- JMP Securities Analyst Chris Muller reiterated a Market Outperform rating on shares of Greystone Housing Impact Investors LP GHI, Price target reduced to $19 from $21.
- The analyst expects Greystone Housing to generate profits on its stock investments through 2024.
- Credit quality in the MRB portfolio remains strong for Greystone Housing. Available liquidity for December 2022 included $51.1 million in cash on hand and $34.5 million in available credit capacity.
- The analyst notes that management has hedged interest rate risk primarily through interest rate swaps. From December 2022 Greystone Housing had five interest rate swap agreements totaling $194.6 million in principal.
- That said, a portion of the company’s distributions (25% in 2022) is not taxable for federal income tax purposes.
- The analyst notes that investors expect a potential total return of ~26%, including a 15.8% price appreciation and a 10.2% cash return, based on the last close of $16.40 on April 18th.
- price action: GHI shares trade 0.70% lower at $16.28 on last check Wednesday.
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