Greystone Housing Impact Investors LP sold Vantage at Tomball for $14.2 million, redeploying capital into new investments.
Quiver AI Summary
Greystone Housing Impact Investors LP announced the sale of Vantage at Tomball, a 288-unit multifamily property in Tomball, TX, on January 31, 2025. The Partnership had originally invested $11.4 million in the property in August 2020 and received approximately $14.2 million in net cash from the sale, which included the return of contributed equity and preferred return, though it expects no gain or loss from the transaction. CEO Kenneth C. Rogozinski noted that the investment's returns were lower than previous equity investments due to rising insurance costs and a higher interest rate environment. The proceeds from the sale will be reinvested into new investment opportunities, as the Partnership seeks to expand its portfolio of mortgage revenue bonds and other investments in the multifamily housing sector.
Potential Positives
- The sale of Vantage at Tomball resulted in the Partnership receiving approximately $14.2 million in net cash, allowing for capital redeployment into new investments.
- The Partnership's ability to exit the investment without recognizing any gain or loss indicates a stable management of its assets despite market challenges.
- The CEO's statement reflects confidence in the long-term strategy of investing in multifamily properties, suggesting a focus on future growth and value appreciation.
Potential Negatives
- The Partnership did not recognize any gain, loss, or Cash Available for Distribution from the sale of Vantage at Tomball, indicating a lack of profitability from this investment.
- The overall return on the Vantage at Tomball investment was less than what has historically been achieved, due to rising insurance costs and higher interest rates, which may raise concerns about the Partnership's future investment performance.
- The press release highlights significant risks and uncertainties that could impact the Partnership's financial performance, such as reliance on refinancing and market conditions, which may affect investor confidence.
FAQ
What was the sale price of Vantage at Tomball?
The Partnership received net cash of approximately $14.2 million from the sale of Vantage at Tomball.
When was Vantage at Tomball purchased by the Partnership?
The Partnership originated its investment in Vantage at Tomball in August 2020.
What was the total equity contribution for Vantage at Tomball?
The Partnership contributed equity totaling $11.4 million to Vantage at Tomball.
What will the proceeds from the sale be used for?
The proceeds will allow the Partnership to deploy capital into new accretive investments across its investment classes.
Why was the return on Vantage at Tomball less than expected?
The return was impacted by rising insurance costs and a higher interest rate environment since June 2023.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$GHI Insider Trading Activity
$GHI insiders have traded $GHI stock on the open market 2 times in the past 6 months. Of those trades, 2 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $GHI stock by insiders over the last 6 months:
- KENNETH ROGOZINSKI (Chief Executive Officer) has made 2 purchases buying 4,000 shares for an estimated $56,419 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$GHI Hedge Fund Activity
We have seen 15 institutional investors add shares of $GHI stock to their portfolio, and 28 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- MORGAN STANLEY added 104,444 shares (+40.6%) to their portfolio in Q3 2024, for an estimated $1,465,349
- FREESTONE CAPITAL HOLDINGS, LLC removed 96,107 shares (-58.6%) from their portfolio in Q3 2024, for an estimated $1,348,381
- AVEO CAPITAL PARTNERS, LLC removed 31,874 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $326,708
- EQUITABLE HOLDINGS, INC. added 20,911 shares (+12.0%) to their portfolio in Q3 2024, for an estimated $293,381
- SAMALIN INVESTMENT COUNSEL, LLC removed 17,390 shares (-28.4%) from their portfolio in Q3 2024, for an estimated $243,981
- UBS GROUP AG added 14,410 shares (+24.1%) to their portfolio in Q3 2024, for an estimated $202,172
- PNC FINANCIAL SERVICES GROUP, INC. removed 14,322 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $200,937
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
OMAHA, Neb., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Greystone Housing Impact Investors LP (NYSE: GHI) (the “Partnership”) announced today that on January 31, 2025, Vantage at Tomball, a 288-unit market rate multifamily property located in Tomball, TX, was sold at the direction of its managing member. The Partnership’s investment in Vantage at Tomball was originated in August 2020 and the Partnership contributed equity totaling $11.4 million. As a result of the sale, the Partnership’s equity investment in the property was redeemed. At closing of the sale, the Partnership received net cash of approximately $14.2 million, consisting of the return of its contributed equity and accrued preferred return. The Partnership estimates it will not recognize any gain, loss, or Cash Available for Distribution upon sale.
“The proceeds from the sale of Vantage at Tomball will allow the Partnership to deploy capital into new accretive investments across our investment classes,” said Kenneth C. Rogozinski, Chief Executive Officer of the Partnership. “The Partnership’s overall return on the Vantage at Tomball investment was less than what has historically been achieved on prior equity investments due to rising insurance costs in the Houston metropolitan area as well as the higher interest rate environment since the last joint venture equity sale of the Vantage at Conroe investment in June 2023. However, we continue to believe in the long-term value of our multifamily property joint venture equity investment strategy.”
Disclosure Regarding Non-GAAP Measures
This report refers to Cash Available for Distribution (“CAD”), which is identified as a non-GAAP financial measure. We believe CAD provides relevant information about the Partnership’s operations and is necessary, along with net income, for understanding its operating results. Net income is the GAAP measure most comparable to CAD. There is no generally accepted methodology for computing CAD, and our computation of CAD may not be comparable to CAD reported by other companies. Although we consider CAD to be a useful measure of our operating performance, CAD is a non-GAAP measure and should not be considered as an alternative to net income that is calculated in accordance with GAAP, or any other measures of financial performance presented in accordance with GAAP. For the amounts disclosed herein related to this transaction, there are no reconciling items between net income per BUC, basic and diluted, and CAD per BUC, basic and diluted.
About Greystone Housing Impact Investors LP
Greystone Housing Impact Investors LP was formed in 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, seniors and student housing properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by its Second Amended and Restated Limited Partnership Agreement, dated December 5, 2022, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. Greystone Housing Impact Investors LP press releases are available at www.ghiinvestors.com.
Safe Harbor Statement
Information contained in this press release contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Partnership with the Securities and Exchange Commission, including but not limited to, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are urged to consider these factors carefully in evaluating the forward-looking statements. The Partnership disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
INVESTOR CONTACT:
Andy Grier
Senior Vice President
402-952-1235
MEDIA CONTACT:
Karen Marotta
Greystone
212-896-9149
[email protected]