NexPoint Real Estate Finance Announces 2025 Dividend Income Tax Treatment

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].