NexPoint Real Estate Finance(NREF) - 2025 Q3 - Quarterly Results

Financial Performance - NREF reported net income attributable to common stockholders of $35.0 million, or $1.14 per diluted share, for Q3 2025[2]. - For Q4 2025, net income attributable to common stockholders is estimated to be between $8.3 million and $10.6 million[8]. - Q4 2025 guidance for earnings available for distribution (EAD) per diluted common share is $0.485 at the midpoint[10]. - Q4 2025 guidance for cash available for distribution (CAD) per diluted common share is $0.505 at the midpoint[11]. Cash and Distributions - Cash available for distribution (CAD) for Q3 2025 was $12.1 million, or $0.53 per diluted common share[2]. - NREF announced a fourth quarter dividend of $0.50 per common share on October 28, 2025[9]. Investment Portfolio - The total portfolio outstanding was $1.1 billion, composed of 88 investments, with multifamily representing 47.3% of the investment portfolio[9]. - During Q3 2025, NREF purchased $42.5 million of preferred stock and raised $65.7 million in gross proceeds from a Series B preferred stock offering[9]. - The company sold a multifamily property for $60.0 million, resulting in a gain of $3.7 million during the quarter[9]. Financial Metrics - The weighted-average loan to value (LTV) ratio on senior loans is 54.9%, with a debt service coverage ratio (DSCR) of 1.41x[9]. - EAD is defined as net income attributable to common stockholders, adjusted for realized gains and losses, excluding unrealized gains or losses, and adding back amortization of stock-based compensation[19]. - CAD is calculated by adjusting EAD to include amortization of premiums, depreciation, and amortization of real estate investments, while removing accretion of discounts[20]. - EAD per diluted common share and CAD per diluted common share are based on adjusted weighted average common shares outstanding - diluted, which excludes the dilutive effect of potential redemptions of Series B Preferred shares[21]. Preferred Shares - The Company has the right to redeem Series B Preferred shares for cash or common stock, with redemptions capped at 2% per month, 5% per quarter, and 20% per year[21]. - The Company maintains sufficient liquidity to cover cash for any redemptions up to the quarterly cap[21]. - Adjusted weighted average common shares outstanding - diluted should not be considered an alternative to GAAP measures and may not be comparable to those reported by other companies[22].