Group 1 - The record date for stockholders entitled to vote at the 2026 Annual Meeting is set for March 27, 2026, with the meeting scheduled for June 2, 2026, at 10:30 a.m. Central Time [1] - The Annual Meeting will be conducted exclusively in a virtual format, and stockholders of record can vote and ask questions online [1] - Further details regarding the Annual Meeting, including access instructions, will be provided in the Proxy Materials [2] Group 2 - NexPoint Real Estate Finance, Inc. is a publicly traded REIT listed on the NYSE under the symbols "NREF" and "NREF-PRA" [3] - The company focuses on originating, structuring, and investing in various financial instruments, including first-lien mortgage loans, mezzanine loans, and multifamily properties [3] - Additional information about the company can be found on its website [3]

Core Viewpoint - Elevated financial market volatility due to geopolitical tensions, particularly Israeli and U.S. strikes on Iran, is prompting investors to seek safer dividend stocks with no exposure to the Middle East [1] Group 1: Market Conditions - Financial market volatility has increased following military actions in the Middle East, influencing investor behavior [1] Group 2: Investment Strategies - Investors are likely to increase allocations to safer dividend stocks as a response to current market conditions [1]

Core Insights - NexPoint Real Estate Finance (NREF) reported a strong performance in Q4 2025, with net income increasing year over year, while earnings available for distribution (EAD) declined compared to the prior year [6][5]. Financial Performance - NREF ended the quarter with 92 investments totaling $1.2 billion in outstanding balance [1]. - Interest income rose by $17.4 million to $89.9 million in 2025 from $72.5 million in the prior year, while interest expense decreased to $42.8 million from $44.4 million [2]. - For the full year, NREF reported net income of $2.09 per diluted share, more than double the $1.02 reported in 2024 [2]. - The company paid a regular dividend of $0.50 per share in Q4, which was 1.06 times covered by cash available for distribution (CAD) [4]. Portfolio Composition - The portfolio's sector allocation includes 28% CMBS B-Pieces, 23% preferred equity, 20% mezzanine loans, 14% revolving credit facilities, and 10% senior loans [7]. - Geographically, collateral is concentrated in Massachusetts (24%), Texas (16%), and California (7%), with a focus on life sciences in Massachusetts and California [8]. Capital Management - NREF raised $60.5 million in gross proceeds from its Series B preferred stock offering and launched its Series C preferred stock [10]. - The company had $771.2 million of debt outstanding at a 5.3% weighted average cost [11]. - During the quarter, NREF refinanced $36.5 million of unsecured notes with a new $45 million unsecured offering at 7.875% [12]. Strategic Focus - Management emphasized portfolio positioning across residential, life sciences, self-storage, and single-family rental sectors [6]. - The company expects to term out remaining unsecured notes in the first half of 2026, with $180 million of unsecured notes maturing in May [12]. - The company is focusing on recession-resilient sectors and anticipates a new lease inflection in multifamily housing in 2026 [16]. Future Guidance - For Q1 2026, NREF guided EAD of $0.35 to $0.45 per diluted share and CAD of $0.45 to $0.55 per diluted share [19]. - The company sees opportunities in single-family rental and build-to-rent sectors, with agency financing remaining available [18].

Financial Data and Key Metrics Changes - The company reported net income of $0.52 per diluted share for Q4 2025, an increase from $0.43 in Q4 2024, driven by unrealized gains on preferred stock and stock warrant investments [4] - Earnings available for distribution (EAD) was $0.48 per diluted share, down from $0.83 in Q4 2024, while cash available for distribution (CAD) increased to $0.53 per diluted share from $0.47 in the prior quarter [4] - For the full year, net income was $2.09 per diluted share, more than double the $1.02 reported in 2024, primarily due to higher net interest income [6] - Interest income rose to $89.9 million in 2025 from $72.5 million in 2024, while interest expense decreased from $44.4 million to $42.8 million [6] Business Line Data and Key Metrics Changes - The portfolio consists of 92 investments with a total outstanding balance of $1.2 billion, allocated as follows: 47% multifamily, 30% life sciences, 17% single-family rental, and the remainder across storage, marina, and industrial [7] - The collateral on the portfolio is 82.5% stabilized, with a loan-to-value ratio of 63.6% and a weighted average debt service coverage ratio of 1.24 times [8] - The NexPoint storage portfolio finished 2025 at 91.7% occupancy, exceeding its NOI budget by 3.2% and growing NOI by 13% over 2024 [19] Market Data and Key Metrics Changes - Geographically, collateral is concentrated in Massachusetts (24%), Texas (16%), and California (7%), with significant exposure to life sciences in Massachusetts and California [7] - The self-storage industry is experiencing occupancy pressure, with the average ending 2025 at 89%, down 210 basis points from the start of the year [18] Company Strategy and Development Direction - The company is focused on recession-resilient property types such as residential and self-storage, avoiding investments in AI scare trade assets [11] - The strategy includes actively managing the B-Pieces portfolio to unlock value and improve capital efficiency, with plans to refinance remaining unsecured notes in the first half of 2026 [10][9] - The company is optimistic about the multifamily sector, expecting positive rent inflection in the second half of 2026 due to structural demand and a decline in new market rate deliveries [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in dividend sustainability, noting that CAD is a better indicator of dividend coverage than EAD [27] - The company anticipates a leveling off of credit loss provisions in 2026, with no significant problem areas in the portfolio [38] - There is optimism regarding life sciences leasing activity, driven by demand from AI companies needing purpose-built lab spaces [42] Other Important Information - The board declared a dividend of $0.50 per share for Q1 2026, which is 1.06 times covered by cash available for distribution [4] - The company raised $60.5 million in gross proceeds from a Series B preferred stock offering [5] Q&A Session Summary Question: Dividend sustainability and confidence in current level - Management indicated that while EAD is below CAD, they believe CAD is a better indicator for dividend coverage and sustainability, and they feel well-positioned for future dividend sustainability [26][28] Question: Areas of portfolio excitement and impact of regulations - Management is particularly focused on life sciences and build-to-rent assets, believing there will be continued demand for capital in these areas despite proposed regulations [30][32] Question: Provision for credit loss and expectations - Management explained that one-third of the $12 million provision was a general reserve, with expectations for it to level off in 2026 [38] Question: Characteristics driving positive performance in life science projects - The Alyfe Park project is noted for its purpose-built characteristics and strategic location, which have driven leasing activity despite broader market challenges [39][41] Question: Details on loans made in the quarter - Management provided details on loans funded, including a $22.5 million loan at an 11% coupon, emphasizing a selective approach to investment opportunities [47]

Financial Data and Key Metrics Changes - The company reported net income of $0.52 per diluted share for Q4 2025, an increase from $0.43 in Q4 2024, driven by unrealized gains on preferred stock and stock warrant investments [4] - Earnings available for distribution (EAD) was $0.48 per diluted share, down from $0.83 in Q4 2024, while cash available for distribution (CAD) increased to $0.53 per diluted share from $0.47 in the prior quarter [4] - For the full year, net income was $2.09 per diluted share, more than double the $1.02 reported in 2024, primarily due to higher net interest income [6] - Interest income rose by $17.4 million to $89.9 million for 2025, while interest expense decreased from $44.4 million to $42.8 million [6] Business Line Data and Key Metrics Changes - The portfolio consists of 92 investments with a total outstanding balance of $1.2 billion, allocated as follows: 47% multifamily, 30% life sciences, 17% single-family rental, and the remainder across storage, marina, and industrial [7] - The collateral on the portfolio is 82.5% stabilized, with a loan-to-value ratio of 63.6% and a weighted average debt service coverage ratio of 1.24 times [8] - The NexPoint storage portfolio finished 2025 at 91.7% occupancy, exceeding its NOI budget by 3.2% and growing NOI by 13% over 2024 [19] Market Data and Key Metrics Changes - Geographically, collateral is concentrated in Massachusetts (24%), Texas (16%), and California (7%), with significant exposure to life sciences in Massachusetts and California [7] - The self-storage industry is facing occupancy pressure, with the average ending 2025 at 89%, down 210 basis points from the start of the year [18] Company Strategy and Development Direction - The company is focused on recession-resilient property types such as residential and self-storage, avoiding investments in AI scare trade assets [11] - The company is optimistic about the multifamily sector, expecting positive rent inflection in the second half of 2026 due to structural demand and a decline in new market rate deliveries [16] - The company is actively pursuing opportunities in build-to-rent assets, with a pipeline consisting of various investments across multifamily, life sciences, and self-storage [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in dividend sustainability, noting that cash available for distribution is a better indicator of coverage than earnings available for distribution [27] - The company anticipates that the demand for life sciences and residential properties will continue to grow, driven by demographic trends and advancements in health and wellness [16][42] - Management believes that the regulatory environment will create opportunities in the build-to-rent sector, particularly if institutional buyers face limitations [32] Other Important Information - The company raised $60.5 million in gross proceeds from a Series B preferred stock offering and launched a Series C preferred stock at 8% [5][9] - The company refinanced $36.5 million in unsecured notes with a new $45 million offering at 7.875%, positioning itself well in a declining interest rate environment [9] Q&A Session Summary Question: Dividend sustainability and confidence in current level - Management noted that EAD is slightly below CAD, but CAD is viewed as a better indicator for dividend coverage, and they feel well-positioned for future sustainability [27][28] Question: Areas of portfolio excitement and impact of regulations - Management is focused on life sciences and build-to-rent assets, believing there are significant opportunities in these sectors despite potential regulatory changes [31][32] Question: Provision for credit loss and future expectations - Management indicated that the recent provision for credit loss was conservative and expects it to level off in 2026 [38] Question: Characteristics driving positive performance in life science projects - The Alyfe Park project is purpose-built and well-located, which has driven leasing activity despite challenging market dynamics [40][41] Question: Details on loans made in the quarter - Management provided details on loans, including a $22.5 million loan at 11% and emphasized a focused approach to investment selection [48]

Financial Data and Key Metrics Changes - The company reported net income of $0.52 per diluted share for Q4 2025, an increase from $0.43 in Q4 2024, driven by unrealized gains on preferred stock and stock warrant investments [4] - Earnings available for distribution (EAD) was $0.48 per diluted share, down from $0.83 in Q4 2024, while cash available for distribution (CAD) increased to $0.53 per diluted share from $0.47 in the prior quarter [4] - For the full year, net income was $2.09 per diluted share, more than double the $1.02 reported in 2024, primarily due to higher net interest income [6] - Interest income rose to $89.9 million for 2025, up from $72.5 million in the prior year, while interest expense decreased from $44.4 million to $42.8 million [6] Business Line Data and Key Metrics Changes - The portfolio consists of 92 investments with a total outstanding balance of $1.2 billion, allocated as follows: 47% multifamily, 30% life sciences, 17% single-family rental, and the remainder across storage, marina, and industrial [7] - The collateral on the portfolio is 82.5% stabilized, with a loan-to-value ratio of 63.6% and a weighted average debt service coverage ratio of 1.24 times [9] - The NexPoint storage portfolio finished the year at 91.7% occupancy, exceeding its NOI budget by 3.2% and growing NOI by 13% over 2024 [20] Market Data and Key Metrics Changes - Geographically, collateral is concentrated in Massachusetts (24%), Texas (16%), and California (7%), with significant exposure to life sciences in Massachusetts and California [8] - The self-storage industry is facing occupancy pressure, with the average ending 2025 at 89%, down 210 basis points from the start of the year, primarily due to a sluggish housing market [19] Company Strategy and Development Direction - The company is focused on recession-resilient property types such as residential and self-storage, avoiding investments in AI scare trade assets [12] - The strategy includes leaning into life sciences and build-to-rent (BTR) assets, with a strong pipeline of investments in multifamily and life sciences [21] - The company plans to continue opportunistically buying back stock while pursuing new investments, particularly after refinancing its bonds [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in dividend sustainability, noting that CAD is a better indicator of dividend coverage than EAD [28] - The company anticipates a positive inflection in multifamily rents in the second half of 2026 due to structural demand and a decline in new market rate deliveries [17] - Management highlighted the growing demand for life sciences and the potential for AI to drive further leasing activity in that sector [42] Other Important Information - The board declared a dividend of $0.50 per share for Q1 2026, which is 1.06 times covered by cash available for distribution [4] - The company refinanced $36.5 million of unsecured notes with a new $45 million offering at 7.875%, positioning itself well in a declining interest rate environment [10] Q&A Session Summary Question: Dividend sustainability and confidence in current level - Management indicated that CAD is a better indicator of dividend coverage and expressed confidence in future sustainability due to ongoing transactions and capital redeployment [28][30] Question: Areas of portfolio excitement and impact of regulations - Management is focused on life sciences and BTR assets, believing there will be continued demand despite proposed regulations limiting institutional ownership [32][33] Question: Provision for credit loss and expectations - Management noted that one-third of the $12 million provision was a general reserve, with expectations that this would level off in 2026 [39] Question: Characteristics driving positive performance in life science projects - The Aly Park project is purpose-built and strategically located, which has driven leasing activity despite broader market challenges [40][41] Question: Details on loans made in the quarter - Management provided details on loans, including a $22.5 million loan at 11% and a focus on sound cash flow projects [47][48]

NYSE:NREF 4Q 2025 Financial Supplement February 26, 2026 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 Cautionary Statements FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looki ...

Core Viewpoint - NexPoint Real Estate Finance, Inc. reported a net income of $13.6 million for the quarter ended December 31, 2025, translating to $0.52 per diluted share [1] Financial Performance - The net income attributable to common stockholders for the three months ended December 31, 2025, was $13.6 million [1] - The earnings per diluted share for the same period was $0.52 [1]

Financial Performance - NREF reported net income attributable to common stockholders of $13.6 million, or $0.52 per diluted share, for Q4 2025[2] - For Q1 2026, net income attributable to common stockholders is estimated to be between $6.5 million and $8.8 million[10] - Q1 2026 guidance for earnings available for distribution (EAD) per diluted common share is $0.40 at the midpoint[11] - A first quarter dividend of $0.50 per common share was announced on February 24, 2026[9] Cash Distribution Metrics - Cash available for distribution (CAD) for Q4 2025 was $12.2 million, or $0.53 per diluted common share[2] - Q1 2026 guidance for cash available for distribution (CAD) per diluted common share is $0.50 at the midpoint[13] - CAD is calculated by adjusting EAD with amortization of premiums, depreciation, and removing accretion of discounts, used to evaluate current ability to pay distributions[25] Investment Portfolio - The total portfolio outstanding is $1.2 billion, composed of 92 investments, with multifamily representing 47.0% of the investment portfolio[9] - The weighted-average loan to value (LTV) is 63.6% and the debt service coverage ratio (DSCR) is 1.24x[9] - During Q4 2025, the company raised $60.5 million in gross proceeds from the Series B preferred stock offering[9] - The company funded $5.7 million on a loan with a monthly coupon of SOFR + 900 bps during the quarter[9] EAD and CAD Definitions - EAD is defined as net income attributable to common stockholders, adjusted for realized gains and losses, excluding unrealized gains or losses, and adding back stock-based compensation amortization[23] - EAD and CAD do not represent net income or cash flows from operating activities and should not be considered alternatives to GAAP net income[24][25] - The computation of EAD and CAD may not be comparable to similar measures reported by other REITs[24][25] Shareholder Considerations - Adjusted weighted average common shares outstanding - diluted excludes the dilutive effect of potential redemptions of Series B and Series C Preferred shares[26] - The Company maintains sufficient liquidity to cover cash redemptions of Series B and Series C Preferred shares up to the quarterly redemption cap[26] - The Company has the right to redeem Series B and Series C Preferred shares for cash or common stock, with specific caps on redemptions[26] - EAD per diluted common share and CAD per diluted common share are based on adjusted weighted average common shares outstanding - diluted[26] - The adjusted weighted average common shares outstanding - diluted is calculated by subtracting the dilutive effect of potential redemptions from the weighted average common shares outstanding[26] - The Company believes providing EAD and CAD as supplements to GAAP net income is helpful for investors' assessment of performance and distribution capabilities[23][25]

Core Viewpoint - NexPoint Real Estate Finance, Inc. has announced the final income allocations for its 2025 dividend distributions on common stock and preferred stock, detailing the taxable income and capital gains for shareholders [1]. Summary by Category Common Shares - The dividend distribution per share is set at $0.50000 for two payment dates: March 31, 2025, and June 30, 2025 - Taxable ordinary income per share is $0.02966 for both payment dates - There are no taxable capital gains or unrecaptured Section 1250 gains, with a return of capital per share of $0.47034 for both distributions [1]. Series A Preferred Shares - The dividend distribution per share is $0.53125 for each of the payment dates: January 27, 2025, April 25, 2025, and July 25, 2025 - The entire amount of $0.53125 is classified as taxable ordinary income, with no taxable capital gains or unrecaptured Section 1250 gains [1]. Series B Preferred Shares - The dividend distribution per share is $0.18750 for payment dates on February 5, 2025, and March 5, 2025 - Similar to Series A, the entire amount is classified as taxable ordinary income, with no taxable capital gains or unrecaptured Section 1250 gains [1]. - It is noted that several CUSIPs for Series B may not have received all listed payments due to issuance after the payable/record dates [1]. Tax Treatment - 98.374% of the taxable ordinary income is treated as a qualified REIT dividend under Section 199A - 1.626% of the taxable ordinary income qualifies as dividend income eligible for the dividends received deduction for corporate taxpayers [1]. Company Overview - NexPoint Real Estate Finance, Inc. is a publicly traded REIT focused on originating and investing in various real estate finance products, including first-lien mortgage loans and multifamily properties, with its common stock and Series A Preferred Stock listed on the NYSE [1].