Larry Linden's questions to Greystone Housing Impact Investors (GHI) leadership • Q3 2024
Question
An investor expressed significant concern about the stock's sharp decline in value over the past one to five years, asking for a clear explanation for the drop and its potential impact on future dividends.
Answer
The executive stated he cannot explain day-to-day market price movements but emphasized that the company's core investment strategy has remained consistent. He clarified that dividend decisions are based on cash available for distribution (CAD), not the stock price. He attributed the market's re-rating of the stock over the past five years primarily to the significant rise in interest rates, which has increased the yield required by investors for income-oriented stocks.