Executive Summary

Q2 2024 net income was $0.19 per BUC and CAD was $0.27 per BUC; book value per unit declined to $13.98 with total assets of $1.53B and leverage ratio of 73% .
Deployment accelerated: $83.5M advanced to MRBs/taxable MRBs, $19.5M to GILs/property loans, and $11.7M to JV equity; an MRB sale generated a $1.01M gain .
Portfolio performance remained stable: all MRB/GIL borrowers are current; stabilized MRB portfolio occupancy was 91.9% .
Management highlighted swap positioning (net receiver) and estimated ~$3.6M cash receipts over six months, implying ~+$0.16 CAD per BUC if SOFR holds; quarterly cash distribution of $0.37 per BUC was paid July 31 .
Wall Street consensus estimates (S&P Global) were unavailable; no beat/miss assessment provided due to data access limits.*

What Went Well and What Went Wrong

What Went Well

Stable credit/performance: “All affordable multifamily MRB and GIL investments are current on contractual principal and interest payments” .
Accelerated funding pipeline: strong deployment driven by construction drawdowns and new investments; “we continue to see attractive opportunities in all of our business lines” .
Hedging and swap positioning: net receiver on swaps (receive compounded SOFR 5.35%, pay fixed 3.49% on ~$366M notional), supporting CAD resilience; ~$3.6M expected cash over six months, ~+$0.16 CAD per BUC if rates hold .
JV equity progress: multiple properties stabilized and leasing; no material supply chain/labor disruptions reported .

What Went Wrong

Book value down QoQ: diluted BV fell $0.61 to $13.98, primarily from fair value declines as tax‑exempt rates rose ~15 bps across the curve .
Rate/macro headwinds: “continued volatility in rates, persistently higher interest rates and cost inflation” challenged developer feasibility, increasing reliance on subsidies/soft money .
Margin volatility from derivatives: net results from derivative transactions remain a significant non‑cash driver of GAAP results, contributing to variability across periods .

Financial Results

Income Statement and Per-Unit Metrics (GAAP and CAD)

Metric	Q2 2023	Q1 2024	Q2 2024
Total Revenues ($)	$28,303,941	$22,370,654	$21,969,171
Interest Expense ($)	$17,602,230	$13,803,935	$14,898,265
Net Result from Derivative Transactions ($)	$(8,613,747)	$(6,267,664)	$(1,884,934)
Net Income ($)	$21,287,172	$10,648,381	$5,178,136
EPS (BUC, basic & diluted)	$0.84	$0.42	$0.19
CAD per BUC (non-GAAP)	$0.50	$0.23	$0.27
Net Income Margin (%)	75.2%	47.6%	23.6%

Notes: Net Income Margin % is calculated as Net Income / Total Revenues using cited values . CAD excludes non‑cash derivative marks and certain adjustments per disclosed reconciliation .

Revenue Breakdown

Revenue Line	Q2 2023	Q1 2024	Q2 2024
Investment Income ($)	$22,415,771	$19,272,345	$19,827,388
Other Interest Income ($)	$4,646,347	$3,003,838	$2,070,487
Property Revenues ($)	$1,108,356	$1,225,620	$0
Other Income ($)	$133,467	$94,471	$71,296
Total Revenues ($)	$28,303,941	$22,370,654	$21,969,171

Portfolio and Balance Sheet KPIs

KPI	Q4 2023	Q1 2024	Q2 2024
Total Assets ($)	$1.51B	$1.45B	$1.53B
Book Value per Unit (diluted)	$15.17	$14.59	$13.98
Leverage Ratio (%)	72%	71%	73%
Unrestricted Cash ($)	$37.9M	$56.3M	$34.0M
Lines of Credit Availability ($)	$55.7M	$75.0M	$56.0M
MRB/GIL/Property Loans (Debt Investments) ($)	$1.27B	$1.22B	$1.30B
JV Equity Carrying Value ($)	$137M	$145M	$158M
Stabilized MRB Portfolio Occupancy (%)	92.2%	92.1%	91.9%
Swap Notional ($)	~$333M	~$313M	~$366M
Swap Receive vs Pay	Receive SOFR 5.33%, Pay 3.13%	Receive SOFR 5.31%, Pay 3.39%	Receive SOFR 5.35%, Pay 3.49%
Estimated Swap Cash Over 6 Months	~~$3.2M (~~+$0.14 CAD/BUC)	~~$3.2M (~~+$0.14 CAD/BUC)	~~$3.6M (~~+$0.16 CAD/BUC)

Geographic Concentration (MRBs)

Region	Q1 2024	Q2 2024
Texas (% of MRB value)	31%	29%
California (%)	27%	27%
South Carolina (%)	20%	19%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Distribution (cash)	Q2 2024	$0.37 per BUC (regular cadence)	$0.37 per BUC declared June 12, paid July 31	Maintained
Supplemental Distribution (BUCs)	Q1 2024	$0.07 per BUC (issued as additional BUCs)	None indicated for Q2	Lowered/none
Interest Rate Sensitivity (CAD impact)	Forward 12 months (scenario analysis)	Q1 base case: −200 bps → −$0.009 CAD/BUC; −50 bps → +$0.02 CAD/BUC	Q2 base case: +200 bps → −$0.073 CAD/BUC; −50 bps → +$0.018 CAD/BUC	Updated sensitivities
Operating/Financial Guidance	N/A	None provided	None provided	N/A (management qualitative outlook)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2023)	Previous Mentions (Q1 2024)	Current Period (Q2 2024)	Trend
Interest Rate Hedging/Swaps	Net receiver; ~$3.2M/6 months; stabilize net interest margin	Net receiver; ~$3.2M/6 months; scenario shows hedged income	Net receiver; ~$3.6M/6 months; scenario analysis updated	Strengthened CAD support
Muni Market Conditions	Rates down into year-end; strong muni returns	Rates higher; flattening curve, issuance >$400B expected	July rebound; inflows up; 10Y MMD down ~15 bps since last call	Improving technicals
Developer Feasibility	Higher costs/rates stress capital stacks	Persistent inflation pushes rate cuts out; reliance on subsidies	Continued volatility; more soft money reliance; use Freddie TEL forward	Ongoing pressure
Capital Deployment	Debt portfolio up on fair value; commitments ~$308M	Redemptions increased cash; redeploy to commitments	Deployment accelerated; $83.5M MRBs, $19.5M GILs funded	Accelerating
JV Equity Strategy	Merchant-build; selective new projects; added partners	Stable with existing partners; selective markets	Stabilized assets; Valage/Jessam progressing; Tomball listed for sale	Steady execution
Liquidity	Cash $37.9M; LOC avail $55.7M	Cash $56.3M; LOC avail $75M	Cash $34M; LOC avail $56M	Adequate but lower QoQ

Management Commentary

“We saw steady performance from our investment portfolio during the second quarter… We are staying focused on finding ways to take advantage of the significant investment opportunities that we see in the current market environment.” — CEO, press release .
“We are currently a net receiver on substantially all of our interest rate swaps… Assume… a 186 bps spread would result in… approximately $3.6 million… which would… be… an additional $0.16 per unit in CAD.” — CEO, prepared remarks .
“Tax exempt rates increased approximately 15 basis points… resulting in… decrease in the fair value… We expect changes in fair value to have no direct impact on… operating cash flows, net income or CAD.” — CFO .
“We continue to see attractive opportunities in all of our business lines.” — CFO, Q&A on deployment .

Q&A Highlights

Deployment acceleration: Q2 gross deployment ~3x Q1 driven by construction drawdowns and new investments; pipeline viewed as solid .
Liquidity stance: Two LOCs (general up to $50M, acquisition line) plus cash; maintain flexibility for opportunities and collateral needs .
One-off MRB sale: ~$1.01M gain tied to defeasance and AMT bond funding considerations; not a shift to trading strategy .
GIL extensions: Sponsors optimizing NOI to upsize Freddie forward perm loans locked 30–36 months ago; expect continued theme .
Hedging philosophy: Maintain low exposure to unhedged variable debt; aim to minimize interest rate volatility in net income/CAD .
Capital raising: Will pursue Preferred B and other capital when accretive opportunities arise; not raising capital for its own sake .

Estimates Context

S&P Global consensus estimates for EPS and Revenue around Q2 2024 were unavailable due to data access limits at the time of this analysis; as a result, beat/miss versus Street cannot be assessed.*
Near-term estimate revisions may focus on: CAD trajectory given swap cash receipts, deployment pace into MRBs/GILs/JV equity, and book value sensitivity to MMD movements .

Key Takeaways for Investors

CAD resilient: Swap positioning and disciplined hedging support CAD despite rate volatility; Q2 CAD per BUC rose to $0.27 vs $0.23 in Q1 .
Deployment momentum: Strong Q2 funding suggests rising earning assets over the next 12–24 months as commitments convert and construction drawdowns continue .
Credit stability: No forbearance requests and current payments across MRB/GILs; stabilized occupancy near 92% underscores asset performance .
Book value sensitivity: BV declined with higher tax-exempt rates; partial reversal likely if MMD rally persists, but management emphasizes spread income over mark-to-market .
Liquidity adequate: Cash/LOCs sufficient to fund commitments and manage collateral calls; monitor LOC utilization and preferred issuance cadence .
JV equity exits: Merchant-build strategy continues; potential asset sales (e.g., Tomball) could deliver lumpier gains and influence supplemental distributions .
Macro watch: Muni inflows and falling MMD yields improve technicals; better issuance windows could aid financing conditions for sponsors .

*Values retrieved from S&P Global. Consensus data was unavailable at request time due to access limits.

Greystone Housing Impact Investors LP (GHI)·Q2 2024 Earnings Summary