NREF Announces First Quarter 2025 Results, Provides Second Quarter 2025 Guidance

PR Newswire

DALLAS, May 1, 2025

DALLAS, May 1, 2025 /PRNewswire/ -- NexPoint Real Estate Finance, Inc. ("NREF" or the "Company") (NYSE: NREF) today reported its financial results for the quarter ended March 31, 2025.

NREF reported net income attributable to common stockholders of $16.5 million, or $0.70 per diluted share(1) , for the three months ended March 31, 2025.

NREF reported cash available for distribution(2) of $10.5 million, or $0.45 per diluted common share(2) , for the three months ended March 31, 2025.

"NREF is pleased to announce another strong quarter, showcasing consistent and resilient earnings across our primary property types. In an environment where banks and traditional lenders are often preoccupied with credit challenges, we remain proactive and committed. Our ability to allocate capital in this challenging credit market allows us to capitalize on market opportunities and deliver long-term value to our shareholders," commented Chief Investment Officer Matthew McGraner.

First Quarter 2025 Highlights

   -- Outstanding total portfolio of $1.2 billion, composed of 85 investments3 
 
   -- Single-family rental ("SFR"), multifamily, life sciences, specialty 
      manufacturing, self-storage and marinas represent 15.6%, 49.4%, 31.9%, 
      0.9%, 1.6% and 0.6% of the Company's investment portfolio, respectively 
 
   -- Weighted-average loan to value ("LTV")4 and debt service coverage ratio 
      ("DSCR") on our senior loans, CMBS, CMBS I/O strips, preferred equity, 
      mezzanine and revolving credit facilities investments are 58.7% and 
      1.46x3, respectively 
 
   -- During 1Q 2025, NREF purchased $55.0MM of Preferred Stock 
 
   -- During the quarter, the Company funded $20.8MM on a loan that pays a 
      monthly coupon of SOFR + 900 bps. 

(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") and cash available for distribution ("CAD") are non-GAAP measures. Beginning in the second quarter of 2024, EAD per diluted common share and CAD per diluted common share are based on adjusted weighted average common shares outstanding - diluted. Adjusted weighted average common shares outstanding - diluted is a non-GAAP measure. 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, 2025; and excluding the common stock investments, the Hudson Montford and Alexander at the District 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 2025 is estimated to be between $7.6MM and $9.8MM. See reconciliations below.

Looking Ahead: Second Quarter 2025 Guidance

Earnings Available for Distribution(2)

   -- 2Q 2025 EAD per diluted common share guidance is $0.435 at the midpoint 
 
                      Low              Mid              High 
                 --------------   --------------   -------------- 
                 June 30, 2025    June 30, 2025    June 30, 2025 
                 --------------   --------------   -------------- 
Net income        $      13,961    $      15,175    $      16,237 
Net (income) 
 loss 
 attributable 
 to Series A 
 Preferred 
 stockholders             (874)            (874)            (874) 
Net (income) 
 loss 
 attributable 
 to Series B 
 Preferred 
 stockholders           (5,530)          (5,530)          (5,530) 
                     ----------       ----------       ---------- 
Net income 
 attributable 
 to common 
 stockholders     $       7,557    $       8,771    $       9,833 
                     ==========       ==========       ========== 
Adjustments 
 Amortization 
  of 
  stock-based 
  compensation            1,552            1,552            1,552 
                     ----------       ----------       ---------- 
EAD               $       9,109    $      10,323    $      11,385 
                     ==========       ==========       ========== 
 
Weighted 
 average common 
 shares 
 outstanding -- 
 basic                   17,810           17,810           17,810 
                     ==========       ==========       ========== 
Weighted 
 average common 
 shares 
 outstanding -- 
 diluted                 38,056           38,056           38,056 
                     ==========       ==========       ========== 
Shares 
 attributable 
 to potential 
 redemption of 
 Series B 
 Preferred             (14,164)         (14,164)         (14,164) 
                     ==========       ==========       ========== 
Adjusted 
 weighted 
 average common 
 shares 
 outstanding -- 
 diluted (1)             23,892           23,892           23,892 
                     ==========       ==========       ========== 
 
EPS per 
 Weighted 
 Average Share 
 -- diluted       $        0.34    $        0.38    $        0.40 
                     ==========       ==========       ========== 
EAD per diluted 
 common share 
 (2)              $        0.38    $        0.43    $        0.48 
                     ==========       ==========       ========== 
 
EPS Dividend 
 Coverage 
 Ratio                     0.68  x          0.76  x          0.80  x 
EAD Dividend 
 Coverage Ratio 
 (2)                       0.76  x          0.86  x          0.96  x 
 

Cash Available for Distribution(2)

   -- 2Q 2025 CAD per diluted common share guidance is $0.485 at the midpoint 
 
                      Low              Mid              High 
                 --------------   --------------   -------------- 
                 June 30, 2025    June 30, 2025    June 30, 2025 
                 --------------   --------------   -------------- 
EAD               $       9,109    $      10,323    $      11,385 
Adjustments 
 Amortization 
  of premiums             2,503            2,503            2,503 
 Accretion of 
  discounts             (2,327)          (2,327)          (2,327) 
 Amortization 
  and 
  depreciation            1,079            1,079            1,079 
                     ----------       ----------       ---------- 
CAD               $      10,364    $      11,578    $      12,640 
                     ==========       ==========       ========== 
 
Weighted 
 average common 
 shares 
 outstanding -- 
 basic                   17,810           17,810           17,810 
                     ==========       ==========       ========== 
Weighted 
 average common 
 shares 
 outstanding -- 
 diluted                 38,056           38,056           38,056 
                     ==========       ==========       ========== 
Shares 
 attributable 
 to potential 
 redemption of 
 Series B 
 Preferred             (14,164)         (14,164)         (14,164) 
                     ==========       ==========       ========== 
Adjusted 
 weighted 
 average common 
 shares 
 outstanding -- 
 diluted (1)             23,892           23,892           23,892 
                     ==========       ==========       ========== 
 
EPS per 
 Weighted 
 Average Share 
 -- diluted       $        0.34    $        0.38    $        0.40 
                     ==========       ==========       ========== 
CAD per diluted 
 common share 
 (2)              $        0.43    $        0.48    $        0.53 
                     ==========       ==========       ========== 
 
EPS Dividend 
 Coverage 
 Ratio                     0.68  x          0.76  x          0.80  x 
CAD Dividend 
 Coverage Ratio 
 (2)                       0.86  x          0.96  x          1.06  x 
 
 
 
(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. 
(2)  Beginning in the second quarter of 2024, EAD per diluted common share, 
     CAD per diluted common share and the related coverage ratios are based on 
     adjusted weighted average common shares outstanding -- diluted. Adjusted 
     weighted average common shares outstanding -- diluted does not include 
     the dilutive effective of the potential redemption of Series B Preferred 
     Stock for our common shares. 
 

Conference Call Details

The Company is scheduled to host a conference call on Thursday, May 01, 2025, at 11:00 a.m. ET (10:00 a.m. CT), to discuss first 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, May 15, 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

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May 01, 2025 08:15 ET (12:15 GMT)