Greystone Housing Impact Investors (NYSE:GHI) Posts Q2 2025 Net Loss Amid Credit Loss Provisions, Maintains Dividend

Greystone Housing Impact Investors (NYSE:GHI) Reports Q2 2025 Results: Mixed Performance Amid Credit Loss Provisions

Greystone Housing Impact Investors LP (NYSE:GHI) reported its second-quarter 2025 financial results, revealing a net loss of $7.1 million, or $0.35 per Beneficial Unit Certificate (BUC), compared to net income of $5.2 million in the prior-year quarter. The decline was primarily driven by a $9.1 million provision for credit losses, reflecting adjustments under the Current Expected Credit Loss (CECL) standard. Despite the net loss, the company generated $5.7 million in Cash Available for Distribution (CAD), or $0.25 per BUC, supported by stable investment income and interest earnings.

Key Financial Highlights vs. Estimates

• Revenue: Reported revenue of $23.6 million fell short of analyst expectations of $25.9 million.
• EPS: Adjusted CAD per BUC of $0.25 missed the consensus estimate of $0.30.
• Dividend: The company maintained its quarterly distribution at $0.30 per BUC, paid in July.

The market reaction has been negative, with shares declining 0.56% in pre-market trading. Over the past month, the stock has dropped nearly 10%, reflecting investor concerns over credit provisions and weaker-than-expected earnings.

Investment and Portfolio Updates

• Credit Quality: All Mortgage Revenue Bonds (MRBs) and Governmental Issuer Loans (GILs) remain current on payments, with no forbearance requests.
• Financing Activity: The Partnership extended credit lines and increased borrowing capacity by $30 million, positioning itself for future investments.
• Joint Ventures: Six market-rate joint venture properties have reached 90% occupancy, while three others remain under construction.

Outlook and Analyst Estimates

While management did not provide explicit forward guidance, analysts project:

• Q3 2025 Revenue: $27.4 million
• Full-Year 2025 Revenue: $106.2 million
• Full-Year 2025 EPS: $1.06

The company’s focus on affordable housing investments and liquidity improvements suggests a stable long-term strategy, but near-term headwinds from credit provisions may weigh on sentiment.

Conclusion

Greystone Housing Impact Investors’ Q2 results reflect operational resilience but highlight credit risk pressures. Investors will monitor whether credit loss provisions stabilize and whether the company can meet future earnings expectations.

For more detailed earnings estimates and historical performance, view the full earnings and estimates breakdown here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.