Greystone Housing Impact Investors LP : Financial Supplemental Report - Q1 2024

Supplemental Financial Report for the Quarter Ended March 31, 2024

©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 March 31, 2024

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 March 31, 2024

Letter from the CEO

I am pleased to report Greystone Housing Impact Investors LP's operating results for the first quarter of 2024. We reported the following financial results as of and for the three months ended March 31, 2024:

• Total revenues of $22.4 million
• Net income of $0.42 per Beneficial Unit Certificate ("BUC"), basic and diluted
• Cash Available for Distribution ("CAD") of $0.23 per BUC
• Total assets of $1.45 billion
• Total Mortgage Revenue Bond ("MRB") and Governmental Issuer Loan ("GIL") investments of $1.15 billion

We reported the following notable transactions during the first quarter of 2024:

• Advanced funds on MRB and taxable MRB investments totaling $27.3 million.
• Advanced funds on GIL and property loan investments totaling $9.1 million.
• Advanced funds to joint venture equity investments totaling $7.0 million.
• Received redemption proceeds for various MRB, GIL, property loan and taxable GIL investments totaling $117.8 million, of which $98.3 million was used to paydown the Partnership's related debt financing.
• Issued Series B Preferred Units with a stated value of $17.5 million in exchange for previously issued Series A Preferred Units.
• Issued Series B Preferred Units to a new investor for gross proceeds of $5.0 million.
• Issued additional BUCs under the Partnership's "at-the-market" program for gross proceeds of $1.1 million.

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 March 31, 2024.

© 2024 Greystone & Co. II LLC

3

Supplemental Financial Report for the Quarter Ended March 31, 2024

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 swaps of approximately $1.7 million during the three months ended March 31, 2024.
• Two joint venture equity investment properties have achieved stabilized operations and three additional properties have begun leasing activities as of March 31, 2024. Seven of the Partnership's 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.

We have noticed traditional bank affordable housing lenders are offering fewer loans or imposing more restrictive terms on borrowers, creating new opportunities for us to pursue beyond our normal 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 March 31, 2024

First Quarter 2024 Fact Sheet

PARTNERSHIP DETAILS

(As of March 31, 2024)

Symbol (NYSE)		GHI
Most Recent Quarterly Distribution per BUC (1)	$	0.44
BUC Price	$	16.29
Year to Date Annualized Yield (2)		10.8%
BUCs Outstanding		23,057,328
Market Capitalization	$	$375,603,873
52-week BUC price range		$14.56 to $17.80
Partnership Financial Information for Q1 2024
($'s in 000's, except per BUC amounts)	3/31/2024	12/31/2023
Total Assets	$1,453,419	$1,513,401
Leverage Ratio (3)	71%	72%
	Q1 2024
Total Revenue	$22,371
Net Income	$10,648
Cash Available for Distribution ("CAD") (4)	$5,229
Cash Distributions declared, per BUC (1)	$0.368
BUCs Distributions declared, per BUC (1)	$0.070

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 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 April 30, 2024 for BUC holders of record as of March 28, 2024. 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 0.00417 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 $0.44 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 March 31, 2024

Operating Results Summary

(Dollar amounts in thousands, except per BUC information)

		Q1 2023		Q2 2023			Q3 2023			Q4 2023		Q1 2024
Total revenues	$	24,938		$	28,303		$	26,474		$	25,185		$	22,371
Total expenses		(23,506)		(14,343)			(16,771)			(29,327)		(11,667)
Gain on sale of real estate assets		-			-				-				10,363			-
Gain on sale of investments in unconsolidated entities		15,367			7,326				32				-			50
Earnings (losses) from investments in unconsolidated entities		-			-				-				(18)		(107)
Income tax (expense) benefit		(7)		1				(6)			1			1
Net income	$	16,792		$	21,287			$	9,729			$	6,204		$	10,648
Per BUC operating metrics(1):
Net income	$	0.60		$	0.85		$	0.39		$	0.24		$	0.42
Cash available for distribution	$	0.81		$	0.62		$	0.25		$	0.27		$	0.23
Per BUC distribution information(1):
Cash distributions declared	$	0.37		$	0.37		$	0.37		$	0.37		$	0.37
BUC distributions declared		-			0.07				0.07				0.07			0.07
Total distributions declared	$	0.37		$	0.44			$	0.44			$	0.44		$	0.44
Weighted average BUCs outstanding		22,538,928			22,639,852				22,734,412				22,852,500			23,000,754
BUCs outstanding, end of period		22,538,878			22,639,852				22,734,375				22,897,187			23,057,328

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 March 31, 2024

Asset Profile

(Dollar amounts in thousands)

© 2024 Greystone & Co. II LLC

7

Supplemental Financial Report for the Quarter Ended March 31, 2024

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 March 31, 2024

Debt and Equity Profile

(Dollar amounts in thousands)

© 2024 Greystone & Co. II LLC

9

Supplemental Financial Report for the Quarter Ended March 31, 2024

Debt Financing

(Dollar amounts in thousands)

(1)

(2)

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.

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.

© 2024 Greystone & Co. II LLC

10