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NREF Announces First Quarter 2025 Results, Provides Second Quarter 2025 Guidance

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NexPoint Real Estate Finance (NREF) reported strong Q1 2025 financial results with net income of $16.5 million ($0.70 per diluted share). The company's total portfolio reached $1.2 billion across 85 investments, with multifamily (49.4%) and life sciences (31.9%) representing the largest segments. Key metrics include cash available for distribution of $10.5 million ($0.45 per diluted share) and weighted-average LTV and DSCR of 58.7% and 1.46x respectively. During Q1, NREF purchased $55.0MM of Preferred Stock and funded a $20.8MM loan with SOFR + 900 bps coupon. For Q2 2025, the company projects EAD per diluted share of $0.435 and CAD per diluted share of $0.485 at midpoint.
NexPoint Real Estate Finance (NREF) ha riportato solidi risultati finanziari nel primo trimestre del 2025 con un utile netto di 16,5 milioni di dollari (0,70 dollari per azione diluita). Il portafoglio totale della società ha raggiunto 1,2 miliardi di dollari distribuiti su 85 investimenti, con i settori multifamiliari (49,4%) e scienze della vita (31,9%) come segmenti principali. I principali indicatori includono una liquidità disponibile per la distribuzione di 10,5 milioni di dollari (0,45 dollari per azione diluita) e un rapporto medio ponderato LTV e DSCR rispettivamente del 58,7% e 1,46x. Nel primo trimestre, NREF ha acquistato azioni privilegiate per 55,0 milioni di dollari e ha finanziato un prestito da 20,8 milioni di dollari con un coupon SOFR + 900 punti base. Per il secondo trimestre del 2025, la società prevede un EAD per azione diluita di 0,435 dollari e un CAD per azione diluita di 0,485 dollari al valore medio.
NexPoint Real Estate Finance (NREF) reportó sólidos resultados financieros en el primer trimestre de 2025 con un ingreso neto de 16,5 millones de dólares (0,70 dólares por acción diluida). La cartera total de la empresa alcanzó los 1,2 mil millones de dólares en 85 inversiones, siendo multifamiliar (49,4%) y ciencias de la vida (31,9%) los segmentos más grandes. Las métricas clave incluyen efectivo disponible para distribución de 10,5 millones de dólares (0,45 dólares por acción diluida) y un LTV y DSCR promedio ponderado de 58,7% y 1,46x respectivamente. Durante el primer trimestre, NREF compró acciones preferentes por 55,0 millones de dólares y financió un préstamo de 20,8 millones de dólares con cupón SOFR + 900 puntos básicos. Para el segundo trimestre de 2025, la compañía proyecta un EAD por acción diluida de 0,435 dólares y un CAD por acción diluida de 0,485 dólares en el punto medio.
NexPoint Real Estate Finance (NREF)는 2025년 1분기에 순이익 1,650만 달러(희석 주당 0.70달러)의 강력한 재무 실적을 보고했습니다. 회사의 총 포트폴리오는 12억 달러에 달하며 85건의 투자로 구성되어 있으며, 다가구 주택(49.4%)과 생명과학(31.9%)이 가장 큰 비중을 차지합니다. 주요 지표로는 배당 가능 현금 1,050만 달러(희석 주당 0.45달러)와 가중평균 LTV 및 DSCR이 각각 58.7%와 1.46배입니다. 1분기 동안 NREF는 5,500만 달러 규모의 우선주를 매입하고 SOFR + 900bps 쿠폰으로 2,080만 달러 대출을 자금 조달했습니다. 2025년 2분기에는 희석 주당 EAD 0.435달러, 희석 주당 CAD 0.485달러를 중간치로 예상하고 있습니다.
NexPoint Real Estate Finance (NREF) a publié de solides résultats financiers pour le premier trimestre 2025 avec un revenu net de 16,5 millions de dollars (0,70 dollar par action diluée). Le portefeuille total de la société a atteint 1,2 milliard de dollars répartis sur 85 investissements, les segments multifamilial (49,4 %) et sciences de la vie (31,9 %) étant les plus importants. Les indicateurs clés incluent une trésorerie disponible pour distribution de 10,5 millions de dollars (0,45 dollar par action diluée) ainsi qu'un LTV et un DSCR moyens pondérés de 58,7 % et 1,46x respectivement. Au cours du premier trimestre, NREF a acheté pour 55,0 millions de dollars d'actions privilégiées et financé un prêt de 20,8 millions de dollars avec un coupon SOFR + 900 points de base. Pour le deuxième trimestre 2025, la société prévoit un EAD par action diluée de 0,435 dollar et un CAD par action diluée de 0,485 dollar à mi-parcours.
NexPoint Real Estate Finance (NREF) meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Nettoeinkommen von 16,5 Millionen US-Dollar (0,70 US-Dollar pro verwässerter Aktie). Das Gesamtportfolio des Unternehmens erreichte 1,2 Milliarden US-Dollar über 85 Investitionen, wobei Mehrfamilienhäuser (49,4 %) und Biowissenschaften (31,9 %) die größten Segmente darstellen. Wichtige Kennzahlen sind ein verfügbarer Barmittelbetrag zur Ausschüttung von 10,5 Millionen US-Dollar (0,45 US-Dollar pro verwässerter Aktie) sowie ein gewichteter durchschnittlicher LTV und DSCR von 58,7 % bzw. 1,46x. Im ersten Quartal erwarb NREF Vorzugsaktien im Wert von 55,0 Millionen US-Dollar und finanzierte ein Darlehen in Höhe von 20,8 Millionen US-Dollar mit einem Kupon von SOFR + 900 Basispunkten. Für das zweite Quartal 2025 prognostiziert das Unternehmen einen EAD von 0,435 US-Dollar und einen CAD von 0,485 US-Dollar pro verwässerter Aktie zum Mittelwert.
Positive
  • Net income of $16.5 million ($0.70 per diluted share) in Q1 2025
  • Strong portfolio diversification with $1.2 billion across 85 investments
  • Conservative loan metrics with 58.7% LTV and 1.46x DSCR
  • New $20.8MM loan originated with attractive SOFR + 900 bps coupon
Negative
  • Projected Q2 2025 net income decline to $8.77MM (midpoint) from $16.5MM in Q1
  • EPS dividend coverage ratio projected at only 0.76x for Q2 2025 (midpoint)
  • Q2 2025 EAD per share guidance of $0.435 shows decrease from Q1 performance

Insights

NREF reports strong Q1 profit after previous year loss; Q2 guidance indicates lower expected earnings with dividend coverage below 1.0x.

NREF has made a remarkable financial turnaround, posting Q1 2025 net income of $16.5 million ($0.70 per diluted share) compared to a loss of $14.3 million in Q1 2024. This improvement was significantly influenced by $15.8 million in unrealized investment gains.

The company maintains a well-diversified $1.2 billion portfolio across 85 investments with conservative risk metrics – 58.7% weighted-average LTV and 1.46x DSCR. Portfolio allocation emphasizes multifamily (49.4%), life sciences (31.9%), and single-family rental (15.6%) properties.

Despite challenging credit markets, NREF continues actively deploying capital, purchasing $55 million of Preferred Stock and funding a $20.8 million loan at SOFR + 900% bps during Q1, demonstrating their ability to capitalize on market dislocations.

Looking ahead, Q2 2025 guidance projects more moderate results with net income between $7.6 million and $9.8 million – notably lower than Q1. The company forecasts EAD (Earnings Available for Distribution) per diluted share of $0.435 and CAD (Cash Available for Distribution) of $0.485 at midpoint.

Importantly, the projected EAD dividend coverage ratio for Q2 stands at 0.86x at midpoint, indicating earnings available for distribution may not fully cover dividend payments in the upcoming quarter. This metric warrants monitoring in future reporting periods.

DALLAS, May 1, 2025 /PRNewswire/ -- NexPoint Real Estate Finance, Inc. ("NREF" or the "Company") (NYSE: NREF) today reported its financial results for the quarter ended March 31, 2025.

NREF reported net income attributable to common stockholders of $16.5 million, or $0.70 per diluted share1, for the three months ended March 31, 2025.

NREF reported cash available for distribution2 of $10.5 million, or $0.45 per diluted common share2, for the three months ended March 31, 2025.

"NREF is pleased to announce another strong quarter, showcasing consistent and resilient earnings across our primary property types. In an environment where banks and traditional lenders are often preoccupied with credit challenges, we remain proactive and committed. Our ability to allocate capital in this challenging credit market allows us to capitalize on market opportunities and deliver long-term value to our shareholders," commented Chief Investment Officer Matthew McGraner.

First Quarter 2025 Highlights

  • Outstanding total portfolio of $1.2 billion, composed of 85 investments3
  • Single-family rental ("SFR"), multifamily, life sciences, specialty manufacturing, self-storage and marinas represent 15.6%, 49.4%, 31.9%, 0.9%, 1.6% and 0.6% of the Company's investment portfolio, respectively
  • Weighted-average loan to value ("LTV")4 and debt service coverage ratio ("DSCR") on our senior loans, CMBS, CMBS I/O strips, preferred equity, mezzanine and revolving credit facilities investments are 58.7% and 1.46x3, respectively
  • During 1Q 2025, NREF purchased $55.0MM of Preferred Stock
  • During the quarter, the Company funded $20.8MM on a loan that pays a monthly coupon of SOFR + 900 bps.

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") and cash available for distribution ("CAD") are non-GAAP measures. Beginning in the second quarter of 2024, EAD per diluted common share and CAD per diluted common share are based on adjusted weighted average common shares outstanding - diluted. Adjusted weighted average common shares outstanding - diluted is a non-GAAP measure. 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 March 31, 2025; and excluding the common stock investments, the Hudson Montford and Alexander at the District multifamily properties. 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 2Q 2025 is estimated to be between $7.6MM and $9.8MM. See reconciliations below.

Looking Ahead: Second Quarter 2025 Guidance

Earnings Available for Distribution2

  • 2Q 2025 EAD per diluted common share guidance is $0.435 at the midpoint

 



Low



Mid



High




June 30, 2025



June 30, 2025



June 30, 2025


Net income


$

13,961



$

15,175



$

16,237


Net (income) loss attributable to Series A Preferred stockholders



(874)




(874)




(874)


Net (income) loss attributable to Series B Preferred stockholders



(5,530)




(5,530)




(5,530)


Net income attributable to common stockholders


$

7,557



$

8,771



$

9,833


Adjustments










Amortization of stock-based compensation



1,552




1,552




1,552


EAD


$

9,109



$

10,323



$

11,385












Weighted average common shares outstanding – basic



17,810




17,810




17,810


Weighted average common shares outstanding – diluted



38,056




38,056




38,056


Shares attributable to potential redemption of Series B Preferred



(14,164)




(14,164)




(14,164)


Adjusted weighted average common shares outstanding – diluted (1)



23,892




23,892




23,892












EPS per Weighted Average Share – diluted


$

0.34



$

0.38



$

0.40


EAD per diluted common share (2)


$

0.38



$

0.43



$

0.48












EPS Dividend Coverage Ratio



0.68

x



0.76

x



0.80

x

EAD Dividend Coverage Ratio (2)



0.76

x



0.86

x



0.96

x

Cash Available for Distribution2

  • 2Q 2025 CAD per diluted common share guidance is $0.485 at the midpoint

 



Low



Mid



High




June 30, 2025



June 30, 2025



June 30, 2025


EAD


$

9,109



$

10,323



$

11,385


Adjustments










Amortization of premiums



2,503




2,503




2,503


Accretion of discounts



(2,327)




(2,327)




(2,327)


Amortization and depreciation



1,079




1,079




1,079


CAD


$

10,364



$

11,578



$

12,640












Weighted average common shares outstanding – basic



17,810




17,810




17,810


Weighted average common shares outstanding – diluted



38,056




38,056




38,056


Shares attributable to potential redemption of Series B Preferred



(14,164)




(14,164)




(14,164)


Adjusted weighted average common shares outstanding – diluted (1)



23,892




23,892




23,892












EPS per Weighted Average Share – diluted


$

0.34



$

0.38



$

0.40


CAD per diluted common share (2)


$

0.43



$

0.48



$

0.53












EPS Dividend Coverage Ratio



0.68

x



0.76

x



0.80

x

CAD Dividend Coverage Ratio (2)



0.86

x



0.96

x



1.06

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. 

(2)

Beginning in the second quarter of 2024, EAD per diluted common share, CAD per diluted common share and the related coverage ratios are based on adjusted weighted average common shares outstanding – diluted. Adjusted weighted average common shares outstanding – diluted does not include the dilutive effective of the potential redemption of Series B Preferred Stock for our common shares.

Conference Call Details
The Company is scheduled to host a conference call on Thursday, May 01, 2025, at 11:00 a.m. ET (10:00 a.m. CT), to discuss first 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, May 15, 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
The following table provides a reconciliation of Earnings Available for Distribution and Cash Available for Distribution to GAAP net income attributable to common stockholders and Adjusted Weighted Average Common Shares Outstanding – diluted to Weighted Average Common Shares Outstanding - diluted (in thousands, except per share amounts):



For the Three Months Ended March 31,




2025



2024


Net income (loss) attributable to common stockholders


$

16,518




(14,286)


Net income (loss) attributable to redeemable noncontrolling interests



4,163




(1,894)


Adjustments







Amortization of stock-based compensation



1,283




1,798


Provision for (reversal of) credit losses



3,625




(420)


Equity in (income) losses of equity method investments (1)



(53)




2,000


Unrealized (gains) or losses (2)



(15,862)




1,351


EAD


$

9,674



$

(11,451)









EAD per diluted common share (3)


$

0.41



$

(0.46)









Adjustments







Amortization of premiums


$

2,262




27,874


Accretion of discounts



(2,540)




(3,880)


Depreciation and amortization of real estate investments



1,079




2,318


Amortization of deferred financing costs



12




12


CAD


$

10,487



$

14,873









CAD per diluted common share (3)


$

0.45



$

0.60









Weighted-average common shares outstanding – basic



17,516




17,264


Weighted-average common shares outstanding – diluted



36,049




24,862


Shares attributable to potential redemption of Series B Preferred



12,652





Adjusted weighted-average common shares outstanding – diluted (3)



23,397




24,862




(1)

Starting in the third quarter of 2023, the Company has adjusted EAD to remove the (income) / loss from equity method investments as it does not represent distributable earnings. We will include income from equity method investments to the extent that we receive cash distributions and upon realizing gains and/or losses.

(2)

Unrealized gains represent the net change in unrealized gains on investments held at fair value.

(3)

Beginning in the second quarter of 2024, EAD per diluted common share and CAD per diluted common share are based on adjusted weighted average common shares outstanding – diluted. Adjusted weighted average common shares outstanding – diluted does not include the dilutive effective of the potential redemption of Series B Preferred Stock for our common shares. Prior periods have not been updated to reflect this adjustment because the dilutive effect of potential Series B Preferred redemptions were immaterial to prior periods.

About NexPoint Real Estate Finance, Inc.

NexPoint Real Estate Finance, Inc., is a publicly traded REIT, with its common stock and 8.50% Series A Cumulative Redeemable Preferred Stock listed on the New York Stock Exchange, 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 commercial mortgage-backed securities securitizations, promissory notes, revolving credit facilities and stock warrants. More information about the Company is available at http://nref.nexpoint.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "should" and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding the Company's business, strategy and industry in general, second quarter 2025 guidance, including net income, net income attributable to common stockholders, EAD, CAD, EAD and CAD per diluted common share and related coverage ratios, assumptions and estimates, the Company's intent to not settle Series B Preferred redemptions in shares of common stock when the Company's common stock price is below book value and the Company's ability to capitalize on market opportunities and deliver long-term value to its shareholders. They are not guarantees of future results and forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement, including those described in greater detail in our filings with the Securities and Exchange Commission (the "SEC"), particularly those described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company's Annual Report on Form 10-K and the Company's other filings with the SEC for a more complete discussion of risks and other factors that could affect any forward-looking statement. The statements made herein speak only as of the date of this press release and except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flows of the Company. The non-GAAP financial measures used within this press release are EAD, CAD, EAD and CAD per diluted common share and adjusted weighted average common shares outstanding - diluted.

EAD is defined as net income (loss) attributable to our common stockholders computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), excluding any unrealized gains or losses or other similar non-cash items that are included in net income (loss) for the applicable reporting period, regardless of whether such items are included in other comprehensive income (loss), or in net income (loss) and adding back amortization of stock-based compensation. Net income (loss) attributable to common stockholders may also be adjusted for the effects of certain GAAP adjustments and transactions that may not be indicative of our current operations. In addition, EAD in this press release includes the dilutive effect of non-controlling interests. We use EAD to evaluate our performance and to assess our long-term ability to pay distributions. We believe providing EAD as a supplement to GAAP net income (loss) to our investors is helpful to their assessment of our performance and our long-term ability to pay distributions. We also use EAD as a component of the management fee paid to our external manager. EAD does not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of our GAAP cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. Our computation of EAD may not be comparable to EAD reported by other REITs. Starting in the third quarter of 2023, the Company has adjusted EAD to remove the income/(losses) from equity method investments as they represent changes in the equity value of our investment rather than distributable earnings. The Company will include income from equity method investments to the extent that we receive cash distributions and upon realizing gains and/or losses.

We calculate CAD by adjusting EAD by adding back amortization of premiums, depreciation and amortization of real estate investment and amortization of deferred financing costs and by removing accretion of discounts. We use CAD to evaluate our performance and our current ability to pay distributions. We also believe that providing CAD as a supplement to GAAP net income (loss) to our investors is helpful to their assessment of our performance and our current ability to pay distributions. CAD does not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of our GAAP cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. Our computation of CAD may not be comparable to CAD reported by other REITs.

Starting in the second quarter of 2024, EAD per diluted common share and CAD per diluted common share are based on adjusted weighted average common shares outstanding – diluted. Adjusted weighted average common shares outstanding - diluted is calculating by subtracting the dilutive effect of potential redemptions of Series B Preferred shares for shares of our common stock from weighted average common shares outstanding - diluted. We believe providing adjusted weighted average common shares outstanding - diluted to our investors is helpful in their assessment of our performance without the potential dilutive effective of the Series B Preferred shares. We have the right to redeem the Series B Preferred shares for cash or shares of our common stock. Additionally, Series B Preferred redemptions are capped at 2% of the outstanding Series B Preferred shares per month, 5% per quarter and 20% per year. The Company maintains sufficient liquidity to pay cash to cover any redemptions up to the quarterly redemption cap. Further, it is the Company's intent to not settle Series B Preferred redemptions in shares of common stock when the Company's common stock price is below book value.

Adjusted weighted average common shares outstanding – diluted should not be considered as an alternative to the GAAP measure. Our computation of adjusted weighted average common shares outstanding – diluted may not be comparable to adjusted weighted average common shares outstanding - diluted reported by other companies. 

Contact:
Kristen Griffith
Investor Relations
IR@nexpoint.com
Media: comms@nexpoint.com

 

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SOURCE NexPoint Real Estate Finance, Inc.

FAQ

What was NREF's net income for Q1 2025?

NREF reported net income of $16.5 million, or $0.70 per diluted share, for Q1 2025.

How is NREF's investment portfolio distributed across property types?

NREF's portfolio is distributed across multifamily (49.4%), life sciences (31.9%), single-family rental (15.6%), self-storage (1.6%), specialty manufacturing (0.9%), and marinas (0.6%).

What is NREF's guidance for Q2 2025?

NREF projects Q2 2025 EAD per diluted share of $0.435 and CAD per diluted share of $0.485 at midpoint, with net income expected between $7.6MM and $9.8MM.

What is the size and composition of NREF's total portfolio?

NREF maintains a total portfolio of $1.2 billion, composed of 85 investments across various property types.

What significant investments did NREF make in Q1 2025?

NREF purchased $55.0MM of Preferred Stock and funded a $20.8MM loan with a monthly coupon of SOFR + 900 bps during Q1 2025.
Nexpoint Real Estate Finance Inc

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REIT - Mortgage
Real Estate Investment Trusts
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