In a recent move, Greystone Housing Impact Investors LP, previously known as America First Multifamily Investors, L.P., has amended its credit agreement with Bankers Trust Company, extending the maturity date and introducing a new category for loan advances. The changes, filed with the SEC, provide insights into the company's evolving financial strategy.
On Monday, Greystone entered into a Fourth Amendment to its Amended and Restated Credit Agreement with Bankers Trust. This amendment pushes the Revolving Loan Maturity Date to June 30, 2025. Additionally, it establishes a new category for advances secured by master lease agreements with investment-grade tenants. Notably, these advances must be repaid within 45 days.
Alongside this amendment, Greystone paid a $25,000 extension fee to Bankers Trust and issued a new Revolving Line of Credit Note for up to $50 million, which supersedes the previous note from July 29, 2022. The new note reflects the updated maturity date of June 30, 2025.
This strategic move follows a series of amendments to the original credit agreement, dating back to August 23, 2021, with subsequent adjustments in April and July 2022 and June 2023. The full text of the Fourth Amendment and the new note are attached to the SEC filing, which also incorporates the texts of the previous amendments.
Greystone's financial maneuvering comes amid a broader context of changing economic conditions. The company's forward-looking statements in the SEC filing acknowledge inherent risks, such as interest rate changes, economic uncertainties, and real estate market conditions. Despite these challenges, Greystone's actions suggest a proactive approach to managing its financial obligations and investing in multifamily and commercial properties.
In other recent news, Greystone Housing Impact Investors LP reported its first quarter 2024 figures, revealing a Cash Available for Distribution (CAD) per Beneficial Unit Certificate (BUC) of $0.23 and a net income per BUC of $0.42. The company advanced funds totaling $27.3 million on mortgage revenue bonds and $9.1 million on government issuer loans, and invested $7.0 million into its joint ventures during this period. Two of GHI's joint venture equity investments are nearing 90% occupancy due to successful leasing efforts. In the upcoming quarters, the sales of two leased properties, Vantage at Tomball and Vantage at Helotes, are expected to generate a total gain on sale of $7.5 million.
Meanwhile, Jones Trading has reduced the price target for GHI to $17.50, down from the previous target of $20.00, despite maintaining a Buy rating on the shares. This adjustment comes after considering increasing capitalization rates and extended market durations for properties. The new price target suggests a potential total return opportunity of 22% for investors, according to Jones Trading's analysis.
Furthermore, during its fourth quarter of 2023 earnings conference call, Greystone reported a net income of $0.42 per unit, a book value of $14.59 per unit, and a physical occupancy rate of 92.1%. The company anticipates potential supplemental distributions for the remainder of 2024 based on gains from joint venture equity investment redemptions. Greystone is also planning to deploy increased cash balances into investment commitments in the upcoming quarters.
InvestingPro Insights
As Greystone Housing Impact Investors LP fine-tunes its financial strategies, current data from InvestingPro offers a snapshot of the company's market standing. With a market capitalization of $350.5 million, Greystone shows a commitment to shareholder returns, boasting a significant dividend yield of 9.85% as of the last twelve months ending Q1 2024. This is particularly noteworthy as the company has a history of maintaining dividend payments for 39 consecutive years. Additionally, Greystone's solid financial health is underscored by its gross profit margin of 94.68% over the same period, indicating efficient operations and cost management.
InvestingPro Tips highlight the company's resilience, with analysts predicting profitability for the year despite expectations of a net income drop. Furthermore, the company's liquid assets surpass its short-term obligations, showcasing financial stability. For investors intrigued by these insights, there are even more tips available on InvestingPro, which can be accessed for Greystone Housing Impact Investors LP at https://www.investing.com/pro/GHI. To deepen your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 6 additional InvestingPro Tips waiting to be discovered, informed decision-making is just a click away.
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