Greystone Housing Impact Investors LP Q4 FY2025 earnings call

• Strategy: Pursuing repositioning of investment portfolio, exiting remaining market rate multifamily JV equity investments and reinvesting capital into tax-exempt mortgage revenue bond investments. - Benefits: Tax-exempt investments offer stable returns, expected increase in tax-exempt income for unit holders, and leverage Greystone's relationships. - Portfolio: Currently have 8 market rate multifamily JV equity investments in lease up or stabilized, 2 potential development sites. Strong investment opportunities in tax-exempt mortgage revenue bonds. - Financials: Reported net loss, CAD positive. Book value per unit $11.70. Liquidity: Unrestricted cash and cash equivalents $39.5 million, $49.2 million availability on secured lines of credit. - Mortgage portfolio: Performed steadily except for four South Carolina properties, all mortgage revenue bond and governmental issuer loan investments current on payments.

For the fourth quarter ended December 31st, net loss was $2.6 million or 17 cents per unit, basic and diluted. Cash available for distribution (CAD) was a positive 2.8 million or 12 cents per unit. Proportionate share of losses from non-vantaged JV equity investments was approximately $7.4 million or 32 cents per unit. Book value per unit as of December 31st was $11.70 on a diluted basis. Debt investment portfolio totaled $1.28 billion as of December 31st, 85% of total assets. Mortgage revenue bond portfolio had physical occupancy of 86.7% as of December 31st, down from 87.8% in Q3. Four South Carolina mortgage revenue bond properties were foreclosed on and now owned directly, results to be reported in MF properties segment.

• Repositioning strategy to exit market rate multifamily JV equity investments and reinvest in tax-exempt mortgage revenue bonds for longer-term stable earnings. - Expect increasingly stable earnings from tax-exempt investments compared to uneven returns from JV equity. - Board will evaluate distribution rate based on capital recycling from JV exits to mortgage revenue bonds.

• Potential impairment of joint venture equity investments if stabilized exit values do not support return of capital. - Interest rate risk, particularly in fixed rate assets with variable rate debt with no hedging. - Local market factors impacting occupancy and rent levels of multifamily properties.

Q: Details on $7 million loss and how losses will be recovered?

A: Driver was four properties completing construction in H2 2025, generating operating losses from non-capitalized interest and non-cash depreciation. Expect losses to narrow as occupancy increases, and properties will lease up and stabilize for recovery.

Q: Leasing trends?

A: March to June is strong leasing period, having weekly dialogue with property managers, monitoring trends and pricing adjustments.

Q: Foreclosed South Carolina properties' impact on Q1?

A: Still finalizing accounting, initial basis around 112 - $150 million, goal is to recover original basis of mortgage revenue bonds.

Q: $4.5 million return of capital?

A: Relates to Bellagio Senior Living Carson Valley and Freestone Greenville, JV partners refinanced and returned capital.

Q: Additional contributions?

A: Depends on case-by-case, driven by property tax payment timings.

Q: Confidence in management?

A: Management serves at board's pleasure, communicated direction to exit JV investments and recycle capital.

Q: Book value and market price disparity?

A: Required to assess impairment of JV equity investments quarterly, current price may reflect market view but management confident in book value.

Q: Distribution rate and board consideration?

A: Dependent on capital recycling from JV exits to mortgage revenue bonds, board will decide distribution based on improved earnings power.

Q: Insider buying?

A: Subject to trading restrictions, no public announcements on buying activity as it's governed by rules.