Financial Data and Key Metrics Changes - The company reported GAAP net income of $10.1 million and $0.39 per unit for Q4 2024, with cash available for distribution (CAD) of $4.2 million and $0.18 per unit [14] - For the year ended December 31, 2024, net income was $21.3 million and CAD was $21.9 million, benefiting from a hedging strategy that resulted in net swap payments of $12.3 million [17][18] - The book value per unit decreased to $13.15, down $1 from September 30, primarily due to a decrease in the fair value of the mortgage revenue bond portfolio [18][19] Business Line Data and Key Metrics Changes - The investment portfolio maintained a physical occupancy rate of 91.2% for the stabilized mortgage revenue bond portfolio as of December 31, 2024 [9] - The company advanced funds totaling $36.8 million for mortgage revenue bond investments and $32 million for governmental issuer loans and property loans during Q4 [28] - The joint venture equity investments portfolio consisted of 12 properties with a carrying value of approximately $179.4 million as of December 31 [33] Market Data and Key Metrics Changes - The 10-year MMD yield increased from 2.97% to 3.06% and the 30-year MMD yield increased from 3.83% to 3.90% from the previous quarter [39] - The Muni High Grade Index generated a total return of 1.1% and the Muni High Yield Index generated a total return of 6.3% for 2024 [43] Company Strategy and Development Direction - The company is focusing on a new construction lending joint venture with BlackRock, aiming to fill the gap left by commercial banks in affordable construction lending [45] - The management team is committed to maintaining a disciplined evaluation of cash available for distribution and other factors when making distribution decisions [89] Management's Comments on Operating Environment and Future Outlook - Management noted that the fourth quarter rally in the muni bond market did not materialize as expected, with yields higher than anticipated [39] - The company is monitoring potential impacts from changes in tax legislation and the administration's policies on the muni bond market [41][67] Other Important Information - The company reported unrestricted cash and cash equivalents of $14.7 million and approximately $31 million of availability on secured lines of credit as of December 31 [22] - The company has liquidity events in January 2025 that added approximately $31 million to available liquidity [23] Q&A Session Summary Question: Can you talk about the returns on the new JV investments compared to MRBs and government loans? - Management indicated that the strategy for the BlackRock JV is similar to past governmental issuer loan investments, with expected returns enhanced by a promotes structure [49][50] Question: What are the expectations for gains from JV equity investments? - Management noted that returns are highly localized and influenced by market conditions, with specific challenges faced by the Tomball asset due to increased insurance costs [56][57] Question: What is the timing for redemptions in 2025? - Management expects significant redemptions later in 2025, with approximately $120 million of governmental issuer loan balances anticipated [62] Question: How does the company view the unit price being below net book value? - Management acknowledged the low trading price relative to book value and indicated that they would evaluate potential actions if this trend continues [100]
Greystone Housing Impact Investors LP(GHI) - 2024 Q4 - Earnings Call Transcript