NexPoint Real Estate Finance, Inc. (NYSE:NREF) is included among the 13 Dividend Stocks with Over 8% Yield. Keefe Bruyette Adjusts NexPoint Real Estate Finance (NREF) Target, Keeps Market Perform On January 8, Keefe Bruyette trimmed its price target on NexPoint Real Estate Finance, Inc. (NYSE:NREF) to $14 from $14.50. The firm maintained a Market Perform rating on the stock. In the company’s Q3 2025 earnings update, CFO and EVP of Finance Paul Richards said profitability improved sharply from the prior ...

DALLAS, Jan. 27, 2026 /PRNewswire/ -- NexPoint Real Estate Finance, Inc. (NYSE: NREF) (the "Company") announced today that the Company is scheduled to host a conference call on Thursday, February 26, 2026, at 11:00 a.m. ET (10:00 a.m. CT), to discuss fourth quarter 2025 financial results.   The conference call can be accessed live over the phone by dialing 888-660-4430 or, for international callers, +1 646-960-0537 and using passcode Conference ID: 6891136.  A live audio webcast of the call will be availab ...

Core Insights - 2025 has been a successful year for mortgage REITs, particularly those focused on safer agency securities, benefiting from lower funding costs on repurchase agreements [1] Group 1: Performance of Mortgage REITs - Mortgage REITs (mREITs) with a focus on safer agency securities have performed well in 2025 [1] - The success of these mREITs is attributed to lower funding costs, which have positively impacted their financial performance [1] Group 2: Investment Approach - The investment strategy discussed includes a combination of long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term perspective [1]

Core Insights - 2025 has been a successful year for mortgage REITs, with performance varying based on credit exposure, particularly benefiting those focused on safer agency securities due to lower funding costs on repurchase [1] Group 1: Industry Performance - Mortgage REITs focused on safer agency securities have performed well in 2025 [1] - The success of these mREITs is attributed to lower funding costs [1]

Industry Overview - The mortgage REIT (mREIT) industry faced volatility in 2025 due to macroeconomic uncertainty, with the average rate on a 30-year fixed-rate mortgage starting at 6.72% and remaining in the upper-6% range for most of the year [1] - By December 2025, the Fed implemented a 25-basis-point rate cut, reducing the average mortgage rate to 6.21%, down from a peak of 7.05% in January 2025 [2][9] - The mREIT industry showed signs of recovery as interest rates stabilized and economic conditions improved, with expectations for further declines in mortgage rates in 2026 [3][4] Market Dynamics - U.S. economic growth is projected to accelerate in 2026, with moderating inflation and decreasing unemployment, contributing to lower mortgage rates and favorable refinancing activity [4] - Mortgage spreads have been narrowing as volatility decreases, which is expected to improve book values for mREITs as asset prices rise [5] Investment Opportunities - Investors are encouraged to consider mREIT stocks such as Two Harbors Investments Corp (TWO), NexPoint Real Estate Finance (NREF), and Ellington Financial Inc. (EFC) for potential strong returns in 2026, given their attractive dividend yields and growth prospects [3][6] - The selection of these stocks was based on criteria including an expected earnings growth rate of over 5% for 2026 and a dividend yield exceeding 10% [7] Company Insights Two Harbors Investments Corp (TWO) - TWO's portfolio is primarily composed of residential mortgage-backed securities (RMBS) with a 71.1% exposure to Agency RMBS as of September 30, 2025 [10] - The company reported a net interest loss of $63.5 million for the nine months ended September 30, 2025, an improvement from a loss of $122.8 million in the prior year [12] - TWO's current dividend yield is 12.01%, and it has raised its dividend once in the past five years, with earnings estimates suggesting year-over-year increases of 114.5% for 2025 and 6.7% for 2026 [12][13] NexPoint Real Estate Finance (NREF) - NREF focuses on originating and investing in first mortgage loans and has seen its net interest income rise to $36.1 million in the first nine months of 2025, up from $6.4 million the previous year [18][19] - The company has a current dividend yield of 13.73% and has increased its dividend three times in the past five years, with earnings estimates indicating year-over-year increases of 2.2% for 2025 and 8.1% for 2026 [19] Ellington Financial Inc. (EFC) - EFC invests in a diverse range of financial assets, including residential and commercial mortgage loans, and has a strong momentum in its securitization platform [21] - The company maintains a disciplined approach to risk management, with a current dividend yield of 11.30% and three dividend increases in the past five years, alongside earnings estimates suggesting year-over-year increases of 25.3% for 2025 and 1.6% for 2026 [23]

Core Insights - NexPoint Real Estate Finance, Inc. (NREF) successfully closed its 9.00% Series B Cumulative Redeemable Preferred Stock offering, raising approximately $404.5 million, surpassing its initial $400 million target, indicating strong investor confidence in the company [1][3][5] - Following this success, NREF announced the launch of its $200 million 8.00% Series C Cumulative Redeemable Preferred Stock offering, priced at $25.00 per share, with the first scheduled close on December 19, 2025 [2][4] Financial Performance - The Series B Preferred Stock offering raised over $400 million, reflecting strong investor confidence in NREF's financial performance and management team [3] - The successful closing of the Series B offering has allowed NREF to strengthen its balance sheet and expand its real estate lending portfolio [3] Strategic Initiatives - The Series C Preferred Stock offering is designed to provide investors with stable income and limited share price volatility, supporting NREF's mission to finance high-quality real estate assets [4] - The company emphasizes its commitment to disciplined capital management and strategic growth in real estate finance, as highlighted by the launch of the Series C offering following the Series B success [5] Company Overview - NREF is a publicly traded REIT focused on originating, structuring, and investing in various real estate finance products, including first-lien mortgage loans, mezzanine loans, and preferred equity [7]

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]