Greystone Housing swings to Q3 profit on lower expenses, derivative gains

Overview

• US affordable housing investor's Q3 revenue rose slightly yr/yr

• Net income for Q3 was $3.2 mln, or $0.09 per BUC

• Company continued shift from market-rate multifamily to tax-exempt mortgage bond investments

Outlook

• Company says near-term results will be impacted by pace of market rate multifamily sales

• Greystone plans to redeploy capital into tax-exempt mortgage revenue bond investments

• Company continues to assess potential impacts on future earnings and distributions

Result Drivers

• PORTFOLIO SHIFT - Co continued reducing exposure to market-rate multifamily properties and redeploying capital into tax-exempt mortgage revenue bonds

• PROPERTY SALES - Sale of Vantage at Loveland generated $23.6 mln in gross proceeds, with additional properties being marketed for sale

• HEDGING STRATEGY - Interest rate swaps generated $280,000 in net receipts during the qtr to offset changing market rates

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Greystone Housing Impact Investors LP is $7.00, about 62.4% above its November 9 closing price of $4.31

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)