehensive loss of $1,423,315 for Q1 2024, compared to a comprehensive income of $37,301,311 in Q1 2023[18]. - Net income for the three months ended March 31, 2024, was $10,648,381, a decrease of 36% compared to $16,791,222 in the same period of 2023[25]. - The Partnership reported a net loss of $5,435,562 from derivative transactions in the Affordable Multifamily MRB Investments segment for the three months ended March 31, 2024[189]. Asset and Liability Changes - Total assets decreased from $1,513,400,702 as of December 31, 2023, to $1,453,419,497 as of March 31, 2024, a decline of approximately 3.95%[14]. - The total liabilities decreased from $1,081,662,446 as of December 31, 2023, to $1,026,200,290 as of March 31, 2024, a decrease of approximately 5.13%[14]. - Cash and cash equivalents increased from $37,918,237 as of December 31, 2023, to $56,255,270 as of March 31, 2024, an increase of 48.38%[14]. - The total estimated fair value of mortgage revenue bonds held in trust is $922,468,164, with a cumulative unrealized loss of $1,633,606[51]. - As of March 31, 2024, total accounts payable, accrued expenses, and other liabilities amounted to $20,862,915, a decrease of approximately 9.1% from $22,958,088 on December 31, 2023[112]. Investment Activities - The Partnership's investment in mortgage revenue bonds (MRBs) provides financing for income-producing multifamily rental, seniors housing, and skilled nursing properties, with fixed interest rates and regular payments[50]. - The Partnership's total funding commitments related to properties awarded private activity bond cap and LIHTC allocations from January 1, 2022, to March 31, 2024, amounted to $423,660,054[203]. - The Partnership executed an $8.2 million equity commitment in February 2023 to fund the construction of Valage Senior Living Carson Valley[88]. - The Partnership's investments in unconsolidated entities include properties with a total of 2,880 units across various locations in Texas and Colorado[84]. - The Partnership acquired an MRB and taxable MRB in April 2024 for $33,727,000 to finance the acquisition and rehabilitation of an affordable multifamily property[192]. Credit Losses and Provisions - The provision for credit losses increased to $(806,000) in Q1 2024 from $(545,000) in Q1 2023, indicating a rise in expected credit losses[16]. - The Partnership recorded a recovery of provision for credit losses of approximately $806,000 for the three months ended March 31, 2024, compared to $545,000 for the same period in 2023, reflecting a decrease in the allowance for credit losses by the same amount[104]. - As of March 31, 2024, the total allowance for credit losses was $3,291,000, down from $4,097,000 at the beginning of the period, indicating a reduction of approximately 19.7%[103]. - The Partnership's risk assessment indicates that all GILs, taxable GILs, and property loans are currently performing, except for two property loans on nonaccrual status[108]. - The cumulative-effect adjustment upon adoption of the new credit loss standard resulted in a significant allowance for credit losses, impacting the Partners' Capital[103]. Debt Financing and Interest Rates - As of March 31, 2024, the total outstanding debt of the Partnership is approximately $304.2 million with a weighted average interest rate of 4.42%[122]. - The total debt financings from TOB Trust Securitizations is approximately $601.3 million, with a period-end rate of 5.69%[122]. - The variable interest rates for several financings range from 4.01% to 5.59%, depending on the specific financing structure[122]. - The Partnership has entered into an interest rate cap agreement to mitigate exposure to interest rate fluctuations on the variable-rate M31 TEBS financing[130]. - The Partnership's variable rate debt financing arrangements include maximum interest rate provisions to prevent debt service from exceeding cash flows from securitized assets[132]. Equity and Preferred Units - The Partnership has issued 8,750,000 redeemable preferred units as of March 31, 2024, with a total redemption value of $87,500,000[154]. - The Series A Preferred Units have a fixed distribution rate of 3.0%, while Series B Preferred Units have a rate of 5.75%[153]. - The Partnership redeemed $10.0 million of Series A Preferred Units in April 2024[155]. - Approximately 292,000 restricted units and other awards are available for future issuance under the 2015 Equity Incentive Plan as of March 31, 2024[157]. - The Partnership has a total of $97,057,835 in equity investments, with remaining commitments of $54,334,681[150]. Operational Insights - The Partnership's operations are managed by 16 employees, indicating a relatively modest environmental impact[206]. - Greystone has implemented DEI initiatives, with three out of 16 employees being women and one identifying as ethnically diverse[210]. - The Partnership is committed to supporting affordable multifamily housing, with properties required to maintain a minimum percentage of units for very low-income and low-income tenants[207]. - The Partnership's preferred return on invested capital in unconsolidated entities is reported as "Investment income" on the condensed consolidated statements of operations[81]. - The Partnership's financial strategy includes managing the impact of market interest rates on the valuation of its mortgage revenue bonds[52].