Greystone Housing Impact Investors Reports $25.1M Revenue in Q1 2025, Net Income Declines

Greystone Housing Impact Investors LP reported a total revenue of $25.1 million for the first quarter of 2025, marking an increase of 11.6% from $22.4 million in the same period of the previous year. The growth in revenue was primarily driven by a $2.6 million rise in investment income, which reached $21.9 million, attributed to increased interest income from recent mortgage revenue bond (MRB) advances. However, other interest income decreased by 23.8% to $2.3 million, reflecting lower average balances in property loans and taxable investments. The partnership's net income for the quarter was $3.3 million, a significant decline from $10.6 million in the prior year, largely due to unrealized losses on derivative instruments, which totaled $3.9 million.

In terms of operational metrics, Greystone's total assets decreased to $1.54 billion as of March 31, 2025, down from $1.58 billion at the end of 2024. The decline was influenced by a reduction in governmental issuer loans, which fell from $226.2 million to $161.4 million. The partnership's liabilities also decreased, totaling $1.15 billion, compared to $1.20 billion at the end of the previous fiscal year. The number of Beneficial Unit Certificates (BUCs) outstanding increased slightly to 23,397,437, reflecting ongoing investor interest.

Strategically, Greystone has been active in its investment approach, including the establishment of a Construction Lending Joint Venture (JV) aimed at financing affordable multifamily housing projects. The partnership has committed to providing 10% of the capital for this JV, with a maximum capital contribution of approximately $8.3 million. Additionally, the partnership executed a significant transaction in April 2025, selling the Natchitoches Thomas Apartments GIL and taxable GIL to the Construction Lending JV, which is expected to enhance its liquidity position.

Looking ahead, Greystone anticipates continued challenges due to rising interest rates and potential economic headwinds. The partnership's management has indicated that while they are currently in compliance with all financial covenants, they will closely monitor market conditions and adjust their strategies accordingly. The partnership's leverage ratio stood at approximately 74% as of March 31, 2025, within the established target of 80%. The management remains optimistic about future investment opportunities, particularly in the affordable housing sector, as they navigate the evolving economic landscape.