NexPoint Real Estate Finance, Inc. Q3 FY2025 earnings call

Quarterly Results

• Q3 2025 net income $1.12 per diluted share vs $0.74 in 2024, increase due to unrealized gains on preferred stock and warrants. Earnings available for distribution $0.51 vs $0.75, cash available for distribution $0.53 vs $0.67. Paid $0.50 dividend in Q3, Board declared $0.50 for Q4. Book value per share up 8% to $18.79.

Balance Sheet & Portfolio

• Portfolio has 88 investments, $1.1B outstanding. Collateral 87.4% stabilized, LTV 54.9%, DSCR 1.41x. Debt: $720.9M outstanding, weighted average cost 5.3%. Paid off $36.5M senior notes, issued $45M new notes with 7.875% coupon. Series B preferred near $400M limit, launching Series C $200M offering.

Third quarter net income was $1.12 per diluted share compared to $0.74 per diluted share in Q3 2024. Earnings available for distribution was $0.51 per diluted share in Q3 2025 vs $0.75 in 2024. Cash available for distribution was $0.53 per diluted share in Q3 2025 vs $0.67 in 2024. Portfolio allocation: 47.3% multifamily, 33.9% life sciences, 15.9% single-family rental, 1.8% storage, 1.1% marina. Fixed income: 27% CMBS B-Pieces, 26.5% mezz loans, 18.6% preferred equity investments, 12.4% revolving credit facilities, 10% senior loans, 4.2% IO strips, 1.3% promissory notes. Geographically, 28.1% Massachusetts, 15.5% Texas, etc.

Q4 Guidance

• Earnings available for distribution midpoint $0.48 per diluted share (range $0.43-$0.53). Cash available for distribution midpoint $0.50 per diluted share (range $0.45-$0.55).

Risks

• Forward-looking statements based on current expectations; risks include market factors, interest rate changes, potential softness in sectors like bridge lending as mentioned in multifamily discussion.

Q: Help on life science sector view and NREF's exposure.

A: NREF started life science loans in 2024, exposure in gateway markets like Boston/Cambridge. Alewife project leased to Lila Sciences, solidifying cluster.

Q: Shift to multifamily, supply backdrop and bridge lending.

A: Multifamily supply cycle improving, new lease growth expected to inflect in 2026. Bridge lending has pressure but workable, multifamily market will correct with undersupply, transaction volumes to pick up in 2026.