Greystone Housing Impact Investors LP

Good day, ladies and gentlemen, and welcome to the Q2 2023 earnings call for Greystone Housing Impact Investors. All lines have been placed on a listen-only mode, and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero to reach a live operator. At this time, it is my pleasure to turn the floor over to your host, Jesse Corey. Sir, the floor is yours.

Thank you. I would like to welcome everyone to the Greystone Housing Impact Investors LP NYSE ticker symbol GHI second quarter of 2023 earnings conference call. During the presentation, all participants will be in a listen-only mode. After management presents its overview of Q2 2023, you will be invited to participate in a question and answer session. As a reminder, this conference call is being recorded. During this conference call, comments made regarding GHI, which are not historical facts, are forward-looking statements that are subject to risks and uncertainties that could cause the actual future events or results to differ materially from these statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words like may, should, expect, plan, intend, focus and other similar terms. You are cautioned that these forward-looking statements speak only as of today's date. Changes in economic, business, competitive, regulatory and other factors could cause our actual results to differ materially from those expressed or implied by the projections or forward-looking statements made today. For more detailed information about these factors and other risks that may impact our business, please review the periodic reports and other documents filed from time to time by us with the Securities and Exchange Commission. Internal projections and beliefs upon which we base our expectations may change, but if they do, you will not necessarily be informed. Today's discussion will include non-GAAP measures and will be explained during this call. We want to make you aware that GHI is operating under the SEC Regulation FD and encourage you to take full advantage of the question and answer session. Thank you for your participation and interest in Greystone Housing Impact Investors LP. I would now like to turn the call over to our Chief Executive Officer, Ken Rogozinski.

Good afternoon, everyone. Welcome to Greystone Housing Impact Investors LP's second quarter 2023 investor call. Thank you for joining. I will start with an overview of the quarter and our portfolio. Jesse Corey, our Chief Financial Officer, will then present the partnership's financial results. I will wrap up with an overview of the market and our investment pipeline. Following that, we look forward to taking your questions. For the second quarter of 2023, the partnership reported net income of $0.85 per unit, and 62 cents of cash available for distribution or CAD per unit. Year to date, the partnership reported net income of $1.45 per unit and $1.43 of CAD per unit. Our second quarter reported net income of 85 cents per unit includes a $6 million non-cash gain that reflects the mark to market associated with our interest rate swap portfolio. That translates to $0.27 per unit in non-cash gain, which largely accounts for the difference between our net income per unit and CAD per unit metrics for the second quarter. Year to date, we have recognized approximately $2.6 million, or $0.11 per unit, of non-cash mark-to-market gain on our interest rate swap portfolio. We are currently a net receiver on all of our interest rate swaps as we receive compounded SOFR, which is now 5.31% after last week's Federal Reserve action, and pay a weighted average fixed rate of 2.71% on our approximately $256 million in swap notional amounts as of June 30th. Assuming the compounded SOFR level stays constant over the next six months, That 260 basis point spread would result in us receiving approximately $3.5 million in cash payments from our swap counterparties, which would not be reflected in our net income, but would be reflected as an additional 15 cents per unit in CAD. We also reported a book value of $15.06 per unit on 1.66 billion of assets and a leverage ratio as defined by the partnership of 72%. On June 15th, we announced a regular quarterly cash distribution of 37 cents per unit and a supplemental distribution of 7 cents per unit in the form of additional units, both of which were paid on July 31st. In terms of the partnership's investment portfolio, we currently hold $1.35 billion of affordable multifamily investments in the form of mortgage revenue bonds, governmental issuer loans, and property loans, $106 million in joint venture equity investments, and $36 million in direct real estate investments. As far as the performance of the investment portfolio is concerned, we have had no forbearance requests for multifamily mortgage revenue bonds, and all such borrowers are current on their principal and interest payments. Physical occupancy on the underlying projects was at 93.9% for the mortgage revenue bond portfolio as of June 30, 2023. One Vantage property was sold in June 2023, and we recognized $2.1 million of preferred return and $7.3 million in capital gain in the second quarter. Our remaining Vantage joint venture equity investments consist of interest in seven properties. three where construction is complete with the remaining four properties either under construction or in the planning stage. For the three properties where construction is complete, we continue to see good leasing activity with two properties having exceeded 90% occupancy as of July 31st. We continue to see no material supply chain or labor disruptions on the Vantage projects under construction. As we have experienced in the past, The Vantage Group, as the managing member of each project-owning entity, will position a property for sale upon stabilization. We have two joint venture equity investments with the Freestone Development Group, one for a project in Colorado and one for a project in Texas. Site work has commenced on the Colorado project, and construction has commenced on the project in Texas. Additionally, our joint venture equity investment in Village Senior Living Carson Valley, a 102-bed seniors housing project located in Minden, Nevada, has seen the commencement of site work. Finally, in June 2023, we executed a joint venture equity commitment with Kandem Securities Company. a multi-generational real estate owner-developer focused on residential, retail, and mixed-use property for a new construction 318-unit market-rate multifamily property located in Huntsville, Alabama. We are pleased to expand our JV equity investment strategy with an additional experienced sponsor team in a geographic location that helps diversify our portfolio. Our single remaining student housing property in San Diego continues to have a strong occupancy level, with free leasing for the 2023-2024 academic year currently at approximately 100%. This includes 140 beds being mass-released to San Diego State University. With that, I will turn things over to Jesse Corey, our CFO, to discuss the financial data for the second quarter of 2023.