Financial Performance and Highlights NexPoint Real Estate Finance, Inc. (NREF) reported strong Q4 2023 financial results and maintained a robust, diversified portfolio with favorable metrics Fourth Quarter 2023 Financial Results For the fourth quarter of 2023, NexPoint Real Estate Finance, Inc. (NREF) reported a net income of $17.9 million, or $0.74 per diluted share, with Cash Available for Distribution (CAD) at $11.8 million, or $0.51 per diluted share Q4 2023 Key Financial Metrics | Metric | Value | Per Diluted Share | | :--- | :--- | :--- | | Net Income | $17.9 million | $0.74 | | Cash Available for Distribution (CAD) | $11.8 million | $0.51 | - Management expressed confidence in the portfolio's stable and defensive returns despite a challenging commercial real estate market, highlighting plans to capitalize on disruptions in the multifamily, single-family rental, life sciences, and self-storage sectors3 Fourth Quarter 2023 Highlights As of Q4 2023, NREF's total portfolio stood at $1.6 billion across 87 investments, heavily concentrated in single-family rental (46.0%) and multifamily (47.2%) debt, with strong metrics including a weighted-average LTV of 68.8% and a DSCR of 1.72x Portfolio Composition (Debt Portfolio) | Sector | Percentage of Portfolio | | :--- | :--- | | Single-family rental (SFR) | 46.0% | | Multifamily | 47.2% | | Life Sciences | 5.2% | | Self-storage | 1.5% | Key Portfolio Statistics (as of Dec 31, 2023) | Metric | Value | | :--- | :--- | | Total Portfolio Value | $1.6 billion | | Number of Investments | 87 | | Weighted-Average LTV | 68.8% | | Weighted-Average DSCR | 1.72x | - Key portfolio activities in Q4 2023 include making follow-on preferred equity investments of $16.5 million and originating a new preferred equity investment of $15.3 million8 - The company received $3.5 million in preferred equity redemptions and $29.5 million in senior loan redemptions8 - As of February 28, 2024, there are no loans in forbearance within the portfolio8 Future Outlook and Guidance NREF provides its financial outlook for Q1 2024, including key guidance metrics and the impact of a significant one-time amortization event First Quarter 2024 Guidance For the first quarter of 2024, NREF provided guidance with a midpoint estimate for Earnings Available for Distribution (EAD) per diluted share at $(0.45) and Cash Available for Distribution (CAD) per diluted share at $0.58, significantly impacted by a one-time $29.5 million accelerated premium amortization Q1 2024 Guidance per Diluted Share | Metric | Low | Midpoint | High | | :--- | :--- | :--- | :--- | | Net Income (loss) per Share (EPS) | $(0.55) | $(0.50) | $(0.45) | | EAD per Share | $(0.50) | $(0.45) | $(0.40) | | CAD per Share | $0.53 | $0.58 | $0.63 | - The guidance for Net Income and EAD includes a $29.5 million accelerated amortization of premium associated with a senior loan prepayment in Q1 2024, which negatively impacts these metrics11 Supplemental Information This section provides additional details including conference call information, reconciliation and definitions of non-GAAP financial measures, company background, and forward-looking statement disclaimers Conference Call Details The company scheduled a conference call for Thursday, February 29, 2024, at 11:00 a.m. ET to discuss its fourth-quarter 2023 financial results, with access details provided for phone and live webcast - A conference call to discuss Q4 2023 results was scheduled for February 29, 2024, at 11:00 a.m. ET, with access provided via telephone and a live webcast on the company's website1213 Reconciliation of Non-GAAP Financial Measures This section provides a detailed table reconciling GAAP net income attributable to common stockholders with the non-GAAP measures of Earnings Available for Distribution (EAD) and Cash Available for Distribution (CAD), showing a significant improvement from a net loss in Q4 2022 Reconciliation of Net Income to EAD and CAD (in thousands) | Metric | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | Net income (loss) attributable to common stockholders | $13,635 | $(3,733) | | EAD | $10,101 | $9,591 | | CAD | $11,760 | $10,203 | | EAD per Diluted Share | $0.44 | $0.42 | | CAD per Diluted Share | $0.51 | $0.45 | Non-GAAP Financial Measures Definitions The report defines its non-GAAP financial measures, Earnings Available for Distribution (EAD) and Cash Available for Distribution (CAD), noting their use for performance evaluation and distribution capacity, while acknowledging potential comparability differences with other REITs - Earnings Available for Distribution (EAD) is defined as GAAP net income adjusted for non-cash items like unrealized gains/losses and stock-based compensation, used to evaluate performance and the long-term ability to pay distributions1820 - Cash Available for Distribution (CAD) is calculated by adjusting EAD for certain non-cash items like amortization of premiums, accretion of discounts, and depreciation, used to assess the current ability to pay distributions1821 About NexPoint Real Estate Finance, Inc. NexPoint Real Estate Finance, Inc. is a publicly traded Real Estate Investment Trust (REIT) listed on the NYSE, primarily focused on originating, structuring, and investing in various real estate debt instruments, particularly within the multifamily sector - NREF is a publicly traded REIT on the NYSE focused on originating and investing in first-lien mortgage loans, mezzanine loans, preferred equity, and other multifamily-related securities16 Forward-Looking Statements This section contains a standard safe harbor statement, clarifying that statements regarding Q1 2024 guidance and future market opportunities are forward-looking and subject to risks and uncertainties, not guarantees of future performance - The press release includes forward-looking statements concerning Q1 2024 guidance and the company's ability to seize market opportunities, which are subject to risks and uncertainties and are not guarantees of future results17
NexPoint Real Estate Finance(NREF) - 2023 Q4 - Annual Results