Core Insights - Goldman Sachs BDC (GSBD) continues to advance its integration into Goldman Sachs' Direct Lending platform, resulting in improved portfolio quality and a higher mix of first-lien exposure [3][5][12] Financial Performance - For Q4 2025, GSBD reported a net asset value (NAV) of $12.64 per share, reflecting a decline of approximately 1% quarter-over-quarter, primarily due to net realized and unrealized losses [4][12] - The net investment income (NII) for the quarter was $0.37 per share, with a supplemental dividend of $0.03 and a base dividend of $0.32 declared for Q1 2026 [4][12] - Leverage increased to a net debt-to-equity ratio of 1.27x as of December 31, 2025, compared to 1.17x at September 30, 2025 [13] Portfolio Composition - First-lien exposure rose to 97% of the portfolio from 89%, with 57% of the portfolio reflecting deals benefiting from the 2022 reorganization [2][5] - The company has significantly reduced its annual recurring revenue (ARR) exposure, which fell to about 11% from nearly 39% since 2022 [6][5] Investment Strategy - GSBD has launched a formal AI disruption underwriting framework to evaluate risks associated with software lending, reflecting a strategic shift towards EBITDA-based investments [5][10] - The platform has closed or committed to 26 new software deals since January 2025, with an average Rule of 40 of 55.8%, indicating strong revenue growth and cash EBITDA margins [10][11] Credit Quality and Risk Management - Non-accruals decreased slightly to 1.9% of fair value, down from 2.0%, indicating improved credit quality [4][17] - The company is actively managing risks associated with AI disruption, having passed on a deal due to concerns in October 2023 [9][10] Originations and Repayments - In 2025, GSBD made approximately $1.2 billion in new commitments across 35 deals, with 100% of Q4 originations being first-lien loans [14] - Total repayments for 2025 were $1.1 billion, with over 78% coming from pre-2022 vintage loans [16]

Financial Data and Key Metrics Changes - The company reported net income of $0.52 per diluted share for Q4 2025, an increase from $0.43 in Q4 2024, driven by unrealized gains on preferred stock and stock warrant investments [4] - Earnings available for distribution (EAD) was $0.48 per diluted share, down from $0.83 in Q4 2024, while cash available for distribution (CAD) increased to $0.53 per diluted share from $0.47 in the prior quarter [4] - For the full year, net income was $2.09 per diluted share, more than double the $1.02 reported in 2024, primarily due to higher net interest income [6] - Interest income rose by $17.4 million to $89.9 million for 2025, while interest expense decreased from $44.4 million to $42.8 million [6] Business Line Data and Key Metrics Changes - The portfolio consists of 92 investments with a total outstanding balance of $1.2 billion, allocated as follows: 47% multifamily, 30% life sciences, 17% single-family rental, and the remainder across storage, marina, and industrial [7] - The collateral on the portfolio is 82.5% stabilized, with a loan-to-value ratio of 63.6% and a weighted average debt service coverage ratio of 1.24 times [8] - The NexPoint storage portfolio finished 2025 at 91.7% occupancy, exceeding its NOI budget by 3.2% and growing NOI by 13% over 2024 [19] Market Data and Key Metrics Changes - Geographically, collateral is concentrated in Massachusetts (24%), Texas (16%), and California (7%), with significant exposure to life sciences in Massachusetts and California [7] - The self-storage industry is facing occupancy pressure, with the average ending 2025 at 89%, down 210 basis points from the start of the year [18] Company Strategy and Development Direction - The company is focused on recession-resilient property types such as residential and self-storage, avoiding investments in AI scare trade assets [11] - The company is optimistic about the multifamily sector, expecting positive rent inflection in the second half of 2026 due to structural demand and a decline in new market rate deliveries [16] - The company is actively pursuing opportunities in build-to-rent assets, with a pipeline consisting of various investments across multifamily, life sciences, and self-storage [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in dividend sustainability, noting that cash available for distribution is a better indicator of coverage than earnings available for distribution [27] - The company anticipates that the demand for life sciences and residential properties will continue to grow, driven by demographic trends and advancements in health and wellness [16][42] - Management believes that the regulatory environment will create opportunities in the build-to-rent sector, particularly if institutional buyers face limitations [32] Other Important Information - The company raised $60.5 million in gross proceeds from a Series B preferred stock offering and launched a Series C preferred stock at 8% [5][9] - The company refinanced $36.5 million in unsecured notes with a new $45 million offering at 7.875%, positioning itself well in a declining interest rate environment [9] Q&A Session Summary Question: Dividend sustainability and confidence in current level - Management noted that EAD is slightly below CAD, but CAD is viewed as a better indicator for dividend coverage, and they feel well-positioned for future sustainability [27][28] Question: Areas of portfolio excitement and impact of regulations - Management is focused on life sciences and build-to-rent assets, believing there are significant opportunities in these sectors despite potential regulatory changes [31][32] Question: Provision for credit loss and future expectations - Management indicated that the recent provision for credit loss was conservative and expects it to level off in 2026 [38] Question: Characteristics driving positive performance in life science projects - The Alyfe Park project is purpose-built and well-located, which has driven leasing activity despite challenging market dynamics [40][41] Question: Details on loans made in the quarter - Management provided details on loans, including a $22.5 million loan at 11% and emphasized a focused approach to investment selection [48]

NYSE:NREF 4Q 2025 Financial Supplement February 26, 2026 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 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 current expectations, assumptions and beliefs. Forward-looki ...

Financial Performance - GAAP Net Income Per Share for Q2 2025 was $052, matching Q2 2024, but up from $036 in Q1 2025[12] - Core EPS for Q2 2025 was $050, consistent with Q1 2025, but down from $061 in Q2 2024[12] - Net Investment Income Per Share for Q2 2025 was $049, down from $054 in Q1 2025 and $062 in Q2 2024[12] - Net Asset Value Per Share increased to $1990 in Q2 2025, compared to $1982 in Q1 2025 and $1961 in Q2 2024[12] - Investment income for the three months ended June 30, 2025, was $745 million, compared to $732 million for the three months ended March 31, 2025[23] Portfolio Composition and Activity - Total Fair Value of Investments reached $27886 million in Q2 2025, up from $27130 million in Q1 2025 and $24973 million in Q2 2024[13] - Gross Commitments were $2573 million in Q2 2025, lower than $3453 million in Q1 2025 and $3857 million in Q2 2024[13] - Exits of Commitments were $1963 million in Q2 2025, compared to $2857 million in Q1 2025 and $1376 million in Q2 2024[13] - First Lien Senior Secured Loans constituted 59% of the portfolio at fair value as of June 30, 2025[19] - As of July 24, 2025, Ares Capital had a backlog of approximately $26 billion[68]