Greystone Housing Impact Investors (NYSE:GHI) reported first-quarter 2026 net income of $1.3 million, or $0.01 per unit, as management reiterated plans to reposition the partnership toward tax-exempt mortgage revenue bond investments and away from market-rate multifamily joint venture equity holdings.
Chief Financial Officer Jesse Coury said cash available for distribution, or CAD, was $3.1 million, or $0.13 per unit, for the quarter ended March 31. CAD is a non-GAAP measure.
Coury said GAAP income was affected by the partnership’s proportionate share of losses from non-Vantage joint venture equity investments, totaling approximately $4.9 million, or $0.21 per unit. He said those losses are required to be reported under GAAP but “are not impairments or realized losses to the partnership.” About $1.9 million, or 39%, of the losses related to depreciation and amortization at the joint venture entities, with the remainder tied to interest expense and property operating expenses exceeding revenue during lease-up.
Portfolio Shift Remains Central Strategy
Chief Executive Officer Ken Rogozinski said the partnership is continuing a strategy to exit remaining market-rate multifamily joint venture equity investments while seeking to maximize value for unitholders. The proceeds are expected to be redeployed into high-quality tax-exempt mortgage revenue bond investments.
Rogozinski said management believes the shift will provide more stable earnings over time because mortgage revenue bond investments generate returns based on the net interest spread between bond interest rates and debt financing costs. He also said the strategy is expected to increase the proportion of income allocated to unitholders that is tax-exempt for federal income tax purposes over the long term, though potential gains from remaining joint venture sales would continue to generate taxable income in the near term.
The partnership currently has eight market-rate multifamily joint venture equity investments that have completed construction and are either in lease-up or stabilized. Rogozinski said occupancy is rising for assets still in lease-up, while stabilized properties have seen some variability due to local market conditions. Two additional market-rate multifamily joint venture equity investments are development sites where partners are evaluating whether to sell the land or begin construction.
In response to a question from JonesTrading analyst Jason Stewart, Rogozinski said four assets are “either at or close to stabilized operations,” while the other four are in initial lease-up. He said the timing of sales is controlled by joint venture partners, but management expects to review stabilized assets with those partners as the spring and early summer leasing season progresses.
Book Value, Liquidity and Debt Position
Coury said diluted book value was $11.30 per unit as of March 31. He noted that the figure reflects joint venture equity investments at net carrying value and does not include potential gains or additional income that may be realized upon property sales, including recovery of certain GAAP operating losses. Coury said GHI’s unit price closed at $5.09 on May 11, representing a 55% discount to March 31 diluted net book value per unit.
The partnership reported unrestricted cash and cash equivalents of $20.6 million as of March 31. Coury said GHI also received approximately $18 million in April from the return of net capital invested in the GIL and taxable GILs for the Poppy Grove I and Poppy Grove II projects after their sale to Freddie Mac and repayment of related debt financings. The partnership had about $40 million of availability on secured lines of credit.
Coury said GHI has a “significant amount” of investments scheduled to mature during the rest of 2026, which are expected to provide additional liquidity after repayment of related debt financing. He said management believes the partnership is well positioned to meet current funding commitments.
Outstanding debt financings totaled approximately $927 million as of March 31, down about $92 million from Dec. 31. Coury said $700 million, or 76% of total debt financing, is structured so that net returns are generally insulated from short-term interest rate changes. The remaining $227 million consists of fixed-rate assets with variable-rate debt and no designated hedging, though approximately $188 million of that amount is tied to debt investments scheduled to mature in 2026.
Mortgage Revenue Bond Portfolio Performs Steadily
GHI’s debt investments portfolio, including mortgage revenue bonds, governmental issuer loans and property loans, totaled $1.17 billion as of March 31, representing 79% of total assets. The partnership owned 80 mortgage revenue bonds financing affordable multifamily, seniors and skilled nursing properties across 12 states, with concentrations in California and Texas. It also owned four governmental issuer loans financing affordable multifamily construction in California.
Coury said all mortgage revenue bond and governmental issuer loan investments were current on principal and interest payments as of March 31. Physical occupancy for the stabilized mortgage revenue bond portfolio was 85.9%, down slightly from 86.7% at Dec. 31. He attributed the decline primarily to properties in Texas, where recent increases in multifamily supply have contributed to higher vacancies.
The partnership completed deed-in-lieu-of-foreclosure processes on four South Carolina mortgage revenue bond properties during the quarter. Coury said GHI now owns the underlying multifamily properties directly, with first mortgage financing provided by two banks. The partnership recorded a recovery of prior credit loss provisions of approximately $2.1 million and a gain on deed in lieu of foreclosure of approximately $2.2 million, based on estimated fair values exceeding amortized cost basis for certain prior investments.
In the Q&A, Coury said the South Carolina properties are financed by an $84 million mortgage loan secured by all four properties. He said the loan is full recourse to GHI, with a partial 10% guarantee from a Greystone affiliate. Rogozinski noted that the former tender option bond trust financing tied to those mortgage revenue bonds was also full recourse to the partnership.
Market Conditions and Pipeline
Rogozinski said the first four months of 2026 showed positive performance in the U.S. municipal bond market. He said the municipal high-grade index had a 1.0% return for 2026 as of April 30, while the high-yield index had a 2.1% return.
He said gross new issuance through the first four months totaled $175 billion, slightly behind last year’s record pace, while municipal bond fund inflows were almost $28 billion, well ahead of last year’s pace. Rogozinski said the market’s ability to handle elevated issuance is a positive sign for secondary market liquidity in municipal bonds such as the mortgage revenue bonds owned by GHI.
Rogozinski also said the HUD appropriations bill fully funding the department’s programs for the remainder of the federal fiscal year had been passed by Congress and signed by President Trump. He added that the Federal Low-Income Housing Tax Credit Program is beginning to adjust to new rules set forth in the One Big Beautiful Bill Act.
Management said strong lending relationships in affordable housing, seniors housing and skilled nursing continue to provide investment opportunities. Rogozinski said the partnership believes those opportunities will allow it to redeploy capital returned from market-rate multifamily joint venture sales soon after it is received.
About Greystone Housing Impact Investors (NYSE:GHI)
Greystone Housing Impact Investors (NYSE:GHI) is a publicly traded real estate investment trust focused on financing and preserving affordable and sustainable rental housing in the United States. As the country's first social‐impact REIT dedicated to housing, GHI aims to deliver stable, long‐term cash flows to its shareholders while supporting underserved communities through strategic capital deployment.
The company originates, underwrites and manages a diversified portfolio of first‐mortgage loans secured by multifamily residential properties, with an emphasis on workforce, affordable and mixed‐income developments.
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