Company Overview - NexPoint Real Estate Finance, Inc. is a publicly traded REIT listed on the New York Stock Exchange under the symbols "NREF" and "NREF-PRA" [4] - The company focuses on originating, structuring, and investing in various financial instruments including first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties, and common equity investments [4] Upcoming Events - The company is scheduled to host a conference call on May 1, 2025, at 11:00 a.m. ET to discuss first quarter 2025 financial results [1] - A press release with the financial results will be issued before market open on the same day [3] Access Information - The conference call can be accessed by dialing 888-660-4430 for domestic callers and +1 646-960-0537 for international callers, using passcode Conference ID: 6891136 [2] - A live audio webcast will be available on the company's website, and a replay will be accessible for 60 days after the call [2][3]

[FORM 10-K Filing Information](index=1&type=section&id=FORM%2010-K) [Filing Details](index=1&type=section&id=Filing%20Details) This section details the Form 10-K filing for NexPoint Real Estate Finance, Inc., including registration, NYSE-listed securities, and filer status - NexPoint Real Estate Finance, Inc. (NREF) filed its annual report on Form 10-K for the fiscal year ended **December 31, 2024**[2](index=2&type=chunk) Securities Registered on NYSE | Title of each class | Trading Symbol | Name of each exchange on which registered | | :------------------ | :------------- | :---------------------------------------- | | Common Stock, par value $0.01 per share | NREF | New York Stock Exchange | | 8.50% Series A Cumulative Redeemable Preferred Stock, par value 0.01 per share | NREF-PRA | New York Stock Exchange | Registrant Status | Status | Indicator | | :-------------------- | :-------- | | Well-known seasoned issuer | No | | Required to file reports | Yes | | Submitted Interactive Data File | Yes | | Large Accelerated Filer | No | | Accelerated Filer | No | | Non-Accelerated Filer | Yes | | Smaller reporting company | Yes | | Emerging growth company | Yes | - The aggregate market value of common stock held by non-affiliates was approximately **$153,877,972.70** as of **June 28, 2024**[4](index=4&type=chunk) - As of **March 26, 2025**, there were **17,643,526 shares** of common stock outstanding[5](index=5&type=chunk) [Documents Incorporated by Reference](index=2&type=section&id=DOCUMENTS%20INCORPORATED%20BY%20REFERENCE) [Incorporation Details](index=2&type=section&id=Incorporation%20Details) Portions of the proxy statement for the registrant's 2025 Annual Meeting of stockholders are incorporated by reference into Part III of this Form 10-K - Portions of the proxy statement for the **2025 Annual Meeting** of stockholders are incorporated by reference in Part III of this Form 10-K[7](index=7&type=chunk) [Table of Contents](index=3&type=section&id=INDEX) [Cautionary Statement Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section outlines the company's forward-looking statements, emphasizing that they are subject to risks and uncertainties and actual results may differ materially from projections - The Annual Report contains forward-looking statements regarding liquidity, capital resources, performance, and results of operations, which are subject to risks and uncertainties[19](index=19&type=chunk) - Key risks include those associated with debt-oriented real estate investments, commercial real estate delinquency and loss, interest rate and credit spread fluctuations, concentration of investments, substantial indebtedness, and dependence on the Manager[21](index=21&type=chunk) - The company cautions against relying on forward-looking statements, as actual results may vary materially due to known and unknown risks, trends, uncertainties, and factors beyond its control[20](index=20&type=chunk) [PART I](index=3&type=section&id=PART%20I) Part I of the report covers the company's business overview, risk factors, unresolved staff comments, cybersecurity practices, property details, legal proceedings, and mine safety disclosures [Item 1. Business](index=3&type=section&id=Item%201.%20Business) This section provides a comprehensive overview of NexPoint Real Estate Finance, Inc.'s business, including its structure as a commercial mortgage REIT, investment strategy, 2024 highlights, portfolio composition, financing strategy, management structure, competitive landscape, and regulatory compliance - NexPoint Real Estate Finance, Inc. (NREF) is a commercial mortgage REIT incorporated in Maryland on **June 7, 2019**, and has elected to be taxed as a REIT under the Internal Revenue Code[25](index=25&type=chunk) - The company focuses on originating, structuring, and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties, common equity, and CMBS securitizations, primarily in multifamily, SFR, self-storage, and life science sectors within the top 50 MSAs[25](index=25&type=chunk)[29](index=29&type=chunk) - NREF is externally managed by NexPoint Real Estate Advisors VII, L.P. (the 'Manager'), which conducts substantially all operations and provides asset management services[28](index=28&type=chunk)[52](index=52&type=chunk) [Item 1A. Risk Factors](index=3&type=section&id=Item%201A.%20Risk%20Factors) This section details various risks that could materially and adversely affect the company's business, financial condition, or results of operations, categorized into business, industry, legal/regulatory/accounting, indebtedness/financing, corporate structure, REIT status, and common stock ownership risks - The company's loans and investments are exposed to general real estate risks, including delinquency, foreclosure, and loss, and are concentrated by type, geography, asset, and sponsors[75](index=75&type=chunk)[97](index=97&type=chunk) - Fluctuations in interest rates and credit spreads could reduce income, and macroeconomic trends like inflation or recession may adversely impact financial condition[75](index=75&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk) - Dependence on the external Manager, potential conflicts of interest, and substantial fees paid to the Manager and its affiliates pose significant risks[75](index=75&type=chunk)[197](index=197&type=chunk)[207](index=207&type=chunk) - Failure to qualify or maintain REIT status would result in serious tax consequences, reducing funds available for distributions[75](index=75&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk) - The company has substantial indebtedness, which may limit financial and operating activities and adversely affect its ability to incur additional debt[75](index=75&type=chunk)[164](index=164&type=chunk) [Item 1B. Unresolved Staff Comments](index=3&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) This section states that there are no unresolved staff comments from the SEC - There are no unresolved staff comments[297](index=297&type=chunk) [Item 1C. Cybersecurity](index=3&type=section&id=Item%201C.%20Cybersecurity) This section details the company's cybersecurity risk management program, overseen by the Board's Audit Committee, highlighting a comprehensive, cross-functional approach based on recognized security frameworks - The Board's Audit Committee oversees the company's cybersecurity risk management program, which is based on recognized security frameworks like NIST CF and Azure Security Benchmark[298](index=298&type=chunk)[299](index=299&type=chunk)[308](index=308&type=chunk) - The program includes annual risk assessments, deployment of technical safeguards (firewalls, intrusion prevention, anti-malware, access controls), comprehensive business continuity plans, and third-party risk management[300](index=300&type=chunk)[301](index=301&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk)[304](index=304&type=chunk) - The Manager's Director of Information Technology, with **25 years of experience**, leads the cybersecurity program, which includes regular employee training and continuous monitoring of system security postures[305](index=305&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk) - Cybersecurity threats have not materially affected the company's business strategy, results of operations, or financial condition to date, but the risk remains significant if critical operations are disrupted[310](index=310&type=chunk) [Item 2. Properties](index=3&type=section&id=Item%202.%20Properties) This section lists the multifamily properties owned by the company, including Hudson Montford in Charlotte, NC, and Alexander at the District in Atlanta, GA, along with their outstanding mortgage debt as of December 31, 2024 - The company owns Hudson Montford, a 204-unit multifamily property in Charlotte, North Carolina, with approximately **$32.5 million** in mortgage debt as of **December 31, 2024**[311](index=311&type=chunk) - The company consolidated ownership of Alexander at the District, a 280-unit multifamily property in Atlanta, Georgia, as of **December 31, 2023**, with approximately **$63.5 million** in mortgage debt as of **December 31, 2024**[312](index=312&type=chunk) [Item 3. Legal Proceedings](index=3&type=section&id=Item%203.%20Legal%20Proceedings) This section states that the company is not aware of any legal proceedings likely to have a material adverse effect on its operations or financial condition - Management is not aware of any legal proceedings with an outcome reasonably likely to have a material adverse effect on the company's results of operations or financial condition[314](index=314&type=chunk) [Item 4. Mine Safety Disclosures](index=3&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company - Mine Safety Disclosures are not applicable[315](index=315&type=chunk) [PART II](index=3&type=section&id=PART%20II) Part II of the report covers market information for the registrant's common equity, management's discussion and analysis of financial condition and results of operations, quantitative and qualitative disclosures about market risk, financial statements, and controls and procedures [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=3&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section provides information on the company's common stock trading on the NYSE under 'NREF' and the number of outstanding shares and record holders as of March 26, 2025 - The company's common stock trades on the NYSE under the ticker symbol **'NREF'**[318](index=318&type=chunk) - As of **March 26, 2025**, there were **17,643,526 shares** of common stock outstanding, held by eight record holders[317](index=317&type=chunk) [Item 6. [Reserved]](index=3&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=3&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, and liquidity, including an overview of its business strategy, revenue and expense components, and key financial measures for the years ended December 31, 2024, 2023, and 2022 - The company is a commercial mortgage REIT focused on originating, structuring, and investing in target assets within multifamily, SFR, self-storage, and life science sectors[320](index=320&type=chunk) - The primary investment objective is to generate attractive, risk-adjusted returns for stockholders over the long term through a flexible and relative-value focused investment strategy[321](index=321&type=chunk) - The company is externally managed by NexPoint Real Estate Advisors VII, L.P., leveraging its extensive real estate and credit management experience[322](index=322&type=chunk) - Net income attributable to common stockholders increased by **70.1%** from **$10.4 million** in 2023 to **$17.7 million** in 2024, primarily due to increased other income and lower unrealized losses on common stock investments[345](index=345&type=chunk) Key Financial Measures (2024 vs. 2023) | Metric | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change | | :----------------------------------- | :------------------ | :------------------ | :------- | :------- | | Net interest income | $28,136 | $16,79

I 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 covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view. On Seeking Alpha I mostly cover REITs and financials, with occasional articles on ETFs and other stocks driven by a macro trade idea.Analyst’s D ...

DALLAS, March 14, 2025 /PRNewswire/ -- NexPoint Real Estate Finance, Inc. (NYSE: NREF) ("NREF") announced today that the record date for determining stockholders entitled to vote at the 2025 Annual Meeting of Stockholders (the "Annual Meeting") will be Monday, March 24, 2025. The Annual Meeting will be held on Tuesday, May 20, 2025, beginning at 10:30 a.m. Central Time. The Annual Meeting will be held exclusively through a virtual format. Stockholders will not be able to attend the Annual Meeting in person, ...

NYSE:NREF 1Q 2022 FINANCIAL SUPPLEMENT 4Q 2024 Financial Supplement February 27, 2025 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 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 curren ...

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net income of $0.43 per diluted share, down from $0.73 per diluted share in Q4 2023, attributed to unrealized losses on common stock investments and changes in net assets on CMBS VIEs [10] - Interest income decreased by $15.4 million to $32.3 million in Q4 2024 from $47.7 million in Q4 2023 [10] - Earnings available for distribution were $0.83 per diluted common share in Q4, compared to $0.44 per diluted common share in the same period of 2023 [11] - Cash available for distribution was $0.47 per diluted common share in Q4, down from $0.51 per diluted common share in Q4 2023 [12] - For the full year 2024, net income was $1.02 per diluted share, up from $0.60 per diluted share in 2023 [14] Business Line Data and Key Metrics Changes - The portfolio consists of 83 investments with an outstanding balance of $1.1 billion, allocated across various sectors including 15.5% single-family rental, 49.7% multifamily, and 31% life sciences [16] - The collateral on the portfolio is 76.5% stabilized with a loan-to-value ratio of 59.2% and a weighted average DSCR of 1.32 times [18] Market Data and Key Metrics Changes - Multifamily fundamentals are improving, with Q4 starts at 37,000 units, the lowest since Q4 2011, indicating a potential inflection point as supply wanes [21] - The company is actively underwriting $300 million of opportunities in life sciences, particularly in infrastructure and pharmaceutical manufacturing [24] Company Strategy and Development Direction - The company is optimistic about growth in 2025, particularly in the multifamily sector and life sciences, with plans to capitalize on construction financing and high-quality mezzanine opportunities [20][25] - The company is exploring multiple avenues for funding growth, including A-note warehouses and bond-rated deals [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying credit profile of the portfolio and expects new lease growth to turn positive in the second half of the year [20] - The company is seeing increased activity in life sciences and advanced manufacturing, driven by reshoring trends [24] Other Important Information - The company paid a regular dividend of $0.50 per share in Q4 and has declared the same for Q1 2025 [12] - The debt-to-equity ratio stands at 1.39 times, with $799.3 million of debt outstanding [18] Q&A Session Summary Question: Can you talk about the returns on new investments and how they compare to other things in your pipeline? - Management indicated that Freddie K deals are expected to yield in the 8% to 9% range, with low to mid-teens type of return when leveraging [32] Question: Can you provide an update on life science investments and performance? - Management highlighted a $220 million commitment in Massachusetts, with a loan-to-cost attachment point of roughly 25% and a stabilized debt yield of over 30% [35] Question: Any updates on loan performance, particularly delinquent or defaulted loans? - Management noted a few watch list loans but emphasized overall strong portfolio performance with minimal delinquency [40] Question: Is the Cambridge deal purely speculative? - Management confirmed it is a speculative development but mentioned ongoing preleasing activity with significant interest [49][46]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net income of $0.43 per diluted share, down from $0.73 per diluted share in Q4 2023, primarily due to unrealized losses on common stock investments and changes in net assets on CMBS VIEs [10] - Interest income decreased by $15.4 million to $32.3 million in Q4 2024 from $47.7 million in Q4 2023 [10] - Earnings available for distribution were $0.83 per diluted common share in Q4, compared to $0.44 per diluted common share in the same period of 2023 [11] - Cash available for distribution was $0.47 per diluted common share in Q4, down from $0.51 per diluted common share in Q4 2023 [12] - For the full year 2024, net income was $1.02 per diluted share, up from $0.60 per diluted share in 2023 [14] Business Line Data and Key Metrics Changes - The portfolio consists of 83 investments with an outstanding balance of $1.1 billion, allocated across various sectors including 15.5% single-family rental, 49.7% multifamily, and 31% life sciences [16] - The collateral on the portfolio is 76.5% stabilized with a loan-to-value ratio of 59.2% and a weighted average debt service coverage ratio of 1.32 times [18] Market Data and Key Metrics Changes - Multifamily fundamentals are improving, with Q4 starts at 37,000 units, the lowest since Q4 2011, indicating a potential inflection point as supply wanes [21] - The company is actively underwriting $300 million of opportunities in life sciences, particularly in infrastructure and pharmaceutical manufacturing [24] Company Strategy and Development Direction - The company aims to capitalize on growth opportunities in multifamily and life sciences sectors, with expectations for new lease growth to turn positive in the second half of the year [22][23] - The company is exploring multiple avenues for funding growth, including A-note warehouses and bond-rated deals [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing a strong credit profile and growth potential in the multifamily and life sciences sectors [20] - The company is confident in its ability to navigate challenges in the commercial real estate sector and is prepared to take advantage of favorable market conditions [25] Other Important Information - The company paid a regular dividend of $0.50 per share in Q4 and has declared a dividend of $0.50 per share for Q1 2025 [12] - The weighted average cost of debt is 6% with a weighted average maturity of 1.4 years [18] Q&A Session Summary Question: Can you talk about the returns on new investments and how they compare to other opportunities? - Management indicated that Freddie K deals are expected to yield 8% to 9%, with potential returns in the low to mid-teens when leveraging [32] Question: Can you provide an update on life science investments and key metrics? - Management highlighted a $220 million commitment in Massachusetts, with a loan-to-cost attachment point of approximately 25% and a stabilized debt yield of over 30% [35] Question: What is the status of loan performance and any delinquent loans? - Management noted a few watch list loans but emphasized overall strong portfolio performance with minimal delinquency [40][60]

Group 1: Earnings Performance - NexPoint reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and up from $0.44 per share a year ago, representing an earnings surprise of 6.41% [1] - The company posted revenues of $21.69 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 90.11%, compared to revenues of $3.83 million a year ago [2] - Over the last four quarters, NexPoint has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - NexPoint shares have increased by approximately 3.3% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.61 on revenues of $10.1 million, and for the current fiscal year, it is $2.44 on revenues of $40.77 million [7] - The estimate revisions trend for NexPoint is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The REIT and Equity Trust industry, to which NexPoint belongs, is currently in the bottom 34% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - NREF reported net income attributable to common stockholders of $8.4 million, or $0.43 per diluted share for Q4 2024[2] - For Q1 2025, net income attributable to common stockholders is estimated to be between $8.0 million and $10.4 million[7] - Guidance for Q1 2025 EAD per diluted common share is $0.45 at the midpoint[9] - Guidance for Q1 2025 CAD per diluted common share is $0.50 at the midpoint[10] Cash Distribution - Cash available for distribution (CAD) for Q4 2024 was $10.9 million, or $0.47 per diluted common share[2] - CAD is calculated by adjusting EAD for amortization and depreciation, providing insight into the company's current ability to pay distributions[20] Investment Portfolio - The total portfolio outstanding is $1.2 billion, composed of 83 investments, with multifamily representing 49.7% of the investment portfolio[8] Debt Metrics - The weighted-average loan to value (LTV) is 59.2% and the debt service coverage ratio (DSCR) is 1.32x[8] - During Q4 2024, NREF redeemed a mortgage-backed security with an outstanding principal balance of $9.5 million[8] - The company funded $16.7 million on a loan that pays a monthly coupon of SOFR + 900 bps during the quarter[8] Earnings Adjustments - EAD is defined as net income attributable to common stockholders, adjusted for certain GAAP items, and includes the dilutive effect of non-controlling interests[18] - Starting Q3 2023, EAD has been adjusted to exclude income/losses from equity method investments, focusing on distributable earnings[18] - EAD and CAD per diluted common share will be based on adjusted weighted average common shares outstanding starting Q2 2024[21] Shareholder Considerations - The adjusted weighted average common shares outstanding - diluted excludes the dilutive effect of potential redemptions of Series B Preferred shares[21] - Series B Preferred redemptions are capped at 2% monthly, 5% quarterly, and 20% annually, with sufficient liquidity maintained for cash cover[21] - The company intends to avoid settling Series B Preferred redemptions in common stock when the stock price is below book value[21] Reporting Standards - EAD and CAD should not be considered alternatives to GAAP net income or cash flows from operating activities[20] - The computation of EAD and CAD may not be comparable to those reported by other REITs[20] - Adjusted weighted average common shares outstanding - diluted should not be considered an alternative to GAAP measures[22]

Core Viewpoint - NexPoint Real Estate Finance, Inc. reported strong financial results for Q4 2024, highlighting resilience in earnings amid challenging credit market conditions [1][2]. Financial Performance - Net income attributable to common stockholders for Q4 2024 was $8.4 million, equating to $0.43 per diluted share [1]. - Cash available for distribution for the same period was $10.9 million, or $0.47 per diluted common share [1]. - Earnings available for distribution (EAD) for Q4 2024 was reported at $19.5 million, with EAD per diluted common share at $0.83 [13]. Portfolio Overview - The total portfolio of the company stands at $1.2 billion, comprising 83 investments across various sectors including single-family rental (15.5%), multifamily (49.7%), and life sciences (31.0%) [7]. - The weighted-average loan to value (LTV) ratio is 59.2%, and the debt service coverage ratio (DSCR) is 1.32x [7]. Future Guidance - For Q1 2025, the company projects EAD per diluted common share guidance at $0.455, with net income estimates ranging from $12.9 million to $15.3 million [6]. - Cash available for distribution per diluted common share guidance for Q1 2025 is set at $0.505 [9]. Management Commentary - The Chief Investment Officer emphasized the company's proactive approach in capital deployment during a time when traditional lenders are facing credit issues, aiming to create long-term value for shareholders [2].