{"url_path":"/sec/ghi/10-q/2026/item-2","section_key":"item-2","section_title":"Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations.","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-11","source_url":"https://www.sec.gov/Archives/edgar/data/1059142/0001193125-26-216905-index.html","accession_number":"0001193125-26-216905","cik":"0001059142","ticker":"GHI","issuer_name":"Greystone Housing Impact Investors LP","edgar_url":"https://www.sec.gov/Archives/edgar/data/1059142/0001193125-26-216905-index.html","primary_entity_key":"0001059142","primary_entity_name":"Greystone Housing Impact Investors LP"},"word_count":21467,"has_tables":true,"body_markdown":"Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.\n\nGeneral\n\nIn this Management’s Discussion and Analysis, all references to “we,” “us,” and the “Partnership” refer to Greystone Housing Impact Investors LP, its consolidated subsidiaries, and consolidated VIEs for all periods presented. The Partnership includes the assets, liabilities, and results of operations of the Partnership, our wholly owned subsidiaries and consolidated VIEs. All significant transactions and accounts between the Partnership, its subsidiaries, and consolidated VIEs have been eliminated in consolidation. See Note 2 and Note 3 to the Partnership’s condensed consolidated financial statements for further disclosures.\n\nExecutive Summary\n\nThe Partnership was formed in 1998 for the purpose of acquiring a portfolio of MRBs that are issued by state and local housing authorities to provide construction and/or permanent financing for affordable multifamily, seniors housing and commercial properties. We also invest in GILs, which, similar to MRBs, provide financing for affordable multifamily and seniors housing properties. We expect and believe the interest received on these MRBs and GILs is excludable from gross income for federal income tax purposes. We also invest in other types of securities and investments that may or may not be secured by real estate and may make property loans to multifamily properties which may or may not be financed by MRBs or GILs held by us and may or may not be secured by real estate.\n\nWe also make JV Equity Investments for the construction, stabilization, and ultimate sale of market-rate multifamily and seniors housing properties. We are entitled to distributions if, and when, cash is available for distribution either through operations, a refinance or sale of the property. In addition, the Partnership may acquire and hold interests in multifamily, student or senior citizen residential MF Properties.\n\nBusiness Environment and Current Outlook\n\nWe remain focused on implementing our strategy to reduce our capital allocation to market rate multifamily JV Equity Investments. We and the respective managing members are managing the remaining portfolio of market rate multifamily investments to maximize sales prices and returns to the extent possible, with our return of capital from the sale of these investments to be redeployed into primarily tax-exempt MRB investments. The timing of the return of our capital from JV Equity Investment sales and the time required to redeploy this capital will impact our reported earnings during this period of transition. Once capital is returned and subsequently redeployed, we believe this reallocation strategy will result in an increased stability of earnings from the regular net interest spread income on new MRB investments as compared to the sporadic transaction-driven income from JV Equity Investments. We also expect additional MRB investments to increase the proportion of tax-advantaged income allocated to Unitholders in the long term. We will continue to leverage Greystone’s strong lending relationships across the affordable housing, seniors housing, and skilled nursing business lines to identify new MRB investment opportunities.\n\nWe believe there continues to be significant unmet demand for affordable multifamily and seniors residential housing in the United States. Government programs that provide direct rental support to low and moderate income residents have not kept up with need or demand. Therefore, investment programs that promote private sector development and support for affordable housing through MRBs, GILs, tax credits and grant funding to developers, have become more prominent. The types of MRBs and GILs in which we invest offer developers of affordable multifamily housing a low-cost source of construction and/or permanent debt financing. For our leverage programs, we will continue to employ our hedging strategies to reduce our exposure to changes in the interest cost on variable rate debt financing related to our fixed rate investments.\n\nThe borrowers of our MRBs and GILs were all current on contractual debt service payments as of March 31, 2026.\n\nWe acquired the four SC MF Properties via deed in lieu of foreclosure on our original MRB investments in the first quarter of 2026 in order to manage the properties directly and maximize the value of our investments. We and the Greystone asset management team are actively managing property operations with a third-party property management service provider and are implementing various programs to increase occupancy and improve operating results.\n\nMarket dynamics related to our remaining market rate multifamily JV Equity Investments remain challenging. The San Antonio, TX, Austin, TX, and Huntsville, AL markets have experienced record new multifamily unit deliveries in recent years, peaking in 2024. Rental rates and occupancy have declined as these markets absorb new units. This results in downward pressure on leasing velocity and net operating income for these properties. We expect pressure on rental rates and occupancy to lessen at some point in 2026 due to positive unit absorption and limited units from new construction starts in these markets in 2024 and 2025 coming online. The leasing market pressures noted above have made it more difficult for the respective managing members of our stabilized market rate multifamily JV Equity Investments to sell the properties, resulting in longer than expected investment holding periods. In addition, less available\n\n59\n\n \n\nand more expensive debt capital have had pronounced effects on property acquisitions by making it harder for potential buyers to obtain attractive financing. Accordingly, we have observed increasing multifamily capitalization rates in recent periods resulting in lower property valuations when compared to the sales prices that were achieved for prior JV Equity Investments sold in 2022 and 2023. Longer holding periods and lower valuations will negatively impact our results of operations. Historically, the majority of our income from our JV Equity Investments is recognized at the time of sale and is largely dependent on the sales prices of the related properties. After the current elevated level of new multifamily supply is absorbed, we expect net rents and occupancy to increase, capitalization rates to decline, and property valuations to increase.\n\nSummary Financial Results\n\nAs of March 31, 2026, we had four reportable segments: (1) Affordable Multifamily Investments, (2) Seniors and Skilled Nursing Investments, (3) Market-Rate Joint Venture Investments and (4) MF Properties. We separately report our consolidation and elimination information because we do not allocate certain items to the segments. All “General and administrative expenses” on the Partnership's condensed consolidated statements of operations are reported within the Affordable Multifamily Investments segment. See Notes 2 and 24 to the Partnership’s condensed consolidated financial statements for additional details. The following table presents summary information regarding activity of our segments for the three months ended March 31, 2026 and 2025 (dollar amounts in thousands):\n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n2026\n\n \n\n \n\nPercentage of Total\n\n \n\n \n\n2025\n\n \n\n \n\nPercentage of Total\n\n \n\nTotal revenues\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAffordable Multifamily Investments\n\n \n\n$\n\n18,721\n\n \n\n \n\n \n\n85.9\n\n%\n\n \n\n$\n\n20,693\n\n \n\n \n\n \n\n85.0\n\n%\n\nSeniors and Skilled Nursing Investments\n\n \n\n \n\n1,255\n\n \n\n \n\n \n\n5.8\n\n%\n\n \n\n \n\n1,232\n\n \n\n \n\n \n\n5.1\n\n%\n\nMarket-Rate Joint Venture Investments\n\n \n\n \n\n357\n\n \n\n \n\n \n\n1.6\n\n%\n\n \n\n \n\n2,397\n\n \n\n \n\n \n\n9.9\n\n%\n\nMF Properties\n\n \n\n \n\n1,451\n\n \n\n \n\n \n\n6.7\n\n%\n\n \n\n \n\n-\n\n \n\n \n\n \n\n0.0\n\n%\n\nTotal revenues\n\n \n\n$\n\n21,784\n\n \n\n \n\n \n\n \n\n \n\n$\n\n24,322\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAffordable Multifamily Investments\n\n \n\n$\n\n8,676\n\n \n\n \n\nN/A\n\n \n\n \n\n$\n\n1,346\n\n \n\n \n\n \n\n56.0\n\n%\n\nSeniors and Skilled Nursing Investments\n\n \n\n \n\n936\n\n \n\n \n\nN/A\n\n \n\n \n\n \n\n41\n\n \n\n \n\n \n\n1.7\n\n%\n\nMarket-Rate Joint Venture Investments\n\n \n\n \n\n(5,529\n\n)\n\n \n\nN/A\n\n \n\n \n\n \n\n1,013\n\n \n\n \n\n \n\n42.2\n\n%\n\nMF Properties\n\n \n\n \n\n(2,756\n\n)\n\n \n\nN/A\n\n \n\n \n\n \n\n3\n\n \n\n \n\n \n\n0.1\n\n%\n\nNet income\n\n \n\n$\n\n1,327\n\n \n\n \n\n \n\n \n\n \n\n$\n\n2,403\n\n \n\n \n\n \n\n \n\nDuring the three months ended March 31, 2026 and 2025, our net income was impacted by unrealized gains and losses on our derivative instrument portfolio, which primarily consists of interest rate swaps. Under the applicable accounting guidance, we report our derivatives at fair value as of each reporting date. The period-over-period change in the fair value of each derivative that is not directly related to net cash settlements are recorded as unrealized (gains) losses within “Net result from derivative transactions” on our condensed consolidated statements of operations and is included as a component of our reported net income. Unrealized (gains) losses can be significant in periods of significant interest rate volatility. The following table summarizes unrealized (gains) losses for the three months ended March 31, 2026 and 2025 by segment:\n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nUnrealized (gains) losses from derivatives\n\n \n\n \n\n \n\n \n\n \n\n \n\nAffordable Multifamily Investments\n\n \n\n$\n\n(974\n\n)\n\n \n\n$\n\n3,267\n\n \n\nSeniors and Skilled Nursing Investments\n\n \n\n \n\n(236\n\n)\n\n \n\n \n\n616\n\n \n\nMarket-Rate Joint Venture Investments\n\n \n\n \n\n-\n\n \n\n \n\n \n\n-\n\n \n\nMF Properties\n\n \n\n \n\n(333\n\n)\n\n \n\n \n\n-\n\n \n\nTotal unrealized (gains) losses from derivatives\n\n \n\n$\n\n(1,543\n\n)\n\n \n\n$\n\n3,883\n\n \n\nDifferences between the respective periods is primarily due to market interest rate changes between reporting dates. The 3-year SOFR swap rate is a reasonable proxy for our interest rate swap portfolio as a whole as our derivatives are primarily SOFR-denominated interest rate swaps and the weighted average life of our interest rate swap portfolio is typically between three and four years. The 3-year SOFR swap rate increased 0.24% from 3.34% as of December 31, 2025 to 3.58% as of March 31, 2026, resulting in unrealized gains on our interest rate swap portfolio for the three months ended March 31, 2026. The 3-year SOFR swap rate decreased 0.40% from 4.05% as of December 31, 2024 to 3.65% as of March 31, 2025, resulting in significant unrealized losses on our interest rate swap portfolio for the three months ended March 31, 2025.\n\n60\n\n \n\nThough unrealized gains or losses may impact our reported net income period-to-period, the net cash settlements on our interest rate swaps are less variable. Our interest rate swaps are designed such that changes in the monthly net cash settlements will offset the changes in monthly interest costs on our variable-rate debt financings. Our interest rate swaps are subject to monthly net cash settlements whereby we pay a stated fixed rate and our counterparty pays a variable rate equal to the compounded SOFR rate for the settlement period. If short-term interest rates decline, the interest cost of our variable-rate debt financings will typically decline. Meanwhile, the variable rate payment by the counterparty on our interest rate swap will decline such that our benefit from the monthly net settlement payment will decline. The change in interest cost on our variable-rate debt financing generally offsets the reduced monthly net cash settlement payments associated with the related interest rate swap, such that our net cash flow for the period is not materially impacted by changes in short term interest rate changes. For this reason, we adjust net income for unrealized losses on our derivative instruments when calculating CAD, a non-GAAP performance measure discussed later in this Item 2, which we consider to be a useful measure of our operating performance.\n\nRecent Investment Activities\n\nThe following table presents information regarding the investment activity of the Partnership for the three months ended March 31, 2026 and 2025:\n\nInvestment Activity\n\n \n\n#\n\n \n\nAmount\n (in 000`s)\n\n \n\n \n\nRetired Debt\n(in 000`s)\n\n \n\n \n\nTier 2 income (loss)\nallocable to the\nGeneral Partner\n(in 000`s) (1)\n\n \n\nNotes to the\nPartnership`s condensed consolidated\nfinancial\nstatements\n\nFor the Three Months Ended March 31, 2026\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMortgage revenue bonds redeemed via deed in lieu of foreclosure\n\n \n\n4\n\n \n\n$\n\n117,130\n\n \n\n \n\n$\n\n93,704\n\n \n\n \n\nN/A\n\n \n\n4\n\nTaxable mortgage revenue bonds redeemed via deed in lieu of foreclosure\n\n \n\n3\n\n \n\n \n\n2,785\n\n \n\n \n\n \n\n2,220\n\n \n\n \n\nN/A\n\n \n\n9\n\nMF Properties acquired via deed in lieu of foreclosure\n\n \n\n4\n\n \n\n \n\n114,050\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n8\n\nInvestments in unconsolidated entities, net\n\n \n\n7\n\n \n\n \n\n12,620\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n7\n\nTaxable mortgage revenue bond advances\n\n \n\n3\n\n \n\n \n\n8,300\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n9\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFor the Three Months Ended March 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMortgage revenue bond advances\n\n \n\n3\n\n \n\n$\n\n14,101\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n4\n\nMortgage revenue bond redemption\n\n \n\n1\n\n \n\n \n\n10,352\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n4\n\nGovernmental issuer loan advances\n\n \n\n3\n\n \n\n \n\n17,409\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n5\n\nGovernmental issuer loan redemptions\n\n \n\n3\n\n \n\n \n\n82,203\n\n \n\n \n\n$\n\n67,210\n\n \n\n \n\nN/A\n\n \n\n5\n\nProperty loan paydowns\n\n \n\n2\n\n \n\n \n\n7,798\n\n \n\n \n\n \n\n6,185\n\n \n\n \n\nN/A\n\n \n\n6\n\nInvestments in unconsolidated entities, net\n\n \n\n4\n\n \n\n \n\n5,621\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n7\n\nReturn of investment in unconsolidated entity upon sale\n\n \n\n1\n\n \n\n \n\n11,400\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n7\n\nReal estate asset sale proceeds\n\n \n\n1\n\n \n\n \n\n1,354\n\n \n\n \n\n \n\n1,354\n\n \n\n \n\nN/A\n\n \n\n8\n\nTaxable mortgage revenue bond advances\n\n \n\n3\n\n \n\n \n\n7,400\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n9\n\nTaxable governmental issuer loan advances\n\n \n\n3\n\n \n\n \n\n21,700\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n9\n\nTaxable governmental issuer loan paydowns\n\n \n\n3\n\n \n\n \n\n12,700\n\n \n\n \n\n \n\n10,160\n\n \n\n \n\nN/A\n\n \n\n9\n\n(1)\nSee “Cash Available for Distribution” in Item 2 below.\n\nRecent Financing Activity\n\nThe following table presents information regarding the debt financing, derivatives, Preferred Units and partners’ capital activities of the Partnership for the three months ended March 31, 2026 and 2025, exclusive of retired debt amounts listed in the investment activity table above:\n\n \n\nFinancing, Derivative and Capital Activity\n\n \n\n#\n\n \n\n \n\nAmount\n (in 000`s)\n\n \n\n \n\nSecured\n\n \n\nNotes to the\nPartnership`s condensed consolidated\nfinancial\nstatements\n\nFor the Three Months Ended March 31, 2026\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet Borrowing on Acquisition LOC\n\n \n\n \n\n7\n\n \n\n \n\n$\n\n9,100\n\n \n\n \n\nYes\n\n \n\n12\n\nProceeds from TOB trust financings\n\n \n\n \n\n3\n\n \n\n \n\n \n\n5,870\n\n \n\n \n\nYes\n\n \n\n13\n\nProceeds from mortgage payable\n\n \n\n \n\n1\n\n \n\n \n\n \n\n84,000\n\n \n\n \n\nYes\n\n \n\n14\n\nInterest rate swaps executed\n\n \n\n \n\n2\n\n \n\n \n\n \n\n-\n\n \n\n \n\nN/A\n\n \n\n15\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFor the Three Months Ended March 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet paydown on Acquisition LOC\n\n \n\n \n\n1\n\n \n\n \n\n$\n\n10,352\n\n \n\n \n\nYes\n\n \n\n12\n\nProceeds from TOB trust financings\n\n \n\n \n\n8\n\n \n\n \n\n \n\n48,435\n\n \n\n \n\nYes\n\n \n\n13\n\nIssuance of Series B Preferred Units\n\n \n\n \n\n1\n\n \n\n \n\n \n\n20,000\n\n \n\n \n\nYes\n\n \n\n17\n\nCorporate Responsibility\n\n61\n\n \n\nWe are committed to corporate responsibility and the importance of developing environmental, social, and governance policies and practices consistent with that commitment. We believe the implementation and maintenance of such policies and practices benefit the employees that serve the Partnership, support long-term performance for our Unitholders, and have a positive impact on society and the environment.\n\nEnvironmental Responsibility\n\nAchieving positive environmental and sustainability impacts in connection with our affordable housing investment activity is important to us. Opportunities for positive environmental investments are open to us because private activity bond volume cap and LIHTC allocations are key components of the capital structure for most new construction or acquisition/rehabilitation affordable housing properties financed by our MRB and GIL investments. These resources are allocated by individual states to our property sponsors through a competitive application process under a state-specific QAP as required under Section 42 of the IRC. Each state implements its public policy objectives through an application scoring or ranking system that rewards certain property features. Some of the common features rewarded under individual state QAPs are transit amenities (proximity to various forms of public transportation), proximity to public services (parks, libraries, full scale supermarkets, or a senior center), and energy efficiency/sustainability. Some state-specific QAPs have minimum energy efficiency standards that must be met, such as the use of low water need landscaping, Energy Star appliances and hot water heaters, and GREENGUARD Gold certified insulation. Since we can only finance properties with successful applications, we work with our sponsor clients to maximize these environmental features such that their applications can earn the most points possible under the individual state’s QAP. The following table summarizes our total funding commitments related to properties that were awarded both private activity bond cap and LIHTC allocations through state-specific QAPs (inclusive of investments of our Construction Lending JV):\n\nAsset Type\n\n \n\nFor the Period from January 1, 2022, through March 31, 2026\n\n \n\nMRBs and taxable MRBs\n\n \n\n$\n\n233,375,500\n\n \n\nGILs, taxable GILs and property loans\n\n \n\n \n\n300,051,554\n\n \n\nTotal\n\n \n\n$\n\n533,427,054\n\n \n\nIn 2021, we acquired an MRB investment secured by Meadow Valley, a to-be-constructed 164 bed seniors housing facility in Traverse City, MI. Part of the construction financing is provided through a C-PACE program, which is a state policy-enabled financing mechanism that allows developers to access the capital needed to make renewable energy accessible and cost-effective. In the case of Meadow Valley, C-PACE financing of $24.8 million will be provided to finance energy conservation features including high efficiency windows, roof, walls, heating, cooling, indoor and outdoor lighting, water heating and low-flow fixtures. The C-PACE financing is repaid through a property tax assessment over the life of the property. Many lenders are averse to financing properties with C-PACE financing as the tax assessment is a senior obligation of the property. We have developed underwriting procedures that allow for the borrower to obtain C-PACE financing and still meet our security and underwriting requirements. We will continue to evaluate investment opportunities related to properties that utilize C-PACE financing for future investment as we want to encourage our borrowers to utilize clean energy design and construction practices.\n\nWe are committed to minimizing the overall environmental impact of our corporate operations. The Partnership’s operations are primarily managed by 16 employees of Greystone Manager, so we have a relatively modest environmental impact and have adequate facilities to grow our employee base without acquiring additional physical space.\n\nSocial Responsibility\n\nOur MRB and GIL investments directly support the construction, rehabilitation, and stabilized operation of decent, safe, and sanitary affordable multifamily housing across the United States. The development of affordable multifamily housing has relatively broad legislative support at the federal and state levels. Each of the properties securing our MRB and GIL investments is required to maintain a minimum percentage of units set aside for a combination of very low-income (50% or less of AMI) and low-income (80% or less of AMI) tenants in accordance with IRC guidelines, and the owners of the properties often agree to exceed the minimum IRC requirements. The rent charged to income qualified tenants at MRB or GIL properties is often restricted to a certain percentage of the tenants’ income, making them more affordable. For any new MRB or GIL investments associated with a low-income housing tax credit property, restrictions regarding tenant incomes and rents charged to those low-income households are required. In addition, certain borrowers related to our MRB investments are non-profit entities that provide affordable multifamily housing consistent with their charitable purposes. These properties provide valuable housing and support services to both low-income and market-rate tenants and create housing diversity in the geographic and social communities in which they are located.\n\n62\n\n \n\nThe following table summarizes, by investment asset class, the number of residential rental units associated with the affordable multifamily properties financed by the Partnership that have some form of tenant income or rent restrictions as evidenced by a regulatory agreement recorded on the local government land records as of March 31, 2026:\n\n \n\n \n\nNumber of Units at <=50% AMI\n\n \n\n \n\nNumber of Units at <=60% AMI\n\n \n\n \n\nNumber of Units at <=80% AMI\n\n \n\n \n\nTotal Number of Units\n\n \n\n \n\nAffordable Units as % of Total Units\n\n \n\n \n\nNumber of Properties\n\n \n\n \n\nNumber of States\n\n \n\nReported Asset Value\n\n \n\n \n\nPercentage of Total Partnership Assets\n\nMRBs and taxable MRBs\n\n \n\n \n\n1,493\n\n \n\n \n\n \n\n5,725\n\n \n\n \n\n \n\n8,198\n\n \n\n \n\n \n\n9,143\n\n \n\n \n\n \n\n90\n\n%\n\n \n\n \n\n62\n\n \n\n \n\n10\n\n \n\n$\n\n807,226,657\n\n \n\n \n\n54%\n\nGILs and taxable GILs\n\n \n\n \n\n277\n\n \n\n \n\n \n\n664\n\n \n\n \n\n \n\n910\n\n \n\n \n\n \n\n910\n\n \n\n \n\n \n\n100\n\n%\n\n \n\n \n\n4\n\n \n\n \n\n1\n\n \n\n \n\n183,637,300\n\n \n\n \n\n12%\n\nTotal\n\n \n\n \n\n1,770\n\n \n\n \n\n \n\n6,389\n\n \n\n \n\n \n\n9,108\n\n \n\n \n\n \n\n10,053\n\n \n\n \n\n \n\n91\n\n%\n\n \n\n \n\n66\n\n \n\n \n\n \n\n \n\n$\n\n990,863,957\n\n \n\n \n\n66%\n\nCertain investments may be eligible for regulatory credit under the CRA to help meet the credit needs of the communities in which they exist, including low- and moderate-income neighborhoods. See “Community Investments” in this Item 2 below for further information regarding assets of the Partnership the General Partner believes are eligible for regulatory credit under the CRA.\n\nWe and Greystone are committed to supporting our workforce. Greystone has implemented evaluation and compensation policies designed to attract, retain, and motivate employees that provide services to the Partnership to achieve superior results. Greystone also provides formal and informal training programs to enhance the skills of employees providing services to the Partnership and to instill Greystone’s corporate policies and practices. We are also committed to ensuring the safety of personnel that work for third-party contractors that perform services at properties that underlie our investment assets. Specifically for properties under construction, we consider the safety record of contractors and monitor safety incidents through reviews of independent construction monitoring reports.\n\nGreystone and the Partnership are committed to building a workplace that allows all employees to feel supported and valued, regardless of any identity, by focusing on our culture of ‘where people matter’ to build belonging. Specific initiatives include training and employee resources groups to support our workforce as well as a formal Culture and Community Committee and Culture and Community Executive Advisory Council to lead and advise all belonging related work, events, and learning. Of the 16 employees of Greystone Manager responsible for the Partnership’s operations, three are women and two employees identify as ethnically diverse.\n\nCorporate Governance\n\nGreystone Manager, as the general partner of the Partnership’s general partner, is committed to corporate governance that aligns with the interests of our Unitholders and stakeholders. We set high ethical standards for our related employees and partners. We regularly review and update, as appropriate, our policies governing ethical conduct and responsible behavior in order to support our sustainable and continued success. Our Code of Business Conduct and Ethics is applicable to all Greystone personnel that provide services to the Partnership and is available on the Partnership’s website. All employees are required to annually affirm that they have read and understood the Code of Business Conduct and Ethics. Employees are encouraged to share any ethics or compliance concerns with their supervisors or confidentially through our third-party managed hotline. We maintain a formal compliance policy to investigate ethics or compliance concerns and to protect whistleblowers. Our policy is designed to meet the requirements and standards of the Sarbanes Oxley Act of 2002 and the Securities and Exchange Act of 1934.\n\nThe Board of Managers of Greystone Manager brings a diverse set of skills and experiences across industries in the public, private and not-for-profit sectors. The composition of the Board of Managers is in compliance with the NYSE listing rules and SEC rules applicable to the Partnership. The majority of the members of the Board of Managers meet the independence standards established by the New York Stock Exchange listing rules and the rules of the SEC. All the members of the Audit Committee are independent under the applicable SEC and NYSE independence requirements, two of whom qualify as “audit committee financial experts.” Of the eight Managers of Greystone Manager, one Manager is female.\n\nThe Board of Managers is highly engaged in the governance and operations of the Partnership. Our non-independent Managers are employees of Greystone that regularly monitor developments in our operating environment and capital markets and discuss such developments with management on a regular basis. One of our Managers is a member of our investment committee that pre-approves all new investments. We regularly monitor and assess risks to achieving our business objectives and such risk assessments are discussed with both the Audit Committee and the full Board of Managers at regularly held meetings and in regular informal discussions. The Audit Committee had 100% attendance at meetings during 2025 and to date in 2026. The Board of Managers had 96% and 100% attendance during 2025 and to date in 2026, respectively.\n\n63\n\n \n\nResults of Operations\n\nThe tables and following discussions of our changes in results of operations for the three months ended March 31, 2026 and 2025 should be read in conjunction with the Partnership’s condensed consolidated financial statements and notes thereto included in Item 1 of this report, as well as the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2025.\n\nThe following table compares Partnership revenue and other income for the periods indicated (dollar amounts in thousands):\n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n$ Change\n\n \n\n \n\n% Change\n\n \n\nRevenues and Other Income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInvestment income\n\n \n\n$\n\n16,439\n\n \n\n \n\n$\n\n21,076\n\n \n\n \n\n$\n\n(4,637\n\n)\n\n \n\n \n\n-22.0\n\n%\n\nOther interest income\n\n \n\n \n\n3,123\n\n \n\n \n\n \n\n2,288\n\n \n\n \n\n \n\n835\n\n \n\n \n\n \n\n36.5\n\n%\n\nProperty revenues\n\n \n\n \n\n1,449\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n1,449\n\n \n\n \n\nN/A\n\n \n\nOther income\n\n \n\n \n\n774\n\n \n\n \n\n \n\n959\n\n \n\n \n\n \n\n(185\n\n)\n\n \n\n \n\n-19.3\n\n%\n\nGain on deed in lieu of foreclosures\n\n \n\n \n\n2,219\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n2,219\n\n \n\n \n\nN/A\n\n \n\nGain on sale of investments in unconsolidated entities\n\n \n\n \n\n-\n\n \n\n \n\n \n\n5\n\n \n\n \n\n \n\n(5\n\n)\n\n \n\n \n\n-100.0\n\n%\n\nEarnings (losses) from investments in unconsolidated entities\n\n \n\n \n\n(4,930\n\n)\n\n \n\n \n\n(992\n\n)\n\n \n\n \n\n(3,938\n\n)\n\n \n\n \n\n397.0\n\n%\n\nTotal Revenues and Other Income\n\n \n\n$\n\n19,074\n\n \n\n \n\n$\n\n23,336\n\n \n\n \n\n$\n\n(4,262\n\n)\n\n \n\n \n\n-18.3\n\n%\n\nTotal Revenues and Other Income comparison for the three months ended March 31, 2026 and 2025\n\nInvestment income. The decrease in investment income for the three months ended March 31, 2026 as compared to the same period in 2025 was due to the following factors:\n\n•\nA decrease of approximately $2.7 million in interest income due to MRB redemptions and principal repayments, offset by an increase of approximately $832,000 in interest income from recent MRB advances;\n\n•\nA decrease of approximately $1.5 million in interest income from recent GIL paydowns, offset by an increase of approximately $697,000 in interest income due to recent GIL investments;\n\n•\nA decrease of approximately $2.0 million of investment income related to investments in unconsolidated entities consisting of:\n\no\nA decrease of approximately $2.2 million of investment income due to a preferred return distribution from Vantage at Loveland in March 2025; and\n\no\nAn increase of approximately $169,000 in investment income related to preferred returns on equity contributions during 2025 and 2026.\n\nOther interest income. Other interest income is comprised primarily of interest income on our property loan, taxable MRB, and taxable GIL investments. The increase in other interest income for the three months ended March 31, 2026 as compared to the same period in 2025 was primarily due to an increase of approximately $947,000 from recent property loan, taxable MRB and taxable GIL investment advances, offset by a decrease of approximately $100,000 due to recent property loan, taxable MRB and taxable GIL investment redemptions and principal repayments.\n\nProperty revenues. Total property revenues for the three months ended March 31, 2026 were related to the Partnership's acquisition of the four MF Properties via deed in lieu of foreclosure in the first quarter of 2026. There was no property revenues for the three months ended March 31, 2025.\n\nOther income. Other income for the three months ended March 31, 2026 and 2025 related to the receipt of non-refundable fees for the extension of various MRB, GIL, and property loan maturity dates.\n\nGain on deed in lieu of foreclosures. Gain on deed in lieu of foreclosures represents our gain as a result of the deed in lieu of foreclosure of the SC MF Properties during the three months ended March 31, 2026. The gain was equal to the excess amount of the appraised value of the real estate assets acquired over our amortized cost basis of the Windsor Shores MRB and taxable MRB and The Ivy Apartments (a/k/a Century Plaza Apartments) MRB.\n\nGain on sale of investments in unconsolidated entities. There was no gain on sale of investments in unconsolidated entities for the three months ended March 31, 2026. The gain on sale of investments in unconsolidated entities for the three months ended March 31, 2025 is related to final settlement of the Vantage at Coventry sale that occurred in January 2023.\n\n64\n\n \n\nEarnings (losses) on investments in unconsolidated entities. The Partnership reports its proportionate share of earnings (losses) on investments in unconsolidated entities using the equity method of accounting. Our JV Equity Investments typically incur operating losses during development and lease-up, particularly from depreciation, consistent with development plans. The increase in losses for the three months ended March 31, 2026 as compared to the same period in 2025 is primarily due to non-capitalized interest and depreciation expense at Valage Senior Living Carson Valley, The Jessam at Hays Farm, Freestone Greenville, Freestone Cresta Bella, and Freestone Ladera as the properties began primary operations in mid to late 2025. Depreciation and amortization expenses accounted for approximately $1.5 million and $394,000 of our proportionate share of losses for the three months ended March 31, 2026 and 2025, with the remaining losses related to non-capitalized interest expense and general operating expenses.\n\nThe following table compares Partnership expenses for the periods indicated (dollar amounts in thousands):\n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n$ Change\n\n \n\n \n\n% Change\n\n \n\nExpenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReal estate operating\n\n \n\n$\n\n828\n\n \n\n \n\n$\n\n-\n\n \n\n \n\n$\n\n828\n\n \n\n \n\nN/A\n\n \n\nProvision for credit losses\n\n \n\n \n\n(2,078\n\n)\n\n \n\n \n\n(172\n\n)\n\n \n\n \n\n(1,906\n\n)\n\n \n\nN/A\n\n \n\nDepreciation and amortization\n\n \n\n \n\n2,746\n\n \n\n \n\n \n\n4\n\n \n\n \n\n \n\n2,742\n\n \n\n \n\n \n\n68550.0\n\n%\n\nInterest expense\n\n \n\n \n\n13,168\n\n \n\n \n\n \n\n13,497\n\n \n\n \n\n \n\n(329\n\n)\n\n \n\n \n\n-2.4\n\n%\n\nNet result from derivative transactions\n\n \n\n \n\n(1,565\n\n)\n\n \n\n \n\n3,036\n\n \n\n \n\n \n\n(4,601\n\n)\n\n \n\nN/A\n\n \n\nGeneral and administrative\n\n \n\n \n\n4,651\n\n \n\n \n\n \n\n4,570\n\n \n\n \n\n \n\n81\n\n \n\n \n\n \n\n1.8\n\n%\n\nTotal Expenses\n\n \n\n$\n\n17,750\n\n \n\n \n\n$\n\n20,935\n\n \n\n \n\n$\n\n(3,185\n\n)\n\n \n\n \n\n-15.2\n\n%\n\nTotal Expenses comparison for the three months ended March 31, 2026 and 2025\n\nReal estate operating. Real estate operating expenses are related to MF Properties and are comprised principally of real estate taxes, property insurance, utilities, property management fees, repairs and maintenance, and salaries and related employee expenses of on-site employees. Real estate operating expenses for the three months ended March 31, 2026 related to the Partnership's acquisition of the four MF Properties via deed in lieu of foreclosure in the first quarter of 2026. There were no real estate operating expenses for the three months ended March 31, 2025.\n\nProvision for credit losses. The provision for credit losses for the three months ended March 31, 2026 includes an asset-specific allowance of approximately $93,000 related to the Opportunity South Carolina property loan offset by a recovery of approximately $2.1 million of our previously recognized allowance for credit loss related to The Park at Sondrio MRB and taxable MRB, The Park at Vietti MRB and taxable MRB, and Windsor Shores Apartments MRB. We also recorded a decrease in our general allowance for credit losses due to a decrease in the weighted average life of the remaining investment portfolio.\n\nThe provision for credit losses for the three months ended March 31, 2025 is primarily due to GIL and property loan redemptions, a decrease in the weighted average life of the remaining investment portfolio, and updates of market data used as quantitative assumptions in our model used to estimate the allowance for credit losses.\n\nDepreciation and amortization. Depreciation expense for the three months ended March 31, 2026 related primarily to the four SC MF Properties and totaled approximately $1.2 million. Amortization of in-place lease intangible assets for the SC MF Properties was approximately $1.6 million for the three months ended March 31, 2026. Depreciation expense for the three months ended March 31, 2025 related to furniture and equipment owned by the Partnership.\n\nInterest expense. The decrease in interest expense for the three months ended March 31, 2026 as compared to the same period in 2025 was due primarily to the following factors:\n\n•\nA decrease of approximately $609,000 due to lower average principal outstanding of approximately $52.3 million; and\n\n•\nAn increase of approximately $267,000 due to higher average interest rates on debt financing, net of cash receipts received on interest rate derivatives.\n\nNet result from derivative transactions. The net result from derivative transactions consists of realized and unrealized (gains) losses from our derivative financial instruments. Realized (gains) losses represent receipts or payments related to our interest rate swaps during the period. Unrealized (gains) losses are generally a result of changes in current and forward interest rates during the period. Increasing interest rates generally result in unrealized gains while decreasing interest rates generally result in unrealized losses. The following table summarizes the components of this line item for the three months ended March 31, 2026 and 2025 (dollar amounts in thousands):\n\n65\n\n \n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nRealized (gains) losses on derivatives, net\n\n \n\n$\n\n(22\n\n)\n\n \n\n$\n\n(847\n\n)\n\nUnrealized (gains) losses on derivatives, net\n\n \n\n \n\n(1,543\n\n)\n\n \n\n \n\n3,883\n\n \n\nNet result from derivative transactions\n\n \n\n$\n\n(1,565\n\n)\n\n \n\n$\n\n3,036\n\n \n\nRealized gains on derivatives, net, decreased during the three months ended March 31, 2026 as compared to the same period in 2025 due to generally decreasing spot interest rates during 2025 and 2026. Unrealized gains on derivatives, net, were approximately $1.5 million for the three months ended March 31, 2026 due to generally increasing forward interest rates during the period, compared to unrealized losses of approximately $3.9 million for the three months ended March 31, 2025 due to generally decreasing forward interest rates during the period, resulting in increased gains of approximately $5.4 million between the two periods. See the “Executive Summary” section of this Item 2 for additional discussion.\n\nGeneral and administrative. The increase in general and administrative expenses for the three months ended March 31, 2026 as compared to the same period in 2025 was primarily due to an increase of approximately $94,000 in professional and consulting fees.\n\nIncome Tax Expense for the three months ended March 31, 2026 and 2025\n\nA wholly owned subsidiary of the Partnership, the Greens Hold Co, is a corporation subject to federal and state income tax. The Greens Hold Co owns certain property loans and real estate assets. There was minimal taxable income for the Greens Hold Co for the three months ended March 31, 2026 and 2025.\n\nCash Available for Distribution - Non-GAAP Financial Measures\n\nThe Partnership believes that CAD provides relevant information about the Partnership’s operations and is necessary, along with net income, for understanding its operating results. To calculate CAD, the Partnership begins with net income as computed in accordance with GAAP and adjusts for non-cash expenses or income consisting of depreciation expense, amortization expense related to deferred financing costs, amortization of premiums and discounts, fair value adjustments to derivative instruments, provisions for credit and loan losses, impairments on MRBs, GILs, real estate assets and property loans, deferred income tax expense (benefit) and restricted unit compensation expense. The Partnership also adjusts net income for the Partnership’s share of (earnings) losses of investments in unconsolidated entities related to the Market-Rate Joint Venture Investments segment as such amounts are primarily depreciation expenses and development costs that are expected to be recovered upon an exit event. The Partnership also deducts Tier 2 income (see Note 22 to the Partnership’s condensed consolidated financial statements) distributable to the General Partner as defined in the Partnership Agreement and distributions and accretion for the Preferred Units. Net income is the GAAP measure most comparable to CAD. There is no generally accepted methodology for computing CAD, and the Partnership’s computation of CAD may not be comparable to CAD reported by other companies. Although the Partnership considers CAD to be a useful measure of the Partnership’s operating performance, CAD is a non-GAAP measure that should not be considered as an alternative to net income calculated in accordance with GAAP, or any other measures of financial performance presented in accordance with GAAP.\n\n66\n\n \n\nThe following table shows the calculation of CAD (and a reconciliation of the Partnership’s net income, as determined in accordance with GAAP, to CAD) for the three months ended March 31, 2026 and 2025:\n\n \n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nNet income\n\n \n\n$\n\n1,326,380\n\n \n\n \n\n$\n\n2,403,022\n\n \n\nUnrealized (gains) losses on derivatives, net\n\n \n\n \n\n(1,542,998\n\n)\n\n \n\n \n\n3,883,196\n\n \n\nDepreciation and amortization\n\n \n\n \n\n2,746,392\n\n \n\n \n\n \n\n3,542\n\n \n\nProvision for credit losses (1)\n\n \n\n \n\n(2,077,877\n\n)\n\n \n\n \n\n(172,000\n\n)\n\nReversal of gain on deed in lieu of foreclosures (2)\n\n \n\n \n\n(2,219,023\n\n)\n\n \n\n \n\n-\n\n \n\nAmortization of deferred financing costs\n\n \n\n \n\n489,025\n\n \n\n \n\n \n\n381,334\n\n \n\nRestricted unit compensation expense\n\n \n\n \n\n393,770\n\n \n\n \n\n \n\n234,047\n\n \n\nDeferred income taxes\n\n \n\n \n\n881\n\n \n\n \n\n \n\n1,227\n\n \n\nRedeemable Preferred Unit distributions and accretion\n\n \n\n \n\n(1,101,684\n\n)\n\n \n\n \n\n(760,679\n\n)\n\nTier 2 income allocable to the General Partner (3)\n\n \n\n \n\n-\n\n \n\n \n\n \n\n-\n\n \n\nRecovery of prior credit loss (4)\n\n \n\n \n\n(11,120\n\n)\n\n \n\n \n\n(16,967\n\n)\n\nBond premium, discount and acquisition fee amortization, net\n   of cash received\n\n \n\n \n\n98,764\n\n \n\n \n\n \n\n25,220\n\n \n\n(Earnings) losses from investments in unconsolidated entities\n\n \n\n \n\n4,948,352\n\n \n\n \n\n \n\n992,259\n\n \n\nTotal CAD\n\n \n\n$\n\n3,050,862\n\n \n\n \n\n$\n\n6,974,201\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted average number of BUCs outstanding, basic\n\n \n\n \n\n23,266,619\n\n \n\n \n\n \n\n23,171,226\n\n \n\nNet income per BUC, basic\n\n \n\n$\n\n0.01\n\n \n\n \n\n$\n\n0.07\n\n \n\nTotal CAD per BUC, basic\n\n \n\n$\n\n0.13\n\n \n\n \n\n$\n\n0.30\n\n \n\nCash Distributions declared, per BUC\n\n \n\n$\n\n0.14\n\n \n\n \n\n$\n\n0.37\n\n \n\n \n\n(1)\nThe adjustments reflect the change in allowances for credit losses under the CECL standard which requires the Partnership to update estimates of expected credit losses for its investment portfolio at each reporting date. Credit losses are not reported within CAD until such losses are realized. The provision for credit loss for the three months ended March 31, 2026 includes an asset-specific provision for credit loss of approximately $93,000 offset by a recovery of approximately $2.1 million of our previously recognized allowance for credit losses related to The Park at Sondrio MRB and taxable MRB, The Park at Vietti MRB and taxable MRB, and Windsor Shores Apartments MRB.\n\n(2)\nThe gain on deed in lieu of foreclosures for the three months ended March 31, 2026 was equal to the excess amount of the appraised value of the real estate assets acquired over our amortized cost basis of the Windsor Shores MRB and taxable MRB and The Ivy Apartments (a/k/a Century Plaza Apartments) MRB. We have excluded this gain in the calculation of CAD as it is non-cash and relates to fair value estimates of real estate assets.\n\n(3)\nAs described in Note 22 to the Partnership’s condensed consolidated financial statements, Net Interest Income representing contingent interest and Net Residual Proceeds representing contingent interest (Tier 2 income) will be distributed 75% to the limited partners and BUC holders, as a class, and 25% to the General Partner. This adjustment represents 25% of Tier 2 income due to the General Partner. There was no Tier 2 income for the three months ended March 31, 2026 and 2025.\n\n(4)\nThe Partnership determined there was a recovery of previously recognized impairment recorded for the Live 929 Apartments Series 2022A MRB prior to the adoption of the CECL standard effective January 1, 2023. The Partnership is accreting the recovery of prior credit loss for this MRB into investment income over the term of the MRB consistent with applicable guidance. The accretion of recovery of value, net of adjustments, is presented as a reduction to current CAD as the original provision for credit loss was an addback for CAD calculation purposes in the period recognized.\n\nIn connection with the preparation of the Partnership’s consolidated financial statements as of and for the year ended December 31, 2025, the Partnership identified certain immaterial errors in previously issued financial statements for the three month periods ended March 31, June 30, and September 30, 2025. The Partnership assessed the aggregate effects and materiality of these errors and concluded the errors were not material to the previously issued quarterly consolidated financial statements. The Partnership has voluntarily revising its quarterly condensed consolidated financial statements and the related reconciliations of net income (loss) to CAD for the three months ended March 31, 2025 included above. The following is a summary of the impacts on line items within the reconciliation of net income (loss) to CAD for the three months ended March 31, 2025:\n\n•\nA decrease in net income (loss) of approximately $924,000; and\n\n•\nAn increase in the adjustment for (earnings) losses from investment in unconsolidated entities of approximately $759,000.\n\nThe net impact of the above line items on the previously reported quarterly CAD amounts was a decrease in CAD of approximately $165,000 for the three months ended March 31, 2025.\n\n \n\n67\n\n \n\nPortfolio Information\n\nThe following tables summarize occupancy and other information regarding the properties underlying our various investments. The narrative discussion that follows provides a brief operating analysis of each investment as of and for the three months ended March 31, 2026 and 2025.\n\nNon-Consolidated Properties – Stabilized\n\nThe owners of the following properties either do not meet the definition of a VIE and/or we have evaluated and determined we are not the primary beneficiary of the VIE. As a result, we do not report the assets, liabilities and results of operations of these properties on a consolidated basis. These properties have met the stabilization criteria (see footnote 3 below the table) as of March 31, 2026. Debt service on our MRBs for the non-consolidated stabilized properties was current as of March 31, 2026. The amounts presented below were obtained from records provided by the property owners and their related property management service providers.\n\n \n\n \n\n \n\n \n\nNumber\nof Units as of\nMarch 31,\n\n \n\n \n\nPhysical Occupancy (1) \nas of March 31,\n\nEconomic Occupancy (2)\nfor the three months ended March 31,\n\n \n\nProperty Name\n\n \n\nState\n\n \n\n2026\n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nMRB Multifamily Properties-Stabilized (3)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCCBA Senior Garden Apartments\n\n \n\nCA\n\n \n\n \n\n45\n\n \n\n \n\n \n\n98\n\n%\n\n \n\n \n\n100\n\n%\n\n \n\n \n\n94\n\n%\n\n \n\n \n\n92\n\n%\n\nCourtyard\n\n \n\nCA\n\n \n\n \n\n108\n\n \n\n \n\n \n\n99\n\n%\n\n \n\n \n\n100\n\n%\n\n \n\n \n\n94\n\n%\n\n \n\n \n\n86\n\n%\n\nGlenview Apartments\n\n \n\nCA\n\n \n\n \n\n88\n\n \n\n \n\n \n\n93\n\n%\n\n \n\n \n\n98\n\n%\n\n \n\n \n\n86\n\n%\n\n \n\n \n\n94\n\n%\n\nHarden Ranch\n\n \n\nCA\n\n \n\n \n\n100\n\n \n\n \n\n \n\n100\n\n%\n\n \n\n \n\n99\n\n%\n\n \n\n \n\n97\n\n%\n\n \n\n \n\n92\n\n%\n\nHarmony Court Bakersfield\n\n \n\nCA\n\n \n\n \n\n96\n\n \n\n \n\n \n\n96\n\n%\n\n \n\n \n\n95\n\n%\n\n \n\n \n\n96\n\n%\n\n \n\n \n\n90\n\n%\n\nHarmony Terrace\n\n \n\nCA\n\n \n\n \n\n136\n\n \n\n \n\n \n\n96\n\n%\n\n \n\n \n\n99\n\n%\n\n \n\n \n\n132\n\n%\n\n \n\n \n\n110\n\n%\n\nLas Palmas II\n\n \n\nCA\n\n \n\n \n\n81\n\n \n\n \n\n \n\n100\n\n%\n\n \n\n \n\n100\n\n%\n\n \n\n \n\n93\n\n%\n\n \n\n \n\n86\n\n%\n\nMontclair Apartments\n\n \n\nCA\n\n \n\n \n\n80\n\n \n\n \n\n \n\n100\n\n%\n\n \n\n \n\n99\n\n%\n\n \n\n \n\n112\n\n%\n\n \n\n \n\n98\n\n%\n\nMontecito at Williams Ranch Apartments\n\n \n\nCA\n\n \n\n \n\n132\n\n \n\n \n\n \n\n97\n\n%\n\n \n\n \n\n98\n\n%\n\n \n\n \n\n94\n\n%\n\n \n\n \n\n129\n\n%\n\nMontevista\n\n \n\nCA\n\n \n\n \n\n82\n\n \n\n \n\n \n\n94\n\n%\n\n \n\n \n\n98\n\n%\n\n \n\n \n\n94\n\n%\n\n \n\n \n\n100\n\n%\n\nOcotillo Springs\n\n \n\nCA\n\n \n\n \n\n75\n\n \n\n \n\n \n\n99\n\n%\n\n \n\n \n\n100\n\n%\n\n \n\n \n\n99\n\n%\n\n \n\n \n\n99\n\n%\n\nSan Vicente\n\n \n\nCA\n\n \n\n \n\n50\n\n \n\n \n\n \n\n100\n\n%\n\n \n\n \n\n100\n\n%\n\n \n\n \n\n89\n\n%\n\n \n\n \n\n92\n\n%\n\nSanta Fe Apartments\n\n \n\nCA\n\n \n\n \n\n89\n\n \n\n \n\n \n\n85\n\n%\n\n \n\n \n\n90\n\n%\n\n \n\n \n\n77\n\n%\n\n \n\n \n\n94\n\n%\n\nSeasons at Simi Valley\n\n \n\nCA\n\n \n\n \n\n69\n\n \n\n \n\n \n\n97\n\n%\n\n \n\n \n\n94\n\n%\n\n \n\n \n\n109\n\n%\n\n \n\n \n\n113\n\n%\n\nSeasons Lakewood (4)\n\n \n\nCA\n\n \n\n \n\n85\n\n \n\n \n\n \n\n99\n\n%\n\n \n\n \n\n99\n\n%\n\n \n\n \n\n102\n\n%\n\n \n\n \n\n98\n\n%\n\nSeasons San Juan Capistrano\n\n \n\nCA\n\n \n\n \n\n112\n\n \n\n \n\n \n\n100\n\n%\n\n \n\n \n\n98\n\n%\n\n \n\n \n\n98\n\n%\n\n \n\n \n\n89\n\n%\n\nSolano Vista\n\n \n\nCA\n\n \n\n \n\n96\n\n \n\n \n\n \n\n100\n\n%\n\n \n\n \n\n90\n\n%\n\n \n\n \n\n87\n\n%\n\n \n\n \n\n95\n\n%\n\nSummerhill\n\n \n\nCA\n\n \n\n \n\n128\n\n \n\n \n\n \n\n97\n\n%\n\n \n\n \n\n98\n\n%\n\n \n\n \n\n97\n\n%\n\n \n\n \n\n98\n\n%\n\nSycamore Walk\n\n \n\nCA\n\n \n\n \n\n112\n\n \n\n \n\n \n\n99\n\n%\n\n \n\n \n\n98\n\n%\n\n \n\n \n\n99\n\n%\n\n \n\n \n\n79\n\n%\n\nThe Village at Madera\n\n \n\nCA\n\n \n\n \n\n75\n\n \n\n \n\n \n\n97\n\n%\n\n \n\n \n\n97\n\n%\n\n \n\n \n\n102\n\n%\n\n \n\n \n\n92\n\n%\n\nTyler Park Townhomes\n\n \n\nCA\n\n \n\n \n\n88\n\n \n\n \n\n \n\n98\n\n%\n\n \n\n \n\n99\n\n%\n\n \n\n \n\n100\n\n%\n\n \n\n \n\n99\n\n%\n\nVineyard Gardens\n\n \n\nCA\n\n \n\n \n\n62\n\n \n\n \n\n \n\n100\n\n%\n\n \n\n \n\n100\n\n%\n\n \n\n \n\n105\n\n%\n\n \n\n \n\n106\n\n%\n\nWellspring Apartments\n\n \n\nCA\n\n \n\n \n\n88\n\n \n\n \n\n \n\n93\n\n%\n\n \n\n \n\n97\n\n%\n\n \n\n \n\n102\n\n%\n\n \n\n \n\n107\n\n%\n\nWestside Village Market\n\n \n\nCA\n\n \n\n \n\n81\n\n \n\n \n\n \n\n100\n\n%\n\n \n\n \n\n100\n\n%\n\n \n\n \n\n98\n\n%\n\n \n\n \n\n91\n\n%\n\nHandsel Morgan Village Apartments (5)\n\n \n\nGA\n\n \n\n \n\n45\n\n \n\n \n\n \n\n100\n\n%\n\n \n\nn/a\n\n \n\n \n\n \n\n100\n\n%\n\n \n\nn/a\n\n \n\nRenaissance\n\n \n\nLA\n\n \n\n \n\n208\n\n \n\n \n\n \n\n85\n\n%\n\n \n\n \n\n90\n\n%\n\n \n\n \n\n74\n\n%\n\n \n\n \n\n80\n\n%\n\nLive 929 Apartments\n\n \n\nMD\n\n \n\n \n\n575\n\n \n\n \n\n \n\n94\n\n%\n\n \n\n \n\n94\n\n%\n\n \n\n \n\n81\n\n%\n\n \n\n \n\n95\n\n%\n\nJackson Manor Apartments\n\n \n\nMS\n\n \n\n \n\n60\n\n \n\n \n\n \n\n100\n\n%\n\n \n\n \n\n100\n\n%\n\n \n\n \n\n97\n\n%\n\n \n\n \n\n100\n\n%\n\nSilver Moon (6)\n\n \n\nNM\n\n \n\n \n\n151\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\nVillage at Avalon\n\n \n\nNM\n\n \n\n \n\n240\n\n \n\n \n\n \n\n98\n\n%\n\n \n\n \n\n97\n\n%\n\n \n\n \n\n89\n\n%\n\n \n\n \n\n95\n\n%\n\nColumbia Gardens\n\n \n\nSC\n\n \n\n \n\n188\n\n \n\n \n\n \n\n82\n\n%\n\n \n\n \n\n81\n\n%\n\n \n\n \n\n80\n\n%\n\n \n\n \n\n81\n\n%\n\nVillage at River's Edge\n\n \n\nSC\n\n \n\n \n\n124\n\n \n\n \n\n \n\n94\n\n%\n\n \n\n \n\n87\n\n%\n\n \n\n \n\n93\n\n%\n\n \n\n \n\n86\n\n%\n\nWillow Run\n\n \n\nSC\n\n \n\n \n\n200\n\n \n\n \n\n \n\n87\n\n%\n\n \n\n \n\n84\n\n%\n\n \n\n \n\n82\n\n%\n\n \n\n \n\n66\n\n%\n\nAvistar at Copperfield\n\n \n\nTX\n\n \n\n \n\n192\n\n \n\n \n\n \n\n88\n\n%\n\n \n\n \n\n92\n\n%\n\n \n\n \n\n83\n\n%\n\n \n\n \n\n87\n\n%\n\nAvistar at the Crest\n\n \n\nTX\n\n \n\n \n\n200\n\n \n\n \n\n \n\n72\n\n%\n\n \n\n \n\n87\n\n%\n\n \n\n \n\n62\n\n%\n\n \n\n \n\n77\n\n%\n\nAvistar at the Oaks\n\n \n\nTX\n\n \n\n \n\n156\n\n \n\n \n\n \n\n76\n\n%\n\n \n\n \n\n88\n\n%\n\n \n\n \n\n63\n\n%\n\n \n\n \n\n71\n\n%\n\nAvistar at the Parkway\n\n \n\nTX\n\n \n\n \n\n236\n\n \n\n \n\n \n\n60\n\n%\n\n \n\n \n\n81\n\n%\n\n \n\n \n\n41\n\n%\n\n \n\n \n\n69\n\n%\n\nAvistar at Wilcrest\n\n \n\nTX\n\n \n\n \n\n88\n\n \n\n \n\n \n\n68\n\n%\n\n \n\n \n\n85\n\n%\n\n \n\n \n\n59\n\n%\n\n \n\n \n\n78\n\n%\n\nAvistar at Wood Hollow\n\n \n\nTX\n\n \n\n \n\n409\n\n \n\n \n\n \n\n88\n\n%\n\n \n\n \n\n83\n\n%\n\n \n\n \n\n73\n\n%\n\n \n\n \n\n70\n\n%\n\nAvistar in 09\n\n \n\nTX\n\n \n\n \n\n133\n\n \n\n \n\n \n\n77\n\n%\n\n \n\n \n\n89\n\n%\n\n \n\n \n\n73\n\n%\n\n \n\n \n\n84\n\n%\n\nAvistar on the Boulevard\n\n \n\nTX\n\n \n\n \n\n344\n\n \n\n \n\n \n\n60\n\n%\n\n \n\n \n\n82\n\n%\n\n \n\n \n\n50\n\n%\n\n \n\n \n\n70\n\n%\n\nAvistar on the Hills\n\n \n\nTX\n\n \n\n \n\n129\n\n \n\n \n\n \n\n74\n\n%\n\n \n\n \n\n83\n\n%\n\n \n\n \n\n59\n\n%\n\n \n\n \n\n69\n\n%\n\nBruton Apartments\n\n \n\nTX\n\n \n\n \n\n264\n\n \n\n \n\n \n\n72\n\n%\n\n \n\n \n\n71\n\n%\n\n \n\n \n\n41\n\n%\n\n \n\n \n\n54\n\n%\n\nConcord at Gulfgate\n\n \n\nTX\n\n \n\n \n\n288\n\n \n\n \n\n \n\n86\n\n%\n\n \n\n \n\n88\n\n%\n\n \n\n \n\n77\n\n%\n\n \n\n \n\n80\n\n%\n\nConcord at Little York\n\n \n\nTX\n\n \n\n \n\n276\n\n \n\n \n\n \n\n70\n\n%\n\n \n\n \n\n79\n\n%\n\n \n\n \n\n63\n\n%\n\n \n\n \n\n74\n\n%\n\nConcord at Williamcrest\n\n \n\nTX\n\n \n\n \n\n288\n\n \n\n \n\n \n\n74\n\n%\n\n \n\n \n\n84\n\n%\n\n \n\n \n\n68\n\n%\n\n \n\n \n\n77\n\n%\n\nCrossing at 1415\n\n \n\nTX\n\n \n\n \n\n112\n\n \n\n \n\n \n\n77\n\n%\n\n \n\n \n\n80\n\n%\n\n \n\n \n\n53\n\n%\n\n \n\n \n\n68\n\n%\n\nDecatur Angle\n\n \n\nTX\n\n \n\n \n\n302\n\n \n\n \n\n \n\n82\n\n%\n\n \n\n \n\n87\n\n%\n\n \n\n \n\n60\n\n%\n\n \n\n \n\n71\n\n%\n\nEsperanza at Palo Alto\n\n \n\nTX\n\n \n\n \n\n322\n\n \n\n \n\n \n\n89\n\n%\n\n \n\n \n\n84\n\n%\n\n \n\n \n\n61\n\n%\n\n \n\n \n\n72\n\n%\n\nHeights at 515\n\n \n\nTX\n\n \n\n \n\n96\n\n \n\n \n\n \n\n77\n\n%\n\n \n\n \n\n84\n\n%\n\n \n\n \n\n69\n\n%\n\n \n\n \n\n79\n\n%\n\nHeritage Square\n\n \n\nTX\n\n \n\n \n\n204\n\n \n\n \n\n \n\n81\n\n%\n\n \n\n \n\n80\n\n%\n\n \n\n \n\n71\n\n%\n\n \n\n \n\n79\n\n%\n\nOaks at Georgetown\n\n \n\nTX\n\n \n\n \n\n192\n\n \n\n \n\n \n\n97\n\n%\n\n \n\n \n\n85\n\n%\n\n \n\n \n\n62\n\n%\n\n \n\n \n\n67\n\n%\n\n15 West Apartments\n\n \n\nWA\n\n \n\n \n\n120\n\n \n\n \n\n \n\n94\n\n%\n\n \n\n \n\n97\n\n%\n\n \n\n \n\n92\n\n%\n\n \n\n \n\n97\n\n%\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMRB Seniors Housing and Skilled Nursing Properties-Stabilized (3)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nVillage Point (7)\n\n \n\nNJ\n\n \n\n \n\n120\n\n \n\n(8)\n\n \n\n82\n\n%\n\n \n\n \n\n85\n\n%\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n8,420\n\n \n\n \n\n \n\n85.9\n\n%\n\n \n\n \n\n88.8\n\n%\n\n \n\n \n\n78.1\n\n%\n\n \n\n \n\n82.6\n\n%\n\n(1)\nPhysical occupancy is defined as the total number of units occupied divided by total units at the date of measurement.\n\n(2)\nEconomic occupancy is defined as the net rental income received divided by the maximum amount of rental income to be derived from each property. This statistic is reflective of rental concessions, delinquent rents and non-revenue units such as model units and employee units. Physical occupancy is a point in time measurement while economic occupancy is a measurement over the period presented. Therefore, economic occupancy for a period may exceed the actual occupancy at any point in time.\n\n68\n\n \n\n(3)\nA property is considered stabilized once it reaches 90% physical occupancy for 90 days and an achievement of 1.15 times debt service coverage ratio on amortizing debt service for a period after construction completion or completion of the rehabilitation.\n\n(4)\nThe economic occupancy amounts are based on the latest available financial information, which is as of December 31, 2025.\n\n(5)\nPhysical and economic occupancy information is not available for the periods indicated as the related investment was recently acquired or is otherwise unavailable.\n\n(6)\nThe MRB is defeased and as such, the Partnership does not report property occupancy information.\n\n(7)\nVillage Point is a skilled nursing property with 120 beds in 92 units. Physical occupancy is based on the daily average of beds occupied during the last month of the period. Economic occupancy is not reported for skilled nursing properties.\n\nComparison of the three months ended March 31, 2026 and 2025\n\nOccupancy metrics as of March 31, 2026 decreased from the same period in 2025 due primarily to occupancy declines at various properties located in Texas - primarily in San Antonio and Houston. These markets have experienced large increases in the supply of available multifamily units in recent periods. Overall higher vacancy levels in these markets are putting pressure on leasing at the properties related to our MRBs. We observed new construction starts in these markets declined sharply starting in late 2023 in San Antonio and mid-2024 in Austin and we expect that occupancy will recover once available units are absorbed and new supply deliveries decline in the near term. Despite these declines in occupancy, all Texas borrowers are still current on MRB debt service. If there are continuing declines in operating results of the properties such that the borrowers are unable to make contractual principal and interest payments on our MRBs, we may receive forbearance requests or experience MRB defaults. We may choose to provide support to the borrowers through supplemental property loans to prevent such MRB defaults, which will be considered on a case-by-case basis. We will continue to monitor results and discuss property operations with the individual borrowers.\n\nExcluding Texas properties, occupancy metrics have been fairly steady year over year with physical occupancy of 91.1% and 90.1% as of March 31, 2026 and 2025, respectively, and economic occupancy of 92.6% and 93.3% as of March 31, 2026 and 2025, respectively.\n\nRestricted rents at affordable multifamily properties are tied to changes in AMI, which has generally been increasing in the United States as overall wages increased significantly in 2021 through 2024. AMI is updated on a one-year lag, so restricted rental rates will increase on a similar lag and is realized upon annual lease renewals. On an overall basis, we noted same-property maximum rental income amounts increased 2.7% during the three months ended March 31, 2026 as compared to the same period in 2025. However, we observed a decrease in same-property net rental revenue of 4.3% during the three months ended March 31, 2026 as compared to the same period in 2025 due to lower physical occupancy at properties in Texas.\n\n69\n\n \n\nNon-Consolidated Properties - Not Stabilized\n\nThe owners of the following residential properties do not meet the definition of a VIE and/or we have evaluated and determined we are not the primary beneficiary of each VIE. As a result, we do not report the assets, liabilities and results of operations of these properties on a consolidated basis. As of March 31, 2026, these residential properties have not met the stabilization criteria (see footnote 3 below the table). As of March 31, 2026 debt service on the Partnership’s MRBs and GILs for the non-consolidated, non-stabilized properties was current. The amounts presented below were obtained from records provided by the property owners and their related property management service providers.\n\n \n\n \n\n \n\n \n\nNumber\nof Units as of\nMarch 31,\n\n \n\n \n\nPhysical Occupancy (1)\nas of March 31,\n\nEconomic Occupancy (2)\nfor the three months ended March 31,\n\n \n\nProperty Name\n\n \n\nState\n\n \n\n2026\n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nMRB Multifamily Properties-Non Stabilized (3)\n\n \n\nResidency at the Mayer (4), (5)\n\n \n\nCA\n\n \n\n \n\n79\n\n \n\n \n\n \n\n72\n\n%\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\nMaryAlice Circle Apartments (4)\n\n \n\nGA\n\n \n\n \n\n98\n\n \n\n \n\n \n\n96\n\n%\n\n \n\n \n\n79\n\n%\n\n \n\n \n\n93\n\n%\n\n \n\nn/a\n\n \n\nWoodington Gardens Apartments\n\n \n\nMD\n\n \n\n \n\n197\n\n \n\n \n\n \n\n92\n\n%\n\n \n\n \n\n93\n\n%\n\n \n\n \n\n87\n\n%\n\n \n\n \n\n89\n\n%\n\nAgape Helotes (4), (6)\n\n \n\nTX\n\n \n\n \n\n288\n\n \n\n \n\n \n\n82\n\n%\n\n \n\nn/a\n\n \n\n \n\n \n\n82\n\n%\n\n \n\nn/a\n\n \n\nAventine Apartments\n\n \n\nWA\n\n \n\n \n\n68\n\n \n\n \n\n \n\n94\n\n%\n\n \n\n \n\n87\n\n%\n\n \n\n \n\n95\n\n%\n\n \n\n \n\n77\n\n%\n\nThe Safford (4)\n\n \n\nAZ\n\n \n\n \n\n200\n\n \n\n \n\n \n\n99\n\n%\n\n \n\nn/a\n\n \n\n \n\n \n\n99\n\n%\n\n \n\nn/a\n\n \n\n40rty on Colony - Series P (4)\n\n \n\nCA\n\n \n\n \n\n40\n\n \n\n \n\n \n\n55\n\n%\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\nResidency at Empire (4)\n\n \n\nCA\n\n \n\n \n\n148\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\nResidency at the Entrepreneur (4)\n\n \n\nCA\n\n \n\n \n\n200\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\nVillage at Hanford Square (4)\n\n \n\nCA\n\n \n\n \n\n100\n\n \n\n \n\n \n\n39\n\n%\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\n \n\n \n\n \n\n \n\n1,418\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMRB Seniors Housing and Skilled Nursing Properties-Non Stabilized (3)\n\n \n\nMeadow Valley (4), (7)\n\n \n\nMI\n\n \n\n \n\n164\n\n \n\n(6)\n\n \n\n80\n\n%\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nGIL Multifamily Properties-Non Stabilized (3)\n\n \n\nPoppy Grove I (4)\n\n \n\nCA\n\n \n\n \n\n147\n\n \n\n \n\n \n\n96\n\n%\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\nPoppy Grove II (4)\n\n \n\nCA\n\n \n\n \n\n82\n\n \n\n \n\n \n\n96\n\n%\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\nPoppy Grove III (4)\n\n \n\nCA\n\n \n\n \n\n158\n\n \n\n \n\n \n\n99\n\n%\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\nResidency at Sky Village Hollywood (4)\n\n \n\nCA\n\n \n\n \n\n523\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\n \n\n \n\n \n\n \n\n910\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nGrand total\n\n \n\n \n\n \n\n \n\n2,492\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(1)\nPhysical occupancy is defined as the total number of units occupied divided by total units at the date of measurement.\n\n(2)\nEconomic occupancy is defined as the net rental income received divided by the maximum amount of rental income to be derived from each property. This statistic is reflective of rental concessions, delinquent rents and non-revenue units such as model units and employee units. Physical occupancy is a point in time measurement while economic occupancy is a measurement over the period presented. Therefore, economic occupancy for a period may exceed the actual occupancy at any point in time.\n\n(3)\nThe property is not considered stabilized as it has not met the criteria for stabilization. A property is considered stabilized once construction and/or rehabilitation is complete, it reaches 90% physical occupancy for 90 days, and it achieves 1.15 times debt service coverage ratio on amortizing debt service for a certain period.\n\n(4)\nPhysical and economic occupancy information is not available for the periods indicated as the related investment was under construction or rehabilitation, or was recently acquired.\n\n(5)\nThe physical occupancy is based on the latest available occupancy information, which is as of December 31, 2025.\n\n(6)\nThe physical occupancy and economic occupancy amounts are based on the latest available occupancy and financial information, which is as of December 31, 2025.\n\n(7)\nMeadow Valley is a seniors housing property with 164 beds in 154 units.\n\nAs of March 31, 2026, Agape Helotes is continuing its conversion from market-rate units to rent-restricted units after purchase of the property by a non-profit entity in May 2025. Aventine Apartments and Woodington Garden Apartments are undergoing in-place rehabilitations and will report occupancy during the rehabilitation period. Construction or rehabilitation of the properties in the remainder of the MRB multifamily properties non-stabilized group is complete.\n\nAs of March 31, 2026, Meadow Valley has completed construction and is in lease-up.\n\nPoppy Grove I and Poppy Grove II completed the permanent conversion process to Freddie Mac’s forward TEL commitment and were fully redeemed in April 2026. Poppy Grove III has substantially completed construction and the permanent conversion process to Freddie Mac’s forward TEL commitment is being finalized. Residency at Sky Village Hollywood is a new construction property that is in the pre-development phase.\n\n70\n\n \n\nJV Equity Investments\n\nWe are a noncontrolling equity investor in various unconsolidated entities formed for the purpose of constructing market-rate, multifamily real estate properties. The Partnership determined the JV Equity Investments are VIEs but that the Partnership is not the primary beneficiary. As a result, the Partnership does not report the assets, liabilities and results of operations of these properties on a consolidated basis. The one exception is Vantage at San Marcos, for which the Partnership is deemed the primary beneficiary and reports the entity's assets and liabilities on a consolidated basis. Our JV Equity Investments entitle us to shares of certain cash flows generated by the entities from operations and upon the occurrence of certain capital transactions, such as a refinance or sale. The amounts presented below were obtained from records provided by the property management service providers.\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPhysical Occupancy (1)\nas of March 31,\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProperty Name\n\n \n\nState\n\n \n\nConstruction Completion Date\n\n \n\nPlanned Number of Units\n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\nRevenue for the three months ended March 31, 2026 (2)\n\n \n\n \n\nSale Date\n\n \n\nPer-unit\nSale Price\n\n \n\nMost Recent Property Sales\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nVantage at Stone Creek\n\n \n\nNE\n\n \n\nApril 2020\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nJanuary 2023\n\n \n\n \n\n196,000\n\n \n\nVantage at Coventry\n\n \n\nNE\n\n \n\nFebruary 2021\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nJanuary 2023\n\n \n\n \n\n180,000\n\n \n\nVantage at Conroe\n\n \n\nTX\n\n \n\nJanuary 2021\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nJune 2023\n\n \n\n \n\n174,000\n\n \n\nVantage at Tomball\n\n \n\nTX\n\n \n\nApril 2022\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nJanuary 2025\n\n \n\n \n\n148,000\n\n \n\nVantage at Helotes\n\n \n\nTX\n\n \n\nNovember 2022\n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nMay 2025\n\n \n\n \n\n170,000\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating Properties\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nVantage at Fair Oaks\n\n \n\nTX\n\n \n\nMay 2023\n\n \n\n \n\n288\n\n \n\n \n\n \n\n88\n\n%\n\n \n\n \n\n86\n\n%\n\n \n\n$\n\n1,126,790\n\n \n\n \n\nn/a\n\n \n\nn/a\n\n \n\nVantage at Hutto\n\n \n\nTX\n\n \n\nDecember 2023\n\n \n\n \n\n288\n\n \n\n \n\n \n\n94\n\n%\n\n \n\n \n\n78\n\n%\n\n \n\n \n\n1,139,253\n\n \n\n \n\nn/a\n\n \n\nn/a\n\n \n\nVantage at McKinney Falls\n\n \n\nTX\n\n \n\nJuly 2024\n\n \n\n \n\n288\n\n \n\n \n\n \n\n86\n\n%\n\n \n\n \n\n65\n\n%\n\n \n\n \n\n1,058,086\n\n \n\n \n\nn/a\n\n \n\nn/a\n\n \n\nVantage at Loveland\n\n \n\nCO\n\n \n\nOctober 2024\n\n \n\n \n\n288\n\n \n\n \n\n \n\n91\n\n%\n\n \n\n \n\n54\n\n%\n\n \n\n \n\n1,416,813\n\n \n\n \n\nn/a\n\n \n\nn/a\n\n \n\nFreestone Cresta Bella\n\n \n\nTX\n\n \n\nNovember 2024\n\n \n\n \n\n296\n\n \n\n \n\n \n\n65\n\n%\n\n \n\n \n\n30\n\n%\n\n \n\n \n\n878,430\n\n \n\n \n\nn/a\n\n \n\nn/a\n\n \n\nValage Senior Living Carson Valley\n\n \n\nNV\n\n \n\nApril 2025\n\n \n\n \n\n102\n\n \n\n (3)\n\n \n\n80\n\n%\n\n \n\nn/a\n\n \n\n \n\n \n\n1,883,491\n\n \n\n \n\nn/a\n\n \n\nn/a\n\n \n\nFreestone Greenville\n\n \n\nTX\n\n \n\nSeptember 2025\n\n \n\n \n\n300\n\n \n\n \n\n \n\n41\n\n%\n\n \n\nn/a\n\n \n\n \n\n \n\n474,537\n\n \n\n \n\nn/a\n\n \n\nn/a\n\n \n\nThe Jessam at Hays Farm\n\n \n\nAL\n\n \n\nDecember 2025\n\n \n\n \n\n318\n\n \n\n \n\n \n\n16\n\n%\n\n \n\nn/a\n\n \n\n \n\n \n\n174,375\n\n \n\n \n\nn/a\n\n \n\nn/a\n\n \n\nFreestone Ladera\n\n \n\nTX\n\n \n\nDecember 2025\n\n \n\n \n\n288\n\n \n\n \n\n \n\n17\n\n%\n\n \n\nn/a\n\n \n\n \n\n \n\n143,287\n\n \n\n \n\nn/a\n\n \n\nn/a\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProperties in Planning\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nVantage at San Marcos (4)\n\n \n\nTX\n\n \n\nn/a\n\n \n\n \n\n288\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\nn/a\n\n \n\nFreestone Greeley\n\n \n\nCO\n\n \n\nn/a\n\n \n\n \n\n296\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\nn/a\n\n \n\nValage Senior Living Mt. Rose\n\n \n\nNV\n\n \n\nn/a\n\n \n\n \n\n122\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\n \n\nn/a\n\n \n\nn/a\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n3,162\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(1)\nPhysical occupancy is defined as the total number of units occupied divided by total units at the date of measurement.\n\n(2)\nRevenue is attributable to the property underlying the Partnership’s equity investment and is not included in the Partnership's income.\n\n(3)\nValage Senior Living Carson Valley is a seniors housing property with 102 beds in 88 units.\n\n(4)\nThe property is reported as a consolidated VIE as of March 31, 2026 (see Note 3 to the Partnership’s condensed consolidated financial statements).\n\nNine properties have completed construction and are leasing. Three investments are still in the planning phase and have not commenced construction. We regularly discuss operations and lease-up progress with the respectively managing members and property management service providers. Once occupancy is stabilized above 90%, the managing member will likely evaluate options for the sale of the property.\n\n71\n\n \n\nMF Properties\n\nAs of March 31, 2026, we owned four MF Properties that we report on a consolidated basis. The amounts presented below were obtained from records provided by our property management service provider.\n\n \n\n \n\n \n\n \n\nNumber\nof Units as of\nMarch 31,\n\n \n\n \n\nPhysical Occupancy (1)\nas of March 31,\n\nEconomic Occupancy (2)\nfor the three months ended March 31,\n\nProperty Name\n\n \n\nState\n\n \n\n2026\n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n2026\n\n \n\n \n\n2025\n\nMF Properties\n\nCentury Plaza Apartments (3)\n\n \n\nSC\n\n \n\n \n\n212\n\n \n\n \n\n \n\n87\n\n%\n\n \n\nn/a\n\n \n\n \n\n67\n\n%\n\n \n\nn/a\n\nThe Park at Sondrio Apartments (3)\n\n \n\nSC\n\n \n\n \n\n271\n\n \n\n \n\n \n\n57\n\n%\n\n \n\nn/a\n\n \n\n \n\n50\n\n%\n\n \n\nn/a\n\nThe Park at Vietti Apartments (3)\n\n \n\nSC\n\n \n\n \n\n204\n\n \n\n \n\n \n\n67\n\n%\n\n \n\nn/a\n\n \n\n \n\n55\n\n%\n\n \n\nn/a\n\nWindsor Shores Apartments (3)\n\n \n\nSC\n\n \n\n \n\n176\n\n \n\n \n\n \n\n82\n\n%\n\n \n\nn/a\n\n \n\n \n\n62\n\n%\n\n \n\nn/a\n\n \n\n \n\n \n\n \n\n \n\n863\n\n \n\n \n\n \n\n72\n\n%\n\n \n\nn/a\n\n \n\n \n\n56\n\n%\n\n \n\nn/a\n\n \n\n(1)\nPhysical occupancy is defined as the total number of units occupied divided by total units at the date of measurement.\n\n(2)\nEconomic occupancy is defined as the net rental income received divided by the maximum amount of rental income to be derived from each property. This statistic is reflective of rental concessions, delinquent rents and non-revenue units such as model units and employee units. Physical occupancy is a point in time measurement while economic occupancy is a measurement over the period presented. Therefore, economic occupancy for a period may exceed the actual occupancy at any point in time.\n\n(3)\nPhysical and economic occupancy information is not available for the periods indicated as the MF property was recently acquired.\n\nWe acquired the four MF Properties via deed in lieu of foreclosure of several MRB and taxable MRB investments. We believe occupancy is lower than local market vacancies due to mismanagement of the properties by the prior owners, which necessitated the deed in lieu of foreclosure process for us to obtain ownership and attempt to improve operations to protect and maximize our investment. We, the Greystone asset management team, and the property management service provider are focused on improving the overall tenant profile at each property to increase occupancy with quality tenants, which will likely result in a temporary decline in occupancies for the properties overall.\n\nAffordable Multifamily Investments Segment\n\nThe Partnership’s primary purpose is to acquire and hold as investments a portfolio of MRBs which have been issued to provide construction and/or permanent financing for residential properties and commercial properties in their market area. We have also invested in taxable MRBs, GILs, taxable GILs and property loans which are included within this segment. We also report the Partnership’s proportionate share of earnings from our Construction Lending JV within this segment. All “General and administrative expenses” on our condensed consolidated statements of operations are reported within this segment.\n\nOur MRBs, taxable MRBs, GILs, taxable GILs and certain property loans are secured by a mortgage or deed of trust. Property loans related to multifamily properties are also included in this segment and may or may not be secured by a mortgage or deed of trust.\n\nThe following table compares operating results for the Affordable Multifamily Investments segment for the periods indicated (dollar amounts in thousands):\n\n \n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n$ Change\n\n \n\n \n\n% Change\n\n \n\n \n\nAffordable Multifamily Investments\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal revenues\n\n \n\n$\n\n18,721\n\n \n\n \n\n$\n\n20,693\n\n \n\n \n\n$\n\n(1,972\n\n)\n\n \n\n \n\n-9.5\n\n%\n\n \n\nExpenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProvision for credit losses\n\n \n\n \n\n(2,076\n\n)\n\n \n\n \n\n(179\n\n)\n\n \n\n \n\n(1,897\n\n)\n\n \n\n \n\n1059.8\n\n%\n\n \n\nDepreciation\n\n \n\n \n\n-\n\n \n\n \n\n \n\n4\n\n \n\n \n\n \n\n(4\n\n)\n\n \n\n \n\n-100.0\n\n%\n\n \n\nInterest expense\n\n \n\n \n\n10,644\n\n \n\n \n\n \n\n12,449\n\n \n\n \n\n \n\n(1,805\n\n)\n\n \n\n \n\n-14.5\n\n%\n\n \n\nNet result from derivative transactions\n\n \n\n \n\n(936\n\n)\n\n \n\n \n\n2,504\n\n \n\n \n\n \n\n(3,440\n\n)\n\n \n\n \n\n-137.4\n\n%\n\n \n\nGeneral and administrative expenses\n\n \n\n \n\n4,651\n\n \n\n \n\n \n\n4,570\n\n \n\n \n\n \n\n81\n\n \n\n \n\n \n\n1.8\n\n%\n\n \n\nTotal expenses\n\n \n\n \n\n12,283\n\n \n\n \n\n \n\n19,348\n\n \n\n \n\n \n\n(7,065\n\n)\n\n \n\n \n\n-36.5\n\n%\n\n \n\nOther income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nGain on deed in lieu of foreclosures\n\n \n\n \n\n2,219\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n2,219\n\n \n\n \n\nN/A\n\n \n\n \n\nEarnings (losses) from investments in unconsolidated entities\n\n \n\n \n\n18\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n18\n\n \n\n \n\nN/A\n\n \n\n \n\nSegment net income\n\n \n\n$\n\n8,675\n\n \n\n \n\n$\n\n1,345\n\n \n\n \n\n$\n\n7,330\n\n \n\n \n\n \n\n545.0\n\n%\n\n \n\nComparison of the Three Months Ended March 31, 2026 and 2025\n\n72\n\n \n\nTotal revenues decreased for the three months ended March 31, 2026 as compared to the same period in 2025 primarily due to:\n\n•\nA decrease of approximately $2.7 million in interest income due to MRB redemptions and principal repayments, offset by an increase of approximately $807,000 in interest income from recent MRB advances;\n\n•\nA decrease of approximately $1.5 million in interest income due to recent GIL paydowns, offset by an increase of approximately $697,000 in interest income from recent GIL investments;\n\n•\nAn increase of approximately $823,000 in other interest income from higher average property loan, taxable MRB and taxable GIL investment balances of approximately $42.1 million; and\n\n•\nA decrease of approximately $113,000 in other interest income due to less interest earned on cash balances.\n\nThe provision for credit losses for the three months ended March 31, 2026 includes an asset-specific allowance of approximately $93,000 related to the Opportunity South Carolina property loan offset by a recovery of approximately $2.1 million of our previously recognized allowance for credit loss related to The Park at Sondrio MRB and taxable MRB, The Park at Vietti MRB and taxable MRB, and Windsor Shores Apartments MRB. We also recorded a decrease in our general allowance for credit losses due to a decrease in the weighted average life of the remaining investment portfolio.\n\nThe provision for credit losses for the three months ended March 31, 2025 is primarily due to GIL and property loan redemptions, a decrease in the weighted average life of the remaining investment portfolio, and updates of market data used as quantitative assumptions in our model used to estimate the allowance for credit losses.\n\nDepreciation expense was minimal for the three months ended March 31, 2026 and 2025.\n\nTotal interest expense decreased for the three months ended March 31, 2026 as compared to the same period in 2025 primarily due to:\n\n•\nA decrease of approximately $1.2 million due to lower average interest rates on our debt financings; and\n\n•\nA decrease of approximately $691,000 due to a decrease in the average outstanding principal of our debt financing instruments of approximately $74.7 million.\n\nNet result from derivative transactions consists of realized and unrealized (gains) losses from our derivative financial instruments. Realized (gains) losses represent receipts or payments related to our interest rate swaps during the period. Unrealized (gains) losses are generally a result of changes in current and forward interest rates during the period. Increasing interest rates generally result in unrealized gains while decreasing interest rates generally result in unrealized losses. The following table summarizes the components of this line item for the three months ended March 31, 2026 and 2025 (dollar amounts in thousands):\n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nRealized (gains) losses on derivatives, net\n\n \n\n$\n\n38\n\n \n\n \n\n$\n\n(763\n\n)\n\nUnrealized (gains) losses on derivatives, net\n\n \n\n \n\n(974\n\n)\n\n \n\n \n\n3,267\n\n \n\nNet result from derivative transactions\n\n \n\n$\n\n(936\n\n)\n\n \n\n$\n\n2,504\n\n \n\nWe had realized losses on derivatives, net, during the three months ended March 31, 2026 as compared to realized gains during the same period in 2025 due to generally decreasing spot interest rates during 2025 and 2026. Unrealized gains on derivatives, net, were approximately $974,000 for the three months ended March 31, 2026 due to generally increasing forward interest rates during the period, compared to unrealized losses of approximately $3.3 million for the three months ended March 31, 2025 due to generally decreasing forward interest rates during the period, resulting in increased gains of approximately $4.3 million between the two periods. See the “Executive Summary” section of this Item 2 for additional discussion.\n\nThe increase in general and administrative expenses for the three months ended March 31, 2026 as compared to the same period in 2025 was primarily due to an increase of approximately $94,000 in professional and consulting fees.\n\nEarnings (losses) from investments in unconsolidated entities represent our proportionate share of net loss of the Construction Lending JV for the period. The Construction Lending JV began activities in April 2025.\n\nGain on deed in lieu of foreclosures represents our gain as a result of the deed in lieu of foreclosure of the SC MF Properties during the three months ended March 31, 2026. The gain was equal to the excess amount of the appraised value of the real estate assets acquired over our amortized cost basis of the Windsor Shores MRB and taxable MRB and The Ivy Apartments (a/k/a Century Plaza Apartments) MRB.\n\n73\n\n \n\nThe following table summarizes the segment's net interest income, average principal balances, and related yields earned on interest-earning assets and incurred on interest-bearing liabilities, as well as other income included in total revenues for the periods indicated. The average balances are based primarily on monthly averages during the respective periods. All dollar amounts are in thousands.\n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n \n\n \n\nAverage\nPrincipal Balance\n\n \n\n \n\nInterest\nIncome/\nExpense\n\n \n\n \n\nAverage\nRates\nEarned/\nPaid\n\n \n\n \n\nAverage\nPrincipal Balance\n\n \n\n \n\nInterest\nIncome/\nExpense\n\n \n\n \n\nAverage\nRates\nEarned/\nPaid\n\n \n\n \n\nInterest-earning assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMortgage revenue bonds\n\n \n\n$\n\n841,936\n\n \n\n \n\n$\n\n12,651\n\n \n\n \n\n \n\n6.0\n\n%\n\n \n\n$\n\n939,284\n\n \n\n \n\n$\n\n14,501\n\n \n\n \n\n \n\n6.2\n\n%\n\n \n\nGovernmental issuer loans\n\n \n\n \n\n138,758\n\n \n\n \n\n \n\n2,364\n\n \n\n \n\n \n\n6.8\n\n%\n\n \n\n \n\n172,505\n\n \n\n \n\n \n\n3,135\n\n \n\n \n\n \n\n7.3\n\n%\n\n \n\nProperty loans\n\n \n\n \n\n46,372\n\n \n\n \n\n \n\n892\n\n \n\n \n\n \n\n7.7\n\n%\n\n \n\n \n\n44,244\n\n \n\n \n\n \n\n709\n\n \n\n \n\n \n\n6.4\n\n%\n\n \n\nOther investments\n\n \n\n \n\n92,110\n\n \n\n \n\n \n\n1,657\n\n \n\n \n\n \n\n7.2\n\n%\n\n \n\n \n\n52,139\n\n \n\n \n\n \n\n993\n\n \n\n \n\n \n\n7.6\n\n%\n\n \n\nTotal interest-earning assets\n\n \n\n$\n\n1,119,176\n\n \n\n \n\n$\n\n17,564\n\n \n\n \n\n \n\n6.3\n\n%\n\n \n\n$\n\n1,208,172\n\n \n\n \n\n$\n\n19,338\n\n \n\n \n\n \n\n6.4\n\n%\n\n \n\nOther income\n\n \n\n \n\n \n\n \n\n \n\n774\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n959\n\n \n\n \n\n \n\n \n\n \n\nNon-investment income\n\n \n\n \n\n \n\n \n\n \n\n383\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n396\n\n \n\n \n\n \n\n \n\n \n\nTotal revenues\n\n \n\n \n\n \n\n \n\n$\n\n18,721\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n20,693\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest-bearing liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLines of credit\n\n \n\n$\n\n55,983\n\n \n\n \n\n$\n\n851\n\n \n\n \n\n \n\n6.1\n\n%\n\n \n\n$\n\n16,264\n\n \n\n \n\n$\n\n283\n\n \n\n \n\n \n\n7.0\n\n%\n\n \n\nFixed TEBS financing\n\n \n\n \n\n223,975\n\n \n\n \n\n \n\n2,235\n\n \n\n \n\n \n\n4.0\n\n%\n\n \n\n \n\n236,141\n\n \n\n \n\n \n\n2,365\n\n \n\n \n\n \n\n4.0\n\n%\n\n \n\nFixed TEBS Residual financing\n\n \n\n \n\n46,720\n\n \n\n \n\n \n\n837\n\n \n\n \n\n \n\n7.2\n\n%\n\n \n\n \n\n52,280\n\n \n\n \n\n \n\n936\n\n \n\n \n\n \n\n7.2\n\n%\n\n \n\nFixed 2024 PFA Securitization Transaction\n\n \n\n \n\n55,257\n\n \n\n \n\n \n\n678\n\n \n\n \n\n \n\n4.9\n\n%\n\n \n\n \n\n75,006\n\n \n\n \n\n \n\n921\n\n \n\n \n\n \n\n4.9\n\n%\n\n \n\nVariable TOB financing\n\n \n\n \n\n568,512\n\n \n\n \n\n \n\n5,695\n\n \n\n \n\n \n\n4.0\n\n%\n\n \n\n \n\n645,486\n\n \n\n \n\n \n\n7,634\n\n \n\n \n\n \n\n4.7\n\n%\n\n \n\nRealized (gains) losses on interest rate swaps, net\n\n \n\nN/A\n\n \n\n \n\n \n\n39\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n \n\n \n\n(763\n\n)\n\n \n\nN/A\n\n \n\n \n\nTotal interest-bearing liabilities\n\n \n\n$\n\n950,447\n\n \n\n \n\n$\n\n10,335\n\n \n\n \n\n \n\n4.3\n\n%\n\n \n\n$\n\n1,025,177\n\n \n\n \n\n$\n\n11,376\n\n \n\n \n\n \n\n4.4\n\n%\n\n \n\nNet interest spread (1)\n\n \n\n \n\n \n\n \n\n$\n\n7,229\n\n \n\n \n\n \n\n2.6\n\n%\n\n \n\n \n\n \n\n \n\n$\n\n7,962\n\n \n\n \n\n \n\n2.6\n\n%\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest expense on interest-bearing\n        liabilities excluding realized gains on\n        derivatives, net\n\n \n\n \n\n \n\n \n\n \n\n10,296\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n12,139\n\n \n\n \n\n \n\n \n\n \n\nAmortization of deferred finance costs\n\n \n\n \n\n \n\n \n\n \n\n348\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n310\n\n \n\n \n\n \n\n \n\n \n\nTotal interest expense\n\n \n\n \n\n \n\n \n\n$\n\n10,644\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n12,449\n\n \n\n \n\n \n\n \n\n \n\n(1)\nNet interest spread equals interest income less interest expense, excluding amortization of deferred finance costs, and adjusted for realized (gains) losses on derivative instruments.\n\n \n\n74\n\n \n\nThe following table summarizes the changes in interest income and interest expense for the periods indicated, and the extent to which these variances are attributable to 1) changes in the volume of interest-earning assets and interest-bearing liabilities, and 2) changes in the interest rates of the interest-earning assets and interest-bearing liabilities. All dollar amounts are in thousands.\n\n \n\n \n\nFor the Three Months Ended March 31, 2026 vs. 2025\n\n \n\n \n\n \n\n \n\nTotal\nChange\n\n \n\n \n\nAverage\nVolume\n$ Change\n\n \n\n \n\nAverage\nRate\n$ Change\n\n \n\n \n\nInterest-earning assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMortgage revenue bonds\n\n \n\n$\n\n(1,850\n\n)\n\n \n\n$\n\n(1,503\n\n)\n\n \n\n$\n\n(347\n\n)\n\n \n\nGovernmental issuer loans\n\n \n\n \n\n(771\n\n)\n\n \n\n \n\n(613\n\n)\n\n \n\n \n\n(158\n\n)\n\n \n\nProperty loans\n\n \n\n \n\n183\n\n \n\n \n\n \n\n34\n\n \n\n \n\n \n\n149\n\n \n\n \n\nOther investments\n\n \n\n \n\n664\n\n \n\n \n\n \n\n761\n\n \n\n \n\n \n\n(97\n\n)\n\n \n\nTotal interest-earning assets\n\n \n\n$\n\n(1,774\n\n)\n\n \n\n$\n\n(1,321\n\n)\n\n \n\n$\n\n(453\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest-bearing liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLines of credit\n\n \n\n$\n\n568\n\n \n\n \n\n$\n\n691\n\n \n\n \n\n$\n\n(123\n\n)\n\n \n\nFixed TEBS Financing\n\n \n\n \n\n(130\n\n)\n\n \n\n \n\n(130\n\n)\n\n \n\n \n\n-\n\n \n\n \n\nFixed TEBS Residual Financing\n\n \n\n \n\n(99\n\n)\n\n \n\n \n\n(99\n\n)\n\n \n\n \n\n-\n\n \n\n \n\nFixed 2024 PFA Securitization Transaction\n\n \n\n \n\n(243\n\n)\n\n \n\n \n\n(243\n\n)\n\n \n\n \n\n-\n\n \n\n \n\nVariable TOB trust financing\n\n \n\n \n\n(1,939\n\n)\n\n \n\n \n\n(910\n\n)\n\n \n\n \n\n(1,029\n\n)\n\n \n\nRealized gains on interest rate swaps, net\n\n \n\n \n\n802\n\n \n\n \n\nN/A\n\n \n\n \n\n \n\n802\n\n \n\n \n\nTotal interest-bearing liabilities\n\n \n\n$\n\n(1,041\n\n)\n\n \n\n$\n\n(691\n\n)\n\n \n\n$\n\n(350\n\n)\n\n \n\nNet interest spread change\n\n \n\n$\n\n(733\n\n)\n\n \n\n$\n\n(630\n\n)\n\n \n\n$\n\n(103\n\n)\n\n \n\n \n\nOperational matters\n\nSee the section in this Item 2 titled “Portfolio Information” for discussion of physical and economic occupancy results and trends for our MRB and GIL investments.\n\nThe multifamily properties securing our MRBs were all current on contractual debt service payments on our MRBs as of March 31, 2026.\n\nOur sole student housing property securing an MRB, Live 929 Apartments, was 94% occupied as of March 31, 2026, and is current on MRB debt service. The property is approximately 52% preleased for the 2026-2027 academic year which is ahead of pace of leasing in prior years. The property leases exclusively to students, personnel and other tenants associated with the nearby Johns Hopkins University medical campus. The property is expected to pay all operating expenses and debt service from operating cash flows for the 2026-2027 academic year.\n\nWe own various MRBs and taxable MRBs that finance the construction or rehabilitation of affordable multifamily properties. We regularly monitor construction progress at the underlying properties and have noted no material cost overruns or supply chain disruptions for either construction materials or labor. Borrowers for all such MRBs are current on debt service as of March 31, 2026. In many instances, we have developer completion guaranties as well as capital contributed by LIHTC equity investors that will only receive their tax credits upon completion and stabilization of the projects, which create a strong disincentive to default.\n\nSeniors and Skilled Nursing Investments Segment\n\nThe Seniors and Skilled Nursing Investments segment provides acquisition, construction and permanent financing for seniors housing and skilled nursing properties and a property loan associated with a master lease of essential healthcare support buildings. Seniors housing consists of a combination of independent living, assisted living and memory care units.\n\nAs of March 31, 2026, we owned two MRBs with aggregate outstanding principal of $66.2 million, with an outstanding commitment to provide additional funding of $750,000 on a draw-down basis during construction. The MRBs are secured by a new construction, combined independent living, assisted living and memory care property in Traverse City, MI, with 164 total beds and a skilled nursing facility in Monroe Township, NJ with 120 beds. As of March 31, 2026, the Partnership also had a property loan with a principal balance of $7.3 million used to facilitate the purchase of a portfolio of nine essential healthcare support buildings located in eastern Pennsylvania. The loan is subordinate to the senior debt of the borrower and secured by a first priority security interest in master lease payments guaranteed by an investment grade healthcare system.\n\n75\n\n \n\nThe following table compares the operating results for the Seniors and Skilled Nursing Investments segment for the periods indicated (dollar amounts in thousands):\n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n$ Change\n\n \n\n \n\n% Change\n\n \n\nSeniors and Skilled Nursing Investments\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal revenues\n\n \n\n$\n\n1,255\n\n \n\n \n\n$\n\n1,232\n\n \n\n \n\n$\n\n23\n\n \n\n \n\n \n\n1.9\n\n%\n\nExpenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProvision for credit losses\n\n \n\n \n\n(2\n\n)\n\n \n\n \n\n7\n\n \n\n \n\n \n\n(9\n\n)\n\n \n\n \n\n-128.6\n\n%\n\nInterest expense\n\n \n\n \n\n576\n\n \n\n \n\n \n\n652\n\n \n\n \n\n \n\n(76\n\n)\n\n \n\n \n\n-11.7\n\n%\n\nNet result from derivative transactions\n\n \n\n \n\n(255\n\n)\n\n \n\n \n\n532\n\n \n\n \n\n \n\n(787\n\n)\n\n \n\n \n\n-147.9\n\n%\n\nTotal expenses\n\n \n\n \n\n319\n\n \n\n \n\n \n\n1,191\n\n \n\n \n\n \n\n(872\n\n)\n\n \n\n \n\n-73.2\n\n%\n\nSegment net income\n\n \n\n$\n\n936\n\n \n\n \n\n$\n\n41\n\n \n\n \n\n$\n\n895\n\n \n\n \n\n \n\n2182.9\n\n%\n\nComparison of the Three Months Ended March 31, 2026 and 2025\n\nTotal revenues increased for the three months ended March 31, 2026 as compared to the same period in 2025 due to higher average principal balances of approximately $2.4 million.\n\nThe provision for credit losses was minimal for the three months ended March 31, 2026 and 2025.\n\nInterest expense decreased for the three months ended March 31, 2026 as compared to the same period in 2025 primarily due to lower average interest rates on debt financing.\n\nThe net result from derivative transactions consists of realized and unrealized (gains) losses from our derivative financial instruments. Realized (gains) losses represent receipts or payments related to our interest rate swaps during the period. Unrealized (gains) losses are generally a result of changes in current and forward interest rates during the period. Increasing interest rates generally result in unrealized gains while decreasing interest rates generally result in unrealized losses. The following table summarizes the components of this line item for the three months ended March 31, 2026 and 2025 (dollar amounts in thousands):\n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nRealized (gains) losses on derivatives, net\n\n \n\n$\n\n(19\n\n)\n\n \n\n$\n\n(84\n\n)\n\nUnrealized (gains) losses on derivatives, net\n\n \n\n \n\n(236\n\n)\n\n \n\n \n\n616\n\n \n\nNet result from derivative transactions\n\n \n\n$\n\n(255\n\n)\n\n \n\n$\n\n532\n\n \n\nRealized gains on derivatives, net, decreased during the three months ended March 31, 2026 as compared to the same period in 2025 due to generally decreasing spot interest rates during 2025 and 2026. Unrealized gains on derivatives, net, were approximately $235,000 for the three months ended March 31, 2026 due to generally increasing forward interest rates during the period, compared to unrealized losses of approximately $616,000 for the three months ended March 31, 2025 due to generally decreasing forward interest rates during the period, resulting in increased gains of approximately $851,000 between the two periods. See the “Executive Summary” section of this Item 2 for additional discussion.\n\nMarket-Rate Joint Venture Investments Segment\n\nThe Market-Rate Joint Venture Investments segment consists of our noncontrolling joint venture equity investments in market-rate multifamily properties, also referred to as our investments in unconsolidated entities or JV Equity Investments. Our JV Equity Investments are passive in nature. Operational oversight of each property is controlled by our respective joint venture partners according to each respective entity’s operating agreement. Five of the properties are managed by a property management company affiliated with our joint venture partners. Decisions on when to sell an individual property are made by our respective joint venture partners based on their views of the local market conditions and current leasing trends.\n\nAs noted in the “Executive Summary” section in this Item 2, because of the challenges in the market rate multifamily markets, we will be implementing a strategy to reduce our capital allocation to market rate multifamily JV Equity Investments going forward. We and the respective managing members will manage the remaining portfolio of market rate multifamily investments to maximize sales prices and returns to the extent possible, with our return of capital from the sale of these investments to be redeployed into primarily MRB investments.\n\nWe account for all our JV Equity Investments using the equity method and recognize our preferred returns during the hold period. Specifically for our Vantage JV Equity Investments, an affiliate of our Vantage joint venture partner provides a guaranty of our preferred\n\n76\n\n \n\nreturns for Vantage Properties through a date approximately five years after commencement of construction. Upon the sale of a property, net proceeds will be distributed according to the entity operating agreement. Sales proceeds distributed to us that represent previously unrecognized preferred return and gain on sale are recognized in net income upon receipt. Historically, the majority of our income from our JV Equity Investments is recognized at the time of sale. As a result, we may experience significant income recognition in those quarters when a property is sold and our equity investment is redeemed.\n\nThe following table compares operating results for the Market-Rate Joint Venture Investments segment for the periods indicated (dollar amounts in thousands):\n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n$ Change\n\n \n\n \n\n% Change\n\n \n\nMarket-Rate Joint Venture Investments\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal revenues\n\n \n\n$\n\n357\n\n \n\n \n\n$\n\n2,397\n\n \n\n \n\n$\n\n(2,040\n\n)\n\n \n\n \n\n-85.1\n\n%\n\nExpenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest expense\n\n \n\n \n\n937\n\n \n\n \n\n \n\n396\n\n \n\n \n\n \n\n541\n\n \n\n \n\n \n\n136.6\n\n%\n\nOther income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nGain on sale of investments in unconsolidated entities\n\n \n\n \n\n-\n\n \n\n \n\n \n\n5\n\n \n\n \n\n \n\n(5\n\n)\n\n \n\n \n\n-100.0\n\n%\n\nEarnings (losses) from investments in unconsolidated entities\n\n \n\n \n\n(4,948\n\n)\n\n \n\n \n\n(992\n\n)\n\n \n\n \n\n(3,956\n\n)\n\n \n\n \n\n398.8\n\n%\n\nSegment net income (loss)\n\n \n\n$\n\n(5,528\n\n)\n\n \n\n$\n\n1,014\n\n \n\n \n\n$\n\n(6,542\n\n)\n\n \n\n \n\n-645.2\n\n%\n\nComparison of the Three Months Ended March 31, 2026 and 2025\n\nThe decrease in total revenues for the three months ended March 31, 2026 as compared to the same period in 2025 was primarily due to the following:\n\n•\nA decrease of approximately $2.2 million of investment income due to a preferred return distribution from Vantage at Loveland in March 2025; and\n\n•\nAn increase of approximately $169,000 in investment income related to preferred returns on equity contributions during 2025 and 2026.\n\nInterest expense for the three months ended March 31, 2026 and 2025 is related to our General LOC that is primarily secured by the JV Equity Investments. The increase in interest expense is primarily due to higher average outstanding balances.\n\nThere was no gain on sale of investments in unconsolidated entities for the three months ended March 31, 2026. The gain on sale of investments in unconsolidated entities for the three months ended March 31, 2025 is related to final settlement of the Vantage at Coventry sale that occurred in January 2023.\n\nEarnings (losses) on investments in unconsolidated entities is the Partnership’s recognition of its proportionate share of earnings (losses) on investments in unconsolidated entities using the equity method of accounting. Our JV Equity Investments typically incur operating losses during development and lease-up, particularly from depreciation, consistent with development plans. The increase in losses for the three months ended March 31, 2026 as compared to the same period in 2025 is primarily due to non-capitalized interest and depreciation expense at Valage Senior Living Carson Valley, The Jessam at Hays Farm, Freestone Greenville, Freestone Cresta Bella, and Freestone Ladera as the properties began primary operations in mid to late 2025. Depreciation and amortization expense accounted for approximately $1.9 million and $394,000 of our proportionate share of losses for the three months ended March 31, 2026 and 2025, with the remaining losses related to non-capitalized interest expense and general operating expenses.\n\nStrategic Matters\n\nAs noted in the “Executive Summary” section of this Item 2, we are focused on implementing our strategy to reduce our capital allocation to market rate multifamily JV Equity Investments. We and the respective managing members are managing the remaining portfolio of market rate multifamily investments to maximize sales prices and returns to the extent possible, with our return of capital from the sale of these investments to be redeployed into primarily tax-exempt MRB investments.\n\nWe remain positive on the market rate senior housing segment of the market. We believe market rate seniors housing industry trends, potential resident demographics, and expected returns remain encouraging, so we will continue to evaluate joint venture equity investment opportunities in the seniors housing segment, though in lower volume than our historical capital allocation to market rate multifamily investments. We have seen strong lease-up at Valage Senior Living Carson Valley with the property over 80% leased on a combined basis with the assisted living component at 100% leased as of March 31, 2026. In December 2025, we closed on a new market\n\n77\n\n \n\nrate seniors housing JV Equity Investment for Valage Mt. Rose in Reno, NV. This is our second seniors housing investment with the Valage Development group.\n\nCurrent market dynamics related to our JV Equity Investments are challenging. The San Antonio, TX, Austin, TX, and Huntsville, AL markets experienced record new multifamily unit supply in recent years, peaking in 2024. Rental rates and occupancy have declined as these markets absorb new units, which is putting downward pressure on rents, leasing velocity, and net operating income for these properties. We expect rental rates and occupancy to remain under pressure in early 2026, but expect this trend to reverse later in 2026 or early 2027 due to very limited new construction starts in late 2024 and 2025.\n\nSales Activity\n\nThe leasing market pressures noted in the “Executive Summary” section of this Item 2 and further discussed below have made it more difficult for the respective managing members of our stabilized JV Equity Investments to sell stabilized properties, resulting in longer than expected investment holding periods and lower sales prices. In addition, less available and more expensive debt capital has had pronounced effects on the multifamily capital markets, making property acquisitions by potential buyers harder to finance. Accordingly, we have observed increasing capitalization rates in recent periods resulting in lower property valuations versus the sales prices that were achieved for prior JV Equity Investments sold in 2022 and 2023. Historically, the majority of our income from our JV Equity Investments is recognized at the time of sale and is dependent on the sales prices of the related properties. After the current peak in new supply peaks, we expect net rents and occupancy to increase, capitalization rates to decline, and property valuations to increase. Such a recovery is subject to various macroeconomic and local market conditions.\n\nProperty Operations & Construction\n\nThe “Portfolio Information” section in this Item 2 contains various occupancy and other operational information relating to the JV Equity Investments. Of our 12 current JV Equity Investments (inclusive of Vantage at San Marcos), 9 have completed construction and 3 are in the planning stage.\n\nAs of March 31, 2026, there were no JV Equity Investments that were under construction. Persistently high interest rates in 2023 through now have caused actual interest costs during construction to exceed original budgets at certain properties. We have noted that such properties have utilized construction contingencies and developers have deferred a portion of their developer fee payments to address the higher than budgeted interest costs. In addition, high levels of new unit supply and declining market rents in certain local markets have prolonged the lease-up phase of certain properties such that operating cash flows are insufficient to pay all construction loan debt service. Under the individual property operating agreements, as additional capital is required, the parties will mutually agree on how to fund additional capital. During 2025, we contributed additional net equity totaling $2.0 million across six of our JV Equity Investments above our original equity commitments. In addition, we contributed additional net equity totaling $12.2 million across five of our JV Equity Investments during January through April 2026. The additional equity was primarily used to pay additional interest costs, certain property taxes, and operating shortfalls. We may contribute additional equity to certain JV Equity Investments during the remainder of 2026, though the ultimate amount is uncertain. The amount of such additional funding, if any, will depend on various future developments, including, but not limited to, the pace of development, changes in interest rates, the pace of lease-up, overall operating results of the underlying properties, and opportunities for property sales. We plan to contribute additional funds from unrestricted cash on hand or other currently available liquidity sources. Such additional equity may result in lower overall returns on our JV Equity Investments.\n\nMF Properties Segment\n\nAs of December 31, 2025, the Partnership did not own any MF Properties. In January and February 2026, we acquired the four SC MF Properties via deed in lieu of foreclosure or our prior MRB investments. The four properties are The Park at Sondrio Apartments in Greenville, SC; The Park at Vietti Apartments in Spartanburg, SC; Windsor Shores Apartments in Columbia, SC; and The Ivy Apartments (a/k/a Century Plaza Apartments) in Greenville, SC. Each property is 99.99% owned by the Partnership via various subsidiaries. Each property has a 0.01% member that is a non-profit entity, which will allow us to pursue a regulatory agreement to continue operating the properties subject to rental restrictions in exchange for an abatement of real estate taxes. The SC MF Properties are consolidated in the Partnership’s condensed consolidated financial statements. We have engaged a third-party property management company to manage the day-to-day operations of each property. We intend to operate the property to maximize the value of our investments, at which time we may look to sell the properties.\n\nThe Partnership previously owned the Suites on Paseo MF Property until the property was sold in December 2023 and there is no continuing involvement with the property. The Partnership previously sold The 50/50 MF Property to an unrelated non-profit organization in December 2022 in exchange for a seller financing property loan which is included in the MF Properties Segment.\n\n \n\n78\n\n \n\n \n\n \n\nFor the Three Months Ended March 31,\n\n \n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n$ Change\n\n \n\n \n\n% Change\n\n \n\n \n\nMF Properties\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal revenues\n\n \n\n$\n\n1,451\n\n \n\n \n\n$\n\n-\n\n \n\n \n\n$\n\n1,451\n\n \n\n \n\nN/A\n\n \n\n \n\nExpenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReal estate operating (exclusive of items shown below)\n\n \n\n \n\n828\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n828\n\n \n\n \n\nN/A\n\n \n\n \n\nDepreciation and amortization\n\n \n\n \n\n2,746\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n2,746\n\n \n\n \n\nN/A\n\n \n\n \n\nInterest expense\n\n \n\n \n\n1,010\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n1,010\n\n \n\n \n\nN/A\n\n \n\n \n\nNet result from derivative transactions\n\n \n\n \n\n(374\n\n)\n\n \n\n \n\n-\n\n \n\n \n\n \n\n(374\n\n)\n\n \n\nN/A\n\n \n\n \n\nTotal expenses\n\n \n\n \n\n4,210\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n4,210\n\n \n\n \n\nN/A\n\n \n\n \n\nIncome (loss) before income taxes\n\n \n\n \n\n(2,759\n\n)\n\n \n\n \n\n-\n\n \n\n \n\n \n\n(2,759\n\n)\n\n \n\nN/A\n\n \n\n \n\nIncome tax benefit\n\n \n\n \n\n(3\n\n)\n\n \n\n \n\n(3\n\n)\n\n \n\n \n\n-\n\n \n\n \n\n \n\n0.0\n\n%\n\n \n\nSegment net income (loss)\n\n \n\n$\n\n(2,756\n\n)\n\n \n\n$\n\n3\n\n \n\n \n\n$\n\n(2,759\n\n)\n\n \n\n \n\n-91966.7\n\n%\n\n \n\nResults for the three months ended March 31, 2026 primarily related to the four MF Properties acquired during the first quarter of 2026. Depreciation expense was approximately $1.2 million for the three months ended March 31, 2026. Amortization of in-place lease assets was approximately $1.6 million for the three months ended March 31, 2026.\n\nThere were no MF Properties owned during the three months ended March 31, 2025, so reported operations are minimal.\n\nThere was minimal income tax expense to report for the MF Properties segment for three months ended March 31, 2026 and 2025.\n\nLiquidity and Capital Resources\n\nWe continually evaluate our potential sources and uses of liquidity, including current and potential future developments related to market interest rates and the general economic and geopolitical environment. The information below is based on our current expectations and projections about future events and financial trends, which could materially differ from actual results. See the discussion of Risk Factors in Item 1A of the Partnership’s Form 10-K for the year ended December 31, 2025 for further information.\n\nOur short-term liquidity requirements over the next 12 months will be primarily operational expenses; investment commitments (net of leverage secured by the investment assets); debt service (principal and interest payments) related to our debt financings and mortgages payable; repayments of our secured lines of credit balances; and distribution payments to Unitholders. We expect to meet these liquidity requirements primarily using cash on hand, operating cash flows from our investments, proceeds from asset redemptions and sales in the normal course of business, and potentially additional debt financing issued in the normal course of business. In addition, we will consider the issuance of additional BUCs, Series A-1 Preferred Units, Series B Preferred Units, or other series of limited partnership interests in the Partnership based on needs and opportunities for executing our strategy.\n\nOur long-term liquidity requirements will be primarily for maturities of debt financings and mortgages payable, funding purchases of additional investment assets (net of leverage secured by the investment assets), and repayments of our secured lines of credit balances. We expect to meet these liquidity requirements primarily through refinancing of maturing debt financings with the same or similar lenders; contractual principal and interest payments from our investments; and proceeds from asset redemptions and sales in the normal course of business. In addition, we will consider the issuance of additional BUCs, Series A-1 Preferred Units, Series B Preferred Units, or other series of limited partnership interests in the Partnership based on needs and opportunities for executing our strategy.\n\nSources of Liquidity\n\nThe Partnership’s principal sources of liquidity consist of:\n\n•\nUnrestricted cash on hand;\n\n•\nOperating cash flows from investment assets;\n\n•\nNet operating cash flows from MF Properties;\n\n•\nSecured lines of credit;\n\n•\nProceeds from the redemption or sale of assets;\n\n•\nProceeds from obtaining additional debt; and\n\n•\nIssuances of debt securities, BUCs, Series A-1 Preferred Units, Series B Preferred Units, or other series of limited partnership interests.\n\n79\n\n \n\nUnrestricted Cash on Hand\n\nAs of March 31, 2026, we reported unrestricted cash on hand of approximately $20.6 million. There are no contractual restrictions on our ability to use unrestricted cash on hand. The Partnership has a financial covenant to maintain a minimum consolidated liquidity of $6.3 million under the terms of our financing arrangements.\n\nOperating Cash Flows from Investment Assets\n\nCash flows from operations are primarily comprised of regular principal and interest payments received on our investment assets that provide consistent cash receipts throughout the year. All MRBs, taxable MRBs, GILs, taxable GILs and property loans are current on contractual debt service payments as of March 31, 2026. Investment receipts, net of interest expense on related debt financing and lines of credit, are available for our general use. We also receive distributions from JV Equity Investments if, and when, cash is available for distribution.\n\nReceipt of operating cash from our investments in MRBs, taxable MRBs, and JV Equity Investments is dependent upon the generation of net cash flows at multifamily properties that underlie these investments. These underlying properties are subject to risks usually associated with direct investments in multifamily real estate, which include (but are not limited to) reduced occupancy, tenant defaults, falling rental rates, and increasing operating expenses.\n\nReceipt of operating cash from our investments in GILs, taxable GILs, and construction financing and mezzanine property loans is dependent on the availability of funds in the original development budgets. The elevated interest rate environment experienced in recent years continues to result in higher interest costs for properties with variable rate construction financing. We regularly monitor capitalized interest costs in comparison to capitalized interest reserves in the property’s development budget, available construction cost contingencies balances, and the funding of certain equity commitments by the owners of the underlying property. The developers may also make cash payments to pay interest due to avoid claims under their payment and completion guaranties.\n\nNet Operating Cash Flows from MF Properties\n\nCash flows generated by MF Properties, net of operating expenses and mortgage debt service payments, are unrestricted for use by the Partnership. The MF Properties are subject to risks usually associated with direct investments in multifamily real estate, which include (but are not limited to) reduced occupancy, tenant defaults, falling rental rates, and increasing operating expenses.\n\nSecured Lines of Credit\n\nWe maintain a General LOC with a commitment of up to $50.0 million to purchase additional investments and to meet general working capital and liquidity requirements. We may borrow, prepay and reborrow amounts at any time through the maturity date, subject to the limitations of a borrowing base. The aggregate available commitment cannot exceed a borrowing base calculation, which is equal to 35% multiplied by the aggregate value of a pool of eligible encumbered assets. Eligible encumbered assets consist of 100% of our equity capital contributions to JV Equity Investments, subject to certain limits and restrictions. The General LOC is secured by first priority security interests in our JV Equity Investments. We have the ability to increase the total maximum commitment by an additional $10.0 million to $60.0 million, subject to the identification of lenders to provide the additional commitment, the payment of certain fees, and other conditions. We will evaluate whether to increase the commitment based on the size of the borrowing base, liquidity needs and costs of such additional commitments. We are subject to various affirmative and negative covenants that, among others, require us to maintain consolidated liquidity of not less than $6.3 million (which will increase up to a maximum of $7.5 million if the maximum available commitment is fully increased to $60.0 million) and maintain a consolidated tangible net worth of not less than $200.0 million. We were in compliance with all covenants as of March 31, 2026. The outstanding balance of the General LOC was $50.0 million as of March 31, 2026 with no amounts available to be drawn. The General LOC has a maturity date of June 2027, with options to extend for up to two additional years, subject to certain terms and conditions.\n\nWe maintain an Acquisition LOC with a commitment of up to $80.0 million that may be used to fund purchases of MRBs, taxable MRBs, or loans issued to finance the acquisition, rehabilitation, or construction of affordable housing or which are otherwise secured by real estate or mortgage-backed securities (i.e., GILs, taxable GILs, and property loans), or master lease agreements guaranteed by investment grade tenants. Advances on the Acquisition LOC are generally due on the 270th day following the advance date but may be extended for up to an additional 270 days by making certain payments. Advances made for tax-exempt or taxable loans secured by master lease agreements guaranteed by investment grade tenants are due on the 45th day following such advance. The Acquisition LOC contains a covenant, among others, that our senior debt will not exceed a specified percentage of the market value of our assets to be consistent with the Leverage Ratio (as defined by the Partnership). We were in compliance with all covenants as of March 31, 2026. The outstanding balance of the Acquisition LOC was approximately $40.0 million and approximately $40.0 million was available to be\n\n80\n\n \n\ndrawn as of March 31, 2026, subject to posting of additional collateral. The Acquisition LOC has a maturity date of June 2027, with two one-year extension options, subject to certain terms and conditions.\n\nProceeds from the Redemption or Sale of Assets\n\nWe may, from time to time, experience redemptions of or execute sales of our investments in MRBs, GILs, property loans, JV Equity Investments, and MF Properties consistent with our strategic plans. Borrowers on certain of our MRBs, GILs, and property loans have the right to prepay amounts outstanding prior to contractual maturity which would result in the return of our capital, net of repayment of the related leverage.\n\nMost GIL and taxable GIL investments have maturity dates within the next 12 months, which are committed to be purchased by Freddie Mac, through a servicer, or repaid by the borrower on or before the maturity date at prices equal to the principal outstanding plus accrued interest. Such proceeds will be primarily used to repay our related debt financing, with residual proceeds available to us for general use. We regularly monitor the progress of the underlying properties and the likelihood of redemption upon maturity and currently have no concerns regarding repayment. Borrowers may request extensions of GIL maturity dates which are contingent upon our approval, payment of an extension fee, and obtaining an approval of Freddie Mac to extend the maturity date of the forward purchase commitment.\n\nOur MRB portfolio is marked at a premium to cost, adjusted for paydowns, primarily due to higher stated interest rates when compared to current market interest rates for investments with similar terms. We may consider selling certain MRB investments in exchange for cash at prices that approximate our currently reported fair value. However, we are contractually prevented from selling the MRB investments included in our TEBS Financings.\n\nOur ability to dispose of investment assets on favorable terms is dependent upon several factors including, but not limited to, the number of potential buyers and the availability of credit to such potential buyers to purchase investment assets at prices we consider acceptable. Recent volatility in market interest rates, recent inflation and the potential for an economic recession may negatively impact the potential prices we could realize upon the disposition of our various assets.\n\nOur JV Equity Investments are passive in nature and decisions on when to sell an individual property are made by our joint venture partner based on its view of the local market conditions and current leasing trends. The completion of sale is dependent on the identification of a buyer and the negotiation of a price deemed acceptable by the joint venture partner and the Partnership. Once a buyer is selected, the period for negotiation of the sales contract, buyer due diligence, and satisfaction of closing requirements can range from two to six months. We are entitled to proceeds upon the sales of JV Equity Investments in accordance with the terms of the entity operating agreement.\n\nProceeds from Obtaining Additional Debt\n\nWe hold certain investments that are not associated with our debt financings or secured lines of credit. We may obtain leverage for these investments by posting the investments as security. As of March 31, 2026, our primary unleveraged assets were certain MRBs and taxable MRBs with a carrying value totaling approximately $4.3 million.\n\nIssuances of Debt Securities, BUCs, Series A-1 Preferred Units or Series B Preferred Units\n\nWe may, from time to time, issue additional BUCs, Preferred Units, or debt securities, in one or more offerings, at prices or quantities that are consistent with our strategic goals. In November 2025, the Partnership’s Shelf Registration Statement became effective under which the Partnership may, from time to time, offer and sell BUCs, Preferred Units, or debt securities, in one or more offerings, with a maximum aggregate offering price of $200.0 million. Debt securities issued under the Shelf Registration Statement may be senior or subordinate obligations of the Partnership. The Shelf Registration Statement will expire in November 2028.\n\nUnder the terms of our Partnership Agreement, we are authorized to issue Series A-1 Preferred Units so long as the aggregate market capitalization of the BUCs, based on the closing price on the trading day prior to issuance of the Series A-1 Preferred Units, is no less than three times the aggregate book value of all Series A Preferred Units and Series A-1 Preferred Units, inclusive of the amount to be issued. Additionally, we are authorized to issue Series B Preferred Units so long as the aggregate market capitalization of the BUCs, based on the closing price on the trading day prior to issuance of the Series B Preferred Units, is no less than two times the aggregate book value of all Series A Preferred Units, Series A-1 Preferred Units and Series B Preferred Units, inclusive of the amount to be issued. As of May 8, 2026, the market capitalization of our BUCs was $127.5 million and the book value of our outstanding Series A-1 Preferred Units and Series B Preferred Units was $55.0 million and $47.5 million, respectively. At these levels, we are not currently authorized to issue additional Series A-1 Preferred Units or Series B Preferred Units, though we may be able to issue such units in the future if there is sufficient increase in market capitalization of our BUCs.\n\n81\n\n \n\n \n\nWe have one registration statement on Form S-3 covering the offering of Series B Preferred Units that has been declared effective by the SEC. The following table summarizes the Partnership's current Preferred Unit offering:\n\nPreferred Unit Series\n\n \n\nInitial Registration Effectiveness Date\n\n \n\nExpiration Date\n\n \n\nUnit Offering Price\n\n \n\n \n\nDistribution Rate\n\n \n\nOptional Redemption Date\n\n \n\nUnits Issued as of\nMarch 31, 2026\n\n \n\n \n\nRemaining Units Available to Issue as of\nMarch 31, 2026\n\n \n\n \n\nSeries B\n\n \n\nSeptember 2024\n\n \n\nSeptember 2027\n\n \n\n$\n\n10.00\n\n \n\n \n\n5.75%\n\n \n\nSixth anniversary\n\n \n\n \n\n2,500,000\n\n \n\n \n\n \n\n7,500,000\n\n \n\n(1)\n\n \n\n(1)\nThe Partnership is able to issue Series B Preferred Units so long as the aggregate market capitalization of the BUCs, based on the closing price on the trading day prior to issuance of the Series B Preferred Units, is no less than two times the aggregate book value of all Series A Preferred Units, Series A-1 Preferred Units and Series B Preferred Units, inclusive of the amount to be issued.\n\nWe may also designate and issue additional series of preferred units representing limited partnership interests in the Partnership in accordance with the terms of the Partnership Agreement.\n\nUses of Liquidity\n\nOur principal uses of liquidity consist of:\n\n•\nGeneral and administrative expenses;\n\n•\nInvestment funding commitments;\n\n•\nDebt service on debt financings, mortgage payable, and secured lines of credit;\n\n•\nDistributions paid to holders of Preferred Units and BUCs;\n\n•\nRedemptions of Preferred Units; and\n\n•\nOther contractual obligations.\n\nGeneral and Administrative Expenses\n\nWe use cash to pay general and administrative expenses of our operations and real estate operating expenses of our MF Properties. For additional details, see Item 1A, “Risk Factors” in the Partnership’s the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2025 and the section captioned “Cash flows from operating activities” in the condensed consolidated statements of cash flows set forth in Item 1 of this Report. General and administrative expenses are typically paid from unrestricted cash on hand and operating cash flows.\n\n82\n\n \n\nInvestment Funding Commitments\n\nOur overall strategy is to invest in quality multifamily properties through the acquisition of MRBs, GILs, property loans and seniors housing JV Equity Investments in both existing and new markets. We evaluate investment opportunities based on many factors including, but not limited to, our market outlook, including general economic conditions, development opportunities and long-term growth potential. Our ability to make future investments is dependent upon identifying suitable acquisition and development opportunities, access to long-term financing sources, and the availability of investment capital. We may commit to fund additional investments on a draw-down or forward basis. The following table summarizes our outstanding investment commitments as of March 31, 2026:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProjected Funding by Year (1)\n\n \n\n \n\n \n\nProperty Name\n\n \n\nCommitment Date\n\n \n\nAsset\nMaturity Date\n\n \n\nTotal Commitment\n\n \n\n \n\nRemaining Commitment\nas of March 31, 2026\n\n \n\n \n\nRemainder of 2026\n\n \n\n \n\n2027\n\n \n\n \n\nInterest Rate\n\n \n\nRelated Debt\nFinancing (2)\n\nMortgage Revenue Bonds\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMeadow Valley\n\n \n\nDecember 2021\n\n \n\nDecember 2029\n\n \n\n$\n\n44,000,000\n\n \n\n \n\n$\n\n750,000\n\n \n\n \n\n$\n\n750,000\n\n \n\n \n\n$\n\n-\n\n \n\n \n\n6.25%\n\n \n\nVariable TOB\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTaxable Mortgage Revenue Bonds\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nResidency at Empire Series BB-T\n\n \n\nDecember 2022\n\n \n\nJune 2026\n\n \n\n$\n\n9,404,500\n\n \n\n \n\n$\n\n5,304,500\n\n \n\n \n\n$\n\n5,304,500\n\n \n\n \n\n$\n\n-\n\n \n\n \n\n7.45%\n\n \n\nVariable TOB\n\nGateway and Yarbrough Predevelopment Project\n\n \n\nJune 2025\n\n \n\nJuly 2026\n\n \n\n \n\n2,000,000\n\n \n\n \n\n \n\n1,200,000\n\n \n\n \n\n \n\n1,200,000\n\n \n\n \n\n \n\n-\n\n \n\n \n\n9.00%\n\n \n\nN/A\n\nSubtotal\n\n \n\n \n\n \n\n \n\n \n\n \n\n11,404,500\n\n \n\n \n\n \n\n6,504,500\n\n \n\n \n\n \n\n6,504,500\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nGovernmental Issuer Loans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nResidency at Sky Village Hollywood\n\n \n\nDecember 2025\n\n \n\nDecember 2030\n\n \n\n \n\n34,000,000\n\n \n\n \n\n \n\n5,000,000\n\n \n\n \n\n \n\n5,000,000\n\n \n\n \n\n \n\n-\n\n \n\n \n\nSOFR + 3.20%\n\n(3)\n\n(5)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProperty Loans\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSandoval Flats\n\n \n\nNovember 2024\n\n \n\nDecember 2027 (4)\n\n \n\n$\n\n29,846,000\n\n \n\n \n\n$\n\n28,846,000\n\n \n\n \n\n$\n\n19,560,000\n\n \n\n \n\n$\n\n9,286,000\n\n \n\n \n\n7.48%\n\n \n\n(5)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nEquity Investments\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nVantage at San Marcos (6), (7)\n\n \n\nNovember 2020\n\n \n\nN/A\n\n \n\n$\n\n9,914,529\n\n \n\n \n\n$\n\n8,943,914\n\n \n\n \n\n$\n\n8,943,914\n\n \n\n \n\n$\n\n-\n\n \n\n \n\nN/A\n\n \n\nN/A\n\nFreestone Greeley (7)\n\n \n\nOctober 2022\n\n \n\nN/A\n\n \n\n \n\n16,035,710\n\n \n\n \n\n \n\n10,562,345\n\n \n\n \n\n \n\n10,562,345\n\n \n\n \n\n \n\n-\n\n \n\n \n\nN/A\n\n \n\nN/A\n\nValage Senior Living Mt. Rose\n\n \n\nDecember 2025\n\n \n\nN/A\n\n \n\n \n\n14,541,973\n\n \n\n \n\n \n\n7,024,410\n\n \n\n \n\n \n\n7,024,410\n\n \n\n \n\n \n\n-\n\n \n\n \n\nN/A\n\n \n\nN/A\n\nSubtotal\n\n \n\n \n\n \n\n \n\n \n\n \n\n40,492,212\n\n \n\n \n\n \n\n26,530,669\n\n \n\n \n\n \n\n26,530,669\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBond Purchase Commitments\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nKindred Apartments\n\n \n\nMarch 2025\n\n \n\nDecember 2027 (4)\n\n \n\n$\n\n21,921,000\n\n \n\n \n\n$\n\n21,921,000\n\n \n\n \n\n$\n\n-\n\n \n\n \n\n$\n\n21,921,000\n\n \n\n \n\n6.875%\n\n \n\nN/A\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal Commitments\n\n \n\n \n\n \n\n \n\n \n\n$\n\n181,663,712\n\n \n\n \n\n$\n\n89,552,169\n\n \n\n \n\n$\n\n58,345,169\n\n \n\n \n\n$\n\n31,207,000\n\n \n\n \n\n \n\n \n\n \n\n \n\n(1)\nProjected fundings by year are based on current estimates and the actual funding schedule may differ materially due to, but not limited to, the pace of construction, adverse weather conditions, delays in governmental approvals or permits, the availability of materials and contractors, and labor disputes.\n\n(2)\nWe have securitized the indicated assets in TOB trust financing facilities that allow for additional principal proceeds as the remaining investment commitments are funded by us. See Note 13 for further details on debt financing.\n\n(3)\nThe variable index interest rate component is subject to an all-in floor of 6.95%. The borrower has the option to convert to fixed rate within 210 days of closing equal to the greater of (a) the 5-year SOFR Swap Rate + 3.40% or (b) 6.95%.\n\n(4)\nThe borrower may elect to extend the maturity date for up to six months upon meeting certain conditions, which may include payment of a non-refundable extension fee.\n\n(5)\nAll draws to date were funded with proceeds from the Acquisition LOC. The Partnership expects to sell the related investment into the Construction Lending JV in the future.\n\n(6)\nThe property became a consolidated VIE effective during the fourth quarter of 2021.\n\n(7)\nA development site has been identified, and land has been acquired for these properties. The Partnership’s joint venture partners are evaluating the highest and best use for the development sites as of March 31, 2026, which may include a sale of the land or the commencement of construction. The timing of any funding commitment is uncertain and the Partnership’s remaining funding commitment will be terminated if the land is sold.\n\nWe are also committed to fund 10% of the capital for the Construction Lending JV with the remainder to be funded by third-party investors with each party contributing its proportionate capital contributions upon funding of future investments. Our capital will be contributed on a draw-down basis over the term of the underlying investments of the Construction Lending JV. Our maximum remaining capital commitment to the Construction Lending JV is approximately $14.7 million as of March 31, 2026.\n\nIn addition, we will consider providing additional financing to borrowers on our debt investments or additional equity to our JV Equity Investments above our original commitments if requested by the borrowers and managing members, respectively, on a case-by-case basis. When considering whether to fund such requests, we will consider various factors including, but not limited to, the economic return on additional investments in the entity, the impact to the Partnership’s credit and investment risk from either funding or withholding funding, and the requesting entity’s other available sources of funding. From January through April 2026, we contributed additional equity totaling $12.2 million across five JV Equity Investments. The additional capital was used to cover higher than anticipated interest costs, loan refinancing costs, and certain operating expenses resulting from longer holding periods. We anticipate making additional investments in certain JV Equity Investments during 2026, though the ultimate amount is uncertain. The amount of such additional funding will depend on various future developments, including, but not limited to, the pace of development, changes in interest rates, the pace of lease-up, and overall operating results of the underlying properties. The Partnership plans to contribute such additional funds from unrestricted cash on hand or other currently available liquidity sources.\n\n83\n\n \n\nDebt Service on Debt Financings, Mortgages Payable and Secured Lines of Credit\n\nOur debt financing arrangements consist of various secured financing transactions to leverage our portfolio of MRB, taxable MRB, GIL, taxable GIL and certain property loan investment assets. The financing arrangements generally involve the securitization of these investment assets into trusts whereby we retain beneficial interests in the trusts that provide us certain rights to the underlying investment assets. The senior securities are sold to unaffiliated parties in exchange for debt proceeds. The senior securities require periodic interest payments that may be fixed or variable, depending on the terms of the arrangement, and scheduled principal payments. We are required to fund any shortfall in principal and interest payable to the senior securities of the TEBS Financings in the case of non-payment, forbearance or default of the borrowers’ contractual debt service payments of the related MRBs, up to the value of our residual interests. In the case of forbearance or default on an underlying investment asset in a TOB trust financing, we may be required to fund shortfalls in principal and interest payable to the senior securities, repurchase a portion of the outstanding senior securities, or repurchase the underlying investment asset and seek alternative financing. We anticipate that cash flows from the securitized investment assets will fund normal, recurring principal and interest payments to the senior securities and all trust-related fees.\n\nWhen possible, we structure the debt financing maturity dates associated with our GIL, taxable GIL, and property loan investments to match the investment maturity dates such that investment redemption proceeds will redeem the outstanding debt financing.\n\nOur debt financing arrangements include various fixed rate and variable rate debt arrangements. Recent increases in short-term interest rates have resulted in increases in the interest costs associated with our variable rate debt financing arrangements. We actively manage our portfolio of fixed rate and variable rate debt financings and our exposure to changes in market interest rates. The following table summarizes our fixed rate and variable rate debt financings as of March 31, 2026 and December 31, 2025:\n\n \n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\nSecuritized Assets -\nFixed or Variable Interest Rates\n\n \n\nRelated Debt Financing - Fixed or Variable Interest Rates\n\n \n\nOutstanding\nPrincipal\n\n \n\n \n\n% of Total\nDebt\nFinancing\n\n \n\n \n\nOutstanding\nPrincipal\n\n \n\n \n\n% of Total\nDebt\nFinancing\n\n \n\nFixed\n\n \n\nFixed\n\n \n\n$\n\n325,203,981\n\n \n\n \n\n \n\n35.1\n\n%\n\n \n\n$\n\n326,360,968\n\n \n\n \n\n \n\n32.0\n\n%\n\nVariable (1)\n\n \n\nVariable (1)\n\n \n\n \n\n26,736,000\n\n \n\n \n\n \n\n2.9\n\n%\n\n \n\n \n\n23,536,000\n\n \n\n \n\n \n\n2.3\n\n%\n\nFixed\n\n \n\nVariable\n\n \n\n \n\n226,915,749\n\n \n\n(3)\n\n \n\n24.5\n\n%\n\n \n\n \n\n216,874,407\n\n \n\n \n\n \n\n21.3\n\n%\n\nFixed\n\n \n\nVariable - Hedged (2)\n\n \n\n \n\n348,553,251\n\n \n\n \n\n \n\n37.5\n\n%\n\n \n\n \n\n452,368,593\n\n \n\n \n\n \n\n44.4\n\n%\n\nTotal\n\n \n\n \n\n \n\n$\n\n927,408,981\n\n \n\n \n\n \n\n \n\n \n\n$\n\n1,019,139,968\n\n \n\n \n\n \n\n \n\n(1)\nThe securitized assets and related debt financing each have variable interest rates, though the variable rate indices may differ on individual transactions. As such, the Partnership is largely hedged against rising interest rates.\n\n(2)\nThe variable-rate debt financing is hedged through our interest rate swap agreements. Though the variable rate indices may differ, these interest rate swaps have effectively synthetically fixed the interest rate of the related debt financing. See further discussion of our interest rate hedging activities below.\n\n(3)\nApproximately $187.7 million of this amount relates to investment assets with maturity dates on or before December 2026.\n\nThe interest rate paid on our variable rate debt financings are generally determined by the senior securities remarketing agent as the rate necessary to remarket any senior securities tendered by holders thereof for remarketing that week at a price of par. Interest on the senior securities is either taxable or tax-exempt to the holders based on the structure of the debt financing. The senior securities rate on debt financings structured as tax-exempt to the senior securities holders are typically correlated to tax-exempt municipal short-term securities indices, such as SIFMA. The senior securities rate on debt financings structured as taxable to the senior securities holders are typically correlated to taxable short-term securities indices, such as SOFR.\n\nWe have hedged a portion of our overall exposure to changes in market interest rates on our variable rate debt financings through various interest rate swaps. Our interest rate swaps are subject to monthly settlements whereby we pay a stated fixed rate and our counterparty pays a variable rate equal to the compounded SOFR rate for the settlement period. We are currently a net receiver on our portfolio of interest rate swaps and received net settlement proceeds totaling approximately $246,000 and $847,000 during the three months ended March 31, 2026 and 2025, respectively.\n\nThe majority of our variable rate debt financings that are hedged through interest rate swaps have interest that is tax-exempt to the senior securities holders. In order to account for the differential between our interest rate swaps which are indexed to SOFR (a taxable rate) and our debt financing rate (which is correlated to short-term tax-exempt municipal securities rates), we assume that, over the term of our debt financing, the tax-exempt senior securities interest rate will approximate 70% of the SOFR rate. This assumption aligns with common market assumptions and the historical correlation between taxable and tax-exempt municipal short-term securities rates. However, such ratio may not be accurate in the short term or long term in the future. We apply a 70% conversion ratio when determining the notional amount of our interest rate swaps such that, as an example, a $7.0 million notional amount indexed to SOFR is the equivalent to $10.0 million notional amount for tax-exempt debt financing. As such, the reported amount of variable debt financing in the table above exceeds the stated notional amount of the SOFR-indexed interest rate swaps as of March 31, 2026. The following\n\n84\n\n \n\ntable summarizes the average stated SOFR-denominated notional amount by year for our existing interest rate swaps as of March 31, 2026 (before applying our assumed 70% ratio of tax-exempt municipal securities rates to SOFR):\n\nYear\n\n \n\nAverage Notional\n\n \n\nRemainder of 2026\n\n \n\n$\n\n345,805,132\n\n \n\n2027\n\n \n\n \n\n261,443,332\n\n \n\n2028\n\n \n\n \n\n119,755,466\n\n \n\n2029\n\n \n\n \n\n83,152,299\n\n \n\n2030\n\n \n\n \n\n28,852,800\n\n \n\n2031\n\n \n\n \n\n21,205,500\n\n \n\n2032\n\n \n\n \n\n18,931,333\n\n \n\n2033\n\n \n\n \n\n15,863,500\n\n \n\n2034\n\n \n\n \n\n11,755,833\n\n \n\n2035\n\n \n\n \n\n9,145,833\n\n \n\n2036\n\n \n\n \n\n9,066,667\n\n \n\n2037\n\n \n\n \n\n8,983,333\n\n \n\n2038\n\n \n\n \n\n8,893,333\n\n \n\n2039\n\n \n\n \n\n8,833,333\n\n \n\nWhen we execute a TOB trust financing, we retain a residual interest that is pledged as our initial collateral under the ISDA master agreement with the lender based on the market value of the investment asset(s) at the time of initial closing. If the net aggregate value of our investment assets in TOB trust financings and our interest rate swap agreements decline below a certain threshold, then we are required to post additional collateral with our counterparties. We had approximately $60,000 of net cash collateral returned to us by Mizuho during the three months ended March 31, 2026. Continuing volatility in market interest rates and potential deterioration of general economic conditions may cause the value of our investment assets to decline and result in the posting of additional collateral in the future. The valuation of our interest rate swaps generally change inversely with the change in valuation of our investment assets, so the change in valuation of our interest rate swaps partially offset the change in value of our investment assets when determining the amount of collateral posting requirements.\n\nThe 2024 PFA Securitization Transaction is secured by the cash flows on the senior custodial receipts associated with the 2024 PFA Securitization Bonds. The holders of the Affordable Housing Multifamily Certificates associated with the 2024 PFA Securitization Transaction are entitled to interest at a fixed rate of 4.10% per annum, payable monthly, and all principal payments from the 2024 PFA Securitization Bonds until the stated amount of the Affordable Housing Multifamily Certificates is reduced to zero, which will be no later than September 2039. The Partnership will also pay credit enhancement, servicing, and trustee fees related to the 2024 PFA Securitization Transaction totaling 0.80% per annum. The 2024 PFA Securitization Transaction is non-recourse to the Partnership, does not require mark-to-market collateral posting, and has a term that matches the term of the underlying MRBs.\n\nOur TEBS Residual Financing is secured by the cash flows from the residual certificates of our TEBS Financings and residual custodial receipts associated with the 2024 PFA Securitization Bonds. Interest due on the TEBS Residual Financing is at a fixed rate of 7.125% per annum and will be paid from receipts related to the TEBS Financing residual certificates. Future receipts of principal related to the TEBS Financing residual certificates will be used to pay down the principal of the TEBS Residual Financing. The TEBS Residual Financing is non-recourse financing to the Partnership and is not subject to mark-to-market collateral posting.\n\nIn the first quarter of 2026, we executed a new mortgage payable with two financial institutions secured by our ownership interests in four SC MF Properties. The mortgage payable requires monthly interest payments and has a maturity date in December 2027, with a one-year extension option, subject to meeting certain conditions. We are also subject to certain financial covenants where principal paydowns are required if the MF Properties fail to achieve certain debt service coverage ratios. We may prepay any or all the outstanding principal balance without penalty on or after December 31, 2026.\n\nOur General LOC and Acquisition LOC require monthly interest payments on outstanding balances and certain quarterly commitment fees. Such obligations are paid primarily from operating cash flows. The Acquisition LOC requires principal payments as previously described in this Item 2. The General LOC does not require principal payments until maturity in June 2027, subject to extension options, so long as the outstanding principal does not exceed the borrowing base calculation.\n\nThe table below summarizes contractual maturities by year for our secured lines of credit, debt financings, and mortgages payable as of March 31, 2026. The reported maturities for each individual debt financing are based on the earlier of contractual payments of the underlying securitized assets or the stated maturity date of the debt financing.\n\n85\n\n \n\n \n\n \n\nSecured Lines of Credit\n\n \n\n \n\nDebt Financing\n\n \n\n \n\nMortgages Payable\n\n \n\n \n\nTotal\n\n \n\nRemainder of 2026\n\n \n\n$\n\n39,950,000\n\n \n\n \n\n$\n\n272,957,664\n\n \n\n \n\n$\n\n231,679\n\n \n\n \n\n$\n\n313,139,343\n\n \n\n2027\n\n \n\n \n\n50,000,000\n\n \n\n \n\n \n\n194,999,408\n\n \n\n \n\n \n\n84,000,000\n\n \n\n \n\n \n\n328,999,408\n\n \n\n2028\n\n \n\n \n\n-\n\n \n\n \n\n \n\n133,928,221\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n133,928,221\n\n \n\n2029\n\n \n\n \n\n-\n\n \n\n \n\n \n\n19,829,116\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n19,829,116\n\n \n\n2030\n\n \n\n \n\n-\n\n \n\n \n\n \n\n44,030,059\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n44,030,059\n\n \n\nThereafter\n\n \n\n \n\n-\n\n \n\n \n\n \n\n261,664,513\n\n \n\n \n\n \n\n-\n\n \n\n \n\n \n\n261,664,513\n\n \n\nTotal\n\n \n\n$\n\n89,950,000\n\n \n\n \n\n$\n\n927,408,981\n\n \n\n \n\n$\n\n84,231,679\n\n \n\n \n\n$\n\n1,101,590,660\n\n \n\nThe table above is as of March 31, 2026, and does not reflect the various debt financing transactions that occurred in April 2026 that are disclosed in Note 25 of the condensed consolidated financial statements.\n\nDistributions Paid to Holders of Preferred Units and BUCs\n\nDistributions to the holders of Series A-1 Preferred Units, if declared by the General Partner, are paid quarterly at an annual fixed rate of 3.0%. Distributions to the holders of Series B Preferred Units, if declared by the General Partner, are paid quarterly at an annual fixed rate of 5.75%. The Series A-1 Preferred Units and Series B Preferred Units are non-cumulative, non-voting and non-convertible.\n\nOn March 18, 2026, we announced that the Board of Managers of Greystone Manager, which is the general partner of the General Partner, declared a quarterly cash distribution of $0.14 per BUC to unitholders of record on March 31, 2026 and payable on April 30, 2026.\n\nThe Partnership and its General Partner continually assess the level of distributions for the Preferred Units and BUCs based on cash available for distribution, financial performance and other factors considered relevant.\n\nRedemptions of Preferred Units\n\nOur outstanding Series A-1 and Series B Preferred Units are subject to optional redemption by the holders or the Partnership upon the sixth anniversary of issuance and on each anniversary thereafter. The earliest optional redemption dates for the currently outstanding Preferred Units range from April 2028 to October 2031.\n\nOther Contractual Obligations\n\nWe are subject to various guaranty obligations in the normal course of business, and, in most cases, do not anticipate these obligations to result in significant cash payments.\n\nCash Flows\n\nIn the three months ended March 31, 2026, we used cash of $22.5 million, which was the net result of $107,000 used in operating activities, $15.8 million used in investing activities, and $6.6 million used in financing activities.\n\nCash used in operating activities totaled $107,000 for the three months ended March 31, 2026, as compared to $11.0 million generated for the three months ended March 31, 2025. The change between periods was due to the following factors:\n\n•\nA decrease of $1.1 million in net income;\n\n•\nA decrease of $6.6 million related to changes in the preferred return receivable from unconsolidated entities;\n\n•\nA total decrease of $1.9 million in non-cash provisions for credit loss and loan loss;\n\n•\nA decrease of $5.4 million related to an increase in the unrealized gain on interest rate derivatives;\n\n•\nA decrease of $560,000 related to changes in the Partnership's working capital;\n\n•\nAn increase of $3.9 million related to an increase in the Partnership's net losses from investments in unconsolidated entities; and\n\n•\nAn increase of $2.7 million related to depreciation and amortization.\n\nCash used in investing activities totaled $15.8 million in the three months ended March 31, 2026, as compared to cash generated of $60.7 million in the three months ended March 31, 2025. The change between periods was primarily due to the following factors:\n\n86\n\n \n\n•\nA net decrease of $110.1 million of cash due to overall lower paydowns and redemptions of MRBs, taxable MRBs, GILs, taxable GILs and property loans;\n\n•\nA decrease of $4.9 million of cash due to greater contributions to unconsolidated entities;\n\n•\nA decrease of $11.4 million of cash due to lower proceeds from the sale of investments in unconsolidated entities;\n\n•\nA decrease of $2.1 million of cash due to lower proceeds from the return of investments in unconsolidated entities;\n\n•\nA decrease of $1.4 million of cash due to proceeds from the sale of land held for development during the three months ended March 31, 2025; and\n\n•\nA net increase of $52.2 million of cash due to lower advances on MRBs, taxable MRBs, GILs, taxable GILs and property loans.\n\nCash used in financing activities totaled $6.6 million in the three months ended March 31, 2026, as compared to cash used of $38.5 million in the three months ended March 31, 2025. The change between periods was primarily due to the following factors:\n\n•\nA decrease of $20.0 million of cash related to proceeds from the issuance of Preferred Units during the three months ended March 31, 2025;\n\n•\nAn increase of approximately $2.7 million of cash due to lower distributions paid;\n\n•\nA decrease of approximately $873,000 of cash due to lower debt financing costs paid;\n\n•\nA net increase of $19.5 million of cash due to higher proceeds on the secured lines of credit;\n\n•\nA net increase of $85.4 million due to higher proceeds on mortgages payable; and\n\n•\nA net decrease of $54.7 million of cash due to less proceeds from debt financing.\n\nWe believe our cash balance and cash provided by the sources discussed herein will be sufficient to pay, or refinance, our debt obligations and to meet our liquidity needs over the next 12 months.\n\nLeverage Ratio\n\nWe set target constraints for each type of financing utilized by us. Those constraints are dependent upon several factors, including the assets being leveraged, the tenor of the leverage program, whether the financing is subject to mark-to-market collateral calls, and the liquidity and marketability of the financed collateral. We use target constraints for each type of financing to manage to an overall 80% maximum Leverage Ratio, as established by the Board of Managers. The Board of Managers retains the right to change the maximum Leverage Ratio in the future based on the consideration of factors the Board of Managers considers relevant. We calculate our Leverage Ratio as total outstanding debt divided by total assets using cost adjusted for paydowns for MRBs, GILs, property loans, taxable MRBs and taxable GILs, and initial cost for deferred financing costs and real estate assets. As of March 31,2026, our overall Leverage Ratio was approximately 75%.\n\nOff Balance Sheet Arrangements\n\nAs of March 31, 2026 and December 31, 2025, we held MRB, GIL, taxable MRB, taxable GIL and certain property loan investments that are secured by affordable multifamily and seniors housing properties, which are owned by entities that are not controlled by us. We have no equity interest in these entities and do not guarantee any obligations of these entities.\n\nAs of March 31, 2026, we own noncontrolling equity interests in various unconsolidated entities for the development of market rate multifamily and seniors housing properties, and for the Construction Lending JV. We account for these equity interests using the equity method of accounting and the assets, liabilities, and operating results of the underlying entities are not included in our condensed consolidated financial statements.\n\nWe have entered into various financial commitments and guaranties. For additional discussions related to commitments and guaranties, see Note 16 to the condensed consolidated financial statements.\n\nWe do not engage in trading activities involving non-exchange traded contracts. As such, we are not materially exposed to any financing, liquidity, market, or credit risk that could arise if we had engaged in such relationships.\n\nWe do not have any relationships or transactions with persons or entities that derive benefits from their non-independent relationships with us or our related parties, other than those disclosed in Note 19 to the condensed consolidated financial statements.\n\n87\n\n \n\nCritical Accounting Estimates\n\nThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The most significant estimates and assumptions include those used in determining (i) the fair value of MRBs and taxable MRBs; (ii) investment impairments; and (iii) allowance for credit losses.\n\nThe Partnership’s critical accounting estimates are the same as those described in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2025.\n\nRecently Issued Accounting Pronouncements\n\nFor a discussion of recently issued accounting pronouncements, see Note 2 to the Partnership’s condensed consolidated financial statements.\n\nCommunity Investments\n\nThe Partnership has invested and intends to invest in assets which are and will be purchased in order to support underlying community development activities targeted to low- and moderate-income individuals, such as affordable housing, small business lending, and job creating activities in areas of the United States. These investments may be eligible for regulatory credit under the CRA and available for allocation to holders of our Preferred Units (see Note 17 to Partnership's condensed consolidated financial statements).\n\n88\n\n \n\nThe following table sets forth the assets of the Partnership the General Partner believes are eligible for regulatory credit under the CRA and are available for allocation to Preferred Unit investors as of March 31, 2026:\n\nProperty Name\n\n \n\nInvestment\nAvailable for\nAllocation\n\n \n\n \n\nSenior Bond\nMaturity Date (1)\n\n \n\nStreet\n\n \n\nCity\n\n \n\nCounty\n\n \n\nState\n\n \n\nZip\n\nThe Safford\n\n \n\n$\n\n34,185,000\n\n \n\n \n\n10/10/2026\n\n \n\n8740 North Silverbell Road\n\n \n\nMarana\n\n \n\nPima\n\n \n\nAZ\n\n85743\n\nCCBA Senior Garden Apartments\n\n \n\n \n\n3,807,000\n\n \n\n \n\n7/1/2037\n\n \n\n438 3rd Ave\n\n \n\nSan Diego\n\n \n\nSan Diego\n\n \n\nCA\n\n92101\n\nCourtyard Apartments\n\n \n\n10,230,000\n\n \n\n \n\n12/1/2033\n\n \n\n4127 W. Valencia Dr\n\n \n\nFullerton\n\n \n\nOrange\n\n \n\nCA\n\n \n\n92833\n\nGlenview Apartments\n\n \n\n4,670,000\n\n \n\n \n\n12/1/2031\n\n \n\n2361 Bass Lake Rd\n\n \n\nCameron Park\n\n \n\nEl Dorado\n\n \n\nCA\n\n95682\n\nHarden Ranch Apartments\n\n \n\n6,960,000\n\n \n\n \n\n3/1/2030\n\n \n\n1907 Dartmouth Way\n\n \n\nSalinas\n\n \n\nMonterey\n\n \n\nCA\n\n93906\n\nHarmony Court Apartments\n\n \n\n \n\n3,730,000\n\n \n\n \n\n12/1/2033\n\n \n\n5948 Victor Street\n\n \n\nBakersfield\n\n \n\nKern\n\n \n\nCA\n\n93308\n\nHarmony Terrace Apartments\n\n \n\n6,900,000\n\n \n\n \n\n1/1/2034\n\n \n\n941 Sunset Garden Lane\n\n \n\nSimi Valley\n\n \n\nVentura\n\n \n\nCA\n\n93065\n\nLas Palmas II Apartments\n\n \n\n1,695,000\n\n \n\n \n\n11/1/2033\n\n \n\n51075 Frederick Street\n\n \n\nCoachella\n\n \n\nRiverside\n\n \n\nCA\n\n92236\n\nMontclair Apartments\n\n \n\n2,530,000\n\n \n\n \n\n12/1/2031\n\n \n\n150 S 19th Ave\n\n \n\nLemoore\n\n \n\nKings\n\n \n\nCA\n\n93245\n\nMontecito at Williams Ranch\n\n \n\n \n\n7,690,000\n\n \n\n \n\n10/1/2034\n\n \n\n1598 Mesquite Dr\n\n \n\nSalinas\n\n \n\nMonterey\n\n \n\nCA\n\n93905\n\nMontevista\n\n \n\n \n\n720,000\n\n \n\n \n\n7/1/2036\n\n \n\n13728 San Pablo Avenue\n\n \n\nSan Pablo\n\n \n\nContra Costa\n\n \n\nCA\n\n94806\n\nOcotillo Springs\n\n \n\n \n\n2,500,000\n\n \n\n \n\n8/1/2038\n\n \n\n1615 I St\n\n \n\nBrawley\n\n \n\nImperial\n\n \n\nCA\n\n92227\n\nPoppy Grove I\n\n \n\n \n\n56,846,000\n\n \n\n \n\n4/1/2026\n\n \n\n10149 Bruceville Road\n\n \n\nElk Grove\n\n \n\nSacramento\n\n \n\nCA\n\n \n\n95624\n\nPoppy Grove II\n\n \n\n \n\n33,191,300\n\n \n\n \n\n4/1/2026\n\n \n\n10149 Bruceville Road\n\n \n\nElk Grove\n\n \n\nSacramento\n\n \n\nCA\n\n \n\n95624\n\nPoppy Grove III\n\n \n\n63,600,000\n\n \n\n \n\n5/1/2026\n\n \n\n10149 Bruceville Road\n\n \n\nElk Grove\n\n \n\nSacramento\n\n \n\nCA\n\n \n\n95624\n\nResidency at Empire (2)\n\n \n\n83,100,000\n\n \n\n \n\n12/31/2040\n\n \n\n2814 W Empire Avenue\n\n \n\nBurbank\n\n \n\nLos Angeles\n\n \n\nCA\n\n91504\n\nResidency at the Entrepreneur (3)\n\n \n\n76,000,000\n\n \n\n \n\n3/31/2040\n\n \n\n1657-1661 North Western Avenue\n\n \n\nHollywood\n\n \n\nLos Angeles\n\n \n\nCA\n\n90027\n\nResidency at the Mayer\n\n \n\n \n\n28,200,000\n\n \n\n \n\n4/1/2039\n\n \n\n5500 Hollywood Boulevard\n\n \n\nHollywood\n\n \n\nLos Angeles\n\n \n\nCA\n\n90028\n\nResidency at Sky Village Hollywood\n\n \n\n30,000,000\n\n \n\n \n\n12/31/2030\n\n \n\n5645 Fernwood Avenue\n\n \n\nHollywood\n\n \n\nLos Angeles\n\n \n\nCA\n\n \n\n90028\n\nSan Vicente Townhomes\n\n \n\n3,495,000\n\n \n\n \n\n11/1/2033\n\n \n\n250 San Vicente Road\n\n \n\nSoledad\n\n \n\nMonterey\n\n \n\nCA\n\n93960\n\nSanta Fe Apartments\n\n \n\n1,565,000\n\n \n\n \n\n12/1/2031\n\n \n\n16576 Sultana St\n\n \n\nHesperia\n\n \n\nSan Bernardino\n\n \n\nCA\n\n92345\n\nSeasons Lakewood Apartments\n\n \n\n7,350,000\n\n \n\n \n\n1/1/2034\n\n \n\n21309 Bloomfield Ave\n\n \n\nLakewood\n\n \n\nLos Angeles\n\n \n\nCA\n\n \n\n90715\n\nSeasons San Juan Capistrano Apartments\n\n \n\n12,375,000\n\n \n\n \n\n1/1/2034\n\n \n\n31641 Rancho Viejo Rd\n\n \n\nSan Juan Capistrano\n\n \n\nOrange\n\n \n\nCA\n\n92675\n\nSeasons At Simi Valley\n\n \n\n4,376,000\n\n \n\n \n\n9/1/2032\n\n \n\n1606 Rory Ln\n\n \n\nSimi Valley\n\n \n\nVentura\n\n \n\nCA\n\n93063\n\nSolano Vista Apartments\n\n \n\n2,655,000\n\n \n\n \n\n1/1/2036\n\n \n\n40 Valle Vista Avenue\n\n \n\nVallejo\n\n \n\nSolano\n\n \n\nCA\n\n94590\n\nSummerhill Family Apartments\n\n \n\n6,423,000\n\n \n\n \n\n12/1/2033\n\n \n\n6200 Victor Street\n\n \n\nBakersfield\n\n \n\nKern\n\n \n\nCA\n\n93308\n\nSycamore Walk\n\n \n\n2,132,000\n\n \n\n \n\n1/1/2033\n\n \n\n380 Pacheco Road\n\n \n\nBakersfield\n\n \n\nKern\n\n \n\nCA\n\n93307\n\nTyler Park Townhomes\n\n \n\n \n\n2,075,000\n\n \n\n \n\n1/1/2030\n\n \n\n1120 Heidi Drive\n\n \n\nGreenfield\n\n \n\nMonterey\n\n \n\nCA\n\n93927\n\nVillage at Madera Apartments\n\n \n\n \n\n3,085,000\n\n \n\n \n\n12/1/2033\n\n \n\n501 Monterey St\n\n \n\nMadera\n\n \n\nMadera\n\n \n\nCA\n\n93637\n\nVineyard Gardens\n\n \n\n \n\n995,000\n\n \n\n \n\n1/1/2035\n\n \n\n2800 E Vineyard Ave\n\n \n\nOxnard\n\n \n\nVentura\n\n \n\nCA\n\n93036\n\nWellspring Apartments\n\n \n\n \n\n3,900,000\n\n \n\n \n\n9/1/2039\n\n \n\n1500 East Anaheim Street\n\n \n\nLong Beach\n\n \n\nLos Angeles\n\n \n\nCA\n\n \n\n90813\n\nWestside Village Apartments\n\n \n\n \n\n3,970,000\n\n \n\n \n\n1/1/2030\n\n \n\n595 Vera Cruz Way\n\n \n\nShafter\n\n \n\nKern\n\n \n\nCA\n\n93263\n\nMaryAlice Circle\n\n \n\n3,050,000\n\n \n\n \n\n3/1/2041\n\n \n\nArnold Street and Gwinnett Street\n\n \n\nBuford\n\n \n\nGwinnett\n\n \n\nGA\n\n \n\n30518\n\nRenaissance Gateway Apartments\n\n \n\n \n\n11,500,000\n\n \n\n \n\n6/1/2050\n\n \n\n650 N. Ardenwood Drive\n\n \n\nBaton Rouge\n\n \n\nEast Baton Rouge Parish\n\n \n\nLA\n\n70806\n\nWoodington Gardens Apartments\n\n \n\n \n\n33,727,000\n\n \n\n \n\n5/1/2029\n\n \n\n201 South Athol Avenue\n\n \n\nBaltimore\n\n \n\nBaltimore\n\n \n\nMD\n\n \n\n21229\n\nJackson Manor Apartments\n\n \n\n4,828,000\n\n \n\n \n\n5/1/2038\n\n \n\n332 Josanna Street\n\n \n\nJackson\n\n \n\nHinds\n\n \n\nMS\n\n39202\n\nSilver Moon Apartments\n\n \n\n8,500,000\n\n \n\n \n\n8/1/2055\n\n \n\n901 Park Avenue SW\n\n \n\nAlbuquerque\n\n \n\nBernalillo\n\n \n\nNM\n\n87102\n\nVillage at Avalon\n\n \n\n16,400,000\n\n \n\n \n\n1/1/2059\n\n \n\n915 Park SW\n\n \n\nAlbuquerque\n\n \n\nBernalillo\n\n \n\nNM\n\n87102\n\nColumbia Gardens Apartments\n\n \n\n15,000,000\n\n \n\n \n\n12/1/2050\n\n \n\n4000 Plowden Road\n\n \n\nColumbia\n\n \n\nRichland\n\n \n\nSC\n\n29205\n\nVillage at River's Edge\n\n \n\n10,000,000\n\n \n\n \n\n6/1/2033\n\n \n\nGibson & Macrae Streets\n\n \n\nColumbia\n\n \n\nRichland\n\n \n\nSC\n\n29203\n\nWillow Run\n\n \n\n15,000,000\n\n \n\n \n\n12/18/2050\n\n \n\n511 Alcott Drive\n\n \n\nColumbia\n\n \n\nRichland\n\n \n\nSC\n\n29203\n\nAgape Helotes\n\n \n\n13,322,339\n\n \n\n \n\n1/1/2065\n\n \n\n9311 FM 1560 N\n\n \n\nSan Antonio\n\n \n\nBexar\n\n \n\nTX\n\n78254\n\nAngle Apartments\n\n \n\n21,000,000\n\n \n\n \n\n1/1/2054\n\n \n\n4250 Old Decatur Rd\n\n \n\nFort Worth\n\n \n\nTarrant\n\n \n\nTX\n\n76106\n\nAvistar at Copperfield (Meadow Creek)\n\n \n\n14,000,000\n\n \n\n \n\n5/1/2054\n\n \n\n6416 York Meadow Drive\n\n \n\nHouston\n\n \n\nHarris\n\n \n\nTX\n\n77084\n\nAvistar at the Crest Apartments\n\n \n\n10,147,160\n\n \n\n \n\n3/1/2050\n\n \n\n12660 Uhr Lane\n\n \n\nSan Antonio\n\n \n\nBexar\n\n \n\nTX\n\n78217\n\nAvistar at the Oaks\n\n \n\n8,899,048\n\n \n\n \n\n8/1/2050\n\n \n\n3935 Thousand Oaks Drive\n\n \n\nSan Antonio\n\n \n\nBexar\n\n \n\nTX\n\n78217\n\nAvistar at Wilcrest (Briar Creek)\n\n \n\n3,470,000\n\n \n\n \n\n5/1/2054\n\n \n\n1300 South Wilcrest Drive\n\n \n\nHouston\n\n \n\nHarris\n\n \n\nTX\n\n77042\n\nAvistar at Wood Hollow (Oak Hollow)\n\n \n\n40,260,000\n\n \n\n \n\n5/1/2054\n\n \n\n7201 Wood Hollow Circle\n\n \n\nAustin\n\n \n\nTravis\n\n \n\nTX\n\n78731\n\nAvistar in 09 Apartments\n\n \n\n7,743,037\n\n \n\n \n\n8/1/2050\n\n \n\n6700 North Vandiver Road\n\n \n\nSan Antonio\n\n \n\nBexar\n\n \n\nTX\n\n78209\n\nAvistar on Parkway\n\n \n\n13,425,000\n\n \n\n \n\n5/1/2052\n\n \n\n9511 Perrin Beitel Rd\n\n \n\nSan Antonio\n\n \n\nBexar\n\n \n\nTX\n\n78217\n\nAvistar on the Blvd\n\n \n\n17,422,805\n\n \n\n \n\n3/1/2050\n\n \n\n5100 USAA Boulevard\n\n \n\nSan Antonio\n\n \n\nBexar\n\n \n\nTX\n\n78240\n\nAvistar on the Hills\n\n \n\n5,670,016\n\n \n\n \n\n8/1/2050\n\n \n\n4411 Callaghan Road\n\n \n\nSan Antonio\n\n \n\nBexar\n\n \n\nTX\n\n78228\n\nCrossing at 1415\n\n \n\n7,590,000\n\n \n\n \n\n12/1/2052\n\n \n\n1415 Babcock Road\n\n \n\nSan Antonio\n\n \n\nBexar\n\n \n\nTX\n\n78201\n\nConcord at Gulf Gate Apartments\n\n \n\n9,185,000\n\n \n\n \n\n2/1/2032\n\n \n\n7120 Village Way\n\n \n\nHouston\n\n \n\nHarris\n\n \n\nTX\n\n77087\n\nConcord at Little York Apartments\n\n \n\n13,440,000\n\n \n\n \n\n2/1/2032\n\n \n\n301 W Little York Rd\n\n \n\nHouston\n\n \n\nHarris\n\n \n\nTX\n\n77076\n\nConcord at Williamcrest Apartments\n\n \n\n19,820,000\n\n \n\n \n\n2/1/2032\n\n \n\n10965 S Gessner Rd\n\n \n\nHouston\n\n \n\nHarris\n\n \n\nTX\n\n77071\n\nEsperanza at Palo Alto Apartments\n\n \n\n19,540,000\n\n \n\n \n\n7/1/2058\n\n \n\nSWC of Loop 410 and Highway 16 South\n\n \n\nSan Antonio\n\n \n\nBexar\n\n \n\nTX\n\n78224\n\nHeights at 515\n\n \n\n \n\n6,435,000\n\n \n\n \n\n12/1/2052\n\n \n\n515 Exeter Road\n\n \n\nSan Antonio\n\n \n\nBexar\n\n \n\nTX\n\n78209\n\nOaks at Georgetown Apartments\n\n \n\n12,330,000\n\n \n\n \n\n1/1/2034\n\n \n\n550 W 22nd St\n\n \n\nGeorgetown\n\n \n\nWilliamson\n\n \n\nTX\n\n78626\n\n15 West Apartments\n\n \n\n4,850,000\n\n \n\n \n\n7/1/2054\n\n \n\n401 15th Street\n\n \n\nVancouver\n\n \n\nClark\n\n \n\nWA\n\n98660\n\nAventine Apartments\n\n \n\n \n\n9,500,000\n\n \n\n \n\n6/1/2031\n\n \n\n211 112th Ave\n\n \n\nBellevue\n\n \n\nKing\n\n \n\nWA\n\n \n\n98004\n\n \n\n \n\n$\n\n887,004,705\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(1)\nThe date reflects the stated contractual maturity of the Partnership’s senior debt investment in the property. For various reasons, including, but not limited to, call provisions that can be exercised by both the borrower and the Partnership, such debt investments may be redeemed prior to the stated maturity date. The Partnership may also elect to sell certain debt investments prior to the contractual maturity, consistent with its strategic purposes.\n\n(2)\nThe Partnership committed to provide total funding of MRBs up to $79.0 million and a taxable MRB up to $9.4 million during the construction and lease-up of the property on a draw-down basis. The taxable MRB has a maturity date of 6/1/2026. Upon stabilization of the property, the MRBs will be partially repaid and the maximum balance of the MRBs after stabilization will not exceed $35.3 million and will have a maturity date of 12/1/2040.\n\n(3)\nThe Partnership committed to provide total funding of MRBs up to $64.0 million and a taxable MRB up to $12.0 million during the acquisition and rehabilitation phase of the property on a draw-down basis. The taxable MRB has a maturity date of 7/1/2026. Upon stabilization of the property, the MRB will be partially repaid and the maximum balance of the MRB after stabilization will not exceed $44.1 million and will have a maturity date of 3/31/2040.\n\n89"}