NexPoint Real Estate Finance Announces 2024 Dividend Income Tax Treatment

Rhea-AI Summary

NexPoint Real Estate Finance (NYSE: NREF) has disclosed the final income allocations for its 2024 dividend distributions across its common stock and preferred shares. For common shares, the total annual distribution was $2.00 per share, comprising 90.69% ($1.81376) taxable ordinary income and 9.31% ($0.18624) return of capital.

Series A Preferred shares received total distributions of $2.125 per share, paid quarterly at $0.53125, consisting entirely of taxable ordinary income. Series B Preferred shares had monthly distributions totaling $2.25 per share ($0.18750 monthly), also fully classified as taxable ordinary income.

Notably, 99.24% of the taxable ordinary income qualifies as REIT dividend under Section 199A, while 0.76% is designated as qualified dividend income under Section 857(c)(2).

Positive

• Consistent quarterly dividend payments of $0.50 per common share throughout 2024
• Stable preferred share distributions: $0.53125 quarterly for Series A and $0.18750 monthly for Series B
• 99.24% of taxable ordinary income qualifies for Section 199A REIT dividend treatment

Negative

• 9.31% of common share distributions classified as return of capital, potentially indicating earnings didn't fully cover dividends

DALLAS, Feb. 7, 2025 /PRNewswire/ -- NexPoint Real Estate Finance, Inc. (NYSE: NREF) (the "Company") announced today the final income allocations of the Company's 2024 dividend distributions on its common stock, Series A Preferred Stock and Series B Preferred Stock. The final income allocations as they will be reported on Form 1099-DIV are set forth in the following table:

Common Shares (CUSIP #65342V101)
Ex Dividend Date	Record Date	Payable Date	Distribution Per Share	Taxable Ordinary Income Per Share (1)	Return of Capital Per Share
3/14/2024	3/15/2024	3/28/2024	$0.50000	$0.45344	$0.04656
6/14/2024	6/14/2024	6/28/2024	$0.50000	$0.45344	$0.04656
9/13/2024	9/13/2024	9/30/2024	$0.50000	$0.45344	$0.04656
12/13/2024	12/13/2024	12/31/2024	$0.50000	$0.45344	$0.04656
		Totals	$2.00000	$1.81376	$0.18624
			100.00 %	90.69 %	9.31 %

 

Series A Preferred Shares (CUSIP #65342V408)
Ex Dividend Date	Record Date	Payable Date	Distribution Per Share	Taxable Ordinary Income Per Share (1)	Return of Capital Per Share
1/11/2024	1/12/2024	1/25/2024	$0.53125	$0.53125	$0.00000
4/12/2024	4/15/2024	4/25/2024	$0.53125	$0.53125	$0.00000
7/15/2024	7/15/2024	7/25/2024	$0.53125	$0.53125	$0.00000
10/15/2024	10/15/2024	10/25/2024	$0.53125	$0.53125	$0.00000
		Totals	$2.12500	$2.12500	$0.00000
			100.00 %	100.00 %	0.00 %

 

Series B Preferred Shares (Various CUSIPs)
Ex Dividend Date	Record Date	Payable Date	Distribution Per Share	Taxable Ordinary Income Per Share (1)	Return of Capital Per Share
1/24/2024	1/25/2024	2/5/2024	$0.18750	$0.18750	$0.00000
2/22/2024	2/23/2024	3/5/2024	$0.18750	$0.18750	$0.00000
3/22/2024	3/25/2024	4/5/2024	$0.18750	$0.18750	$0.00000
4/24/2024	4/25/2024	5/6/2024	$0.18750	$0.18750	$0.00000
5/23/2024	5/24/2024	6/5/2024	$0.18750	$0.18750	$0.00000
6/25/2024	6/25/2024	7/5/2024	$0.18750	$0.18750	$0.00000
7/25/2024	7/25/2024	8/5/2024	$0.18750	$0.18750	$0.00000
8/23/2024	8/23/2024	9/5/2024	$0.18750	$0.18750	$0.00000
9/25/2024	9/25/2024	10/7/2024	$0.18750	$0.18750	$0.00000
10/25/2024	10/25/2024	11/5/2024	$0.18750	$0.18750	$0.00000
11/25/2024	11/25/2024	12/5/2024	$0.18750	$0.18750	$0.00000
12/24/2024	12/24/2024	1/6/2025	$0.18750	$0.18750	$0.00000
		Totals	$2.25	$2.25	$0.00000
			100.00 %	100.00 %	0.00 %

(1) 99.24% of the amount reported as Taxable Ordinary Income is treated as a qualified REIT dividend for purposes of Section 199A. 0.76% of the amount reported as Taxable Ordinary Income is designated as qualified dividend income pursuant to Section 857(c)(2).

 

About NexPoint Real Estate Finance, Inc.

NexPoint Real Estate Finance, Inc., is a publicly traded REIT, with its common stock and Series A Preferred Stock listed on the New York Stock Exchange under the symbols "NREF" and "NREF-PRA," respectively, 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 rental commercial mortgage-backed securities securitizations, promissory notes and mortgage-backed securities.  More information about the Company is available at nref.nexpoint.com.

CONTACTS

Investor Relations
Kristen Griffith
IR@nexpoint.com

Media Relations
comms@nexpoint.com

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SOURCE NexPoint Real Estate Finance, Inc.

FAQ

What is NREF's common stock dividend amount and frequency for 2024?

NREF paid quarterly dividends of $0.50 per common share in 2024, totaling $2.00 annually.

How much of NREF's 2024 common share dividend is considered return of capital?

9.31% ($0.18624 per share) of NREF's 2024 common share dividend is classified as return of capital.

What are the dividend payment dates for NREF Series A Preferred shares in 2024?

Series A Preferred shares dividends are paid quarterly on January 25, April 25, July 25, and October 25, 2024.

How much is NREF's monthly Series B Preferred dividend in 2024?

NREF pays $0.18750 per share monthly on Series B Preferred shares, totaling $2.25 annually.

What percentage of NREF's 2024 taxable ordinary income qualifies as REIT dividend?

99.24% of NREF's taxable ordinary income qualifies as REIT dividend under Section 199A.