Greystone Housing Impact Investors LP
For the period ended Sep 30, 2024. Filed Nov 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 6, 2024
GHI$4.430.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000950170-24-092308
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-06.
0000950170-24-121844
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 355 previous paragraphs and 380 current paragraphs.
193 unchanged; 107 reworded; 71 added; 47 removed; 8 previous and 9 current paragraphs rearranged.
Tables are not compared: 32 previous and 32 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (71)
Current report
During the three and nine months ended September 30, 2024, our net income was significantly impacted by unrealized losses on our derivative instrument portfolio, which primarily consists of interest rate swaps. Under the applicable accounting guidance, we report our derivatives at fair value as of each reporting date. The fair value is based on a model that considers observable indices and observable market trades for similar arrangements, such as publicly available current SOFR rates and forward SOFR swap rates. The period-over-period change in the fair value of each derivative that is not directly related to net cash settlements are recorded as unrealized (gains) losses within “Net result from derivative transactions” on our condensed consolidated statements of operations and is included as a component of our reported net income. Unrealized (gains) losses can be significant in periods of significant interest rate volatility, such as the third quarter of 2024.
Current report
We recorded significant unrealized losses from derivatives of $9.7 million and $4.9 million during the three and nine months ended September 30, 2024 and significant unrealized gains of $4.2 million and $6.8 million for the three and nine months ended September 30, 2023 primarily due to market interest rate changes between reporting dates. The 3-year SOFR swap rate is a reasonable proxy for our interest rate swap portfolio as a whole as our derivatives are primarily SOFR-denominated interest rate swaps and the weighted average life of our interest rate swap portfolio is typically between three and four years. The 3-year SOFR swap rate declined 1.04% from 4.35% as of June 30, 2024 to 3.31% as of September 30, 2024, resulting in a significant unrealized loss on our interest rate swap portfolio for the three months ended September 30, 2024. The 3-year SOFR swap rate declined 0.44% from 3.75% as of December 31, 2023 to 3.31% as of September 30, 2024, resulting in a significant unrealized loss on our interest rate swap portfolio for the nine months ended September 30, 2024.
Current report
Though unrealized (gains) losses may impact our reported net income period-to-period, the net cash settlements on our interest rate swaps are less variable. Our interest rate swaps are designed such that changes in the monthly net cash settlements will offset the changes in monthly interest costs on our variable-rate debt financings. Our interest rate swaps are subject to monthly net cash settlements whereby we pay a stated fixed rate and our counterparty pays a variable rate equal to the compounded SOFR rate for the settlement period. If short-term interest rates decline, the interest cost of our variable-rate debt financings will typically decline. Meanwhile, the variable rate payment by the counterparty on our interest rate swap will decline such that our benefit from the monthly net settlement payment will decline. The change in interest cost on our variable-rate debt financing generally offsets the reduced monthly net cash settlement payments associated with the related interest rate swap, such that our net cash flow for the period is not materially impacted by changes in short term interest rate changes. For this reason, we adjust net income for unrealized losses on our derivative instruments when calculating CAD, a non-GAAP performance measure discussed later in this Item 2, which we consider to be a useful measure of our operating performance.
Current report
We expect to report the Partnership’s proportionate share of earnings from our Construction Lending JV within this segment once it has reportable activities.
Current report
A decrease of approximately $2.0 million in other interest income from lower average property loan, taxable MRB and taxable GIL investment balances of approximately $91.4 million.
Current report
A decrease of approximately $1.8 million in interest income due to recent GIL redemptions, offset by an increase of approximately $789,000 in interest income from recent GIL investments and higher average interest rates;
Current report
A decrease of approximately $574,000 in other interest income due to decreasing interest earned on cash balances;
Current report
An increase of approximately $2.4 million in interest income from recent MRB advances, offset by a decrease of approximately $526,000 in interest income due to MRB redemptions and principal repayments;
Current report
An increase of approximately $1.1 million in interest income due to discount accretion on the Southpark MRB upon redemption at par in July 2024; and
Current report
An increase of approximately $172,000 in other income for receipt of non-refundable fees for the extension of various GILs and property loans.
Current report
A decrease of approximately $201,000 due to lower average interest rates on our debt financings.
Current report
Unrealized losses on derivatives, net, were approximately $8.3 million for the three months ended September 30, 2024, compared to gains of approximately $3.4 million for the three months ended September 30, 2023, resulting in increased losses of approximately $11.7 million between the two periods. The increase in the unrealized losses was attributable to declining current and forward market interest rates which caused the fair value of our derivatives to decline. If the reference rates on our interest rate swaps continue to fall in the future, then we will likely experience additional unrealized losses on derivatives, net. See the “Executive Summary” section of this Item 2 for additional discussion.
Current report
Interest income includes $1.1 million of discount accretion on the Southpark MRB upon redemption at par in the third quarter of 2024. Excluding this item, the average interest rate was 6.2%.
Current report
The average change attributable to rate includes $1.1 million of discount accretion on the Southpark MRB upon redemption at par in the third quarter of 2024.
Current report
A decrease of approximately $7.0 million in interest income due to recent GIL redemptions, offset by an increase of approximately $3.3 million in interest income from recent GIL investments and higher average interest rates;
Current report
A decrease of approximately $6.0 million in other interest income from lower average property loan, taxable MRB and taxable GIL investment balances of approximately $95.4 million.
Current report
A decrease of approximately $602,000 in other interest income due to decreasing interest earned on cash balances;
Current report
An increase of approximately $5.4 million in interest income from recent MRB advances, offset by a decrease of approximately $1.3 million in interest income due to MRB redemptions and principal repayments;
Current report
An increase of approximately $1.1 million in interest income due to discount accretion on the Southpark MRB upon redemption at par in July 2024; and
Current report
An increase of approximately $205,000 in other income for receipt of non-refundable fees for the extension of various GILs and property loans.
Current report
Interest expense decreased for the nine months ended September 30, 2024 as compared to the same period in 2023 primarily due to:
Current report
A decrease of approximately $491,000 in amortization of deferred financing costs; and
Current report
An increase of approximately $1.6 million due to higher average interest rates on debt financing.
Current report
The net result from derivative transactions consists of realized and unrealized (gains) losses from our derivative financial instruments. Realized (gains) losses represent receipts or payments related to our interest rate swaps during the period. Unrealized (gains) losses are generally a result of changes in current and forward interest rates during the period. Increasing interest rates generally result in unrealized gains while decreasing interest rates generally result in unrealized losses. The following table summarizes the components of this line item for the nine months ended September 30, 2024 and 2023 (dollar amounts in thousands):
Current report
Unrealized losses on derivatives, net, were approximately $4.3 million for the nine months ended September 30, 2024, compared to gains of approximately $5.7 million for the three months ended September 30, 2023, resulting in increased losses of approximately $10.0 million between the two periods. The increase in the unrealized losses was attributable to declining current and forward market interest rates which caused the fair value of our derivatives to decline. If the reference rate on our interest rate swaps continue to fall in the future, then we will likely experience additional unrealized losses on derivatives, net. See the “Executive Summary” section of this Item 2 for additional discussion.
Current report
Interest income includes $1.1 million of discount accretion on the Southpark MRB upon redemption at par in the third quarter of 2024. Excluding this item, the average interest rate was 6.1%.
Current report
The average change attributable to rate includes $1.1 million of discount accretion on the Southpark MRB upon redemption at par in the third quarter of 2024.
Current report
Unrealized losses on derivatives, net, were approximately $1.4 million for the three months ended September 30, 2024, compared to gains of approximately $863,000 for the three months ended September 30, 2023, resulting in increased losses of approximately $2.3 million between the two periods. The increase in the unrealized losses was attributable to declining current and forward market interest rates which caused the fair value of our derivatives to decline. If the reference rates on our interest rate swaps continue to fall in the future, then we will likely experience additional unrealized losses on derivatives, net. See the “Executive Summary” section of this Item 2 for additional discussion.
Current report
The net result from derivative transactions consists of realized and unrealized (gains) losses from our derivative financial instruments. Realized (gains) losses represent receipts or payments related to our interest rate swaps during the period. Unrealized (gains) losses are generally a result of changes in current and forward interest rates during the period. Increasing interest rates generally result in unrealized gains while decreasing interest rates generally result in unrealized losses. The following table summarizes the components of this line item for the nine months ended September 30, 2024 and 2023 (dollar amounts in thousands):
Current report
Unrealized losses on derivatives, net, were approximately $580,000 for the nine months ended September 30, 2024, compared to gains of approximately $1.1 million for the nine months ended September 30, 2023, resulting in increased losses of approximately $1.7 million between the two periods. The increase in the unrealized losses was attributable to declining current and forward market interest rates which caused the fair value of our derivatives to decline. If the reference rates on our interest rate swaps continue to fall in the future, then we will likely experience additional unrealized losses on derivatives, net. See the “Executive Summary” section of this Item 2 for additional discussion.
Current report
The change in segment net income for the nine months ended September 30, 2024 as compared to the same period in 2023 was the result of the changes in the line items discussed above.
Current report
A decrease of approximately $1.5 million of investment income due to certain investments meeting the maximum guaranteed preferred return during 2023 and 2024; and
Current report
An increase of approximately $603,000 in investment income related to preferred returns on equity contributions during 2023 and 2024.
Current report
There was no gain on sale of investments in unconsolidated entities for the three months ended September 30, 2024. The gain on sale of JV Equity Investments for the three months ended September 30, 2023 primarily related to final settlement of the Vantage at Powdersville sale that occurred in May 2021.
Current report
The decrease in total revenues for the nine months ended September 30, 2024 as compared to the same period in 2023 was primarily due to the following:
Current report
A decrease of approximately $3.9 million of investment income due to certain investments meeting the maximum guaranteed preferred return during 2023 and 2024;
Current report
A decrease of approximately $2.3 million of investment income related to preferred return recognized upon the sale of Vantage at Stone Creek and Vantage at Coventry in January 2023 and Vantage at Conroe in June 2023; and
Current report
An increase of approximately $2.0 million in investment income related to preferred returns on equity contributions during 2023 and 2024.
Current report
Earnings (losses) on investments in unconsolidated entities is the Partnership’s recognition of its proportionate share of earnings (losses) using the equity method of accounting. Such investments typically incur losses during development and lease-up, particularly from depreciation, consistent with development plans. The increase for the nine months ended September 30, 2024 as compared to the same period in 2023 is primarily due to general and administrative expenses at Valage Senior Living Carson Valley and interest expense at Freestone Cresta Bella as the property commenced leasing activities during the third quarter of 2024.
Current report
Vantage at McKinney Falls completed construction in July 2024 and was 46% leased as of September 30, 2024. Vantage at Loveland began leasing units in May 2024, completed construction in October 2024, and was 28% leased as of September 30, 2024. Freestone Cresta Bella began leasing activities in September 2024.
Showing the first 40 of 71 passages. Open the source sections for the rest.
Removed paragraphs (47)
Previous report
Our reported net income includes unrealized (gains) losses from derivatives, which are a result of changes in current and forward interest rates. Valuation changes can be significant in periods of high interest rate volatility, especially for our interest rate swap agreements. Such (gains) losses are reported within “Net result from derivative transactions” on our condensed consolidated statements of operations. The unrealized (gains) losses are non-cash (gains) losses and can cause variability in reported net income from period-to-period. The following table summarizes unrealized (gains) losses from derivative transactions by segment for the three and six months ended June 30, 2024 and 2023 (dollar amounts in thousands):
Previous report
A decrease of approximately $2.8 million in interest income due to recent GIL redemptions, offset by an increase of approximately $1.0 million in interest income from recent GIL investments and higher average interest rates;
Previous report
A decrease of approximately $2.6 million in other interest income due to principal repayments and redemptions of property loan, taxable MRB and taxable GIL investments during 2023 and 2024; and
Previous report
An increase of approximately $1.8 million in interest income from recent MRB advances, offset by a decrease of approximately $397,000 in interest income due to MRB redemptions and principal repayments.
Previous report
An increase of approximately $761,000 due to higher average interest rates on debt financing, net of cash receipts received on interest rate derivatives; and
Previous report
An increase of approximately $89,000 in amortization of deferred financing costs.
Previous report
A decrease of approximately $5.2 million in interest income due to recent GIL redemptions, offset by an increase of approximately $2.6 million in interest income from recent GIL investments and higher average interest rates;
Previous report
A decrease of approximately $4.4 million in other interest income due to principal repayments and redemptions of property loan, taxable MRB and taxable GIL investments, offset by an increase of approximately $491,000 due to recent property loan and taxable MRB advances and higher average interest rates; and
Previous report
An increase of approximately $3.0 million in interest income from recent MRB advances, offset by a decrease of approximately $750,000 in interest income due to MRB redemptions and principal repayments.
Previous report
Interest expense decreased for the six months ended June 30, 2024 as compared to the same period in 2023 primarily due to:
Previous report
An increase of approximately $1.7 million due to higher average interest rates on debt financing, net of cash receipts received on interest rate derivatives; and
Previous report
A decrease of approximately $498,000 in amortization of deferred financing costs.
Previous report
The net result from derivative transactions consists of realized and unrealized (gains) losses from our derivative financial instruments. Realized (gains) losses represent receipts or payments related to our interest rate swaps during the period. Unrealized (gains) losses are generally a result of changes in current and forward interest rates during the period. Increasing interest rates generally result in unrealized gains while decreasing interest rates generally result in unrealized losses. We reported unrealized gains for the six months ended June 30, 2024 due to generally rising interest rates resulting in increases in the value of our fixed rate payor interest rate swaps. The following table summarizes the components of this line item for the six months ended June 30, 2024 and 2023 (dollar amounts in thousands):
Previous report
The gain on sale of mortgage revenue bond for the six months ended June 30, 2024 related to the sale of the Brookstone MRB in May 2024. There was no gain on sale for the six months ended June 30, 2023.
Previous report
Segment net income increased for the six months ended June 30, 2024 as compared to the same period in 2023 due to:
Previous report
A decrease in general and administrative expenses primarily due to decreases of approximately $204,000 in administration fees paid to the General Partner due to lower assets under management, approximately $144,000 in legal fees, and approximately $184,000 in employee compensation and benefits.
Previous report
The net result from derivative transactions consists of realized and unrealized (gains) losses from our derivative financial instruments. We reported unrealized gains for the three months ended June 30, 2024 due to generally rising interest rates resulting in increases in the value of our fixed rate payor interest rate swaps. The following table summarizes the components of this line item for the three months ended June 30, 2024 and 2023 (dollar amounts in thousands):
Previous report
The net result from derivative transactions consists of realized and unrealized (gains) losses from our derivative financial instruments. We reported unrealized gains for the six months ended June 30, 2024 due to generally rising interest rates resulting in increases in the value of our fixed rate payor interest rate swaps. The following table summarizes the components of this line item for the six months ended June 30, 2024 and 2023 (dollar amounts in thousands):
Previous report
The change in segment net income for the six months ended June 30, 2024 as compared to the same period in 2023 was the result of the changes in the line items discussed above.
Previous report
A decrease of approximately $1.4 million of investment income due to certain investments meeting the maximum guaranteed preferred return during 2023 and 2024; and
Previous report
An increase of approximately $748,000 in investment income related to preferred returns on equity contributions during 2023 and 2024.
Previous report
The decrease in total revenues for the six months ended June 30, 2024 as compared to the same period in 2023 was primarily due to the following:
Previous report
A decrease of approximately $2.4 million of investment income due to certain investments meeting the maximum guaranteed preferred return during 2023 and 2024;
Previous report
A decrease of approximately $244,000 of investment income related to the sales of Vantage at Stone Creek and Vantage at Coventry in January 2023; and
Previous report
An increase of approximately $1.4 million in investment income related to preferred returns on equity contributions during 2023 and 2024.
Previous report
Segment net income for the three and six months ended June 30, 2024 related to final purchase price adjustments for the Suites on Paseo MF Property that was sold in December 2023.
Previous report
A decrease of approximately $2.8 million in interest income due to recent GIL redemptions, offset by an increase of approximately $1.0 million in interest income from recent GIL investments and higher average interest rates;
Previous report
An increase of approximately $2.3 million in interest income from recent MRB advances, offset by a decrease of approximately $397,000 in interest income due to MRB redemptions and principal repayments;
Previous report
A decrease of approximately $1.4 million of investment income due to certain investments meeting the maximum guaranteed preferred return during 2023 and 2024; and
Previous report
An increase of approximately $748,000 in investment income related to preferred returns on equity contributions during 2023 and 2024.
Previous report
A decrease of approximately $5.2 million in interest income due to recent GIL redemptions, offset by an increase of approximately $2.6 million in interest income from recent GIL investments and higher average interest rates;
Previous report
An increase of approximately $4.1 million in interest income from recent MRB advances, offset by a decrease of approximately $750,000 in interest income due to MRB redemptions and principal repayments;
Previous report
A decrease of approximately $2.4 million of investment income due to certain investments meeting the maximum guaranteed preferred return during 2023 and 2024;
Previous report
o
Previous report
A decrease of approximately $244,000 of investment income related to the sales of Vantage at Stone Creek and Vantage at Coventry in January 2023; and
Previous report
o
Previous report
An increase of approximately $1.4 million in investment income related to preferred returns on equity contributions during 2023 and 2024.
Previous report
Other income. Other income for the six months ended June 30, 2024 related to the receipt of non-refundable fees for the extension of the Magnolia Heights GIL and property loan and the Legacy Commons at Signal Hills GIL maturity dates. Other income for the six months ended June 30, 2023 related to receipt of non-refundable fees for the extension of the Scharbauer Flats GIL and property loan maturity dates.
Previous report
Gain on sale of mortgage revenue bond. The gain on sale of mortgage revenue bond for the six months ended June 30, 2024 related to the sale of the Brookstone MRB in May 2024. There was no gain on sale for the six months ended June 30, 2023.
Previous report
An increase of approximately $900,000 due to higher average interest rates on debt financing, net of cash receipts received on interest rate derivatives.
Showing the first 40 of 47 passages. Open the source sections for the rest.
Reworded paragraphs (107)
Previous wording
As of June 30, 2024, we had four reportable segments: (1) Affordable Multifamily MRB Investments, (2) Seniors and Skilled Nursing MRB Investments, (3) Market-Rate Joint Venture Investments and (4) MF Properties. We separately report our consolidation and elimination information because we do not allocate certain items to the segments. All “General and administrative expenses” on the Partnership's condensed consolidated statements of operations are reported within the Affordable Multifamily MRB Investments segment. See Notes 2 and 24 to the Partnership’s condensed consolidated financial statements for additional details. The following table presents summary information regarding activity of our segments for the three and six months ended June 30, 2024 and 2023 (dollar amounts in thousands):
Current wording
As of September 30, 2024, we had four reportable segments: (1) Affordable Multifamily MRB Investments, (2) Seniors and Skilled Nursing MRB Investments, (3) Market-Rate Joint Venture Investments and (4) MF Properties. We separately report our consolidation and elimination information because we do not allocate certain items to the segments. All “General and administrative expenses” on the Partnership's condensed consolidated statements of operations are reported within the Affordable Multifamily MRB Investments segment. See Notes 2 and 24 to the Partnership’s condensed consolidated financial statements for additional details. The following table presents summary information regarding activity of our segments for the three and nine months ended September 30, 2024 and 2023 (dollar amounts in thousands):
Previous wording
The following table presents information regarding the investment activity of the Partnership for the three and six months ended June 30, 2024 and 2023:
Current wording
The following table presents information regarding the investment activity of the Partnership for the three and nine months ended September 30, 2024 and 2023:
Previous wording
The following table presents information regarding the debt financing, derivatives, Preferred Units and partners’ capital activities of the Partnership for the three and six months ended June 30, 2024 and 2023, exclusive of retired debt amounts listed in the investment activity table above:
Current wording
The following table presents information regarding the debt financing, derivatives, Preferred Units and partners’ capital activities of the Partnership for the three and nine months ended September 30, 2024 and 2023, exclusive of retired debt amounts listed in the investment activity table above:
Previous wording
The Greystone Manager Board of Managers is highly engaged in the governance and operations of the Partnership. Our non-independent Managers are employees of Greystone that regularly monitor developments in our operating environment and capital markets and discuss such developments with management on a regular basis. One of our Managers is a member of our investment committee that pre-approves all new investments. We regularly monitor and assess risks to achieving our business objectives and such risk assessments are discussed with both the Audit Committee and the full Board of Managers at regularly held meetings and in regular informal discussions. The Audit Committee and Board of Managers have had 100% attendance during 2023 and 2024.
Current wording
The Greystone Manager Board of Managers is highly engaged in the governance and operations of the Partnership. Our non-independent Managers are employees of Greystone that regularly monitor developments in our operating environment and capital markets and discuss such developments with management on a regular basis. One of our Managers is a member of our investment committee that pre-approves all new investments. We regularly monitor and assess risks to achieving our business objectives and such risk assessments are discussed with both the Audit Committee and the full Board of Managers at regularly held meetings and in regular informal discussions. The Audit Committee and Board of Managers have had 100% attendance during 2023 and to date in 2024.
Previous wording
A decrease of approximately $8.2 million due to a decrease in the average outstanding principal of our debt financing instruments of approximately $166.8 million;
Current wording
A decrease of approximately $2.9 million due to a decrease in the average outstanding principal of our debt financing instruments of approximately $70.1 million; and
Previous wording
The provision for credit losses for the three months ended June 30, 2024 was primarily related to a recovery of our previously recorded allowance for credit loss for the Provision Center 2014-1 MRB in the amount of approximately $169,000 due to final bankruptcy proceeds received that exceeded prior estimates. The provision for credit losses for the three months ended June 30, 2023 related to declining expected credit losses for our portfolio of GIL, taxable GIL and property loan investments. The decreases were primarily due to GIL and property loan redemptions during 2023, decreases in the weighted average life of the remaining investment portfolio, and updates of market data used as quantitative assumptions in the model used to estimate the allowance for credit losses.
Current wording
The provision for credit losses for the three months ended September 30, 2024 and 2023 related to declining expected credit losses for our portfolio of GIL, taxable GIL and property loan investments. The decreases were primarily due to GIL and property loan redemptions during 2023 and 2024, decreases in the weighted average life of the remaining investment portfolio, and updates of market data used as quantitative assumptions in the model used to estimate the allowance for credit losses.
Previous wording
Total revenues decreased for the six months ended June 30, 2024 as compared to the same period in 2023 primarily due to:
Current wording
Total revenues decreased for the nine months ended September 30, 2024 as compared to the same period in 2023 primarily due to:
Previous wording
A decrease of approximately $4.2 million due to a decrease in the average outstanding principal of our debt financing instruments of approximately $166.9 million;
Current wording
A decrease of approximately $11.3 million due to a decrease in the average outstanding principal of our debt financing instruments of approximately $134.2 million;
Previous wording
The provision for credit losses for the six months ended June 30, 2024 and 2023 related to declining expected credit losses for our portfolio of GIL, taxable GIL and property loan investments. The decreases were primarily due to GIL and property loan redemptions during 2023 and 2024, decreases in the weighted average life of the remaining investment portfolio, and updates of market data used as quantitative assumptions in the model used to estimate the allowance for credit losses. The provision for credit losses for the six months ended June 30, 2024 included a recovery of our previously recorded allowance for credit loss for the Provision Center 2014-1 MRB in the amount of approximately $169,000 due to receipt of final bankruptcy proceeds that exceeded prior estimates.
Current wording
The provision for credit losses for the nine months ended September 30, 2024 and 2023 related to declining expected credit losses for our portfolio of GIL, taxable GIL and property loan investments. The decreases were primarily due to GIL and property loan redemptions during 2023 and 2024, decreases in the weighted average life of the remaining investment portfolio, and updates of market data used as quantitative assumptions in the model used to estimate the allowance for credit losses. The provision for credit losses for the nine months ended September 30, 2024 included a recovery of our previously recorded allowance for credit loss for the Provision Center 2014-1 MRB in the amount of approximately $169,000 due to receipt of final bankruptcy proceeds that exceeded prior estimates.
Previous wording
The gain on sale of mortgage revenue bond for the three months ended June 30, 2024 related to the sale of the Brookstone MRB in May 2024. There was no gain on sale for the three months ended June 30, 2023.
Current wording
The gain on sale of mortgage revenue bond for the nine months ended September 30, 2024 related to the sale of the Brookstone MRB in May 2024. There was no gain on sale for the nine months ended September 30, 2023.
Previous wording
A decrease in general and administrative expenses primarily due to decreases of approximately $112,000 in administration fees paid to the General Partner due to lower assets under management, approximately $155,000 in legal fees, and approximately $121,000 in employee compensation and benefits.
Current wording
A decrease in general and administrative expenses primarily due to decreases of approximately $194,000 in administration fees paid to the General Partner due to lower assets under management, and approximately $429,000 in employee compensation and benefits.
Previous wording
The following table summarizes the segment's net interest income, average principal balances, and related yields earned on interest-earning assets and incurred on interest-bearing liabilities, as well as other income included in total revenues for the six months ended June 30, 2024 and 2023. The average balances are based primarily on monthly averages during the respective periods. All dollar amounts are in thousands.
Current wording
The following table summarizes the segment's net interest income, average principal balances, and related yields earned on interest-earning assets and incurred on interest-bearing liabilities, as well as other income included in total revenues for the nine months ended September 30, 2024 and 2023. The average balances are based primarily on monthly averages during the respective periods. All dollar amounts are in thousands.
Previous wording
The following table summarizes the changes in interest income and interest expense for the six months ended June 30, 2024 and 2023, and the extent to which these variances are attributable to 1) changes in the volume of interest-earning assets and interest-bearing liabilities, and 2) changes in the interest rates of the interest-earning assets and interest-bearing liabilities. All dollar amounts are in thousands.
Current wording
The following table summarizes the changes in interest income and interest expense for the nine months ended September 30, 2024 and 2023, and the extent to which these variances are attributable to 1) changes in the volume of interest-earning assets and interest-bearing liabilities, and 2) changes in the interest rates of the interest-earning assets and interest-bearing liabilities. All dollar amounts are in thousands.
Previous wording
Our sole student housing property securing an MRB, Live 929 Apartments, was 76% occupied as of June 30, 2024, and is current on MRB debt service. The property leases exclusively to students, personnel and other tenants associated with the nearby Johns Hopkins University medical campus. The property is pre-leasing for the Fall 2024 term and was approximately 88% pre-leased as of July 31, 2024, which is ahead of pre-leasing in prior years.
Current wording
Our sole student housing property securing an MRB, Live 929 Apartments, was 90% occupied as of September 30, 2024, and is current on MRB debt service. Current occupancy is much improved from the September 2023 through May 2024 academic term. The property leases exclusively to students, personnel and other tenants associated with the nearby Johns Hopkins University medical campus. The property is expected to be able to pay all operating expenses and debt service from operating cash flows for the 2024-2025 school year.
Previous wording
Construction and rehabilitation activities continue at properties securing our GILs, taxable GILs and related property loans. Five of the eight underlying affordable multifamily properties had commenced leasing operations as of June 30, 2024. To date, these properties have not experienced any material supply chain disruptions for either construction materials or labor.
Current wording
Construction and rehabilitation activities continue at properties securing our GILs, taxable GILs and related property loans. Four of the seven underlying affordable multifamily properties had commenced leasing operations as of September 30, 2024. To date, these properties have not experienced any material supply chain disruptions for either construction materials or labor.
Previous wording
We have four MRBs, two taxable MRBs, five GILs and one property loan that have variable interest rates as of June 30, 2024. All such investments finance the construction of affordable multifamily properties. We regularly monitor interest costs in comparison to capitalized interest reserves in each property’s development budget, available construction budget contingency balances, and the funding of certain equity commitments by the owners of the underlying properties. Though original development budgets are sized to incorporate potential interest rate increases, the pace of recent interest rate increases has caused actual interest costs during construction to exceed original projections. In such instances, the developer has either reallocated other available reserves and contingencies, deferred its developer fees, or made direct cash payments during construction. Borrowers for all such investments are current on debt service as of June 30, 2024. In all instances, we have developer completion guaranties as well as capital contributed by LIHTC equity investors that will only receive their tax credits upon completion and stabilization of the projects, which create a strong disincentive to default. In certain instances, we have advanced supplemental loans to the borrowers secured by the underlying properties if returns meet our requirements and/or if such loans are necessary to meet the 50% tax-exempt financing requirements under the LIHTC regulations. In the fourth quarter of 2023, the Partnership committed to fund additional supplemental loans to the Osprey Village and Willow Place Apartments properties up to $4.6 million and $3.3 million, respectively, to provide additional capitalized interest reserves. In February 2024, all but $1.5 million of such supplemental loans were redeemed at par plus accrued interest. We expect the remaining supplemental loans to be repaid from refinance proceeds at the same time as the existing GIL and property loan investments are redeemed.
Current wording
We have four MRBs, one taxable MRB, and four GILs that have variable interest rates as of September 30, 2024. All such investments finance the construction of affordable multifamily properties. We regularly monitor interest costs in comparison to capitalized interest reserves in each property’s development budget, available construction budget contingency balances, and the funding of certain equity commitments by the owners of the underlying properties. Though original development budgets are sized to incorporate potential interest rate increases, the pace of recent interest rate increases has caused actual interest costs during construction to exceed original projections. In such instances, the developer has either reallocated other available reserves and contingencies, deferred its developer fees, or made direct cash payments during construction. Borrowers for all such investments are current on debt service as of September 30, 2024. In all instances, we have developer completion guaranties as well as capital contributed by LIHTC equity investors that will only receive their tax credits upon completion and stabilization of the projects, which create a strong disincentive to default. In certain instances, we have advanced supplemental loans to the borrowers secured by the underlying properties if returns meet our requirements and/or if such loans are necessary to meet the 50% tax-exempt financing requirements under the LIHTC regulations. In the fourth quarter of 2023, the Partnership committed to fund additional supplemental loans to the Osprey Village and Willow Place Apartments properties up to $4.6 million and $3.3 million, respectively, to provide additional capitalized interest reserves. In February 2024, all but $1.5 million of such supplemental loans were redeemed at par plus accrued interest. We expect the remaining supplemental loans to be repaid from refinance proceeds at the same time as the existing GIL and property loan investments are redeemed.
Previous wording
Freddie Mac, through a servicer, has forward committed to purchase each GIL at maturity at par if the property has reached stabilization and other conditions are met. The Freddie Mac forward commitment includes a forward committed interest rate that was set at the original closing of the GIL, with many committed rates being well below current market interest rates. Such forward committed rates significantly reduce refinance risk and incentivize borrowers to convert to the Freddie Mac loan to realize interest savings. Since the beginning of 2023, six of our GIL investments were purchased by Freddie Mac, through a servicer, and repaid in full.
Current wording
Freddie Mac, through a servicer, has forward committed to purchase each GIL at maturity at par if the property has reached stabilization and other conditions are met. The Freddie Mac forward commitment includes a forward committed interest rate that was set at the original closing of the GIL, with many committed rates being well below current market interest rates. Such forward committed rates significantly reduce refinance risk and incentivize borrowers to convert to the Freddie Mac loan to realize interest savings. Since the beginning of 2023, seven of our GIL investments were purchased by Freddie Mac, through a servicer, and repaid in full.
Previous wording
As of June 30, 2024, we owned two MRBs with aggregate outstanding principal of $52.5 million, with an outstanding commitment to provide additional funding of $14.5 million on a draw-down basis during construction. The MRBs are secured by a new construction, combined independent living, assisted living and memory care property in Traverse City, MI, with 174 total beds and a skilled nursing facility in Monroe Township, NJ with 120 beds.
Current wording
As of September 30, 2024, we owned two MRBs with aggregate outstanding principal of $59.7 million, with an outstanding commitment to provide additional funding of $7.3 million on a draw-down basis during construction. The MRBs are secured by a new construction, combined independent living, assisted living and memory care property in Traverse City, MI, with 174 total beds and a skilled nursing facility in Monroe Township, NJ with 120 beds. As of September 30, 2024, the Partnership also had a property loan with a principal balance of $7.3 million used to facilitate the purchase of a portfolio of nine essential healthcare support buildings located in eastern Pennsylvania. The loan is subordinate to the senior debt of the borrower and secured by a first priority security interest in master lease payments guaranteed by an investment grade healthcare system
Previous wording
Total revenues increased for the three months ended June 30, 2024 as compared to the same period in 2023 due to higher average principal balances.
Current wording
Total revenues increased for the three months ended September 30, 2024 as compared to the same period in 2023 due to higher average principal balances of approximately $26.0 million.
Previous wording
Total interest expense increased for the three months ended June 30, 2024 as compared to the same period in 2023 by approximately $466,000 due to higher average principal balances and interest rates and approximately $13,000 due to higher deferred financing costs amortization.
Current wording
Total interest expense increased for the three months ended September 30, 2024 as compared to the same period in 2023 due to higher average interest rates and higher average principal balances of approximately $17.8 million.
Previous wording
The provision for credit losses for the six months ended June 30, 2024 relates to the initial allowance for credit loss for a new property loan investment during 2024. The Partnership did not have any investments in this segment that required a provision for credit loss during the six months ended June 30, 2023.
Current wording
The provision for credit losses for three months ended September 30, 2024 related to an increase in the principal balance related to a property loan during the third quarter of 2024. The Partnership did not have any investments in this segment that required a provision for credit loss during the three months ended September 30, 2023.
Previous wording
Total revenues increased for the six months ended June 30, 2024 as compared to the same period in 2023 due to higher average principal balances.
Current wording
Total revenues increased for the nine months ended September 30, 2024 as compared to the same period in 2023 due to higher average principal balances of approximately $32.2 million.
Previous wording
Total interest expense increased for the six months ended June 30, 2024 as compared to the same period in 2023 by approximately $946,000 due to higher average principal balances and interest rates, and approximately $30,000 due to higher deferred financing costs amortization.
Current wording
Total interest expense increased for the nine months ended September 30, 2024 as compared to the same period in 2023 due to higher average interest rates and higher average principal balances of approximately $29.0 million.
Previous wording
The provision for credit losses for the three months ended June 30, 2024 relates to the initial allowance for credit loss for a new property loan investment during 2024. The Partnership did not have any investments in this segment that required a provision for credit loss during the three months ended June 30, 2023.
Current wording
The provision for credit losses for the nine months ended September 30, 2024 primarily relates to the initial allowance for credit loss for a new property loan investment during 2024. The Partnership did not have any investments in this segment that required a provision for credit loss during the nine months ended September 30, 2023.
Previous wording
Earnings (losses) on investments in unconsolidated entities is the Partnership’s recognition of its proportionate share of earnings (losses) using the equity method of accounting. Such investments typically incur losses during development and lease-up, consistent with development plans.
Current wording
Earnings (losses) on investments in unconsolidated entities is the Partnership’s recognition of its proportionate share of earnings (losses) using the equity method of accounting. Such investments typically incur losses during development and lease-up, particularly from depreciation, consistent with development plans. The increase for the three months ended September 30, 2024 as compared to the same period in 2023 is primarily due to general and administrative expenses at Valage Senior Living Carson Valley and interest expense at Freestone Cresta Bella as the property commenced leasing activities during the third quarter of 2024.
Previous wording
Interest expense for the six months ended June 30, 2024 and 2023 is related to our General LOC that is primarily secured by our JV Equity Investments. The increase in interest expense is primarily due to a higher variable interest rate on outstanding balances.
Current wording
Interest expense for the nine months ended September 30, 2024 and 2023 is related to our General LOC that is primarily secured by our JV Equity Investments. The increase in interest expense is primarily due to a higher variable interest rate on outstanding balances.
Previous wording
The gain on sale of investments in unconsolidated entities for the six months ended June 30, 2024 related to final settlement of the Vantage at Coventry sale that occurred in January 2023 and the Vantage at Westover Hills sale that occurred in May 2022. The gain on sale of JV Equity Investments for the six months ended June 30, 2023 primarily consisted of the following:
Current wording
The gain on sale of investments in unconsolidated entities for the nine months ended September 30, 2024 related to final settlement of the Vantage at Coventry sale that occurred in January 2023 and the Vantage at Westover Hills sale that occurred in May 2022. The gain on sale of JV Equity Investments for the nine months ended September 30, 2023 primarily consisted of the following:
Previous wording
The change in segment net income for the six months ended June 30, 2024 as compared to the same period in 2023 was primarily due to the change in total revenues and gains on sales of unconsolidated entities discussed above.
Current wording
The change in segment net income for the nine months ended September 30, 2024 as compared to the same period in 2023 was primarily due to the change in total revenues and gains on sales of unconsolidated entities discussed above.
Previous wording
We have noted no material construction cost overruns for securing materials and labor needed to construct the properties underlying our JV Equity Investments, despite general supply chain constraints noted in recent years. However, Vantage at McKinney Falls did experience cost overruns due to delayed utility connections to the site by the local municipality. The lack of water connections delayed vertical construction and caused the general contractor to incur additional general conditions costs to otherwise ensure progress in construction. To date, we contributed additional equity of $1.0 million to cover cost overages related to these delays.
Current wording
We have noted no material construction cost overruns for securing materials and labor needed to construct the properties underlying our JV Equity Investments, despite general supply chain constraints noted in recent years. However, Vantage at McKinney Falls did experience cost overruns due to delayed utility connections to the site by the local municipality. The lack of water connections delayed vertical construction and caused the general contractor to incur additional general conditions costs to otherwise ensure progress in construction. To date, we have contributed additional equity of $1.0 million to cover cost overages related to these delays.
Previous wording
The construction loans associated with our JV Equity Investments typically have variable interest rates, so we regularly monitor interest costs in comparison to capitalized interest reserves in each property’s development budget and available construction budget contingency balances. Though original development budgets were sized to incorporate potential interest rate increases, the pace of recent interest rate increases has caused actual interest costs during construction to exceed original budgets. We have noted that some properties that are complete or nearing construction completion are incurring interest costs that exceed capitalized interest reserves, and such properties have utilized construction contingencies and developers have deferred a portion of their developer fee payments. From January through July 2024, we advanced additional equity totaling $6.6 million across five Vantage JV Equity Investments to cover additional interest costs. We anticipate advancing additional equity to certain JV Equity Investments during the remainder of 2024 though the ultimate amount is uncertain. The amount of such additional funding will depend on various future developments, including, but not limited to, the pace of development, changes in interest rates, the pace of lease-up, and overall operating results of the underlying properties. We plan to contribute such additional funds with cash on hand or other currently available liquidity sources. Such additional equity may result in lower overall returns on our JV Equity Investments.
Current wording
The construction loans associated with our JV Equity Investments typically have variable interest rates, so we regularly monitor interest costs in comparison to capitalized interest reserves in each property’s development budget and available construction budget contingency balances. Though original development budgets were sized to incorporate potential interest rate increases, the pace of recent interest rate increases has caused actual interest costs during construction to exceed original budgets. We have noted that some properties that are complete or nearing construction completion are incurring interest costs that exceed capitalized interest reserves, and such properties have utilized construction contingencies and developers have deferred a portion of their developer fee payments. Under the operating agreements, if additional capital is required, the parties to the JV Equity Investment will mutually agree on how to fund additional capital. From January through October 2024, we agreed to advance additional equity totaling $7.5 million across five Vantage JV Equity Investments to cover additional interest costs. We anticipate advancing additional equity to certain JV Equity Investments during the remainder of 2024 though the ultimate amount is uncertain. The amount of such additional funding will depend on various future developments, including, but not limited to, the pace of development, changes in interest rates, the pace of lease-up, and overall operating results of the underlying properties. We plan to contribute such additional funds with cash on hand or other currently available liquidity sources. Such additional equity may result in lower overall returns on our JV Equity Investments.
Previous wording
As of July 31, 2024, Vantage at Tomball, Vantage at Helotes, and Vantage at Fair Oaks had achieved approximately 90% physical occupancy, while Vantage at Hutto had achieved 87% physical occupancy. The managing member of each property is evaluating options for the sale of each property. Vantage at McKinney Falls has achieved approximately 98% construction completion, began leasing units in March 2024, and was 36% leased as of July 31, 2024. Vantage at Loveland has achieved approximately 95% construction completion, began leasing units in May 2024, and was 23% leased as of July 31, 2024.
Current wording
As of September 30, 2024, Vantage at Tomball, Vantage at Helotes, Vantage at Fair Oaks, and Vantage at Hutto had achieved approximately 90% physical occupancy. The managing member of each property is evaluating options for the sale of each property.
Previous wording
Comparison of the Three and Six Months Ended June 30, 2024 and 2023
Current wording
Comparison of the Three and Nine Months Ended September 30, 2024 and 2023
Previous wording
The following tables summarize occupancy and other information regarding the properties underlying our various investment classes. The narrative discussion that follows provides a brief operating analysis of each investment class as of and for the six months ended June 30, 2024 and 2023.
Current wording
The following tables summarize occupancy and other information regarding the properties underlying our various investment classes. The narrative discussion that follows provides a brief operating analysis of each investment class as of and for the nine months ended September 30, 2024 and 2023.
Previous wording
Physical occupancy as of June 30, 2024 decreased from the same period in 2023 due primarily to occupancy declines at Live 929 Apartments, various Avistar properties, Renaissance, and Oaks at Georgetown. Live 929 Apartments occupancy is lower than in recent years due to on-site management issues during the Fall 2023 lease-up process. Personnel changes have been made and the property management team is focused on leasing to tenants at the nearby Johns Hopkins University medical campus. As of July 31, 2024, Live 929 Apartments is 88% pre-leased for the Fall 2024 term, which is ahead of pre-leasing in prior years. The physical occupancy at various Avistar properties and Renaissance has declined due to operational issues. The property owners have made certain personnel changes and has indicated that leasing is improving in 2024. The physical occupancy at Oaks at Georgetown has declined due to economic factors in its submarket and property management is working to address the declines. We will continue to monitor and discuss property operations with the individual borrowers for Live 929 Apartments, the Avistar properties, Renaissance, and Oaks at Georgetown to ensure noted performance issues are addressed.
Current wording
Physical occupancy as of September 30, 2024 is consistent with the same period in 2023. The physical occupancy at various Avistar properties and Renaissance has declined in recent periods due to operational issues. The property owners have made certain personnel changes and has indicated that leasing is improving in 2024. The physical occupancy at Crossing at 1415 has declined due to economic factors in its submarket and property management is working to address the declines. These declines have been partially offset with improved performance at Live 929 Apartments. We will continue to monitor and discuss property operations with the individual borrowers for Live 929 Apartments, the Avistar properties, Renaissance, and Crossing 1415 to ensure noted performance issues are addressed.
Previous wording
Economic occupancy for the six months ended June 30, 2024 decreased from the same period in 2023 due to a decrease in rental revenue as a result of the declines in physical occupancy noted above.
Current wording
Economic occupancy for the nine months ended September 30, 2024 decreased from the same period in 2023 due to a decrease in rental revenue as a result of the declines in physical occupancy noted above.
Previous wording
Restricted rents at affordable multifamily properties are tied to changes in AMI, which has generally been increasing in the United States as overall wages increased significantly in 2021 through 2023. AMI is updated on a one-year lag, so restricted rental rates will increase on a similar lag and is realized upon annual lease renewals. On an overall basis, we noted same-property maximum rental income amounts increased 5.4% during the six months ended June 30, 2024 as compared to the same period in 2023, which is significantly higher than average historical annual rent increases. In addition, we observed an increase in same-property net rental revenue of 2.6% during the six months ended June 30, 2024 as compared to the same period in 2023. As restricted rents adjust over time on a lag, increasing maximum rental income amounts may contribute to a temporary decline in economic occupancy even though property rental revenues are increasing overall.
Current wording
Restricted rents at affordable multifamily properties are tied to changes in AMI, which has generally been increasing in the United States as overall wages increased significantly in 2021 through 2023. AMI is updated on a one-year lag, so restricted rental rates will increase on a similar lag and is realized upon annual lease renewals. On an overall basis, we noted same-property maximum rental income amounts increased 5.9% during the nine months ended September 30, 2024 as compared to the same period in 2023, which is significantly higher than average historical annual rent increases. In addition, we observed an increase in same-property net rental revenue of 4.0% during the nine months ended September 30, 2024 as compared to the same period in 2023. As restricted rents adjust over time on a lag, increasing maximum rental income amounts may contribute to a temporary decline in economic occupancy even though property rental revenues are increasing overall.
Previous wording
Economic Occupancy is not available for the six months ended June 30, 2024 as the related investment is undergoing a tenant-in-place rehabilitation and new construction phase. Physical and Economic Occupancy is not available for the six months ended June 30, 2023 as the related investment was recently acquired.
Current wording
Economic occupancy information is not available for the nine months ended September 30, 2024 and 2023 as the related investment is undergoing a tenant-in-place rehabilitation and new construction phase.
Previous wording
Physical and economic occupancy information is not available for the six months ended June 30, 2023 as the related investment was either under construction, rehabilitation, or recently acquired.
Current wording
Physical and economic occupancy information is not available for the nine months ended September 30, 2023 as the related investment was either under construction, rehabilitation, or recently acquired.
Previous wording
Physical and economic occupancy information is not available for the six months ended June 30, 2024 and 2023 as the property is under construction or rehabilitation or was recently acquired.
Current wording
Physical and economic occupancy information is not available for the nine months ended September 30, 2024 and 2023 as the property is under construction or rehabilitation or was recently acquired.
Previous wording
Village Point is a skilled nursing property with 120 beds in 92 units. Occupancy is based on the daily average of beds occupied during the last month of the period.
Current wording
Village Point is a skilled nursing property with 120 beds in 92 units. Physical occupancy is based on the daily average of beds occupied during the last month of the period.
Showing the first 40 of 107 pairs. Open the source sections for the rest.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
A decrease in general and administrative expenses primarily due to a decrease of approximately $245,000 in employee compensation and benefits.
Current report — wording carried from elsewhere
Segment net income decreased for the nine months ended September 30, 2024 as compared to the same period in 2023 due to:
Current report — wording carried from elsewhere
The net result from derivative transactions consists of realized and unrealized (gains) losses from our derivative financial instruments. Realized (gains) losses represent receipts or payments related to our interest rate swaps during the period. Unrealized (gains) losses are generally a result of changes in current and forward interest rates during the period. Increasing interest rates generally result in unrealized gains while decreasing interest rates generally result in unrealized losses. The following table summarizes the components of this line item for the three months ended September 30, 2024 and 2023 (dollar amounts in thousands):
Current report — wording carried from elsewhere
Other income. Other income for the nine months ended September 30, 2024 and 2023 related to the receipt of non-refundable fees for the extension of various GIL and property loan maturity dates.
Current report — wording carried from elsewhere
Vantage at Westover Hills sale that occurred in May 2022. The gain on sale for the nine months ended September 30, 2023 primarily consisted of the following:
Current report — wording carried from elsewhere
Declining expected credit losses of approximately $1.1 million for our remaining portfolio of GILs, taxable GILs, property loans, and unfunded commitments that was primarily due to GIL and property loan redemptions during 2024, a decrease in the weighted average life of the remaining investment portfolio, and updates of market data used as quantitative assumptions in the Partnership’s model to estimate the allowance for credit losses;
Current report — wording carried from elsewhere
The recovery of approximately $169,000 of prior credit losses in connection with final settlement of the bankruptcy estate of the Provision Center 2014-1 MRB; and
Current report — wording carried from elsewhere
An increase of approximately $215,000 due to a new property loan investment during 2024.
Current report — wording carried from elsewhere
Manager retains the right to change the maximum Leverage Ratio in the future based on the consideration of factors the Board of Managers considers relevant. We calculate our Leverage Ratio as total outstanding debt divided by total assets using cost adjusted for paydowns for MRBs, GILs, property loans, taxable MRBs and taxable GILs, and initial cost for deferred financing costs and real estate assets. As of September 30, 2024, our overall Leverage Ratio was approximately 74%.
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
The gain on sale of investments in unconsolidated entities for the three months ended June 30, 2024 related to final settlement of the Vantage at Westover Hills sale that occurred in May 2022. The gain on sale of JV Equity Investments for the three months ended June 30, 2023 primarily related to the sale of Vantage at Conroe in June 2023 for a gain of approximately $7.3 million.
Previous report — wording carried elsewhere
Earnings (losses) on investments in unconsolidated entities is the Partnership’s recognition of its proportionate share of earnings (losses) using the equity method of accounting. Such investments typically incur losses during development and lease-up, consistent with development plans.
Previous report — wording carried elsewhere
Windsor Shores Apartments, Woodington Gardens, and Aventine Apartments MRB properties are currently undergoing tenant-in-place rehabilitations. The MaryAlice Circle Apartments MRB property is undergoing both rehabilitation and new construction phases.
Previous report — wording carried elsewhere
Gain on sale of investments in unconsolidated entities. The gain on sale of investments in unconsolidated entities for the three months ended June 30, 2024 related to final settlement of the Vantage at Westover Hills sale that occurred in May 2022. The gain on sale for the three months ended June 30, 2023 primarily related to the sale of Vantage at Conroe in June 2023 for a gain of approximately $7.3 million.
Previous report — wording carried elsewhere
Gain on sale of real estate assets. The gain on sale of real estate assets for the six months ended June 30, 2024 related to final purchase price adjustments for the Suites on Paseo MF Property that was sold in December 2023. There was no gain on sale of real estate assets for the six months ended June 30, 2023.
Previous report — wording carried elsewhere
MRB investments in exchange for cash at prices that approximate our currently reported fair value. However, we are contractually prevented from selling the MRB investments included in our TEBS financings.
Previous report — wording carried elsewhere
The Partnership is able to issue Series A-1 Preferred Units so long as the aggregate market capitalization of the BUCs, based on the closing price on the trading day prior to issuance of the Series A-1 Preferred Units, is no less than three times the aggregate book value of all Series A Preferred Units and Series A-1 Preferred Units, inclusive of the amount to be issued.
Previous report — wording carried elsewhere
During January through July 2024, we advanced additional capital totaling $7.6 million across five Vantage JV Equity Investments. The additional capital was used to cover development cost overruns, primarily due to higher than anticipated interest costs. We anticipate making additional investments in certain JV Equity Investments during 2024 though the ultimate amount is uncertain.