2024-07-04 21:35:42 ET
Summary
- Greystone Housing Impact Investors LP holds a portfolio of mortgage revenue bonds and investments with a smaller portion dedicated to physical real estate.
- Physical real estate sales provided cash flow in 2023 to sustain the distribution.
- Currently the leverage ratios are too high to sustain overpayment.
Greystone Housing Impact Investors LP ( GHI ) holds a portfolio of mortgage revenue bonds and investments akin to it. A smaller proportion of its portfolio is dedicated to physical real estate and that has been the saving grace to uphold its distributions more than once. We covered this stock at the beginning of the second quarter, and we maintained our neutral outlook on it. Sales of physical real estate sales provided the cash flow in 2023. Those sales were however completed prior to 2023, with the 2023 sales looking a lot less lucrative in comparison. The bulk of GHI's portfolio, i.e. mortgage revenue bonds, wasn't doing great due to spread compression. There was nothing compellingly good or bad about GHI, hence we went with a neutral rating....
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Greystone Housing: Payout Ratio Reaches 160% In Q1 2024