NexPoint Real Estate Finance, Inc. Q2 FY2025 earnings call

· Q2 2025 net income was $0.54 per diluted share vs $0.40 in 2024, due to increased interest income. Interest income rose to $22.8M from $18.2M. Interest expense decreased $700k. Earnings available for distribution was $0.43 vs $0.68 in 2024. Cash available for distribution was $0.46 vs $0.64. Dividend of $0.50 per share declared for Q3. Book value per share increased 1% to $17.40. · Funded $39.5M on life science preferred and purchased $15.3M CMBS IO with 7.24% yield. · Portfolio has $1.1B in outstanding balance, 86 investments. Collateral: 74% stabilized, LTV 58.5%, DSCR 1.44x. Debt: $815.6M outstanding, avg cost 5.9%, avg maturity 3.8 years, debt-to-equity 1.14x. · Matt discussed segments: Multifamily demand outperformed, supply to contract; Storage: REITs in major markets outperforming; Life science: Alewife project closing in on 245k sq ft lease, formal announcement in Q3.

The portfolio is comprised of 86 investments with a total outstanding balance of $1.1 billion. Allocations by sector: 49.5% multifamily, 32.7% life science, 15.5% single-family rental, 1.6% storage, 0.7% marina, 0.1% specialty manufacturing. Fixed income allocation: 28.3% CMBS BPs, 24.9% mezz loans, 18.7% preferred equity investments, 12.9% revolving credit facilities, 10.4% senior loans, 4.5% IO strips, 0.1% promissory notes. Geographically, 27% in Massachusetts, 15% in Texas, 6% in California, etc., with heavy presence in Sunbelt markets.

· Guiding for Q3 earnings available for distribution: midpoint $0.42 per diluted share, range $0.37-$0.47. · Guiding for Q3 cash available for distribution: midpoint $0.50 per diluted share, range $0.45-$0.55.

· Life science: Challenging due to tariff and NIH funding uncertainty. · Seniors housing: COVID impacted, but inflation moderated and delinquencies reversing, but still factors to consider.

Q: Can you comment on credit trends within the Freddie Mac B-Piece portfolio?

A: Paul said B-Piece portfolio is solid, few problem loans but some on floating rate; Matt added optimism on delinquencies improving in back half of year.

Q: On the Life Science side, can you talk about pro forma for that lease you mentioned?

A: Matt said it's 2/3 of the first phase of the project, will be 2/3 leased post announcement; Paul said roughly 2.5 years remaining on loan.

Q: I wanted to ask your thoughts on the seniors housing space.

A: Matt agreed fundamentals improved, interested in adding exposure, mentioned Welltower's outperformance and build-to-rent/senior housing projects.