Greystone Housing Impact Investors LP : FY 2023 Supplemental Report

Supplemental Financial Report for the Quarter Ended December 31, 2023

©2024 Greystone & Co. II LLC. All rights reserved. References to the term "Greystone," refer to Greystone & Co. II LLC and/or its affiliated companies, as applicable.

Supplemental Financial Report for the Quarter Ended December 31, 2023

Partnership Financial Information

TABLE OF CONTENTS

Letter from the CEO

Quarterly Fact Sheet

Financial Performance Information

Appendices

Important Disclosure Notices

Other Partnership Information

© 2024 Greystone & Co. II LLC

3

5

6

18

22

24

2

Supplemental Financial Report for the Quarter Ended December 31, 2023

Letter from the CEO

I am pleased to report Greystone Housing Impact Investors LP's operating results for the fourth quarter of 2023. We reported the following financial results as of and for the three months ended December 31, 2023:

• Total revenues of $25.2 million
• Net income of $0.24 per Beneficial Unit Certificate ("BUC"), basic and diluted
• Cash Available for Distribution ("CAD") of $0.27 per BUC
• Total assets of $1.51 billion
• Total Mortgage Revenue Bond ("MRB") and Governmental Issuer Loan ("GIL") investments of $1.2 billion

We reported the following notable transactions during the fourth quarter of 2023:

• Advanced funds on MRB and taxable MRB investments totaling $24.6 million.
• Advanced funds on GIL and property loan investments totaling $25.3 million.
• Advanced funds to joint venture equity investments totaling $16.1 million, which includes funds advanced to two new joint venture equity investments, Freestone Greenville and Freestone Ladera.
• Sold the Suites on Paseo MF Property for gross proceeds of $40.7 million and a reported gain on sale of $10.4 million.
• Freddie Mac executed the forward purchase of one GIL investment during the quarter. Our GIL and property loan investments totaling $53.4 million associated with construction financing of an affordable multifamily project were settled in full at par plus accrued interest.
• Completed a new secured financing transaction (the "TEBS Residual Financing") secured by our residual interests in three Freddie Mac Tax Exempt Bond Securitization financings ("TEBS Financings") for gross proceeds of $61.5 million with most of the funds used to pay down existing variable-rate corporate debt with a higher interest rate and a shorter maturity.
• Received TOB trust financing proceeds totaling $34.0 million as leverage on various investment fundings.

We continue to strategically invest in the affordable multifamily MRB and GIL asset classes where we believe we can earn attractive leveraged returns. We also continue to see consistent operating results from the properties underlying our affordable multifamily MRBs and GILs, with all such investments being current on contractual principal and interest payments as of December 31, 2023.

© 2024 Greystone & Co. II LLC

3

Supplemental Financial Report for the Quarter Ended December 31, 2023

Other highlights of our investment portfolio include the following:

• We continue to execute on our hedging strategy, primarily through interest rate swaps, to reduce the impact of recently volatile market interest rates. We received net payments under our interest rate swap portfolio of approximately $1.9 million and $6.0 million during the three months and year ended December 31, 2023, respectively.
• Two joint venture equity investment properties have stabilized operations and two additional properties have begun leasing activities as of December 31, 2023. In addition, two properties began leasing activities in February 2024. Seven of our joint venture equity investments are currently under construction or in development, with none having experienced material supply chain disruptions for either construction materials or labor to date.

In addition, we issued 2,250,000 Series B Preferred Units to date in 2024. We issued 1,750,000 Series B Preferred Units, with a stated value of $17.5 million, to a financial institution in exchange for 1,750,000 previously outstanding Series A Preferred Units. We also issued 500,000 Series B Preferred Units to a new institutional investor for gross proceeds of $5.0 million. The Series B Preferred Units are non-cumulative, non- convertible, and non-voting units of limited partnership interests in the Partnership with an annual distribution rate of 5.75%, which is an attractive cost of capital for the Partnership. The earliest potential redemption date for the newly issued Series B Preferred Units is early 2030, with certain exceptions.

We have noticed traditional bank lenders are offering less credit or imposing more restrictive terms on borrowers, creating new opportunities for us to pursue beyond our traditional pipeline. We will continue to strategically work with strong sponsors on new investment opportunities where traditional sources of capital may not currently be available. We will also continue to seek to develop new relationships, particularly with those sponsors that are existing clients of Greystone and its affiliates.

Thank you for your continued support of Greystone Housing Impact Investors LP!

Kenneth C. Rogozinski

Chief Executive Officer

© 2024 Greystone & Co. II LLC

4

Supplemental Financial Report for the Quarter Ended December 31, 2023

Fourth Quarter 2023 Fact Sheet

PARTNERSHIP DETAILS

(As of December 31, 2023)

Symbol (NYSE)		GHI
Most Recent Quarterly Distribution per BUC (1)	$	0.44
BUC Price	$	16.79
Year to Date Annualized Yield (2)		10.1%
BUCs Outstanding		22,897,187
Market Capitalization	$	$384,443,770
52-week BUC price range		$14.56 to $19.28
Partnership Financial Information for Q4 2023
($'s in 000's, except per BUC amounts)	12/31/2023	12/31/2022
Total Assets	$1,513,401	$1,567,130
Leverage Ratio (3)	72%	73%
	Q4 2023	YTD 2023
Total Revenue	$25,185	$104,901
Net Income	$6,204	$54,012
Cash Available for Distribution ("CAD") (4)	$6,184	$44,137
Cash Distributions declared, per BUC (1)	$0.368	$1.466
BUCs Distributions declared, per BUC (1)	$0.070	$0.208

Greystone Housing Impact Investors LP was formed for the primary purpose of acquiring a portfolio of MRBs that are issued to provide construction and/or permanent financing of affordable multifamily residential and commercial properties. We also invest in GILs, which are similar to MRBs, to provide construction financing for affordable multifamily properties. We expect and believe the interest paid on the MRBs and GILs to be excludable from gross income for federal income tax purposes. In addition, we have invested in equity interests in multifamily, market rate properties throughout the U.S. We may own interests in multifamily properties ("MF Properties") until the "highest and best use" can be determined. We continue to pursue a business strategy of acquiring additional MRBs and GILs on a leveraged basis, and other investments.

(1)

(2)

(3)

(4)

The distribution was paid on January 31, 2024 for BUC holders of record as of December 29, 2023. The distribution is payable to BUC holders of record as of the last business day of the quarter and GHI trades ex-dividend one day prior to the record date, with a payable date of the last business day of the subsequent month. The distribution includes the regular quarterly cash distribution of $0.37 per outstanding BUC and a supplemental distribution payable in the form of additional BUCs equal to $0.07 per BUC. The supplemental BUCs Distribution was paid at a ratio of 0.00415 BUCs for each issued and outstanding BUC as of the record date. The amounts above have been retroactively adjusted to reflect the BUCs distribution as of the beginning of the periods presented.

The annualized yield calculation is based on year-to-date distributions declared of $1.69 per BUC.

Our overall leverage ratio is calculated as total outstanding debt divided by total assets using cost adjusted for paydowns and allowances for MRBs, Governmental Issuer Loans, property loans, taxable MRBs and taxable GILs, and initial cost for deferred financing costs and real estate assets.

Management utilizes a calculation of Cash Available for Distribution ("CAD") to assess the Partnership's operating performance. This is a non-GAAP financial measure. See the Important Disclosure Notices in the Appendices for important information regarding non-GAAP measures. A reconciliation of our GAAP net income (loss) to CAD is provided on page 20 of this report.

© 2024 Greystone & Co. II LLC

5

Supplemental Financial Report for the Quarter Ended December 31, 2023

Operating Results Summary

(Dollar amounts in thousands, except per BUC information)

		Q4 2022		Q1 2023			Q2 2023			Q3 2023		Q4 2023
Total revenues	$	22,030		$	24,938		$	28,303		$	26,474		$	25,185
Total expenses		(19,001)		(23,506)			(14,343)			(16,771)		(29,327)
Gain on sale of real estate assets		-			-				-				-			10,363
Gain on sale of investments in unconsolidated entities		141			15,367				7,326				32			-
Earnings (losses) from investments in unconsolidated entities		-			-				-				-			(18)
Income tax (expense) benefit		5			(7)			1				(6)		1
Net income	$	3,175		$	16,792			$	21,287			$	9,729		$	6,204
Per BUC operating metrics(1):
Net income	$	0.09		$	0.60		$	0.85		$	0.39		$	0.24
Cash available for distribution	$	0.15		$	0.81		$	0.62		$	0.25		$	0.27
Per BUC distribution information(1):
Cash distributions declared	$	0.47		$	0.37		$	0.37		$	0.37		$	0.37
BUC distributions declared		0.20			-				0.07				0.07			0.07
Total distributions declared	$	0.67		$	0.37			$	0.44			$	0.44		$	0.44
Weighted average BUCs outstanding		22,501,386			22,538,928				22,639,852				22,734,412			22,852,500
BUCs outstanding, end of period		22,539,029			22,538,878				22,639,852				22,734,375			22,897,187

1. Per BUC metrics are presented as initially reported and have not been retrospectively adjusted for subsequent distributions payable in the form of additional BUCs.

© 2024 Greystone & Co. II LLC

6

Supplemental Financial Report for the Quarter Ended December 31, 2023

Asset Profile

(Dollar amounts in thousands)

© 2024 Greystone & Co. II LLC

7

Supplemental Financial Report for the Quarter Ended December 31, 2023

Mortgage Investments to Total Assets Profile

(Dollar amounts in thousands)

Note: Mortgage Investments include the Partnership's Mortgage Revenue Bonds, Governmental Issuer Loans, Taxable Mortgage Revenue Bonds, Taxable Governmental Issuer Loans, and Property Loans that share a first mortgage lien with the Governmental Issuer Loans.

© 2024 Greystone & Co. II LLC

8

Supplemental Financial Report for the Quarter Ended December 31, 2023

Debt and Equity Profile

(Dollar amounts in thousands)

© 2024 Greystone & Co. II LLC

9

Supplemental Financial Report for the Quarter Ended December 31, 2023

Debt Financing

(Dollar amounts in thousands)

(1)

(2)

The variable-rate debt financing is hedged through our interest rate swap agreements. Though the variable rate indices may differ, these interest rate swaps have effectively synthetically fixed the interest rate of the related debt financing.

The securitized assets and related debt financings each have variable interest rates. Though the variable rate indices may differ, the Partnership is largely hedged against rising interest rates.

© 2024 Greystone & Co. II LLC

10