NexPoint Real Estate Finance Announces 2025 Dividend Income Tax Treatment

Rhea-AI Summary

NexPoint Real Estate Finance (NYSE: NREF) announced final 2025 dividend income allocations for common, Series A preferred, and Series B preferred shares. Common: $2.00000 total; $0.11864 taxable ordinary income; $1.88136 return of capital. Series A: $2.12500, fully taxable ordinary income. Series B: $2.06250, fully taxable ordinary income. 98.374% of taxable ordinary income is treated as a qualified REIT dividend for Section 199A; 1.626% is qualified dividend income and eligible for the dividends received deduction for corporations.

Positive

• Common dividend total of $2.00000 per share for 2025
• Series A dividend total of $2.12500 per share reported as ordinary income
• Series B dividend total of $2.06250 per share reported as ordinary income
• 98.374% of taxable ordinary income qualifies as a REIT dividend for Section 199A

Negative

• Majority of common dividend ($1.88136) reported as return of capital, reducing taxable ordinary income
• 1.626% of taxable ordinary income reported as qualified dividend income only (limited portion)

News Market Reaction – NREF

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On the day this news was published, NREF gained 0.95%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

DALLAS, Feb. 10, 2026 /PRNewswire/ -- NexPoint Real Estate Finance, Inc. (NYSE: NREF) (the "Company") announced today the final income allocations of the Company's 2025 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)(2)	Taxable Capital Gain Distr. Per Share	Unrecap. Sec. 1250 Gain Per Share	Return of Capital Per Share
03/14/2025	03/14/2025	03/31/2025	$0.50000	$0.02966	$0.00000	$0.00000	$0.47034
06/13/2025	06/13/2025	06/30/2025	$0.50000	$0.02966	$0.00000	$0.00000	$0.47034
09/15/2025	09/15/2025	09/30/2025	$0.50000	$0.02966	$0.00000	$0.00000	$0.47034
12/15/2025	12/15/2025	12/31/2025	$0.50000	$0.02966	$0.00000	$0.00000	$0.47034
		Totals	$2.00000	$0.11864	$0.00000	$0.00000	$1.88136
			100.00 %	5.93 %	0.00 %		9.07 %

 

Series A Preferred Shares (CUSIP #65342V408)
Ex Dividend Date	Record Date	Payable Date	Distribution Per Share	Taxable Ordinary Income Per Share (1)(2)	Taxable Capital Gain Distr. Per Share	Unrecap. Sec. 1250 Gain Per Share	Return of Capital Per Share
1/15/2025	1/15/2025	1/27/2025	$0.53125	$0.53125	$0.00000	$0.00000	$0.00000
04/15/2025	04/15/2025	04/25/2025	$0.53125	$0.53125	$0.00000	$0.00000	$0.00000
07/15/2025	07/15/2025	07/25/2025	$0.53125	$0.53125	$0.00000	$0.00000	$0.00000
10/15/2025	10/15/2025	10/27/2025	$0.53125	$0.53125	$0.00000	$0.00000	$0.00000
		Totals	$2.12500	$2.12500	$0.00000	$0.00000	$0.00000
			100.00 %	100.00 %	0.00 %		0.00 %

 

Series B Preferred Shares (Various CUSIPs) (3)
Ex Dividend Date	Record Date	Payable Date	Distribution Per Share	Taxable Ordinary Income Per Share (1)(2)	Taxable Capital Gain Distr. Per Share	Unrecap. Sec. 1250 Gain Per Share	Return of Capital Per Share
01/24/2025	01/24/2025	02/05/2025	$0.18750	$0.18750	$0.00000	$0.00000	$0.00000
02/25/2025	02/25/2025	03/05/2025	$0.18750	$0.18750	$0.00000	$0.00000	$0.00000
03/25/2025	03/25/2025	04/07/2025	$0.18750	$0.18750	$0.00000	$0.00000	$0.00000
04/25/2025	04/25/2025	05/05/2025	$0.18750	$0.18750	$0.00000	$0.00000	$0.00000
05/23/2025	05/23/2025	06/05/2025	$0.18750	$0.18750	$0.00000	$0.00000	$0.00000
06/25/2025	06/25/2025	07/07/2025	$0.18750	$0.18750	$0.00000	$0.00000	$0.00000
07/25/2025	07/25/2025	08/05/2025	$0.18750	$0.18750	$0.00000	$0.00000	$0.00000
08/25/2025	08/25/2025	09/05/2025	$0.18750	$0.18750	$0.00000	$0.00000	$0.00000
09/25/2025	09/25/2025	10/06/2025	$0.18750	$0.18750	$0.00000	$0.00000	$0.00000
10/24/2025	10/24/2025	11/05/2025	$0.18750	$0.18750	$0.00000	$0.00000	$0.00000
11/25/2025	11/25/2025	12/05/2025	$0.18750	$0.18750	$0.00000	$0.00000	$0.00000
		Totals	$2.06250	$2.06250	$0.00000	$0.00000	$0.00000
			100.00 %	100.00 %	0.00 %		0.00 %

(1) 98.374% of the amount reported as Taxable Ordinary Income is treated as a qualified REIT dividend for purposes of Section 199A.

(2) 1.626% of the taxable ordinary income amount will be treated as qualified dividend income. 1.626% of the taxable ordinary income will also be eligible for the dividends received deduction to corporate taxpayers.

(3) Several CUSIPs for the Series B Preferred Shares will not have received several of the listed payments, as they were issued subsequent to the payable/record dates.

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 the 2025 dividend per share for NREF common stock and how is it taxed?

Common shareholders received $2.00 total in 2025; most was return of capital. According to the company, taxable ordinary income per common share is $0.11864 and return of capital is $1.88136.

How are NREF Series A preferred dividends for 2025 classified for tax purposes?

Series A preferred dividends are reported as per share. According to the company, the Series A totals show 100% of the 2025 distributions as taxable ordinary income.

What tax treatment does NREF assign to Series B preferred dividends in 2025?

Series B preferred dividends are reported as $2.06250 per share of taxable ordinary income. According to the company, the listed Series B totals reflect 100% of distributions as taxable ordinary income for 2025.

How much of NREF's taxable ordinary income qualifies under Section 199A for 2025?

A large portion qualifies: 98.374% of taxable ordinary income is treated as a qualified REIT dividend for Section 199A. According to the company, that percentage applies to the taxable ordinary income reported on Form 1099-DIV.

What portion of NREF's taxable ordinary income is treated as qualified dividend income in 2025?

1.626% of the taxable ordinary income is treated as qualified dividend income. According to the company, that same 1.626% portion is eligible for the dividends received deduction for corporate taxpayers.

Will NREF shareholders receive Form 1099-DIV details for the 2025 distributions?

Yes. The company will report the final income allocations on Form 1099-DIV for 2025. According to the company, the tables summarize per-share distributions and tax classifications for each share class.