Greystone Housing Impact Investors LP
For the period ended Mar 31, 2025. Filed May 7, 2025.
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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.
Mar 31, 2025 · Filed May 7, 2025
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 2024-09-30; filed 2024-11-06.
0000950170-24-121844
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0000950170-25-065080
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 380 previous paragraphs and 283 current paragraphs.
126 unchanged; 112 reworded; 37 added; 120 removed; 22 previous and 8 current paragraphs rearranged.
Tables are not compared: 32 previous and 26 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 (37)
Current report
Total Revenues and Other Income comparison for the three months ended March 31, 2025 and 2024
Current report
An increase of approximately $2.9 million in interest income from recent MRB advances, offset by a decrease of approximately $745,000 in interest income due to MRB redemptions and principal repayments;
Current report
A decrease of approximately $1.9 million in interest income due to recent GIL redemptions, offset by an increase of approximately $830,000 in interest income from recent GIL investments;
Current report
An increase of approximately $1.9 million of investment income due to a preferred return distribution from Vantage at Loveland in March 2025;
Current report
An increase of approximately $651,000 in investment income related to preferred returns on equity contributions during 2024 and 2025.
Current report
A decrease of approximately $308,000 from lower average property loan, taxable MRB and taxable GIL investment balances of approximately $10.7 million; and
Current report
A decrease of approximately $408,000 in other interest income due to decreasing interest earned on cash balances.
Current report
Total Expenses comparison for the three months ended March 31, 2025 and 2024
Current report
Depreciation expense. Depreciation expense for the three months ended March 31, 2025 and 2024 related to furniture and equipment owned by the Partnership.
Current report
Realized gains decreased during the three months ended March 31, 2025 as compared to the same period in 2024 due to generally decreasing interest rates during 2024. Unrealized losses on derivatives, net, were approximately $3.8 million for the three months ended March 31, 2025, compared to unrealized gains of approximately $4.6 million for the year ended March 31, 2024, resulting in increased losses of approximately $8.4 million between the two periods. The net increase in unrealized losses was attributable to lower interest rates in 2025 and beyond as compared to forward market interest rates as of March 31, 2024. See the “Executive Summary” section of this Item 2 for additional discussion.
Current report
Portfolio Information
Current report
The physical occupancy and economic occupancy amounts are based on the latest available occupancy and financial information, which is as of December 31, 2024.
Current report
Physical occupancy as of March 31, 2025 decreased from the same period in 2024 due primarily to occupancy declines at various properties located in Texas - primarily in San Antonio and Houston where there have been large increases in the supply of available multifamily units in recent years. Overall higher vacancy levels in these markets is putting pressure on leasing at these properties. We observed new construction starts in these markets declined sharply starting in late 2023 and we expect that occupancy will recover once new unit supply declines in the near term. The properties are still current on debt service. However, if there are continuing declines in operating results of the properties such that the borrowers are unable to make contractual principal and interest payments on our MRBs, we may receive forbearance requests or experience MRB defaults. We may choose to provide support to the borrowers through supplemental property loans to prevent such MRB defaults, which will be considered on a case-by-case basis. We will continue to monitor results and discuss property operations with the individual borrowers.
Current report
The physical occupancy and economic occupancy amounts are based on the latest available occupancy and financial information, which is as of December 31, 2024.
Current report
Valage Senior Living Carson Valley has received a certificate of occupancy and anticipates first move-ins in May 2025.
Current report
Affordable Multifamily Investments Segment
Current report
The following table compares operating results for the Affordable Multifamily Investments segment for the periods indicated (dollar amounts in thousands):
Current report
An increase of approximately $2.6 million in interest income from recent MRB advances, offset by a decrease of approximately $745,000 in interest income due to MRB redemptions and principal repayments;
Current report
A decrease of approximately $498,000 in other interest income from lower average property loan, taxable MRB and taxable GIL investment balances of approximately $18.3 million; and
Current report
A decrease of approximately $408,000 in other interest income due to decreasing interest earned on cash balances.
Current report
Depreciation expense for the three months ended March 31, 2025 and 2024 related to furniture and equipment owned by the Partnership.
Current report
Seniors and Skilled Nursing Investments Segment
Current report
Realized gains decreased during the three months ended March 31, 2025 as compared to the same period in 2024 due to generally decreasing interest rates during 2024. Unrealized losses on derivatives, net, were approximately $616,000 for the three months ended March 31, 2025, compared to unrealized gains of approximately $700,000 for the year ended March 31, 2024, resulting in increased losses of approximately $1.3 million between the two periods. The net increase in unrealized losses was attributable to lower interest rates in 2025 and beyond as compared to forward market interest rates as of March 31, 2024. See the “Executive Summary” section of this Item 2 for additional discussion.
Current report
The increase in total revenues for the three months ended March 31, 2025 as compared to the same period in 2024 was primarily due to the following:
Current report
An increase of approximately $1.9 million of investment income due to a preferred return distribution from Vantage at Loveland in March 2025;
Current report
An increase of approximately $651,000 in investment income related to preferred returns on equity contributions during 2024 and 2025.
Current report
The “Portfolio Information” section in this Item 2 contains various occupancy and other operational information relating to the JV Equity Investments. Vantage at Helotes, Vantage at Fair Oaks, and Vantage at Hutto had previously achieved 90% physical occupancy and are considered stabilized. Vantage at McKinney Falls, Vantage at Loveland, and Freestone Cresta Bella have previously completed construction.
Current report
In January 2025, the managing member of Vantage at Tomball sold the property to a third-party. We received gross proceeds of approximately $14.2 million upon sale, inclusive of the return of our capital contributions and accrued preferred return. We did not recognize any gain or loss on the transaction in the first quarter. The return for Vantage at Tomball was lower than past JV Equity Investments due to rising insurance costs in the Houston metropolitan area as well as the higher interest rate environment in recent years.
Current report
In May 2025, the managing member of Vantage at Helotes sold the property to a non-profit entity that financed the purchase by issuing tax-exempt and table bonds. We received gross proceeds of approximately $17.1 million, inclusive of the return of our capital contributions and accrued preferred return. We expect to recognize investment income of approximately $1.8 million and a gain on sale of approximately $163,000 in the second quarter of 2025, before settlement of final proceeds and expenses. We expect to recognize approximately $0.08 of net income per BUC and CAD per BUC, basic and diluted, based on the number of BUCs outstanding on the date of sale.
Current report
All draws to date on this investment were funded with proceeds from the Acquisition LOC. The Partnership expects to sell the related investment into the Construction Lending JV in the future.
Current report
We are committed to fund 10% of the capital for the Construction Lending JV with the remainder to be funded by a third-party investor with each party contributing its proportionate capital contributions upon funding of future investments. Our capital will be contributed on a draw-down basis over the term of the underlying investments of the Construction Lending JV. As of March 31, 2025, our maximum capital commitment is approximately $8.3 million. However, our maximum commitment may increase if additional third-party capital commitments are obtained by the Construction Lending JV. In April 2025, the Partnership transferred the Natchitoches Thomas Apartments GIL, taxable GIL, and related future funding commitments to the Construction Lending JV at prices that approximated outstanding principal plus accrued interest.
Current report
Approximately $140.4 million of this amount relates to investment assets with maturity dates in October to December 2025.
Current report
The 2024 PFA Securitization Transaction is secured by the cash flows on the senior custodial receipts associated with the 2024 PFA Securitization Bonds. The holders of the Affordable Housing Multifamily Certificates associated with the 2024 PFA Securitization Transaction are entitled to interest at a fixed rate of 4.10% per annum, payable monthly, and all principal payments from the 2024 PFA Securitization Bonds until the stated amount of the Affordable Housing Multifamily Certificates is reduced to zero, which will be no later than September 2039. The Partnership will also pay credit enhancement, servicing, and trustee fees related to the 2024 PFA Securitization Transaction totaling 0.80% per annum. The 2024 PFA Securitization Transaction is non-recourse to the Partnership, does not require mark-to-market collateral posting, and has a term that matches the term of the underlying MRBs.
Current report
An increase of $7.0 million related to changes in the preferred return receivable from unconsolidated entities;
Current report
An increase of $2.1 million of cash due to greater proceeds from the return of investments in unconsolidated entities; and
Current report
An increase of $1.4 million of cash due to proceeds from the sale of land held for development.
Current report
A decrease of $1.4 million due to principal payments on mortgages payable;
Removed paragraphs (120)
Previous report
Affordable Multifamily MRB Investments Segment
Previous report
The following table compares operating results for the Affordable Multifamily MRB Investments segment for the periods indicated (dollar amounts in thousands):
Previous report
Total revenues decreased for the three months ended September 30, 2024 as compared to the same period in 2023 primarily due to:
Previous 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;
Previous report
A decrease of approximately $574,000 in other interest income due to decreasing interest earned on cash balances;
Previous 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;
Previous 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
Previous 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.
Previous 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.
Previous report
Segment net income decreased for the three months ended September 30, 2024 as compared to the same period in 2023 due to:
Previous report
The changes in line items detailed above; and
Previous report
A decrease in general and administrative expenses primarily due to a decrease of approximately $245,000 in employee compensation and benefits.
Previous 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%.
Previous report
Interest expense is reported net of realized gains on the Partnership’s total return swap agreements that were related to the Secured Notes.
Previous 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.
Previous report
Interest expense is reported net of income/loss on the Partnership’s total return swap agreements that were related to the Secured Notes.
Previous report
Total revenues decreased for the nine months ended September 30, 2024 as compared to the same period in 2023 primarily due to:
Previous 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;
Previous 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.
Previous report
A decrease of approximately $602,000 in other interest income due to decreasing interest earned on cash balances;
Previous 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;
Previous 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
Previous 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.
Previous report
Interest expense decreased for the nine months ended September 30, 2024 as compared to the same period in 2023 primarily due to:
Previous report
A decrease of approximately $491,000 in amortization of deferred financing costs; and
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. The following table summarizes the components of this line item for the nine months ended September 30, 2024 and 2023 (dollar amounts in thousands):
Previous 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.
Previous report
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 report
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 report
Segment net income decreased for the nine months ended September 30, 2024 as compared to the same period in 2023 due to:
Previous report
The changes in line items detailed above; and
Previous 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%.
Previous report
Interest expense is reported net of realized gains on the Partnership’s total return swap agreements that were related to the Secured Notes.
Previous 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.
Previous report
Interest expense is reported net of income/loss on the Partnership’s total return swap agreements that were related to the Secured Notes.
Previous report
Seniors and Skilled Nursing MRB Investments Segment
Previous 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.
Previous report
The change in segment net income for the three 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.
Previous report
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 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):
Showing the first 40 of 120 passages. Open the source sections for the rest.
Reworded paragraphs (112)
Previous wording
In this Management’s Discussion and Analysis, all references to “we,” “us,” and the “Partnership” refer to Greystone Housing Impact Investors LP, its consolidated subsidiaries, and consolidated VIEs for all periods presented. The Partnership includes the assets, liabilities, and results of operations of the Partnership, our wholly owned subsidiaries and consolidated VIEs. All significant transactions and accounts between us and the consolidated VIEs have been eliminated in consolidation. See Note 2 and Note 3 to the Partnership’s condensed consolidated financial statements for further disclosures.
Current wording
In this Management’s Discussion and Analysis, all references to “we,” “us,” and the “Partnership” refer to Greystone Housing Impact Investors LP, its consolidated subsidiaries, and consolidated VIEs for all periods presented. The Partnership includes the assets, liabilities, and results of operations of the Partnership, our wholly owned subsidiaries and consolidated VIEs. All significant transactions and accounts between the Partnership, its subsidiaries, and consolidated VIEs have been eliminated in consolidation. See Note 2 and Note 3 to the Partnership’s condensed consolidated financial statements for further disclosures.
Previous wording
The Partnership was formed in 1998 for the primary purpose of acquiring a portfolio of mortgage revenue bonds MRBs that are issued by state and local housing authorities to provide construction and/or permanent financing for affordable multifamily, seniors housing and commercial properties. We also invest in governmental issuer loans GILs, which are similar to MRBs, to provide construction financing for affordable multifamily and seniors housing properties. We expect and believe the interest received on these MRBs and GILs is excludable from gross income for federal income tax purposes. We also invest in other types of securities and investments that may or may not be secured by real estate and may make property loans to multifamily properties which may or may not be financed by MRBs or GILs held by us and may or may not be secured by real estate.
Current wording
The Partnership was formed in 1998 for the purpose of acquiring a portfolio of MRBs that are issued by state and local housing authorities to provide construction and/or permanent financing for affordable multifamily, seniors housing and commercial properties. We also invest in GILs, which, similar to MRBs, provide financing for affordable multifamily and seniors housing properties. We expect and believe the interest received on these MRBs and GILs is excludable from gross income for federal income tax purposes. We also invest in other types of securities and investments that may or may not be secured by real estate and may make property loans to multifamily properties which may or may not be financed by MRBs or GILs held by us and may or may not be secured by real estate. We also make JV Equity Investments for the construction, stabilization, and ultimate sale of market-rate multifamily and seniors housing properties. In addition, the Partnership may acquire and hold interests in multifamily, student or senior citizen residential MF Properties.
Previous 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):
Current wording
As of March 31, 2025, we had four reportable segments: (1) Affordable Multifamily Investments, (2) Seniors and Skilled Nursing 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 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 months ended March 31, 2025 and 2024 (dollar amounts in thousands):
Previous wording
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 wording
During the three months ended March 31, 2025 and 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.
Previous wording
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 wording
We recorded unrealized losses from derivatives totaling $3.9 million during the three months ended March 31, 2025 and unrealized gains totaling $4.6 million for the three months ended March 31, 2024 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 0.40% from 4.05% as of December 31, 2024 to 3.65% as of March 31, 2025, resulting in a significant unrealized loss on our interest rate swap portfolio for the three months ended March 31, 2025. The 3-year SOFR swap rate increased 0.50% from 3.75% as of December 31, 2023 to 4.25% as of March 31, 2024, resulting in a significant unrealized gain on our interest rate swap portfolio for the three months ended March 31, 2024.
Previous 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:
Current wording
The following table presents information regarding the investment activity of the Partnership for the three months ended March 31, 2025 and 2024:
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 nine months ended September 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 months ended March 31, 2025 and 2024, exclusive of retired debt amounts listed in the investment activity table above:
Previous wording
Certain investments may be eligible for regulatory credit under the Community Reinvestment Act of 1977 to help meet the credit needs of the communities in which they exist, including low- and moderate-income neighborhoods. See "Community Investments" in this Item 2 below for further information regarding assets of the Partnership the General Partner believes are eligible for regulatory credit under the CRA.
Current wording
Certain investments may be eligible for regulatory credit under the CRA to help meet the credit needs of the communities in which they exist, including low- and moderate-income neighborhoods. See “Community Investments” in this Item 2 below for further information regarding assets of the Partnership the General Partner believes are eligible for regulatory credit under the CRA.
Previous wording
Greystone and the Partnership are committed to diversity, equity, and inclusion. Specific Greystone DEI initiatives include formal diversity training and employee resources groups to support a diverse workforce as well as a formal DEI committee and DEI Leadership Council to lead and advise all DEI related work, events, and learning. Of the 16 employees of Greystone Manager responsible for the Partnership’s operations, three are women and one employee identifies as ethnically diverse.
Current wording
Greystone and the Partnership are committed to building a workplace that allows all employees to feel supported and valued, regardless of any identity, by focusing on our culture of ‘where people matter’ to build belonging. Specific initiatives include training and employee resources groups to support our workforce as well as a formal Culture and Community Committee and Culture and Community Executive Advisory Council to lead and advise all belonging related work, events, and learning. Of the 16 employees of Greystone Manager responsible for the Partnership’s operations, four are women and two employees identify as ethnically diverse.
Previous wording
The Board of Managers of Greystone Manager brings a diverse set of skills and experiences across industries in the public, private and not-for-profit sectors. The composition of the Greystone Manager Board of Managers is in compliance with the NYSE listing rules and SEC rules applicable to the Partnership. The majority of the members of the Greystone Manager Board of managers meet the independence standards established by the New York Stock Exchange listing rules and the rules of the SEC. All the members of the Audit Committee of Greystone Manager are independent under the applicable SEC and NYSE independence requirements, two of whom qualify as “audit committee financial experts.” Of the seven Managers of Greystone Manager, one Manager is female.
Current wording
The Board of Managers of Greystone Manager brings a diverse set of skills and experiences across industries in the public, private and not-for-profit sectors. The composition of the Board of Managers is in compliance with the NYSE listing rules and SEC rules applicable to the Partnership. The majority of the members of the Board of Managers meet the independence standards established by the New York Stock Exchange listing rules and the rules of the SEC. All the members of the Audit Committee are independent under the applicable SEC and NYSE independence requirements, two of whom qualify as “audit committee financial experts.” Of the seven Managers of Greystone Manager, one Manager is female.
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 to date in 2024.
Current wording
The 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 2024 and to date in 2025.
Previous wording
The tables and following discussions of our changes in results of operations for the three and nine months ended September 30, 2024 and 2023 should be read in conjunction with the Partnership’s condensed consolidated financial statements and notes thereto included in Item 1 of this report, as well as the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2023.
Current wording
The tables and following discussions of our changes in results of operations for the three months ended March 31, 2025 and 2024 should be read in conjunction with the Partnership’s condensed consolidated financial statements and notes thereto included in Item 1 of this report, as well as the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
A decrease of approximately $972,000 of investment income related to unconsolidated entities consisting of:
Current wording
An increase of approximately $1.6 million of investment income related to unconsolidated entities consisting of:
Previous wording
Other income. Other income for the three 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 wording
Other income. Other income for the three months ended March 31, 2025 and 2024 related to the receipt of non-refundable fees for the extension of various MRB and GIL maturity dates.
Previous wording
Gain on sale of investments in unconsolidated entities. 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
Current wording
Gain on sale of investments in unconsolidated entities. The gain on sale of JV Equity Investments for the three months ended March 31, 2025 and 2024 is primarily related to final settlements of the Vantage at Coventry sale that occurred in January 2023.
Previous wording
Earnings (losses) on investments in unconsolidated entities. The Partnership reports its proportionate share of earnings (losses) on investments in unconsolidated entities 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.
Current wording
Earnings (losses) on investments in unconsolidated entities. The Partnership reports its proportionate share of earnings (losses) on investments in unconsolidated entities 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 March 31, 2025 as compared to the same period in 2024 is primarily due to general and administrative expenses at Valage Senior Living Carson Valley and non-capitalized and interest expense at Freestone Cresta Bella as the property commenced operations in September 2024.
Previous wording
Provision for credit losses. The provision for credit losses for the three months ended September 30, 2024 and 2023 relates to declining expected credit losses for our portfolio of GIL, taxable GIL and property loan investments and was primarily due to GIL and property loan redemptions during 2023 and 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 wording
Provision for credit losses. The provision for credit losses for the three months ended March 31, 2025 and 2024 related to declining expected credit losses for our portfolio of GIL, taxable GIL and property loan investments and was primarily due to GIL and property loan redemptions during 2024 and 2025, 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.
Previous wording
Interest expense. The decrease in interest expense for the three months ended September 30, 2024 as compared to the same period in 2023 was due primarily to the following factors:
Current wording
Interest expense. The increase in interest expense for the three months ended March 31, 2025 as compared to the same period in 2024 was due primarily to the following factors:
Previous 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
Current wording
An increase of approximately $2.1 million due to an increase in the average outstanding principal of our debt financing instruments of approximately $106.3 million; and
Previous wording
General and administrative expenses. The decrease in general and administrative expenses for the nine months ended September 30, 2024 as compared to the same period in 2023 was 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.
Current wording
General and administrative expenses. The decrease in general and administrative expenses for the three months ended March 31, 2025 as compared to the same period in 2024 was primarily due to decreases of approximately $230,000 in employee compensation and benefits, and approximately $240,000 in professional and consulting fees. These decreases were partially offset by an increase of approximately $112,000 in administration fees paid to the General Partner due to higher assets under management.
Previous wording
Discussion of Income Tax Expense for the Three and Nine Months ended September 30, 2024 and 2023
Current wording
Income Tax Expense for the three months ended March 31, 2025 and 2024
Previous wording
A wholly owned subsidiary of the Partnership, the Greens Hold Co, is a corporation subject to federal and state income tax. The Greens Hold Co owns certain property loans. The Greens Hold Co sold its ownership interest in The 50/50 MF Property to an unrelated non-profit organization in December 2022 and deferred a gain on sale of approximately $6.6 million. There was minimal taxable income for the Greens Hold Co for the three and nine months ended September 30, 2024 and 2023.
Current wording
A wholly owned subsidiary of the Partnership, the Greens Hold Co, is a corporation subject to federal and state income tax. The Greens Hold Co owns certain property loans and real estate assets. The Greens Hold Co sold its ownership interest in The 50/50 MF
Previous wording
The following table shows the calculation of CAD (and a reconciliation of the Partnership’s net income, as determined in accordance with GAAP, to CAD) for the three and nine months ended September 30, 2024 and 2023 (all per BUC amounts are presented giving effect to the BUCs Distributions on a retroactive basis for all periods presented):
Current wording
The following table shows the calculation of CAD (and a reconciliation of the Partnership’s net income, as determined in accordance with GAAP, to CAD) for the three months ended March 31, 2025 and 2024 (all per BUC amounts are presented giving effect to the BUCs Distributions on a retroactive basis for all periods presented):
Previous wording
The adjustments reflect the change in allowances for credit losses under the CECL standard which requires the Partnership to update estimates of expected credit losses for its investment portfolio at each reporting date. In connection with the final settlement of the bankruptcy estate of the Provision Center 2014-1 MRB in July 2024, the Partnership recovered approximately $169,000 of its previously recognized allowance credit loss which is not included as an adjustment to net income in the calculation of CAD.
Current wording
The adjustments reflect the change in allowances for credit losses under the CECL standard which requires the Partnership to update estimates of expected credit losses for its investment portfolio at each reporting date.
Previous wording
As described in Note 22 to the Partnership’s condensed consolidated financial statements, Net Interest Income representing contingent interest and Net Residual Proceeds representing contingent interest (Tier 2 income) will be distributed 75% to the limited partners and BUC holders, as a class, and 25% to the General Partner. This adjustment represents 25% of Tier 2 income due to the General Partner.
Current wording
As described in Note 22 to the Partnership’s condensed consolidated financial statements, Net Interest Income representing contingent interest and Net Residual Proceeds representing contingent interest (Tier 2 income) will be distributed 75% to the limited partners and BUC holders, as a class, and 25% to the General Partner. This adjustment represents 25% of Tier 2 income due to the General Partner. There was no Tier 2 income for the three months ended March 31, 2025 and 2024.
Previous wording
The Partnership declared the First Quarter 2024 BUCs Distribution payable in the form of additional BUCs equal to $0.07 per BUC for outstanding BUCs as of the record date of March 28, 2024. The Partnership declared the Second Quarter 2023 BUCs Distribution payable in the form of additional BUCs equal to $0.07 per BUC for outstanding BUCs as of the record date of June 30, 2023 and the Third Quarter 2023 BUCs Distribution payable in the form of additional BUCs equal to $0.07 per BUC for outstanding BUCs as of the record date of September 29, 2023.
Current wording
The Partnership declared the First Quarter 2024 BUCs Distribution payable in the form of additional BUCs equal to $0.07 per BUC for outstanding BUCs as of the record date of March 28, 2024.
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 nine months ended September 30, 2024 and 2023.
Current wording
The following tables summarize occupancy and other information regarding the properties underlying our various investments. The narrative discussion that follows provides a brief operating analysis of each investment as of and for the three months ended March 31, 2025 and 2024.
Previous 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.
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. Economic occupancy is not reported for skilled nursing properties.
Previous wording
Comparison of the Three and Nine Months Ended September 30, 2024 and 2023
Current wording
Comparison of the three months ended March 31, 2025 and 2024
Previous 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.
Current wording
Economic occupancy for the three months ended March 31, 2025 decreased from the same period in 2024 due primarily to decreases in rental revenue at various properties in Texas as a result of the declines in physical occupancy noted above. Willow Run reported a decline in economic occupancy due to significant bad debts recognized in the first quarter of 2025. Such declines were partially offset by improving economic occupancy at Live 929 Apartments as a result of higher physical occupancy.
Previous wording
Decatur Angle and Bruton Apartments continue to have low physical and economic occupancy, though Bruton Apartments has improved in recent quarters. The properties are continuing to remove non-paying tenants now that local regulations permit tenant evictions. The removals have resulted in higher than historical bad debt write-offs, temporary declines in physical occupancy, and high repairs and maintenance costs to ready units to be leased to new tenants. We continue to monitor and discuss property operations with the individual borrowers to assess progress towards resolving performance issues.
Current wording
Decatur Angle and Bruton Apartments continue to report low physical and economic occupancy, though Decatur Angle occupancy has improved in the most recent period. The properties are continuing to remove non-paying tenants now that local regulations permit tenant evictions. The removals have resulted in higher than historical bad debt write-offs, declines in physical occupancy, and high repairs and maintenance costs to ready units to be leased to new tenants. Bruton Apartments has also experienced an increase in local crime, which the borrower is actively working to deter. We continue to monitor and discuss property operations with the individual borrowers to assess progress towards resolving performance issues.
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 5.9% 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.
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 2024. 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 4.3% during the three months ended March 31, 2025 as compared to the same period in 2024, which is higher than average historical annual rent increases. However, we observed a decrease in same-property net rental revenue of 2.6% during the three months ended March 31, 2025 as compared to the same period in 2024 due to lower physical occupancy for the three months ended March 31, 2025 as compared to the same period in 2024.
Previous 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.
Current wording
Physical and economic occupancy information is not available for the periods indicated as the related investment was under construction or rehabilitation, or was recently acquired.
Previous wording
As September 30, 2024, eight MRB multifamily properties and one MRB seniors housing property were under construction or recently acquired and have no operating metrics to report. The Ivy Apartments, The Park at Sondrio Apartments, The Park at Vietti Apartments, Windsor Shores Apartments, and Woodington Gardens are currently undergoing tenant-in-place rehabilitations. The MaryAlice Circle Apartments MRB property is undergoing both rehabilitation and new construction phases.
Current wording
As March 31, 2025, seven MRB multifamily properties and one MRB seniors housing property were under construction or recently acquired and have no operating metrics to report. Aventine Apartments, The Ivy Apartments, The Park at Sondrio Apartments, The Park at Vietti Apartments, Windsor Shores Apartments, and Woodington Gardens are currently undergoing tenant-in-place rehabilitations. The MaryAlice Circle Apartments MRB property is undergoing both rehabilitation and new construction phases.
Previous wording
As of September 30, 2024, three GIL properties were under construction and have no operating metrics to report. Sandy Creek Apartments is currently undergoing a tenant-in-place rehabilitation. The remaining three GIL properties have substantially completed construction or rehabilitation and are in the lease-up phase.
Current wording
As of March 31, 2025, four GIL properties were under construction or recently acquired and have no operating metrics to report. Sandy Creek Apartments is currently undergoing a tenant-in-place rehabilitation. Legacy Commons at Signal Hills has substantially completed construction and is in the lease-up phase.
Previous 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.
Current wording
Vantage at Helotes, Vantage at Fair Oaks, and Vantage at Hutto have achieved stabilized operations and the managing member of each property will evaluate options for the sale of each property to maximize value. Vantage at Hutto occupancy declined from recent quarters due to the loss of a corporate tenant, which the property management team is working to lease now vacant units. The managing member of Vantage at Tomball completed the sale of the property to a third-party buyer in January 2025.
Previous wording
Vantage at McKinney Falls and Vantage at Loveland have completed construction and commenced leasing activities in March 2024 and May 2024, respectively. Freestone Cresta Bella is nearing construction completion and began leasing activities in September 2024.
Current wording
Vantage at McKinney Falls, Vantage at Loveland, and Freestone Cresta Bella have completed construction and commenced leasing activities in March 2024, May 2024, and September 2024, respectively. Freestone Greenville is nearing construction completion and began leasing activities in March 2025.
Previous wording
The Partnership’s primary purpose is to acquire and hold as investments a portfolio of MRBs which have been issued to provide construction and/or permanent financing for residential properties and commercial properties in their market areas. We have also invested in taxable MRBs, GILs, taxable GILs and property loans which are included within this segment. All “General and administrative expenses” on our condensed consolidated statements of operations are reported within this segment.
Current wording
The Partnership’s primary purpose is to acquire and hold as investments a portfolio of MRBs which have been issued to provide construction and/or permanent financing for residential properties and commercial properties in their market area. We have also invested in taxable MRBs, GILs, taxable GILs and property loans which are included within this segment. All “General and administrative expenses” on our condensed consolidated statements of operations are reported within this segment.
Previous wording
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 wording
We expect to report the Partnership’s proportionate share of earnings from our Construction Lending JV within this segment once it has reportable activities. The first capital call and investment for the Construction Lending JV occurred in April 2025.
Previous 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.
Current wording
Total revenues increased for the three months ended March 31, 2025 as compared to the same period in 2024 primarily due to:
Showing the first 40 of 112 pairs. Open the source sections for the rest.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
A decrease of approximately $1.0 million of investment income due to certain investments meeting the maximum guaranteed preferred return during 2024 and 2025; and
Current report — wording carried from elsewhere
A decrease of approximately $1.8 million due to lower average interest rates on debt financing.
Current report — wording carried from elsewhere
Property to an unrelated non-profit organization in December 2022 and deferred a gain on sale of approximately $6.6 million. There was minimal taxable income for the Greens Hold Co for the three months ended March 31, 2025 and 2024.
Current report — wording carried from elsewhere
Physical and economic occupancy information is not available for the periods indicated as the related investment was recently acquired.
Current report — wording carried from elsewhere
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 March 31, 2025 and 2024 (dollar amounts in thousands):
Current report — wording carried from elsewhere
A decrease of approximately $1.0 million of investment income due to certain investments meeting the maximum guaranteed preferred return during 2024 and 2025; and
Current report — wording carried from elsewhere
Operating Cash Flows from Investment Assets
Current report — wording carried from elsewhere
An increase of $11.4 million of cash due to greater proceeds from the sale of investments in unconsolidated entities;
Rearranged previous paragraphs (22)
Previous report — wording carried elsewhere
We also make JV Equity Investments for the construction, stabilization, and ultimate sale of market-rate multifamily and seniors housing properties. We are entitled to distributions if, and when, cash is available for distribution either through operations, a refinance or sale of the property. In addition, the Partnership may acquire and hold interests in multifamily, student or senior citizen residential MF Properties.
Previous report — wording carried elsewhere
An increase of approximately $1.6 million due to higher average interest rates on debt financing.
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
Net interest spread equals interest income less interest expense, excluding amortization of deferred finance costs, and adjusted for realized gains (losses) on derivative instruments.
Previous report — wording carried elsewhere
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 report — wording carried 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):
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
An increase of approximately $2.0 million in investment income related to preferred returns on equity contributions during 2023 and 2024.
Previous report — wording carried elsewhere
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 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, 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.
Previous report — wording carried elsewhere
Vantage at Tomball, Vantage at Helotes, Vantage at Fair Oaks, and Vantage at Hutto have achieved occupancy of at least 90% as of September 30, 2024 and the managing member of each property is evaluating options for the sale of each property.
Previous report — wording carried elsewhere
A decrease of approximately $1.6 million of investment income due to certain investments meeting the maximum guaranteed preferred return during 2023 and 2024; and
Previous report — wording carried elsewhere
A decrease of approximately $3.9 million of investment income due to certain investments meeting the maximum guaranteed preferred return during 2023 and 2024;
Previous report — wording carried elsewhere
Other interest income. Other interest income is comprised primarily of interest income on our property loan, taxable MRB, and taxable GIL investments. The decrease in other interest income for the nine months ended September 30, 2024 as compared to the same period in 2023 was primarily due to:
Previous report — wording carried elsewhere
Earnings (losses) on investments in unconsolidated entities. The Partnership reports its proportionate share of earnings (losses) on investments in unconsolidated entities 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.
Previous report — wording carried elsewhere
General and administrative expenses. The decrease in general and administrative expenses for the three months ended September 30, 2024 as compared to the same period in 2023 was primarily due to a decrease of approximately $245,000 in employee compensation and benefits.
Previous report — wording carried elsewhere
The provision for credit losses for the nine months ended September 30, 2023 related to declining expected credit losses for our portfolio of GIL, taxable GIL and property loan investments and was primarily due to GIL and property loan redemptions during 2023, 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.
Previous report — wording carried elsewhere
Net result from derivative transactions. 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):
Previous report — wording carried elsewhere
Upon stabilization, the MRB will convert to a fixed rate of 8.0% and become subordinate to the other senior MRBs of the borrower.
Previous report — wording carried elsewhere
In addition, we will consider providing additional financing to borrowers on our debt investments or additional equity to our JV Equity Investments above our original commitments if requested by the borrowers and managing members, respectively, on a case-by-case basis. When considering whether to fund such requests, we will consider various factors including, but not limited to, the economic return on additional investments in the entity, the impact to the Partnership’s credit and investment risk from either funding or withholding funding, and the requesting entity’s other available sources of funding.
Previous report — wording carried 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%.
Previous report — wording carried elsewhere
The Partnership committed to provide total funding of an MRB up to $41.0 million during the acquisition and rehabilitation phase of the property on a draw-down basis. Upon stabilization of the property, the MRB will be partially repaid and the maximum balance of the MRB after stabilization will not exceed $23.1 million and will have a maturity date of 4/1/2039.