Greystone Housing Impact Investors LP (GHI) Earnings

Management highlights

- **Strategic Portfolio Repositioning** * GHI is executing a strategy to exit all remaining market rate multifamily and JV equity investments, with the goal of maximizing value for unitholders. * Proceeds from exits will be reinvested into high-quality tax-exempt mortgage revenue bond (MRB) investments focused on affordable multifamily, seniors housing, and skilled nursing properties. * The repositioning is expected to deliver three core benefits: more stable recurring earnings (vs uneven JV returns realized only at sale), a higher long-term share of tax-exempt income for unitholders, and deployment into a proven core asset class that leverages Greystone's existing lending relationships and expertise. - **Operational Updates** * Eight completed market rate multifamily JV investments are in lease-up or stabilized, with overall occupancy rising for lease-up assets and variable occupancy for stabilized assets driven by local market conditions. Exit timing for individual assets is set by JV partners based on market conditions. * The two undeveloped multifamily JV sites are under evaluation for potential land sale or development; remaining funding commitments will be terminated if the sites are sold. * The South Carolina properties acquired via deed-in-lieu are now directly owned by GHI, with new third-party property management in place and active asset repositioning underway to maximize value. * GHI's construction lending for low-income housing tax credit (LIHTC) deals is now primarily conducted through the off-balance-sheet joint venture with BlackRock, rather than being held on GHI's balance sheet. The JV currently holds four assets with $120 million in total gross principal commitments and is expected to grow. - **Financial Performance (Q2 2026)** * Reported GAAP net loss of $1.5 million, or $0.11 per basic/diluted unit. The net loss was driven primarily by GHI's proportionate share of JV equity investment losses, plus remaining interest and operating expenses. * Cash Available for Distribution (CAD, non-GAAP) was $2.4 million, or $0.10 per unit. * Diluted book value per unit as of June 30 was $11.20; the August 10 closing unit price was $5.71, a 49% discount to book value. * Total outstanding debt financing was $826 million as of June 30, a $104 million decrease from the end of Q1 2026. 85% of debt is structured to insulate net returns from short-term rate moves, leaving only 15% unhedged variable-rate exposure, most of which is tied to assets maturing by end-2026. * As of June 30, GHI held $30.9 million in unrestricted cash and had $34.2 million in available credit line capacity, with additional expected liquidity from maturing investments in H2 2026 and potential future JV asset sales. Management confirms GHI is well-positioned to meet all future funding commitments.

Guidance

- Management confirms the portfolio rotation strategy is still in early innings, with no JV equity sales completed since Q2 2025. Meaningful capital redeployment into MRB investments will not occur until more JV exits are completed. - No explicit numeric financial guidance was provided for future periods. Management states that long-term recurring earnings are expected to increase as JV equity capital is reinvested into income-producing MRB investments. - Management expects Texas multifamily occupancy in the stabilized MRB portfolio will recover once current new supply is absorbed and new construction delivery slows in the near term.

Segment performance

1. **Debt Investment Portfolio (Mortgage Revenue Bonds, Governmental Issuer Loans, Property Loans)**: Total portfolio value of $927.5 million as of June 30, 2026, representing 67% of total assets. All investments were current on principal and interest payments; physical occupancy for the stabilized portfolio was 85.8% (flat quarter-over-quarter), with non-Texas stabilized portfolio occupancy at 93%, and Texas occupancy lower due to elevated new supply. During Q2 2026, the firm acquired a $29 million taxable mortgage revenue bond (MRB), and originated $66 million in new governmental issuer loan (GIL) investments in June-July 2026, later transferred to the BlackRock construction lending JV. Outstanding future funding commitments for this segment totaled $9 million (excluding transfers to the BlackRock JV), to be funded over 12 months. 2. **JV Equity Investments (Market Rate Multifamily, Seniors Housing)**: GHI holds 10 market rate multifamily JV equity investments (8 completed/leasing/stabilized, 2 undeveloped sites) and 2 market rate seniors housing JV equity investments. Remaining funding commitments total $19.5 million for multifamily and $4 million for seniors housing. The segment drove a proportionate share of losses that were the primary contributor to GHI's Q2 2026 GAAP net loss, with minimal recurring earnings during the holding period. In July 2026, three Texas multifamily JV properties completed a refinancing that strengthened their financial position and released GHI from limited guarantee obligations on two assets. 3. **Directly Owned South Carolina Multifamily Properties**: Acquired via deed-in-lieu of foreclosure in Q1 2026, carried at a net value of $110.9 million, with associated net mortgage payables of $83.4 million. A new third-party property manager has been retained, and the firm is actively working through operational repositioning and capital improvement planning.

Risks & headwinds

- Local market supply and demand imbalances in Texas have pushed down occupancy for stabilized MRB properties in the state, pressuring near-term performance. - Unhedged interest rate exposure exists for 15% of total debt ($127 million), though most of this exposure ($38 million) is tied to assets maturing by December 2026, limiting the duration of unhedged risk. A 100 basis point immediate across-the-curve rate increase would reduce annual net interest income and CAD by approximately $1 million (4.5 cents per unit). - The repositioning of the four directly owned South Carolina multifamily properties is still in early stages, with uncertainty around the timeline to reach stabilized performance and the final yield on the assets. - There are ongoing challenges with demand and pricing in the Low-Income Housing Tax Credit (LIHTC) market, stemming from new regulatory rules under the One Big Beautiful Bill Act. - Inflation uncertainty driven by the Middle East conflict has pushed muni bond yields higher recently, creating market volatility for GHI's core MRB holdings. - All forward-looking statements related to the portfolio repositioning, exit timelines, and future earnings are subject to general economic, regulatory, competitive, and market risks that could cause actual results to differ materially from expectations.

Analyst Q&A

• Q: With portfolio rotation underway, how far along is the process, and has the timeline been extended by recent refinancing transactions? /

  A: Management states the rotation is still in very early innings, as no JV equity sales have closed since Q2 2025. There has been limited capital to recycle to date, with only minor reinvestment from maturing existing government issuer loans. Meaningful redeployment into tax-exempt MRBs will not occur until more JV exits are completed by partner teams. The recent refinancings of Texas JV properties did not extend the overall rotation timeline, and instead strengthened the assets' financial position to support future sales. / /

• Q: Is the BlackRock construction lending JV now the primary origination vehicle, and can it grow? /

  A: Management confirms that nearly all new LIHTC construction lending, which previously was held on GHI's balance sheet as GIL investments, now originates through the off-balance-sheet BlackRock JV. This will change how originations are reported going forward as the JV scales. The JV currently holds four assets totaling ~$100 million in gross commitments, and management expects it to grow in size going forward. / /

• Q: If we strip out the directly owned South Carolina properties, GHI trades at a 50% discount to adjusted book value; will the firm consider share buybacks as JV assets are liquidated? /

  A: Management confirms that the carrying value of the South Carolina real estate assets is accurate, as they were recorded at fair value when acquired via deed-in-lieu in Q1 2026. The board has directed management to evaluate all potential uses for capital returned from JV liquidations, including share buybacks. However, as a permanent capital vehicle focused on long-term growth, buying back units would require future capital raisings to fund new investments, which carries associated costs that must be weighed before any decision is made. / /

• Q: What is the timeline for stabilizing the four South Carolina multifamily properties? /

  A: The properties are existing assets that underwent light rehab and tenant repositioning prior to GHI taking control, not new construction. Management is still working through tenant turnover, property management transitions, and capital improvement planning four months into operational control. Occupancy is currently in the low to mid 80% range, but each of the four assets has unique conditions, so management cannot provide a specific firm timeline for reaching full stabilized economic performance.