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    GHI
    Earnings call· Jun 2026(Q2 FY26)

    Greystone Housing Impact Investors Q2 FY26 earnings call GHI

    Aug 11, 2026 Source

    Executive summary

    Greystone Housing Impact Investors LP Q2 FY26 — Portfolio Repositioning Underway Amidst JV Exits

    Greystone Housing Impact Investors LP is actively repositioning its portfolio by exiting market-rate multifamily JV equity investments and reinvesting capital into stable, tax-advantaged mortgage revenue bonds. While the transition is in its early stages, marked by a GAAP net loss and significant discount to book value, the company maintains strong liquidity and is leveraging its BlackRock JV for construction lending. Management anticipates increased recurring and tax-exempt earnings in the long term as the strategy progresses.

    Highlights

    5

    • Cash available for distribution (CAD) of $2.4 million, or $0.10 per unit, for Q2 FY26.

    • Debt investment portfolio totaled $927.5 million, representing 67% of total assets as of June 30th.

    • Originated $66 million in GIL investments during June and July 2026, transferring $95.9 million in total commitments to the BlackRock JV.

    • Physical occupancy for non-Texas stabilized MRB portfolios remained strong at 93% as of June 30th.

    • The partnership is largely hedged against significant fluctuations in net interest income from market interest rate movements.

    Concerns

    5

    • Reported a GAAP net loss of $1.5 million, or $0.11 per unit, for Q2 FY26.

    • Proportionate share of losses from non-Vantage JV equity investments was approximately $3.2 million, or $0.14 per unit.

    • The closing unit price on the NYSE was $5.71, representing a 49% discount to net book value per unit as of June 30th.

    • Relatively lower physical occupancy rates in the Texas stabilized MRB portfolio (85.8%) due to increased multifamily unit supply.

    • Challenges with demand and pricing in the Low-Income Housing Tax Credit market persist.

    Operational metrics

    38
    Net loss
    $1.5 million
    Q2 FY26

    Basic and diluted.

    Cash available for distribution (CAD)
    $2.4 million
    Q2 FY26

    Non-GAAP measure.

    Proportionate share of losses from non-Vantage JV equity investments
    $3.2 million
    Q2 FY26

    These are not impairments or realized losses to the partnership, largely funded by property development budget and expected to be recovered upon sale.

    Book value per unit
    $11.196
    as of June 30th

    Derived from closing unit price of $5.71 and 49% discount to net book value. Based on JV equity investments marked at net carrying value, not including potential gains upon sale.

    Unit price discount to net book value
    49%
    as of August 10th

    Closing unit price on NYSE was $5.71.

    Unrestricted cash and cash equivalents
    $30.9 million
    as of June 30th

    Used to fund investment commitments and protect against debt deleveraging.

    Availability on secured lines of credit
    $34.2 million
    as of June 30th

    Provides additional liquidity.

    Debt investment portfolio
    $927.5 million
    as of June 30th

    Consists of mortgage revenue bonds, governmental issuer loans, and property loans.

    Mortgage revenue bonds
    80
    as of June 30th

    All MRB and GIL investments are current on principal and interest payments.

    Governmental issuer loans
    2
    as of June 30th

    All MRB and GIL investments are current on principal and interest payments.

    Future funding commitments (MRB, GIL, related)
    $9 million
    as of June 30th

    Excludes investments expected to transfer to construction lending JV with BlackRock. These commitments will add to income-producing asset base.

    Taxable MRB acquired
    $29 million
    Q2 FY26

    Acquired during the second quarter.

    GIL investments originated
    $66 million
    June and July 2026

    These were subsequently transferred to the construction lending JV with BlackRock.

    Total commitments transferred to BlackRock JV
    $95.9 million
    June and July 2026

    Includes two GIL investments and a separate property loan, reflecting ongoing ability to source and execute affordable multifamily real estate debt.

    Physical occupancy (stabilized MRB portfolio)
    85.8%flat QoQ
    as of June 30th

    Relatively lower rates due to properties in Texas experiencing higher vacancies from recent increases in multifamily unit supply.

    Physical occupancy (non-Texas stabilized MRB portfolio)
    93%
    as of June 30th

    Excludes Texas properties.

    Outstanding debt financing
    $826 milliondown $104 million from March 31st
    as of June 30th

    Used to leverage debt investments.

    Debt financing insulated from rate changes
    $700 million
    as of June 30th

    Three of four debt categories are designed to insulate net return from short-term interest rate changes.

    Unhedged debt financing
    $127 million
    as of June 30th

    Fixed-rate assets with variable-rate debt with no designated hedging, representing the most exposure to interest rate risk in the near term.

    Unhedged debt maturing
    $38 million
    by December 2026

    Associated with debt investments scheduled to mature, which will repay outstanding debt financing. Unhedged period expected to be relatively short.

    Remaining funding commitments (market-rate multifamily JV equity)
    $19.5 million
    as of June 30th

    All related to sites being considered for future development; will not be funded until construction contract is signed or managing member sells the site.

    Outstanding funding commitment (Village at Mount Rose Seniors Housing)
    $4 million
    as of June 30th

    For a market-rate seniors housing JV equity investment.

    Interest rate sensitivity (100 bps rate increase)
    $1 milliondecrease
    annual

    Impact on net interest income and CAD, assuming immediate shift in yield curve and no response for 12 months.

    Interest rate sensitivity (100 bps rate decrease)
    $1 millionincrease
    annual

    Impact on net interest income and CAD, assuming immediate shift in yield curve and no response for 12 months.

    Muni High Grade Index return
    0.4%
    YTD 2026

    As of July 31st, reflecting marginally positive performance from the U.S. municipal bond market.

    Muni High Yield Index return
    2.5%
    YTD 2026

    As of July 31st, reflecting marginally positive performance from the U.S. municipal bond market.

    10-year MMD
    3.24%up from 2.95% at end of June
    as of August 10th

    Reflecting higher levels from Q2 end due to inflation uncertainty.

    30-year MMD
    4.45%up from 4.19% at end of June
    as of August 10th

    Reflecting higher levels from Q2 end due to inflation uncertainty.

    10-year muni-to-Treasury ratio
    69%
    current

    Close to the same level since the last call.

    30-year muni-to-Treasury ratio
    85%
    current

    Close to the same level since the last call.

    Gross new issuance (municipal bond market)
    $343 billionslightly behind last year's record pace
    7 months of 2026

    Market's ability to handle this level is a good sign for secondary market liquidity.

    Fund inflows (municipal bond market)
    $52 billionwell ahead of last year's pace
    7 months of 2026

    Indicates strong investor interest.

    BlackRock Construction Lending JV assets
    4
    current

    All assets funded with tender option bond debt facilities.

    Recurring earnings
    increase
    long run

    Expected from reinvestment of capital from JV equity sales into tax-exempt mortgage revenue bond investments.

    Proportion of tax-exempt income
    increase
    long term

    Expected as more capital is allocated to tax-exempt mortgage revenue bond investments.

    Unhedged period
    relatively short
    near term

    Expected due to $38 million of unhedged debt maturing by December 2026.

    Occupancy rates (Texas MRB portfolio)
    recover
    near term

    Expected once available units are absorbed and new supply deliveries decline.

    BlackRock JV size
    grow in size
    future

    Expected as the company moves through its pipeline of deals.

    Deals & partnerships

    3
    BlackRockConstruction lending joint venture for affordable multifamily real estate debt$95.9 million

    Two GIL investments totaling $66 million and a separate property loan were transferred to the JV in June and July 2026. This JV is expected to become the large majority of the company's construction lending for LIHTC deals.

    Vantage at Hutto, Vantage at Fair Oaks, Vantage at McKinney Falls (properties)Refinancing of original construction and bridge loans with a new debt facility

    The refinancing occurred during July 2026 for three Vantage properties located in Texas. The joint venture partner continues to evaluate potential sales of these assets.

    Four South Carolina MRB propertiesDeed in lieu of foreclosure, resulting in direct ownership of underlying multifamily properties

    Completed during the first quarter of 2026. The company believes direct ownership and management will maximize value. A third-party property manager has been retained, and the company is actively managing the assets and evaluating capital improvements.

    Risks & headwinds

    7
    GAAP Net Loss and JV Equity LossesQ2 FY26

    Net loss of $1.5 million, or $0.11 per unit; proportionate share of losses from non-Vantage JV equity investments of $3.2 million, or $0.14 per unit, for Q2 FY26.

    Mitigation: JV equity losses are largely related to depreciation/amortization and property operating expenses, not impairments, and are expected to be recovered upon future transactional events. The company is pursuing a strategy to exit these investments.

    Discount to Net Book ValueCurrent (as of August 10th)

    Closing unit price on NYSE was $5.71, representing a 49% discount to net book value per unit as of June 30th.

    Mitigation: Management acknowledges the discount and will evaluate capital allocation opportunities, including potential buybacks, as capital is returned from JV equity liquidations.

    Variability in Occupancy for JV Equity InvestmentsOngoing

    Some variability in occupancy on stabilized JV equity assets as local market factors impact demand and rent levels.

    Mitigation: Decisions regarding property sales are made by joint venture partners based on their views of local market conditions and leasing trends.

    Lower Physical Occupancy in Texas MRB PortfolioNear term

    Physical occupancy for the stabilized MRB portfolio was 85.8% as of June 30th, with relatively lower rates in Texas due to higher vacancies from recent increases in multifamily unit supply.

    Mitigation: Management expects occupancies to recover once available units are absorbed and new supply deliveries decline in the near term.

    Inflation Uncertainty Impacting Muni Bond RatesCurrent

    10-year MMD at 3.24% and 30-year MMD at 4.45% as of August 10th, reflecting higher levels from Q2 end due to inflation uncertainty stemming from the current conflict in the Middle East.

    Mitigation: The company considers itself largely hedged against significant fluctuations in net interest income from market interest rate movements in all scenarios, assuming no significant credit issues.

    Challenges in Low-Income Housing Tax Credit (LIHTC) MarketOngoing

    Challenges with demand and pricing in the LIHTC market.

    Mitigation: The company is working closely with its Greystone Real Estate Capital team to deliver a full debt and equity solution to affordable housing sponsor clients. Deals in the pipeline are seeing larger allocations of taxable debt.

    Repositioning Challenges for South Carolina PropertiesOngoing (only four months of operational control)

    Ongoing repositioning efforts, management turnover, and evaluation of capital improvements needed for four directly owned multifamily properties in South Carolina, with current occupancy potentially in the low to mid-80s or lower.

    Mitigation: The company has retained a third-party property manager (Asset Living) and is actively managing the assets with assistance from Greystone's corporate asset management team.

    What to watch in Q3 FY26

    5

    JV Equity Investment Sales

    Next quarter
    CurrentStill very early in the ballgame; no sales reported since Q2 last year
    TargetReport of JV equity investment sales

    Why it matters

    Successful JV equity exits are critical for capital recycling and the execution of the portfolio repositioning strategy towards stable, tax-advantaged mortgage revenue bonds.

    I think we're still very early in the ballgame. We haven't reported a sale of a joint venture equity investment since Q2 of last year when the Vantage at Helotes transaction was sold.

    Q&A highlights

    5

    What inning are we in regarding the portfolio rotation strategy, and has the timeline extended due to refinancing transactions?

    Management stated they are still in the very early innings of the portfolio rotation, as no JV equity investment sales have been reported since Q2 of last year. They are working with partners to implement exits, which will then allow for capital recycling into traditional tax-exempt mortgage revenue bonds.

    “I think we're still very early in the ballgame. We haven't reported a sale of a joint venture equity investment since Q2 of last year when the Vantage at Helotes transaction was sold.”

    asked by Jason Weaver · answered by Kenneth Rogozinski

    2 min read6 chapters

    Detailed Narrative

    01

    Portfolio Repositioning Strategy

    The company is pursuing a strategy to reposition its investment portfolio by exiting remaining market-rate multifamily JV equity investments and reinvesting the capital into high-quality, tax-exempt mortgage revenue bond investments. This shift is expected to provide longer-term, stable, tax-advantaged earnings and increase the proportion of tax-exempt income allocated to unitholders in the long term. The board acknowledges that this capital recycling will take some time, with minimal earnings currently reported from JV equity investments during the holding period.

    02

    JV Equity Investments Update

    Greystone currently holds eight market-rate multifamily JV equity investments that have completed construction and are in lease-up or stabilized, with overall occupancy increasing. Two additional JV equity investments are sites for potential development, where partners are evaluating sale or construction commencement. Decisions on property sales are made by JV partners based on local market conditions. The company has not reported a JV equity investment sale since Q2 of last year, indicating the early stage of the exit strategy.

    03

    Liquidity and Financial Position

    As of June 30th, the company reported unrestricted cash and cash equivalents of $30.9 million and $34.2 million of availability on secured lines of credit. The debt investment portfolio totaled $927.5 million, or 67% of total assets. Outstanding debt financing was $826 million, down $104 million from March 31st. Management believes current liquidity levels are sufficient to meet future funding commitments, and the portfolio is largely hedged against interest rate fluctuations, with only 15% of debt financing exposed to variable rates.

    04

    Mortgage Revenue Bond Portfolio Performance

    The company owned 80 mortgage revenue bonds as of June 30th, financing affordable multifamily, seniors, and skilled nursing properties across 12 states. All MRB and GIL investments are current on principal and interest payments. Physical occupancy for the stabilized MRB portfolio was 85.8%, flat QoQ, with lower rates in Texas attributed to increased multifamily unit supply. The non-Texas stabilized MRB portfolio maintained 93% occupancy. The company acquired a $29 million taxable MRB during the second quarter.

    05

    BlackRock Construction Lending Joint Venture

    During June and July 2026, Greystone originated two GIL investments totaling $66 million and transferred these, along with a separate property loan, to its construction lending JV with BlackRock. In aggregate, these three investments represented $95.9 million of commitments. This JV is expected to become the primary origination vehicle for LIHTC construction lending, with its assets held off-balance sheet. The JV currently owns four assets with a gross principal commitment of approximately $120 million.

    06

    South Carolina Properties and Municipal Bond Market

    The company completed the deed in lieu of foreclosure on four South Carolina MRB properties in Q1 2026 and now owns them directly. Management is actively repositioning these properties, including evaluating capital improvements and addressing tenant base issues, with a third-party property manager. The municipal bond market saw a marginally positive performance YTD 2026, with the Muni High Grade Index returning 0.4% and the High Yield Index 2.5% as of July 31st, despite higher interest rates and inflation uncertainty.

    AI-generated summary of the company’s earnings call. Not investment advice.