Nexpoint Real Estate Finance Inc.
10/30/2025 | Press release | Distributed by Public on 10/30/2025 06:00
NREF Announces Third Quarter 2025 Results, Provides Fourth Quarter 2025 Guidance (Form 8-K)
NREF Announces Third Quarter 2025 Results, Provides Fourth Quarter 2025 Guidance
Dallas, TX, Thursday, October 30, 2025 - NexPoint Real Estate Finance, Inc. ("NREF" or the "Company") (NYSE: NREF) today reported its financial results for the quarter ended September 30, 2025.
NREF reported net income attributable to common stockholders of $35.0 million, or 1.14 per diluted share1, for the three months ended September 30, 2025.
NREF reported cash available for distribution2 of $12.1 million, or $0.53 per diluted common share2, for the three months ended September 30, 2025.
"NREF continued to deliver stable earnings and cash available for distribution while continuing to deploy capital into high-quality investments across our portfolio. Our disciplined approach to capital allocation-centered on life sciences, self-storage, and workforce rental housing-positions us to capitalize on dislocations and generate durable value. These sectors remain resilient and well-aligned with long-term demographic and structural demand drivers," said Matthew McGraner, Chief Investment Officer.
Third Quarter 2025 Highlights
|
• |
Outstanding total portfolio of $1.1 billion, composed of 88 investments3 |
|
• |
Single-family rental ("SFR"), multifamily, life sciences, self-storage and marinas represent 15.9%, 47.3%, 33.9%, 1.8% and 1.1% of the Company's investment portfolio, respectively as of September 30, 2025 |
|
• |
Weighted-average loan to value ("LTV")4 and debt service coverage ratio ("DSCR") on our senior loans, CMBS, CMBS I/O strips, preferred equity, and mezzanine investments are 54.9% and 1.41x3, respectively |
|
• |
During 3Q 2025, NREF purchased $42.5MM of preferred stock |
|
• |
During the quarter, the Company funded $6.5MM on a loan that pays a monthly coupon of SOFR + 900 bps. |
|
• |
During the quarter, the Company sold a multifamily property for $60.0MM that resulted in a $3.7MM gain. |
|
• |
During the quarter, the Company raised $65.7MM in gross proceeds from the Series B preferred stock offering. |
|
• |
On October 28, 2025 NREF announced a fourth quarter dividend of $0.50 per common share |
1 Weighted-average shares outstanding - diluted assumes vesting of all outstanding unvested restricted stock units and the conversion of all redeemable non-controlling interests.
2 Earnings available for distribution ("EAD"), cash available for distribution ("CAD") and adjusted weighted average common shares outstanding - diluted are non-GAAP measures. For a discussion of why we consider these non-GAAP measures useful and reconciliations of these non-GAAP measures, see the "Reconciliations of Non-GAAP Financial Measures" and "Non-GAAP Financial Measures" sections of this release.
3 As of September 30, 2025; and excluding the common stock and revolving credit facility investments and the remaining net assets related to the Hudson Montford multifamily property after its sale and the Alexander at the District multifamily property. CMBS B-Pieces reflected on an unconsolidated basis.
4 Loan to value is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value. For our CMBS B-Pieces, LTV is based on the weighted-average LTV of the underlying loan pool.
5 Net income attributable to common stockholders in 4Q 2025 is estimated to be between $8.3MM and $10.6MM. See reconciliations below.
Looking Ahead: Fourth Quarter 2025 Guidance
Earnings Available for Distribution2
|
● |
4Q 2025 EAD per diluted common share guidance is $0.485 at the midpoint |
|
Low |
Mid |
High |
||||||||||
|
December 31, 2025 |
December 31, 2025 |
December 31, 2025 |
||||||||||
|
Net income |
$ | 17,766 | $ | 18,900 | $ | 20,034 | ||||||
|
Net (income) loss attributable to Series A Preferred stockholders |
(874 | ) | (874 | ) | (874 | ) | ||||||
|
Net (income) loss attributable to Series B Preferred stockholders |
(8,559 | ) | (8,559 | ) | (8,559 | ) | ||||||
|
Net income attributable to common stockholders |
$ | 8,333 | $ | 9,467 | $ | 10,601 | ||||||
|
Adjustments |
||||||||||||
|
Amortization of stock-based compensation |
1,513 | 1,513 | 1,513 | |||||||||
|
EAD |
$ | 9,846 | $ | 10,980 | $ | 12,114 | ||||||
|
Weighted average common shares outstanding - basic |
17,722 | 17,722 | 17,722 | |||||||||
|
Weighted average common shares outstanding - diluted |
43,854 | 43,854 | 43,854 | |||||||||
|
Shares attributable to potential redemption of Series B Preferred |
(20,999 | ) | (20,999 | ) | (20,999 | ) | ||||||
|
Adjusted weighted average common shares outstanding - diluted (1) |
22,855 | 22,855 | 22,855 | |||||||||
|
EPS per Weighted Average Share - diluted |
$ | 0.39 | $ | 0.41 | $ | 0.44 | ||||||
|
EAD per diluted common share |
$ | 0.43 | $ | 0.48 | $ | 0.53 | ||||||
|
EPS Dividend Coverage Ratio |
0.78 | x | 0.82 | x | 0.88 | x | ||||||
|
EAD Dividend Coverage Ratio |
0.86 | x | 0.96 | x | 1.06 | x | ||||||
Cash Available for Distribution2
|
● |
4Q 2025 CAD per diluted common share guidance is $0.505 at the midpoint |
|
Low |
Mid |
High |
||||||||||
|
December 31, 2025 |
December 31, 2025 |
December 31, 2025 |
||||||||||
|
EAD |
$ | 9,846 | $ | 10,980 | $ | 12,114 | ||||||
|
Adjustments |
||||||||||||
|
Amortization of premiums |
2,493 | 2,493 | 2,493 | |||||||||
|
Accretion of discounts |
(2,674 | ) | (2,674 | ) | (2,674 | ) | ||||||
|
Amortization and depreciation |
584 | 584 | 584 | |||||||||
|
CAD |
$ | 10,249 | $ | 11,383 | $ | 12,517 | ||||||
|
Weighted average common shares outstanding - basic |
17,722 | 17,722 | 17,722 | |||||||||
|
Weighted average common shares outstanding - diluted |
43,854 | 43,854 | 43,854 | |||||||||
|
Shares attributable to potential redemption of Series B Preferred |
(20,999 | ) | (20,999 | ) | (20,999 | ) | ||||||
|
Adjusted weighted average common shares outstanding - diluted (1) |
22,855 | 22,855 | 22,855 | |||||||||
|
EPS per Weighted Average Share - diluted |
$ | 0.39 | $ | 0.41 | $ | 0.44 | ||||||
|
CAD per diluted common share |
$ | 0.45 | $ | 0.50 | $ | 0.55 | ||||||
|
EPS Dividend Coverage Ratio |
0.78 | 0.82 | 0.88 | |||||||||
|
CAD Dividend Coverage Ratio |
0.90 | 1.00 | 1.10 | |||||||||
|
(1) |
Adjusted weighted average common shares outstanding - diluted does not include the dilutive effect of the potential redemption of Series B Preferred Stock for common shares. |
Conference Call Details
The Company is scheduled to host a conference call on Thursday, October 30, 2025, at 11:00 a.m. ET (10:00 a.m. CT), to discuss third quarter 2025 financial results.
The conference call can be accessed live over the phone by dialing 888-660-4430 or +1 646-960-0537 and entering Conference ID 6891136. A live audio webcast of the call will be available online at the Company's website, https://nref.nexpoint.com (under "Resources"). An online replay will be available shortly after the call on the Company's website and continue to be available for 60 days.
A replay of the conference call will also be available through Thursday, November 13, 2025, by dialing 1 800- 770- 2030 or, for international callers, +1 609-800-9099 and entering passcode 6891136.
For additional commentary and portfolio information, please view NREF's earning supplement, which was posted on the Company's website, http://nref.nexpoint.com.
Reconciliations of Non-GAAP Financial Measures
The following table provides a reconciliation of Earnings Available for Distribution and Cash Available for Distribution to GAAP net income attributable to common stockholders and Adjusted Weighted Average Common Shares Outstanding - diluted to Weighted Average Common Shares Outstanding - diluted (in thousands, except per share amounts):
|
For the Three Months Ended September 30, |
||||||||
|
2025 |
2024 |
|||||||
|
Net income (loss) attributable to common stockholders |
$ | 35,032 | 16,116 | |||||
|
Net income (loss) attributable to redeemable noncontrolling interests |
7,782 | 3,940 | ||||||
|
Adjustments |
||||||||
|
Amortization of stock-based compensation |
1,504 | 1,411 | ||||||
|
Provision for (reversal of) credit losses |
15,680 | (298 | ) | |||||
|
Equity in (income) losses of equity method investments |
(12 | ) | 1,105 | |||||
|
Unrealized (gains) or losses (1) |
(48,343 | ) | (4,660 | ) | ||||
|
EAD |
$ | 11,643 | $ | 17,614 | ||||
|
EAD per diluted common share |
$ | 0.51 | $ | 0.75 | ||||
|
Adjustments |
||||||||
|
Amortization of premiums |
$ | 3,750 | 4,093 | |||||
|
Accretion of discounts |
(4,055 | ) | (7,071 | ) | ||||
|
Depreciation and amortization of real estate investments |
620 | 1,099 | ||||||
|
Amortization of deferred financing costs |
137 | 12 | ||||||
|
CAD |
$ | 12,095 | $ | 15,747 | ||||
|
CAD per diluted common share |
$ | 0.53 | $ | 0.67 | ||||
|
Weighted-average common shares outstanding - basic |
17,722 | 17,461 | ||||||
|
Weighted-average common shares outstanding - diluted |
43,854 | 30,468 | ||||||
|
Shares attributable to potential redemption of Series B Preferred |
(20,999 | ) | (7,049 | ) | ||||
|
Adjusted weighted-average common shares outstanding - diluted |
22,855 | 23,420 | ||||||
|
(1) |
Unrealized gains represent the net change in unrealized gains on investments held at fair value. |
About NexPoint Real Estate Finance, Inc.
NexPoint Real Estate Finance, Inc., is a publicly traded REIT, with its common stock and 8.50% Series A Cumulative Redeemable Preferred Stock listed on the New York Stock Exchange, primarily focused on originating, structuring and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties and common equity investments, as well as multifamily and single-family commercial mortgage-backed securities securitizations, promissory notes, revolving credit facilities and stock warrants. More information about the Company is available at http://nref.nexpoint.com.
4
Nexpoint Real Estate Finance Inc. published this content on October 30, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on October 30, 2025 at 12:01 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]