Core Viewpoint - NexPoint Real Estate Finance, Inc. reported strong financial results for Q2 2025, highlighting resilience in earnings amid challenging credit conditions in the market [2][3]. Financial Performance - Net income attributable to common stockholders for Q2 2025 was $12.3 million, or $0.54 per diluted share [1][14]. - Cash available for distribution for the same period was $10.6 million, or $0.46 per diluted common share [1][14]. Investment Strategy - The company remains disciplined and opportunistic in its investment approach, focusing on capital deployment in a complex credit landscape [2]. - NREF's total portfolio is valued at $1.1 billion, consisting of 86 investments across various sectors, including single-family rentals, multifamily, and life sciences [9]. Future Guidance - For Q3 2025, the company projects earnings available for distribution per diluted common share to be $0.425 at the midpoint [8]. - Cash available for distribution per diluted common share guidance for Q3 2025 is set at $0.505 at the midpoint [10]. Portfolio Composition - As of June 30, 2025, the investment portfolio is composed of 15.5% single-family rental, 49.5% multifamily, and 32.7% life sciences, among other sectors [9]. - The weighted-average loan to value (LTV) ratio is 58.5%, with a debt service coverage ratio (DSCR) of 1.44x [9]. Recent Transactions - During Q2 2025, NREF purchased $39.5 million of preferred stock and funded $6.5 million on a loan with a monthly coupon of SOFR + 900 bps [9]. - The company also acquired a $15.3 million CMBS I/O strip with a bond equivalent yield of 7.24% [9]. Conference Call - A conference call is scheduled for July 31, 2025, to discuss the financial results for Q2 2025 [11].

Financial Performance - The company reported a GAAP net loss of $0.29 per share[7] - Earnings Available for Distribution (EAD) was $0.17 per share[7] - The book value per common share decreased by 6.3% to $3.58, net of the quarterly dividend[8] - A dividend of $0.15 per share was declared and paid[8] - The company experienced a 2.4% total quarterly economic loss[8] Portfolio Metrics - The company's leverage ratio for the aggregate portfolio was 5.2x[8] - The net interest spread for RMBS was 3.6%[8] - The weighted average Constant Prepayment Rate (CPR) for RMBS was 5.8%[7] - The net CPR for Mortgage Servicing Rights (MSRs) was 4.1%[7] Asset Composition - As of March 31, 2025, 76% of the asset investment composition (excluding cash) was in 30 Year RMBS and 24% was in MSRs[15]

Financial Highlights - Net income attributable to common stockholders in 1Q 2025 was $165 million, or $070 per diluted common share[14] - Cash Available for Distribution (CAD) in 1Q 2025 was $045 per diluted common share[15] - Book Value per diluted common share increased by 15% to $1722[24] - A dividend of $050 per common share was paid for 1Q 2025[13] Portfolio Composition - The total portfolio principal was $12 billion[15] - The portfolio is composed of 85 investments[15] - The weighted average Loan-to-Value (LTV) of the portfolio is 587%[40] - The weighted average Debt Service Coverage Ratio (DSCR) of the portfolio is 146x[40] Capitalization - The debt to equity ratio was 133x as of March 31, 2025[17] - $447 million of Series B Preferred stock was raised by selling 18 million shares[17] - Outstanding Repo Financing equates to 754% advance rate on CMBS B-Piece and IO Strips Portfolio[18]

Financial Performance - The company reported a GAAP net loss per share-diluted of $0.80 for 1Q25[12] - The company reported an EAD loss for 1Q25 of $0.86[12] - Book Value per Share at March 31, 2025 was $28.50, down from $28.87 in 4Q24 and up from $27.25 in 1Q24[10, 12] Loan Portfolio - The CRE loan portfolio at par value is $1.4 billion, comprising 48 loans with a weighted average LTV of 81%[12] - 89.5% of the par value of the CRE loan portfolio is current on payments[10, 12] - 77% of the CRE loan portfolio is focused on Multifamily properties[10] - Net CRE loan repayments for 1Q25 totaled $120.7 million[10, 12] Capitalization and Liquidity - Total liquidity at March 31, 2025 was $87.4 million[10, 12] - Total capacity was $2.2 billion, with $948.3 million available at March 31, 2025[12, 13] - Total Capitalization is $1.7 billion, with Stockholders' equity accounting for 26%[17] Real Estate Investments - Net investments in real estate and properties held for sale totaled $177.0 million[13, 32]