GHI — Greystone Housing Impact Investors LP

Summary of GHI Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Net Income: $1.3 million, or $0.01 per unit (basic and diluted).
• Cash Available for Distribution (CAD): $3.1 million, or $0.13 per unit.
• Proportionate Share of Losses: Approximately $4.9 million from non-Vantage JV equity investments, primarily due to depreciation and operating expenses during the lease-up phase.
• Book Value per Unit: $11.03 (diluted).
• Closing Unit Price: $5.90, reflecting a 55% discount to book value.
• Unrestricted Cash and Cash Equivalents: $20.6 million as of March 31.
• Debt Financing: Total outstanding principal balance of approximately $927 million, down $92 million from the previous quarter.

2. Strategic Updates and Business Highlights:

• GHI is repositioning its investment portfolio by exiting market rate multifamily joint venture equity investments and reallocating capital into tax-exempt mortgage revenue bonds, which are expected to provide more stable, tax-advantaged earnings.
• The company has 8 market rate multifamily JV equity investments that have completed construction, with increasing occupancy rates.
• GHI has identified strong investment opportunities in affordable housing, seniors housing, and skilled nursing properties.
• The partnership has transitioned to owning four South Carolina properties through a deed-in-lieu of foreclosure, expecting to stabilize and enhance their value.

3. Forward Guidance and Outlook:

• GHI anticipates that the shift to tax-exempt mortgage revenue bonds will lead to increased recurring earnings in the long term.
• The company expects to see improved occupancy rates as new supply in local markets stabilizes.
• Management is optimistic about the potential for monetization of stabilized assets during the peak leasing season in spring and early summer.

4. Bad News, Challenges, or Points of Concern:

• The company reported significant losses from JV equity investments, primarily due to depreciation and ongoing operating expenses during the lease-up phase.
• Physical occupancy for the stabilized mortgage revenue bond portfolio declined slightly to 85.9%, attributed to increased vacancies in Texas due to new multifamily unit supply.
• The partnership faces interest rate risks, particularly in its unhedged debt financing, which could impact net interest income.

5. Notable Q&A Insights:

• Four out of ten properties have reached or are nearing stabilized occupancy, with potential monetization timelines being evaluated by JV partners.
• The financing structure for the South Carolina properties is a recourse obligation, with low covenant levels providing some buffer before any potential exposure arises.
• The depreciation expense of $1.9 million is expected to be a consistent figure until properties begin generating revenue, with an anticipated decrease in overall losses as occupancy improves.

Overall, GHI is navigating a strategic shift in its investment approach while managing challenges related to occupancy and joint venture losses. The outlook remains cautiously optimistic, focusing on long-term stability and growth through tax-exempt investments.