Greystone Housing Impact Investors LP

Greetings and welcome to Greystone Housing Impact Investors' fourth quarter earnings conference call. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I would now like to turn the conference over to your host, Mr. Jesse Corey. Thank you. You may begin.

I would like to welcome everyone to the Greystone Housing Impact Investors LP NYSE ticker symbol GHI fourth quarter of 2023 earnings conference call. During the presentation, all participants will be in a listen-only mode. After management presents its overview of Q4 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 and are subject to risks and uncertainties, that could cause the actual future events or results to differ materially from these statements. Such 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 will now turn the call over to our Chief Executive Officer, Ken Rogozinski.

Good afternoon, everyone. Welcome to Greystone Housing Impact Investors LP's fourth quarter 2023 investor call. Thank you for joining. I will start with an overview of the quarter, the year, 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 fourth quarter of 2023, the partnership reported net income of $0.24 per unit and $0.27 of cash available for distribution, or CAD, per unit. For 2023, the partnership reported net income of $2.07 per unit and $1.93 of CAD per unit. Our fourth quarter reported net income of 24 cents per unit includes a $10 million non-cash loss that reflects the mark-to-market associated with our interest rate swap portfolio for the quarter. That translates to 44 cents per unit in non-cash loss, which is not reflected in CAD. We also recognized in net income for the fourth quarter 10.4 million or 45 cents per buck in gain on sale for the Suites on Paseo multifamily property. However, this gain is not reflected in CAD as it is due to the recovery of previous depreciation expense. For 2023, we recognized a non-cash mark-to-market loss on our interest rate swap portfolio of approximately 3.2 million or 14 cents per unit within net income. That is not reflected in our reported CAD per unit for the year. We are currently a net receiver on substantially all of our interest rate swaps as we receive compounded SOFR, which is now 5.33%, and pay a weighted average fixed rate of 3.13% on our approximately $333 million in swap notional amounts as of December 31st 2023. Assuming that the compounded SOFR level stays constant over the next six months, that 220 basis point spread would result in us receiving approximately 3.2 million in cash payments from our swap counterparties, which would not be reflected in our net income, but would be reflected as an additional 14 cents per unit in CAD. We also reported a book value of $15.17 per unit on 1.51 billion of assets and a leverage ratio as defined by the partnership of 72%. On December 13th, 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 January 31st, 2024. In terms of the partnership's investment portfolio, we currently hold $1.27 billion of affordable multifamily investment in the form of mortgage revenue bonds, governmental issuer loans and property loans, and $137 million in joint venture equity 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 properties was at 92.2% for the stabilized mortgage revenue bond portfolio as of December 31st, 2023. Our Vantage joint venture equity investments consist of interest in seven properties, four where construction is complete with remaining three properties either under construction or in the planning stage. For the four properties where construction is complete, we continue to see good leasing activity. 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. As previously announced, the Vantage for Tomball property has been listed for sale. We have four joint venture equity investments with the Freestone Development Group, one for a project in Colorado, and three projects in Texas. Site work has commenced on the Colorado project, and construction has commenced on one of the projects in Texas. Our joint venture equity investment in Volage Senior Living Carson Valley, a 102-bed seniors housing project located in Minden, Nevada, has begun vertical construction. Our joint venture equity investment in the Jessamette Hayes farm, a new construction 318 unit market rate multifamily property located in Huntsville, Alabama has commenced construction as well. As previously announced in December, 2023, we sold our final multifamily property investment, the Suites on Paseo student housing project for gross proceeds of approximately $40.7 million. The partnership no longer owns any operating real estate property investments. Net proceeds from the sale will be deployed into our core multifamily investment strategies. With that, I will turn things over to Jesse Corey, our CFO, to discuss the financial data for the fourth quarter of 2023. Thank you, Ken.