DALLAS, Aug. 18, 2025 /PRNewswire/ -- NexPoint Real Estate Finance, Inc. (NYSE: NREF) (the "Company") announced today the dual listing of its common stock on NYSE Texas, the newly launched fully electronic equities exchange headquartered in Dallas, Texas, effective August 19, 2025. NREF will maintain its primary listing on the New York Stock Exchange (NYSE) and continue to trade under the same ticker symbol, "NREF," on the NYSE and NYSE Texas."Joining NYSE Texas as a Founding Member marks an exciting milest ...

(Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-39210 __________________________________ For the transition period from __________ to __________ NexPoint Real Estate Finance, Inc. (Exact Name o ...

Core Viewpoint - NexPoint Real Estate Finance reported Q2 2025 results with Non-GAAP earnings per diluted share of $0.46, aligning with analyst consensus and internal guidance, but showed significant year-over-year declines in earnings available for distribution and cash available for distribution, indicating a stable yet cautious operating environment with pressure on distributable earnings [1][6][11] Financial Performance - Non-GAAP earnings per diluted common share for Q2 2025 were $0.46, matching analyst estimates [1] - Earnings available for distribution (EAD) decreased to $10.0 million, down 37.3% year-over-year, while cash available for distribution (CAD) fell to $10.6 million, a 29.3% decline from Q2 2024 [2][6] - Net income attributable to common stockholders increased to $12.3 million, a 64.2% rise from $7.488 million in Q2 2024 [6] Portfolio and Investment Strategy - The company focuses on investments in commercial real estate debt and equity, with a portfolio totaling $1.1 billion across 86 investments as of June 30, 2025 [5] - Key sectors include multifamily properties (49.5%), life sciences (32.7%), and smaller allocations to single-family rentals, self-storage, specialty manufacturing, and marinas [5] - The weighted-average loan-to-value (LTV) ratio was 58.5%, and the debt service coverage ratio (DSCR) was 1.44x, indicating a conservative risk profile [4] Dividend and Coverage Ratios - The declared dividend remained stable at $0.50 per share for both Q1 and Q2 2025, but coverage ratios based on EAD and CAD fell below 1.0x, indicating pressure on distributable earnings [7][8] - Management guidance for Q3 2025 suggests modest improvement, with expectations for cash available for distribution to reach parity with dividends [8][11] Risk Management and Credit Quality - The company recorded a $3.6 million provision for credit losses in Q1 2025, reflecting a cautious stance amid changing market conditions [9] - The external management structure includes a 1.5% management fee on equity, which may impact operational efficiency and costs [10] Future Outlook - For Q3 2025, management projects EAD per diluted share of $0.425 and CAD per diluted share of $0.505, indicating continued disciplined capital deployment [11] - The company plans to remain active in core sectors, particularly multifamily and life sciences, while seeking opportunities in self-storage and advanced manufacturing [11]

Financial Data and Key Metrics Changes - The company reported a net income of $0.54 per diluted share for Q2 2025, an increase from $0.40 per diluted share in Q2 2024, driven by an increase in interest income [6][7] - Interest income rose by $4.6 million to $22.8 million in Q2 2025 from $18.2 million in Q2 2024, attributed to increased income from investments [7] - Earnings available for distribution decreased to $0.43 per diluted common share in Q2 2025 from $0.68 in the same period of 2024, while cash available for distribution fell to $0.46 from $0.64 [7][8] - The company declared a regular dividend of $0.50 per share for Q2 2025, with a coverage ratio of 0.92 times based on cash available for distribution [8] Business Line Data and Key Metrics Changes - The portfolio consists of 86 investments with a total outstanding balance of $1.1 billion, allocated as follows: 49.5% multifamily, 32.7% life science, 15.5% single-family rental, 1.6% storage, 0.7% marina, and 0.1% specialty manufacturing [9] - The fixed income portfolio is diversified across various investments, with 28.3% in CMBS BPs and 24.9% in mezzanine loans [10] Market Data and Key Metrics Changes - The company noted a significant drop in inventory growth in the residential sector, with a national delivery outlook contracting to just 77,000 units per quarter, supporting a positive outlook for the multifamily sector in 2026-2028 [12][13] - The life science sector is facing challenges due to tariff and NIH funding uncertainties, but the company is optimistic about a major lease announcement that could enhance its portfolio [16][30] Company Strategy and Development Direction - The company aims to maintain a strong credit profile and low leverage compared to peers, allowing for various capital options to pursue growth [18] - There is a focus on the multifamily sector, with expectations of improving rental rates as supply constraints ease [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about market dynamics in the second half of the year, despite challenges in the macroeconomic environment [18] - The company anticipates an improvement in delinquency trends in the residential sector due to increased liquidity in the market [24] Other Important Information - The company funded $39.5 million in Life Science Preferred and purchased $15.3 million in CMBS IO strips during the quarter [8] - The debt outstanding is $815.6 million with a weighted average cost of 5.9%, and the debt to equity ratio stands at 1.14 times [11] Q&A Session Summary Question: Can you comment on credit trends within the Freddie Mac DPs portfolio? - Management noted that the portfolio remains solid compared to other CRE CLOs, with some problem loans but overall good credit profiles [20][22] Question: Can you talk about the lease mentioned for the life science project? - The lease will cover about two-thirds of the first phase of the project, with a remaining loan duration of roughly two and a half years [25][27] Question: What are your thoughts on the seniors housing space? - Management expressed agreement that the outlook for seniors housing has improved, citing strong capital interest in the sector and plans to explore opportunities [31][33]

NYSE:NREF FORWARD LOOKING STATEMENTS CONTACT NEXPOINT REAL ESTATE FINANCE (NYSE:NREF) 300 Crescent Court, Suite 700 Dallas, Texas 75201 (w) nref.nexpoint.com INVESTOR RELATIONS Kristen Griffith (e) kgriffith@nexpoint.com 28 APRIL 2022 NYSE:NR EF Cautionary Statements 1Q 2022 FINANCIAL SUPPLEMENT 2Q 2025 Financial Supplement July 31, 2025 For additional information, see our filings with the SEC. Our filings with the SEC are available on our website, nref.nexpoint.com, under the "Financials" tab. 2023 dividen ...

Core Viewpoint - NexPoint Real Estate Finance, Inc. reported strong financial results for Q2 2025, highlighting resilience in earnings amid challenging credit conditions in the market [2][3]. Financial Performance - Net income attributable to common stockholders for Q2 2025 was $12.3 million, or $0.54 per diluted share [1][14]. - Cash available for distribution for the same period was $10.6 million, or $0.46 per diluted common share [1][14]. Investment Strategy - The company remains disciplined and opportunistic in its investment approach, focusing on capital deployment in a complex credit landscape [2]. - NREF's total portfolio is valued at $1.1 billion, consisting of 86 investments across various sectors, including single-family rentals, multifamily, and life sciences [9]. Future Guidance - For Q3 2025, the company projects earnings available for distribution per diluted common share to be $0.425 at the midpoint [8]. - Cash available for distribution per diluted common share guidance for Q3 2025 is set at $0.505 at the midpoint [10]. Portfolio Composition - As of June 30, 2025, the investment portfolio is composed of 15.5% single-family rental, 49.5% multifamily, and 32.7% life sciences, among other sectors [9]. - The weighted-average loan to value (LTV) ratio is 58.5%, with a debt service coverage ratio (DSCR) of 1.44x [9]. Recent Transactions - During Q2 2025, NREF purchased $39.5 million of preferred stock and funded $6.5 million on a loan with a monthly coupon of SOFR + 900 bps [9]. - The company also acquired a $15.3 million CMBS I/O strip with a bond equivalent yield of 7.24% [9]. Conference Call - A conference call is scheduled for July 31, 2025, to discuss the financial results for Q2 2025 [11].

"NREF is pleased to report another strong quarter, reflecting the consistency and resilience of our earnings across our core property sectors. In a market environment where many banks and traditional lenders are focused on navigating ongoing credit challenges, we remain disciplined, opportunistic, and fully committed to our strategic investment approach. Our ability to deploy capital effectively in today's complex credit landscape positions us to capture compelling opportunities and generate long-term value ...

Core Points - NexPoint Real Estate Finance, Inc. is scheduled to host a conference call on July 31, 2025, at 11:00 a.m. ET to discuss its second quarter 2025 financial results [1] - The conference call will be accessible via phone and online, with a replay available for 60 days after the call [2][3] - The company is a publicly traded REIT focused on various real estate finance activities, including mortgage loans and equity investments [4]

Investment Strategy - The company acquired or originated investments totaling $83,484,103 during the three months ended March 31, 2025, with a focus on life sciences, self-storage, and multifamily properties [196]. - The company aims to generate attractive, risk-adjusted returns for stockholders over the long term through a flexible investment strategy [189]. - The company has a target focus on investments in the top 50 MSAs, particularly in stabilized properties or those with light-transitional business plans [188]. - The company’s investment strategy includes reallocating capital periodically among target investment classes to manage risk effectively [189]. - The company is focused on expanding its portfolio through various types of loans and investments, including multifamily properties and preferred equity investments [230]. Financial Performance - Net interest income for Q1 2025 was $11.5 million, a significant increase of approximately $24.3 million compared to a net interest loss of $12.8 million in Q1 2024, representing a change of (189.8)% [211][212]. - Other income rose to $22.7 million in Q1 2025 from $9.2 million in Q1 2024, marking an increase of approximately $13.5 million or 147.2% [213]. - Operating expenses decreased to $8.3 million in Q1 2025 from $11.0 million in Q1 2024, a reduction of approximately $2.7 million or (24.9)% [211]. - Net income attributable to common stockholders for Q1 2025 was $16.5 million, compared to a net loss of $14.3 million in Q1 2024, reflecting a change of 215.6% [219]. - Earnings Available for Distribution (EAD) for Q1 2025 was $9.7 million, a significant improvement from a loss of $11.5 million in Q1 2024, representing a change of 184.5% [228]. - Cash Available for Distribution (CAD) decreased to $10.5 million in Q1 2025 from $14.9 million in Q1 2024, a decline of (29.5)% [228]. - Net income per share, basic, was $0.94 in Q1 2025 compared to a loss of $0.83 in Q1 2024, indicating a change of 213.0% [219]. - The weighted-average number of diluted common shares outstanding increased to 36,049 in Q1 2025 from 24,862 in Q1 2024, a rise of 45.0% [219]. Expenses and Management Fees - The company’s management fees and G&A expenses are capped at 2.5% of equity book value, ensuring cost control [207]. - Management fees increased to $1.4 million in Q1 2025 from $0.8 million in Q1 2024, primarily due to an increase in Equity as defined by the Management Agreement [216]. - Expenses from consolidated real estate owned decreased to $4.0 million in Q1 2025 from $5.4 million in Q1 2024, a reduction of approximately $1.4 million or (25.9)% [217]. Liquidity and Capital Resources - The company expects to meet its short-term liquidity requirements through available cash, expected operating cash flows, and potential debt or equity financings [235]. - Long-term liquidity requirements will be met through various capital sources, including future debt or equity issuances and net cash from operations [236]. - The company has a total of $788.8 million borrowed under the Freddie Mac Credit Facility, with an outstanding balance of $109.7 million as of March 31, 2025 [239]. Shareholder Returns - The company intends to make regular quarterly dividend payments to holders of common stock and has declared a quarterly dividend of $0.50 per share on February 24, 2025 [254]. - As of March 31, 2025, the company has sold 531,728 shares of common stock for total gross sales of $12.6 million under its ATM Program [244]. - The company launched a continuous public offering of up to 16,000,000 shares of Series B Preferred Stock at a price of $25.00 per share, aiming for gross proceeds of $400.0 million [245]. - As of March 31, 2025, the company has sold 8,485,120 shares of Series B Preferred Stock for total gross proceeds of $207.3 million [247]. Market Conditions and Risks - The company has experienced uncertainties regarding the impact of recently announced tariffs on construction materials, which could affect operational costs [192]. - The macroeconomic environment remains challenging due to high interest rates and limited credit availability, impacting commercial real estate financing [285]. Legal and Regulatory Matters - The company is currently involved in ongoing litigation, including the Bankruptcy Trust Lawsuit and the UBS Lawsuit, but does not expect these to materially affect its business [193]. - The company intends to maintain its REIT status for U.S. federal income tax purposes, which commenced with the taxable year ended December 31, 2020 [191]. - The Company elected to be treated as a REIT for U.S. federal income tax purposes, requiring it to distribute at least 90% of its REIT taxable income to stockholders [286]. Investment Portfolio - The company's portfolio consists of assets with a combined unpaid principal balance of $1.5 billion as of March 31, 2025 [230]. - The current yield on senior loans in the portfolio averages 10.16% with a remaining term of 2.15 years [230]. - The highest coupon rate for a senior loan in the portfolio is 14.00% for a loan amount of $151.263 million [230]. - The total net equity for senior loans in the portfolio is $164.874 million [230]. - The company holds CMBS B-Pieces with a total investment of $108.303 million, with a current yield of 9.08% [230]. - The average coupon rate for CMBS B-Pieces is 10.57% with a remaining term of 5.91 years [230]. Commitments and Off-Balance Sheet Arrangements - The Company has one off-balance sheet arrangement that may affect its financial condition as of March 31, 2025 [256]. - The Company committed to fund $24.0 million of preferred equity for a construction project in Phoenix, Arizona, with $6.5 million remaining unfunded as of March 31, 2025 [259]. - The Company fully funded $30.3 million of preferred units for a multifamily property development in Forney, Texas, and committed an additional $4.3 million in common equity, of which $1.3 million was unfunded as of March 31, 2025 [259]. - The Company has an unfunded commitment balance of $105.0 million under the IQHQ Subscription Agreement as of March 31, 2025, having funded $55.0 million [273]. Credit Losses and Valuation - The cumulative effect of adopting ASU 2016-13 as of January 1, 2023, resulted in a $1.6 million reduction in retained earnings [278]. - The beginning allowance for credit loss as of January 1, 2025, was $1.4 million, with a provision for credit losses of $3.6 million for the three months ended March 31, 2025, leading to an ending allowance for credit loss of $5.0 million [278]. - The unrealized loss related to the change in fair value estimate for NSP was $1.2 million for the three months ended March 31, 2025 [281]. - The unrealized loss related to the change in fair value estimate for the Private REIT was $0.2 million for the three months ended March 31, 2025 [282]. - Significant judgment is required in determining impairment and estimating the resulting loss allowance, with actual losses potentially differing from estimates [279].

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $0.70 per diluted share, a significant improvement from a net loss of $0.83 per diluted share in Q1 2024 [5] - Interest income increased by $23.6 million to $22 million in Q1 2025, compared to a net loss of $1.6 million in Q1 2024, driven by higher rates [6] - Earnings available for distribution rose to $0.41 per diluted common share in Q1 2025 from negative $0.46 per diluted share in the same period of 2024 [6] - Cash available for distribution was $0.45 per diluted common share in Q1 2025, down from $0.60 per diluted common share in Q1 2024 [6] - Book value per share increased by 1.47% from Q4 2024 to $17.22 per diluted common share [7] Business Line Data and Key Metrics Changes - The portfolio consists of 85 investments with a total outstanding balance of $1.2 billion, allocated as follows: 49.4% multifamily, 31.9% life sciences, 15.6% single-family rental, 1.6% storage, 0.9% specialty manufacturing, and 0.6% marina [9] - The investment allocation includes 28.4% CMBS BPs, 24.7% mezzanine loans, 19% preferred equity investments, 12.9% revolving credit facilities, 10.4% senior loans, 4.2% IO strips, and 0.3% promissory notes [9] Market Data and Key Metrics Changes - The company reported strong demand in the residential sector, with over 138,000 units absorbed in Q1 2025, marking a record first quarter performance [14] - Sunbelt markets captured a majority of the top 10 markets for absorption in Q1 2025, indicating robust demand in these regions [14] - The life sciences sector is experiencing challenges due to tariff and NIH funding uncertainties, but there are positive developments in specific projects, such as the Alewife project [12][13] Company Strategy and Development Direction - The company remains focused on the residential sector, anticipating increased rental growth and transaction volume in the coming quarters [15] - There is an emphasis on self-storage development opportunities, with expected yields ranging from 8.1% to 8.5% [15][16] - The company plans to actively market several equity investments to generate approximately $75 million of new equity for reinvestment into income-producing assets [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the residential sector, believing it has bottomed out and is poised for growth [14][22] - The life sciences sector is expected to see a resolution of current uncertainties by mid-2025, which could lead to increased capital allocation decisions [12][21] - Overall, the company is confident in its portfolio's performance and sees opportunities in the multifamily and self-storage sectors [16] Other Important Information - The company paid a regular dividend of $0.50 per share in Q1 2025 and has declared a similar dividend for Q2 2025 [7] - The debt to equity ratio stands at 1.33 times, with a weighted average cost of debt at 6% [10] Q&A Session Summary Question: Can you comment on the credit side and notable credit loss provision? - Management indicated that a weighted average base case and downside scenario for CECL reserve was implemented, contributing to the credit loss provision [19] - A proactive reserve was applied to a private preferred asset, leading to the uptick in credit loss provision [20] Question: What is the leasing momentum for the life science project? - The project is expected to be two-thirds leased, resulting in a debt yield of almost 11% from two tenants [25] Question: What are the future investment plans? - The company plans to focus on residential space, preferreds, and ramping up CMBS B pieces, with a particular interest in short-term stretch senior opportunities [31]