Greystone Housing Impact Investors LP

What they do

The Partnership acquires mortgage revenue bonds (MRBs) issued by state and local housing authorities to finance construction or rehabilitation of affordable multifamily, seniors housing, and skilled nursing properties, and also invests in governmental issuer loans (GILs) for similar properties. It makes joint venture equity investments for construction, stabilization, and sale of market-rate multifamily and seniors housing, and holds interests in multifamily properties until highest and best use is determined. Interest on MRBs and GILs is expected to be excludable from gross income for federal income tax purposes.

Revenue drivers

• Mortgage Revenue Bonds (MRBs) — Tax-exempt bonds collateralized by mortgages on affordable multifamily and seniors properties, predominantly fixed-rate with terms of 15 years or more; the core investment class and target of the capital reallocation strategy.
• Governmental Issuer Loans (GILs) — Financing for affordable multifamily and seniors properties similar to MRBs; the Partnership reported $927.5 million in total MRB and GIL investments as of June 30, 2026.
• Joint Venture Equity Investments — Equity for construction, stabilization, and ultimate sale of market-rate multifamily and seniors housing; distributions are received if and when cash is available from operations, refinancing, or sale, and the Partnership is reducing capital allocated here.
• MF Properties — Interests in market-rate or rent-restricted multifamily properties held until highest and best use is determined; includes properties acquired via deed in lieu of foreclosure in early 2026.

Recent performance

For the three months ended June 30, 2026, the Partnership reported a net loss of $1.52 million, or $0.11 per BUC, basic and diluted, with Cash Available for Distribution of $2.43 million, or $0.10 per BUC. Total assets were $1.39 billion and total MRB and GIL investments were $927.5 million as of June 30, 2026. Quarterly revenue was $21.2 million for 2026-06-30, versus $21.8 million for 2026-03-31, $16.6 million for 2025-12-31, and $21.7 million for 2025-09-30. Full-year 2025 revenue was $85.4 million with a net loss of $7.6 million, or $0.52 diluted per unit, compared with 2024 net income of $21.3 million, or $0.76 diluted per unit.

Strategy

As announced in November 2025, the Partnership is reducing capital allocated to market-rate multifamily JV equity investments and managing the remaining portfolio to maximize sales prices and returns. Returned capital is to be redeployed primarily into tax-exempt MRB investments, which management expects to produce more stable net interest spread earnings and a higher proportion of tax-advantaged income over time. The Partnership is working with third-party brokers and property managers on exit timelines and with its internal origination team and the broader Greystone affordable platform to identify new MRB opportunities. In July 2026 it sold the Everett Pointe Apartments GIL and the Sandoval Flats property loan to the Construction Lending JV for principal proceeds of approximately $13.2 million and acquired and subsequently sold the Chapanoke Village GIL to the Construction Lending JV with a principal balance of $6.5 million.

Risks

• Credit losses on affordable multifamily investments — The Partnership recorded approximately $10.4 million in asset-specific provisions for credit losses for 2025 across three MRBs, three taxable MRBs, and one property loan tied to South Carolina properties (The Park at Sondrio, The Park at Vietti, and Windsor Shores), and elected deed in lieu of foreclosure on those properties in early 2026.
• Stabilization shortfall and property acquisition — Century Plaza Apartments (formerly The Ivy Apartments) failed to meet certain stabilization requirements in February 2026, and the Partnership elected to acquire the property via deed in lieu of foreclosure; such properties become MF Properties and are expected to produce lower operating results than when held as MRB investments.
• Timing risk in strategy execution — The Partnership's near-term results depend on the pace of market-rate multifamily investment sales and its ability to redeploy capital into new tax-exempt MRBs, with management stating the time required will impact reported earnings during the transition.
• Tax-exempt status of interest income — Unitholders incur tax liability if interest earned on MRBs or GILs is determined to be taxable, and income and gains from taxable investments such as unconsolidated entities and property loans are also taxable.

Outlook

The Partnership states its near-term results of operations will be impacted by the pace of sales of market-rate multifamily investments and its ability to redeploy capital into new tax-exempt mortgage revenue bond investments. Management and the Board of Managers will continue assessing potential impacts on short-term and long-term earnings expectations and future unitholder distributions, with a stated focus on the long-term benefit to unitholders and the Partnership. Management remains positive on the market-rate senior housing segment of the market.