2025 has proven to be an overall successful year for mortgage REITs, notwithstanding notable differences dependent on credit exposure. mREITs focused on safer agency securities have done quite well, benefiting from lower funding costs on repurchaseI ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with cover ...

2025 has proven to be an overall successful year for mortgage REITs, notwithstanding notable differences dependent on credit exposure. mREITs focused on safer agency securities have done quite well, benefiting from lower funding costs on repurchaseI ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with cover ...

Key Takeaways The mREIT industry rebounded in late 2025 as mortgage rates fell to 6.21% after multiple Fed rate cuts.Lower rates are expected to lift purchase originations and refinancing, easing earnings pressure for mREITs.TWO, NREF and EFC offer high dividend yields and improving financial trends as rates and volatility decline.The mortgage REIT (mREIT) industry experienced a volatile trend throughout 2025 due to macroeconomic uncertainty. Per the Freddie Mac report, the average rate on a 30-year fixed-r ...

Milestone Reached as NREF Continues Growth in Preferred Stock Program DALLAS, Dec. 10, 2025 /PRNewswire/ -- NexPoint Real Estate Finance, Inc. ("NREF" or the "Company"), a leading real estate finance company, today announced the closing of its successful offering of its 9.00% Series B Cumulative Redeemable Preferred Stock ("Series B Preferred Stock") offering, with approximately $404.5 million gross proceeds raised to date, fully subscribing its initial $400 million offering amount. In tandem with this mil ...

Investment Activities - The company acquired or originated investments totaling $73,008,612 during the three months ended September 30, 2025, with various property types including multifamily and life science [225]. - The company’s investment objective is to generate attractive, risk-adjusted returns for stockholders over the long term [218]. - The company focuses on investments in real estate sectors where its senior management has expertise, particularly in the top 50 MSAs [217]. - The company is actively managing a diverse range of investments including preferred equity and common stock investments [272]. - The company has a 280-unit multifamily property that was 94.6% occupied with an effective rent of $1,617 per month as of September 30, 2025 [275]. - The company committed to fund $24.0 million of preferred equity for a single-family property in Phoenix, Arizona, with $3.1 million unfunded as of September 30, 2025, offering a floating annual return of at least 11.25% [304]. - A total of $30.3 million of preferred units was fully funded for a multifamily property development in Richmond, Virginia, with an additional $4.3 million of common equity, of which $0.3 million was unfunded as of September 30, 2025 [305]. Financial Performance - Net income attributable to common stockholders for Q3 2025 was approximately $35.0 million, a significant increase of 117.4% from $16.1 million in Q3 2024 [241][256]. - Net income attributable to common stockholders for the nine months ended September 30, 2025, was $63.8 million, a remarkable increase of 585.1% from $9.3 million in 2024 [248][256]. - Other income for the nine months ended September 30, 2025, reached $88.9 million, up 111.6% from $42.0 million in 2024 [248][250]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $27.5 million, an increase from $24.9 million for the same period in 2024 [294]. - Net cash provided by investing activities decreased to $279.7 million for the nine months ended September 30, 2025, compared to $735.9 million for the same period in 2024 [295]. - Net cash used in financing activities was $292.6 million for the nine months ended September 30, 2025, down from $738.8 million for the same period in 2024 [296]. Operating Expenses - Operating expenses increased by 6.5% to $8.4 million in Q3 2025 compared to $7.8 million in Q3 2024 [241]. - G&A expenses for Q3 2025 were $3.4 million, up from $2.2 million in Q3 2024, reflecting a 54.5% increase [244]. - Management fees increased to $1.8 million in Q3 2025 from $1.0 million in Q3 2024, a rise of 80.0% [246]. - Total operating expenses for the nine months ended September 30, 2025, decreased by 6.4% to $25.9 million compared to $27.7 million in 2024 [248]. Equity and Book Value - Book value per share of common stock as of September 30, 2025, was $18.87, an increase from $16.93 as of December 31, 2024 [270]. - Total equity as of September 30, 2025, was $428,488,000, compared to $381,788,000 as of December 31, 2024 [271]. - Combined book value per share/unit as of September 30, 2025, was $18.83, up from $16.97 as of December 31, 2024 [271]. Debt and Liquidity - The outstanding balance on the Freddie Mac Credit Facility was $108.8 million as of September 30, 2025 [282]. - The company expects to meet its long-term liquidity requirements through various sources, including future debt or equity issuances and net cash from operations [278]. - As of September 30, 2025, the company has borrowed approximately $257.6 million under repurchase agreements, with collateral valued at approximately $740.6 million [285]. - The company has an aggregate principal amount of $180.0 million of its 5.75% Notes outstanding as of September 30, 2025 [291]. - The OP had an aggregate principal amount of $36.5 million of its 7.50% OP Notes outstanding as of September 30, 2025, and subsequently issued $45.0 million of 2026 OP Notes [292]. Legal and Regulatory Matters - The company has engaged in various legal proceedings, including the Bankruptcy Trust Lawsuit and the UBS Lawsuit, but does not expect these to materially affect its business [223]. - 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 [220]. - 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 [333]. Risk Management - The company is actively managing financial risks associated with tariffs imposed by the U.S. government, which could impact operational costs [221]. - The macroeconomic environment remains challenging due to high interest rates and limited credit availability, impacting capital markets and financing [332]. - The company has implemented loan loss forecasting models for estimating expected lifetime credit losses at the individual loan level [325]. - Significant judgment is required in determining impairment and estimating the resulting loss allowance, with actual losses potentially differing from estimates [326]. Investment Portfolio - The company's portfolio has a combined unpaid principal balance of $1.5 billion as of September 30, 2025 [272]. - The total principal amount for Senior Loans is $119,243,000 with a current yield of 5.32% [272]. - CMBS B-Pieces total principal amount is $322,733,000 with a current yield of 5.08% [272]. - The highest yielding CMBS B-Piece has a coupon of 13.47% [272]. - The total net equity for CMBS B-Pieces is $69,251,000 [272]. - The average term remaining for Senior Loans is 2.05 years [272]. - The average current yield for CMBS I/O Strips is 2.02% [272]. - The total principal amount for CMBS I/O Strips is $213,680,000 [272]. - The total number of mezzanine loans issued was 18, reflecting a diverse investment strategy in multifamily properties [10].

Core Viewpoint - NexPoint Real Estate Finance, Inc. (NREF) has launched a continuous public offering of up to 8,000,000 shares of its newly designated 8.00% Series C Cumulative Redeemable Preferred Stock at a price of $25.00 per share, aiming for gross proceeds of $200 million [1][2]. Group 1: Offering Details - The offering is intended to raise gross proceeds of $200 million through the sale of 8,000,000 shares of Series C Preferred Stock [1]. - The net proceeds from the offering will be used for general corporate purposes, including funding investments and repaying outstanding debt obligations [2]. - The offering will terminate either when all shares are sold or on December 29, 2026, whichever comes first, with the possibility of extension at the board's discretion [4]. Group 2: Company Background - NREF is a commercial mortgage real estate investment trust (REIT) focused on sectors where its management has expertise, including multifamily, single-family rental, self-storage, and life sciences, primarily in the top 50 metropolitan areas [2][7]. - The company is publicly traded, with its common stock and Series A Preferred Stock listed on the New York Stock Exchange under the symbols "NREF" and "NREF-PRA" respectively [7]. Group 3: Management and Offering Process - NexPoint Securities, Inc., an affiliate of NexPoint Real Estate Advisors VII, L.P., will act as the dealer manager for the offering, which is being conducted on a "reasonable best efforts" basis [3]. - There is currently no public market for the Series C Preferred Stock, and the company does not plan to list it on any national securities exchange [3].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported a net income of $1.12 per diluted share, an increase from $0.74 per diluted share in Q3 2024, attributed to unrealized gains on preferred stock and stock warrant investments [4] - Earnings available for distribution decreased to $0.51 per diluted share in Q3 2025 from $0.75 per diluted share in Q3 2024 [4] - Cash available for distribution also declined to $0.53 per diluted share in Q3 2025 from $0.67 per diluted share in Q3 2024 [5] - The company declared a regular dividend of $0.50 per share for Q3 2025, which was 1.06 times covered by cash available for distribution [5] - Book value per share increased by 8% from Q2 2025 to $18.79 per diluted share, primarily due to unrealized gains on preferred stock investments and stock warrants [5] Business Line Data and Key Metrics Changes - The portfolio consists of 88 investments with a total outstanding balance of $1.1 billion, allocated as follows: 47.3% multifamily, 33.9% life sciences, 15.9% single-family rental, 1.8% storage, and 1.1% marina [6] - The fixed income portfolio is allocated as follows: 27% CMBS B pieces, 26.5% mezzanine loans, 18.6% preferred equity investments, 12.4% revolving credit facilities, 10% senior loans, 4.2% IO strips, and 1.3% promissory notes [6] Market Data and Key Metrics Changes - The assets collateralizing investments are geographically allocated with 28.1% in Massachusetts, 15.5% in Texas, 8% in Georgia, and smaller percentages in California, Maryland, and Florida, reflecting a preference for Sunbelt markets [7] - The collateral on the portfolio is 87.4% stabilized, with a loan-to-value ratio of 54.9% and a weighted average debt service coverage ratio (DSCR) of 1.41 times [8] Company Strategy and Development Direction - The company is launching a Series C Preferred offering of $200 million at an 8% coupon, continuing to deploy capital at spreads of 400 basis points plus the cost of this capital [9] - The company is focused on maintaining a low leverage profile, which allows for various capital options to pursue growth opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the rental market outlook, anticipating positive revenue growth in 2026 for the first time in several years [12] - The life sciences sector is showing signs of stabilization with a significant lease signed with Lila Sciences, which is expected to drive leasing momentum [17][22] - The multifamily sector is expected to see new lease growth inflecting in major markets, with optimism for transaction volumes to increase dramatically in 2026 [36] Other Important Information - The company funded $42.5 million on a life sciences preferred and $6.5 million on a loan with a monthly coupon of SOFR +900 basis points during the quarter [5] - The company sold a multifamily property for $60 million, resulting in a $3.7 million gain [6] Q&A Session Summary Question: Updated view on the life sciences sector - Management noted that distress in the life sciences sector primarily affects projects capitalized shortly after COVID, while their investments are focused on first-to-fill assets in strong markets [21][22] Question: Thoughts on multifamily supply and bridge lending - Management acknowledged softness in the bridge lending space due to floating-rate loans originated in 2021-2022 but expressed optimism for new lease growth in constrained supply markets [35][36]

Financial Performance - Net income for 3Q 2025 was $509 million, with net income attributable to common stockholders of $350 million, or $114 per diluted common share[16, 25] - Earnings Available for Distribution (EAD) for 3Q 2025 was $116 million, or $051 per diluted common share[25] - Cash Available for Distribution (CAD) for 3Q 2025 was $121 million, or $053 per diluted common share[16, 30] - Book value per diluted common share increased by 82% to $1883[25] Portfolio Activity - The company's outstanding total portfolio is $11 billion, composed of 88 investments[17] - $65 million was funded on a loan with a monthly coupon of SOFR+900bps[17] - A multifamily property was sold for $600 million, resulting in a gain of $37 million[17] - $425 million of Preferred Stock was purchased[17] Capitalization and Dividends - The debt to equity ratio was 093x as of September 30, 2025[18] - Series B preferred coverage was 488x for net income and 169x for CAD[18] - A 3Q 2025 dividend of $050 per common share was paid on September 30, 2025[16, 43] - The implied dividend yield is 150% based on the 3Q dividend and share price as of October 29, 2025[14] Portfolio Composition - 874% of the portfolio is stabilized[47] - The weighted average Loan-to-Value (LTV) is 549%[47, 51]

Core Viewpoint - NexPoint Real Estate Finance, Inc. reported stable earnings and cash available for distribution, focusing on high-quality investments in resilient sectors such as life sciences, self-storage, and workforce rental housing [3][4][7]. Financial Performance - For the quarter ended September 30, 2025, the company reported net income attributable to common stockholders of $35.0 million, or $1.14 per diluted share [1]. - Cash available for distribution was $12.1 million, or $0.53 per diluted common share [2]. - The company anticipates fourth quarter 2025 earnings available for distribution (EAD) per diluted common share guidance at $0.48 at the midpoint [6]. Investment Portfolio - The total portfolio is valued at $1.1 billion, consisting of 88 investments, with allocations of 15.9% in single-family rentals, 47.3% in multifamily, 33.9% in life sciences, 1.8% in self-storage, and 1.1% in marinas as of September 30, 2025 [7]. - The weighted-average loan to value (LTV) ratio is 54.9%, and the debt service coverage ratio (DSCR) is 1.41x [7]. Capital Allocation and Strategy - The company continues to deploy capital into high-quality investments, maintaining a disciplined approach to capital allocation [3]. - During the third quarter, the company purchased $42.5 million of preferred stock and funded $6.5 million on a loan with a monthly coupon of SOFR + 900 bps [7]. Dividends and Stock Offering - A fourth quarter dividend of $0.50 per common share was announced on October 28, 2025 [7]. - The company raised $65.7 million in gross proceeds from a Series B preferred stock offering during the quarter [7].