Press Release: NREF Announces Third Quarter 2025 Results, Provides Fourth Quarter 2025 Guidance

DALLAS, Oct. 30, 2025 /PRNewswire/ -- 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 share(1) , for the three months ended September 30, 2025.

NREF reported cash available for distribution(2) of $12.1 million, or $0.53 per diluted common share(2) , 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 Distribution(2)

   -- 4Q 2025 EAD per diluted common share guidance is $0.485 at the midpoint 
 
                      Low              Mid              High 
                 --------------   --------------   -------------- 
                  December 31,     December 31,     December 31, 
                      2025             2025             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 Distribution(2)

   -- 4Q 2025 CAD per diluted common share guidance is $0.505 at the midpoint 
 
                      Low              Mid              High 
                 --------------   --------------   -------------- 
                  December 31,     December 31,     December 31, 
                      2025             2025             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  x          0.82  x          0.88  x 
CAD Dividend 
 Coverage 
 Ratio                     0.90  x          1.00  x          1.10  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.

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

(MORE TO FOLLOW) Dow Jones Newswires

October 30, 2025 08:15 ET (12:15 GMT)

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Press Release: NREF Announces Third Quarter 2025 Results, Provides Fourth Quarter 2025 Guidance

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