Greystone Housing Impact Investors LP(US:GHI)2024-11-07 01:15Financial Data and Key Metrics Changes - The company reported a net loss of $4.6 million or $0.23 per unit for Q3 2024, with cash available for distribution (CAD) of $6.2 million or $0.27 per unit [3][6] - A non-cash unrealized loss of $9.7 million from interest rate derivatives was recognized, impacting net income significantly [6][7] - The book value per unit increased to $14.15, up $0.17 from the previous quarter, primarily due to an increase in the fair value of the mortgage revenue bond portfolio [7][8] - The leverage ratio was reported at 74% as of September 30, 2024 [4] Business Line Data and Key Metrics Changes - The investment portfolio consists of $1.32 billion in affordable multifamily investments and $169 million in joint venture equity investments [5][9] - Physical occupancy for the stabilized mortgage revenue bond portfolio was 91.5% as of September 30, 2024 [5] - The company advanced $40.5 million for mortgage revenue bond investments and $17.5 million for governmental issuer loans during the quarter [10][11] Market Data and Key Metrics Changes - The 10-year MMD increased to 2.97% and the 30-year MMD to 3.83% as of November 2024, reflecting a rise in yields [13][14] - The municipal bond market saw record new issuance of $56 billion in October, contributing to a total of $431 billion year-to-date [13] Company Strategy and Development Direction - The company is focusing on a new construction lending joint venture with BlackRock to fill the gap left by commercial banks in affordable construction lending [14] - The strategy includes deploying capital into emerging build-to-rent joint venture equity strategies for market-rate multifamily development properties [14] Management's Comments on Operating Environment and Future Outlook - Management noted that interest rates have not significantly impacted demand for core lending products, with ongoing inquiries from sponsors [19] - The company remains optimistic about deploying new capital from the BlackRock joint venture despite market volatility [19][21] Other Important Information - The company terminated its variable rate M31 TEBS financing and closed a new fixed-rate securitization transaction, reducing exposure to interest rate fluctuations [9][12] - Unrestricted cash and cash equivalents were reported at $37.3 million, with an additional $55.6 million available on secured lines of credit [7] Q&A Session Summary Question: Potential issues with fiscal policy due to new administration - Management indicated it is too early to predict impacts but noted historical bipartisan support for the Low-Income Housing Tax Credit program [16] Question: Capital deployment timeline for the BlackRock partnership - Management explained that the capital will be deployed through fixed and floating rate construction loans, leveraging existing sponsor relationships [17] Question: Impact of recent rate volatility on loan demand - Management stated that demand for loans remains strong despite higher interest rates, with ongoing projects from sponsors [19] Question: Future investment portfolio trends - Management expects investment portfolios to trend higher, focusing on opportunities that meet their dividend yield criteria [23] Question: Share buybacks consideration - Management prefers to invest in new opportunities rather than buy back shares, as long as those investments are accretive [30][31] Question: Insider purchases of stock - Management noted that insider activity is currently restricted but may change post-10-Q filing [32]