Greystone Housing Impact Investors LP Reports Solid Earnings for Q4 and Full Year 2023
Net Income: $0.24 per BUC for Q4 and $2.07 per BUC for the full year 2023.
Cash Available for Distribution (CAD): $0.27 per BUC for Q4 and $1.93 per BUC for the full year.
Total Assets: Reached $1.51 billion by the end of 2023.
Distributions: Quarterly distribution of $0.44 per BUC announced in December 2023.
Investment Activity: Advanced funds on MRB and GIL investments totaling over $49.9 million in Q4.
Portfolio Updates: All affordable multifamily MRB and GIL investments are current on payments with no forbearance requests.
Interest Rate Hedging: Net payments received under interest rate swap portfolio of approximately $1.9 million for Q4 and $6.0 million for the full year.
On February 22, 2024, Greystone Housing Impact Investors LP (NYSE:GHI) released its 8-K filing, announcing its financial results for the fourth quarter and the full year ended December 31, 2023. GHI, a company engaged in acquiring mortgage revenue bonds (MRBs) for financing affordable multifamily housing, seniors housing, and commercial properties, reported a net income of $0.24 per Beneficial Unit Certificate (BUC) for the fourth quarter and $2.07 per BUC for the full year. Additionally, the Cash Available for Distribution (CAD) was reported at $0.27 per BUC for the quarter and $1.93 per BUC for the year.
The company's total assets stood at $1.51 billion as of the end of 2023. In December, GHI's Board of Managers declared a quarterly distribution of $0.44 per BUC, which included a regular cash distribution and a supplemental distribution payable in additional BUCs. This distribution strategy reflects the company's focus on delivering value to its unitholders and aligns with its investment growth strategy.
Financial Performance and Strategic Highlights
CEO Kenneth C. Rogozinski expressed satisfaction with the strong returns from investments, particularly noting the sale of Suites on Paseo, which allows for the redeployment of capital into core investment strategies. The company's investment and financing activities included advancing funds on various investments and securing new financing transactions to optimize its debt profile.
From an operational standpoint, all affordable multifamily MRB and GIL investments are current on payments, and the company has not received any forbearance requests. GHI's proactive hedging strategy has been effective, as evidenced by the net payments received under its interest rate swap portfolio, which helped mitigate the impact of volatile market interest rates.
Investment Portfolio and Market Outlook
The company's investment portfolio updates revealed that two joint venture equity investment properties have stabilized operations, and several others have begun leasing activities. Importantly, none of the properties under construction or development have experienced material supply chain disruptions, which is a positive sign for project timelines and cost management.
Looking forward, the company's strategic focus remains on acquiring additional mortgage revenue bonds and other investments, leveraging favorable financing structures, and managing interest rate risk. GHI's commitment to these strategies is aimed at sustaining its track record of generating attractive returns and distributing value to its unitholders.
Greystone Housing Impact Investors LP's solid financial results for the fourth quarter and full year 2023 demonstrate the company's ability to navigate the complexities of the market and continue to deliver value to its investors. With a clear strategy and a focus on its core investment areas, GHI is well-positioned for future growth and success.
Explore the complete 8-K earnings release (here) from Greystone Housing Impact Investors LP for further details.
This article first appeared on GuruFocus.
