Greystone Housing Impact Investors (NYSE:GHI) Q3 2024 Earnings Conference Call November 6, 2024 4:30 PM ET

Company Participants

Jesse Coury - CFO
Ken Rogozinski - CEO

Conference Call Participants

Matthew Erdner - JonesTrading
Jason Stewart - Janney
Chris Muller - Citizens JMP
Larry Linden - GHI

Operator

Greetings, and welcome to Greystone Housing Impact Investors LP Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Jesse Coury, Chief Financial Officer. Thank you, Mr. Coury, you may begin.

Jesse Coury

Thank you. I would like to welcome everyone to the Greystone Housing Impact Investors LP NYSE, ticker symbol GHI, third quarter of 2024 earnings conference call. During this conference call, comments made regarding GHI, which are not historical facts, are forward-looking statements and are subject to risks and uncertainties that could cause the actual future events or results to differ materially from these statements. Such forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements can be identified by the use of words like may, should, expect, plan, intend, focus and other similar terms. You are cautioned that these forward looking statements speak only as of today's date. Changes in economic, business, competitive, regulatory and other factors could cause our actual results to differ materially from those expressed or implied by the projections or forward looking statements made today. For more detailed information about these factors and other risks that may impact our business, please review the periodic reports and other documents filed from time-to-time by us with the Securities and Exchange Commission. Internal projections and beliefs upon which we base our expectations may change. But if they do, you will not necessarily be informed. Today's discussion will include non-GAAP measures and will be explained during this call. We want to make you aware that GHI is operating under the SEC Regulation FD and encourage you to take full advantage of the question and answer session. Thank you for your participation and interest in Greystone Housing Impact Investors LP. I will now turn the call over to our Chief Executive Officer, Ken Rogozinski.

Ken Rogozinski

Good afternoon, everyone. Welcome to Greystone Housing Impact Investors LP's third quarter 2024 investor call. Thank you for joining. I will start with an overview of the quarter and our portfolio. Jesse Coury, our Chief Financial Officer, will then present the Partnership's financial results. I will wrap up with an overview of the market and our investment pipeline. Following that, we look forward to taking your questions. For the third quarter of 2024, the Partnership reported a net loss of $0.23 per unit and $0.27 of cash available for distribution or CAD per unit. In past quarters, we have noted that net income includes noncash unrealized gains and losses that reflects the mark-to-market associated with our interest rate swap portfolio for the quarter. During the third quarter, we recognized a non cash unrealized loss of $9.7 million from that source or approximately $0.42 per BUC. We are currently a net receiver on all of our interest rate swaps as we receive compounded SOFR, which is now 4.90% and pay a weighted average fixed rate of 3.52% on our approximately $393 million in swap notional amounts as of September 30, 2024. Assuming that the compounded SOFR level stays constant over the next six months that 138 basis point spread would result in us receiving approximately $2.8 million in cash payments from our swap counterparties, which would not be reflected in our net income but would be reflected as an additional $0.12 per unit in CAD. We also reported a book value of $14.15 per unit on $1.55 billion of assets and a leverage ratio as defined by the Partnership of 74%. On September 16th, we announced a regular quarterly cash distribution of $0.37 per unit, which was paid on October 31, 2024.