DALLAS, April 30, 2026 /PRNewswire/ -- NexPoint Real Estate Finance, Inc. ("NREF" or the "Company") (NYSE: NREF) today reported its financial results for the quarter ended March 31, 2026.
NREF reported net income attributable to common stockholders of $10.0 million, or $0.42 per diluted share(1) , for the three months ended March 31, 2026.
NREF reported cash available for distribution(2) of $13.5 million, or $0.58 per diluted common share(2) , for the three months ended March 31, 2026.
"NREF continues to deliver consistent earnings by maintaining a disciplined, credit-first approach to capital deployment across our core verticals. The strength of our portfolio reflects the conviction behind our sector selection -- each representing long-term, structurally supported demand that we believe will continue to generate durable, risk-adjusted returns for our shareholders. We are focused on deepening our presence in these markets, staying opportunistic where dislocations present compelling entry points, and ensuring that our investors have a transparent, predictable view of how we are protecting and growing book value over time," said Matthew McGraner, Chief Investment Officer.
First Quarter 2026 Highlights
-- Outstanding total portfolio of $1.1 billion, composed of 90 investments3
-- Single-family rental ("SFR"), multifamily, life sciences, self-storage,
marinas, and industrial represent 17.1%, 39.4%, 35.9%, 3.9%, 1.6% and
2.1% of the Company's investment portfolio, respectively as of March 31,
2026
-- 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 59.9% and 1.32x3, respectively
-- During the quarter, the Company funded $7.7MM on a loan that pays a
monthly coupon of SOFR + 900 bps.
-- The Company also funded $23.0MM on a loan that pay a monthly coupon of
SOFR + 1,250 bps.
-- During the quarter, the Company received $25.1MM from a CMBS Re-REMIC.
-- During the quarter, the Company raised $20.1MM in gross proceeds from the
Series C preferred stock offering.
-- On April 28, 2026 NREF announced a second 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 March 31, 2026; and excluding the common stock, revolving credit facility investments and the Alexander at the District and Mag & May multifamily properties. 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 2Q 2026 is estimated to be between $7.5 million and $9.8 million. See reconciliations below.
Looking Ahead: Second Quarter 2026 Guidance
Earnings Available for Distribution(2)
-- 2Q 2026 EAD per diluted common share guidance is $0.435 at the midpoint
Low Mid High
--------- --------- ---------
For the Three Months June 30, June 30, June 30,
Ended 2026 2026 2026
--------- --------- ---------
Net income $ 18,210 $ 19,372 $ 20,534
Net (income) loss
attributable to Series
A preferred
stockholders (874) (874) (874)
Net (income) loss
attributable to Series
B preferred
stockholders (9,030) (9,030) (9,030)
Net (income) loss
attributable to Series
C preferred
stockholders (803) (803) (803)
------------------------ -------- -------- --------
Net income attributable
to common stockholders 7,503 8,665 9,827
Adjustments:
Amortization of
stock-based
compensation 1,656 1,656 1,656
------------------------ -------- -------- --------
EAD $ 9,159 $ 10,321 $ 11,483
Weighted average common
shares outstanding -
basic 18,605 18,605 18,605
Weighted average common
shares outstanding -
diluted 53,799 53,799 53,799
Shares attributable to
potential redemption of
Series B preferred (27,451) (27,451) (27,451)
Shares attributable to
potential redemption of
Series C preferred (2,524) (2,524) (2,524)
------------------------ -------- -------- --------
Adjusted weighted
average common shares
outstanding - diluted
(1) 23,824 23,824 23,824
EPS per Weighted Average
Share - diluted $ 0.32 $ 0.34 $ 0.37
EAD per diluted common
share (1) $ 0.38 $ 0.43 $ 0.48
EPS Dividend Coverage
Ratio 0.64 x 0.68 x 0.74 x
EAD Dividend Coverage
Ratio (1) 0.76 x 0.86 x 0.96 x
(1) Adjusted weighted average common shares outstanding -- diluted does not
include the dilutive effect of the potential redemption of Series B or
Series C Preferred Stock for common shares.
Cash Available for Distribution(2)
-- 2Q 2026 CAD per diluted common share guidance is $0.545 at the midpoint
Low Mid High
-------------- -------------- --------------
For the Three
Months Ended June 30, 2026 June 30, 2026 June 30, 2026
-------------- -------------- --------------
EAD $ 9,159 10,321 $ 11,483
Adjustments:
Amortization
of premiums 2,925 2,925 2,925
Accretion of
discounts (1,494) (1,494) (1,494)
Amortization
and
depreciation 1,068 1,068 1,068
--------------- ---------- ---------- ----------
CAD $ 11,658 $ 12,820 $ 13,982
Weighted
average common
shares
outstanding -
basic 18,605 18,605 18,605
Weighted
average common
shares
outstanding -
diluted 53,799 53,799 53,799
Shares
attributable
to potential
redemption of
Series B
preferred (27,451) (27,451) (27,451)
Shares
attributable
to potential
redemption of
Series C
preferred (2,524) (2,524) (2,524)
--------------- ---------- ---------- ----------
Adjusted
weighted
average common
shares
outstanding -
diluted (1) 23,824 23,824 23,824
EPS per
Weighted
Average Share
- diluted $ 0.32 $ 0.34 $ 0.37
CAD per diluted
common share
(1) $ 0.49 $ 0.54 $ 0.59
EPS Dividend
Coverage
Ratio 0.64 x 0.68 x 0.74 x
CAD Dividend
Coverage Ratio
(1) 0.98 x 1.08 x 1.18 x
(1) Adjusted weighted average common shares outstanding -- diluted does not
include the dilutive effect of the potential redemption of Series B or
Series C Preferred Stock for common shares.
Conference Call Details
The Company is scheduled to host a conference call on Thursday, April 30, 2026, at 11:00 a.m. ET (10:00 a.m. CT), to discuss first quarter 2026 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, May 14, 2026, 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 March 31,
------------------------------------------
2026 2025
-------------------- --------------------
Net income attributable to
common stockholders $ 10,040 $ 16,518
Net income attributable to
redeemable noncontrolling
interests 2,366 4,163
Adjustments
Amortization of
stock-based
compensation 1,405 1,283
Provision for (reversal
of) credit losses (2,983) 3,625
Equity in (income) losses
of equity method
investments (54) (53)
Unrealized (gains) or
losses (1) (746) (15,861)
---------------- ----------------
EAD $ 10,028 $ 9,675
================ ================
EAD per Diluted Common
Share $ 0.43 $ 0.41
================ ================
Adjustments
Amortization of premiums 3,920 2,262
Accretion of discounts (1,883) (2,540)
Depreciation and
amortization of real
estate investments 1,426 1,079
Amortization of deferred
financing costs -- 12
---------------- ----------------
CAD $ 13,491 $ 10,488
================ ================
CAD per Diluted Common
Share $ 0.58 $ 0.45
================ ================
Weighted-average common
shares outstanding -
basic 18,605 17,516
Weighted-average common
shares outstanding -
diluted 51,456 36,049
Shares attributable to
potential redemption of
Series B Preferred (27,518) (12,652)
Shares attributable to
potential redemption of
Series C Preferred (806) --
---------------- ----------------
Adjusted weighted-average
common shares outstanding
- diluted (2) 23,132 23,397
================ ================
(1) Unrealized gains represent the net change in unrealized gains on
investments held at fair value.
(2) Adjusted weighted average common shares outstanding -- diluted does not
include the dilutive effective of the potential redemption of Series B or
Series C Preferred Stock for our common shares.
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.
Forward-Looking Statements
This press release 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-looking statements can often be identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "should" and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding the Company's business, strategy and industry in general, second quarter 2026 guidance, including net income, net income attributable to common stockholders, EAD, CAD, EAD and CAD per diluted common share and related coverage ratios and related assumptions and estimates, the Company's intent to not settle Series B or Series C Preferred redemptions in shares of common stock when the Company's common stock price is below book value and the Company's approach to capital deployment and the strength of the portfolio representing long-term, structurally supported demand the Company believes will continue to generate durable, risk-adjusted returns to shareholders and the Company's focus on deepening its presence in the sectors it invests in, staying opportunistic and providing investors transparency in how the Company is protecting and growing book value over time. They are not guarantees of future results and forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement, including those described in greater detail in our filings with the Securities and Exchange Commission (the "SEC"), particularly those described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company's Annual Report on Form 10-K and the Company's other filings with the SEC for a more complete discussion of risks and other factors that could affect any forward-looking statement. The statements made herein speak only as of the date of this press release and except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flows of the Company. The non-GAAP financial measures used within this press release are EAD, CAD, EAD and CAD per diluted common share and adjusted weighted average common shares outstanding - diluted.
EAD is defined as net income (loss) attributable to our common stockholders computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), excluding any unrealized gains or losses or other similar non-cash items that are included in net income (loss) for the applicable reporting period, regardless of whether such items are included in other comprehensive income (loss), or in net income (loss) and adding back amortization of stock-based compensation. The Company also adjusts EAD to remove the income/(losses) from equity method investments as they represent changes in the equity value of our investment rather than distributable earnings. The Company will include income from equity method investments to the extent that we receive cash distributions and upon realizing gains and/or losses. Net income (loss) attributable to common stockholders may also be adjusted for the effects of certain GAAP adjustments and transactions that may not be indicative of our current operations. In addition, EAD in this press release includes the dilutive effect of non-controlling interests. We use EAD to evaluate our performance and to assess our long-term ability to pay distributions. We believe providing EAD as a supplement to GAAP net income (loss) to our investors is helpful to their assessment of our performance and our long-term ability to pay distributions. We also use EAD as a component of the management fee paid to our external manager. EAD does not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of our GAAP cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. Our computation of EAD may not be comparable to EAD reported by other REITs.
We calculate CAD by adjusting EAD by adding back amortization of premiums, depreciation and amortization of real estate investment and amortization of deferred financing costs and by removing accretion of discounts. We use CAD to evaluate our performance and our current ability to pay distributions. We also believe that providing CAD as a supplement to GAAP net income (loss) to our investors is helpful to their assessment of our performance and our current ability to pay distributions. CAD does not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of our GAAP cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. Our computation of CAD may not be comparable to CAD reported by other REITs.
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