NREF Announces Fourth Quarter 2025 Results, Provides First Quarter 2026 Guidance
Rhea-AI Summary
NexPoint Real Estate Finance (NYSE:NREF) reported Q4 2025 net income attributable to common stockholders of $13.6 million (diluted EPS $0.52) and CAD of $12.2 million ($0.53 per diluted share). The portfolio totaled $1.2 billion across 92 investments. NREF raised $60.5 million of gross Series B preferred proceeds and declared a $0.50 common dividend for Q1 2026. First quarter 2026 guidance: EAD per diluted common share midpoint ~$0.405 and CAD per diluted common share midpoint ~$0.505.
Positive
- Net income +62% YoY to $13.6M in Q4 2025
- Cash available for distribution $12.2M (CAD per diluted share $0.53)
- Raised $60.5M gross proceeds from Series B preferred offering
- Total portfolio of $1.2B across 92 investments
Negative
- Provision for credit losses of $12.38M in Q4 2025, a large swing versus prior period
- First-quarter 2026 net income guidance of $6.5M–$8.8M, lower than Q4 2025 results
- Weighted-average loan-to-value at 63.6% with DSCR of 1.24x, indicating leverage pressure
News Market Reaction – NREF
On the day this news was published, NREF gained 0.34%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
NREF slipped 0.61% while peers were mixed: CMTG +3.11%, KREF +1.48%, TRTX +0.59%, BRSP +0.35%, and IVR -0.12%. Moves do not clearly track a sector-wide trend.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 30 | Quarterly earnings | Positive | +1.1% | Strong Q3 2025 results, portfolio growth, and Q4 2025 EAD/CAD guidance. |
| Jul 31 | Quarterly earnings | Positive | -3.8% | Strong Q2 2025 results with diversified portfolio and forward guidance. |
| May 01 | Quarterly earnings | Positive | -2.3% | Q1 2025 net income growth, solid CAD and conservative credit metrics. |
| Feb 27 | Quarterly earnings | Positive | +1.2% | Q4 2024 results with diversified $1.2B portfolio and Q1 2025 guidance. |
| Oct 31 | Quarterly earnings | Positive | +6.5% | Strong Q3 2024 earnings, high CAD per share and robust LTV/DSCR metrics. |
Earnings releases often show modest positive to mixed price reactions, with both gains and pullbacks despite generally stable portfolio and distribution metrics.
Over the past five earnings cycles (Q3 2024–Q3 2025), NREF has emphasized a diversified $1.1–$1.2 billion portfolio, stable net income, and recurring guidance on EAD and CAD per diluted share. Price reactions ranged from a 6.47% gain to a 3.77% decline, indicating investors react sensitively to nuances in guidance and credit metrics. Today’s Q4 2025 results and Q1 2026 guidance continue this pattern of steady portfolio scale with evolving per-share earnings and distribution coverage metrics.
Historical Comparison
In the last five earnings releases, NREF’s average next-day move was about 0.53%, with both gains and pullbacks. Today’s Q4 2025 results and Q1 2026 guidance fit a pattern of generally stable but finely scrutinized earnings updates.
Across recent earnings, NREF maintained a roughly $1.1–$1.2B portfolio while guiding EAD and CAD per share each quarter, highlighting a steady focus on distribution coverage and credit metrics like LTV and DSCR.
Market Pulse Summary
This announcement details Q4 2025 performance and Q1 2026 guidance for NREF’s $1.2 billion portfolio, with net income of $13.6 million and CAD of $12.2 million (both about $0.52–0.53 per share). It also outlines a declared $0.50 dividend and guidance pointing to EAD and CAD coverage ratios between 0.62x–1.10x. Historically, earnings updates have produced mixed but modest price reactions, so investors often focus on changes in per-share EAD/CAD and credit metrics such as LTV and DSCR over time.
Key Terms
loan to value financial
debt service coverage ratio financial
sofr financial
cmbs financial
mezzanine financial
non-gaap financial
restricted stock units financial
weighted-average technical
AI-generated analysis. Not financial advice.
NREF reported net income attributable to common stockholders of
NREF reported cash available for distribution2 of
"NREF continues to produce consistent earnings while strategically deploying capital across a diversified portfolio of high-quality real assets. Our disciplined approach to capital allocation—spanning life sciences, multifamily, self-storage, and industrial—reflects delivering durable, risk-adjusted returns to our shareholders. As we expand into sectors underpinned by strong demographic and structural demand trends, we remain focused on positioning NREF to capitalize on market dislocations, grow book value, and provide investors with a clear and consistent view of our earnings trajectory and long-term value creation strategy," said Matthew McGraner, Chief Investment Officer.
Fourth Quarter 2025 Highlights
- Outstanding total portfolio of
$1.2 billion - Single-family rental ("SFR"), multifamily, life sciences, self-storage, marinas, and industrial represent
16.6% ,47.0% ,29.5% ,2.4% ,2.6% and1.9% of the Company's investment portfolio, respectively as of December 31, 2025 - Weighted-average loan to value ("LTV")4 and debt service coverage ratio ("DSCR") on our senior loans, CMBS, CMBS I/O strips, preferred equity, and mezzanine investments are
63.6% and 1.24x3, respectively - During the quarter, the Company funded
$5 - The Company also funded a combined
$17 13.0% . - During the quarter, the Company funded
$22 11.0% . - During the quarter, the Company raised
$60 - On February 24, 2026 NREF announced a first quarter dividend of
$0.50
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"), cash available for distribution ("CAD") and adjusted weighted average common shares outstanding - diluted are non-GAAP measures. 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 December 31, 2025; and excluding the common stock, revolving credit facility investments, the remaining net assets related to the Hudson Montford multifamily property after its sale and the Alexander at the District and Mag & May 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 1Q 2026 is estimated to be between
Looking Ahead: First Quarter 2026 Guidance
Earnings Available for Distribution2
- 1Q 2026 EAD per diluted common share guidance is
$0.40
Low | Mid | High | ||||||||||
For the three months ended | March 31, | March 31, | March 31, | |||||||||
Net income | $ | 16,812 | $ | 17,900 | $ | 19,111 | ||||||
Net (income) loss attributable to Series A preferred stockholders | (874) | (874) | (874) | |||||||||
Net (income) loss attributable to Series B preferred stockholders | (9,105) | (9,105) | (9,105) | |||||||||
Net (income) loss attributable to Series C preferred stockholders | (320) | (320) | (320) | |||||||||
Net income attributable to common stockholders | 6,513 | 7,601 | 8,812 | |||||||||
Adjustments | ||||||||||||
Amortization of stock-based compensation | 1,489 | 1,489 | 1,489 | |||||||||
EAD | $ | 8,002 | $ | 9,090 | $ | 10,301 | ||||||
Weighted average common shares outstanding - basic | 17,765 | 17,765 | 17,765 | |||||||||
Weighted average common shares outstanding - diluted | 50,955 | 50,955 | 50,955 | |||||||||
Shares attributable to potential redemption of Series B preferred | (27,983) | (27,983) | (27,983) | |||||||||
Shares attributable to potential redemption of Series C preferred | (62) | (62) | (62) | |||||||||
Adjusted weighted average common shares outstanding - diluted (1) | 22,910 | 22,910 | 22,910 | |||||||||
EPS per Weighted Average Share - diluted | $ | 0.31 | $ | 0.33 | $ | 0.36 | ||||||
EAD per diluted common share (1) | $ | 0.35 | $ | 0.40 | $ | 0.45 | ||||||
EPS Dividend Coverage Ratio | 0.62 | x | 0.66 | x | 0.72 | x | ||||||
EAD Dividend Coverage Ratio (1) | 0.70 | x | 0.80 | x | 0.90 | x | ||||||
(1) | Adjusted weighted average common shares outstanding – diluted does not include the dilutive effect of the potential redemption of Series B or Series C Preferred Stock for common shares. |
Cash Available for Distribution2
- 1Q 2026 CAD per diluted common share guidance is
$0.50
Low | Mid | High | ||||||||||
For the three months ended | March 31, | March 31, | March 31, | |||||||||
EAD | $ | 8,002 | 9,090 | $ | 10,301 | |||||||
Adjustments | ||||||||||||
Amortization of premiums | 3,067 | 3,067 | 3,067 | |||||||||
Accretion of discounts | (1,621) | (1,621) | (1,621) | |||||||||
Amortization and depreciation | 922 | 922 | 922 | |||||||||
CAD | $ | 10,370 | $ | 11,458 | $ | 12,669 | ||||||
Weighted average common shares outstanding - basic | 17,765 | 17,765 | 17,765 | |||||||||
Weighted average common shares outstanding - diluted | 50,955 | 50,955 | 50,955 | |||||||||
Shares attributable to potential redemption of Series B preferred | (27,983) | (27,983) | (27,983) | |||||||||
Shares attributable to potential redemption of Series C preferred | (62) | (62) | (62) | |||||||||
Adjusted weighted average common shares outstanding - diluted (1) | 22,910 | 22,910 | 22,910 | |||||||||
EPS per Weighted Average Share - diluted | $ | 0.31 | $ | 0.33 | $ | 0.36 | ||||||
CAD per diluted common share (1) | $ | 0.45 | $ | 0.50 | $ | 0.55 | ||||||
EPS Dividend Coverage Ratio | 0.62 | x | 0.66 | x | 0.72 | x | ||||||
CAD Dividend Coverage Ratio (1) | 0.90 | x | 1.00 | x | 1.10 | x | ||||||
(1) | Adjusted weighted average common shares outstanding – diluted does not include the dilutive effect of the potential redemption of Series B or Series C Preferred Stock for common shares. |
Conference Call Details
The Company is scheduled to host a conference call on Thursday, February 26, 2026, at 11:00 a.m. ET (10:00 a.m. CT), to discuss fourth 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, March 12, 2026, 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 December | ||||||||
2025 | 2024 | |||||||
Net income attributable to common stockholders | $ | 13,581 | $ | 8,377 | ||||
Net income attributable to redeemable noncontrolling interests | 2,933 | 2,448 | ||||||
Adjustments | ||||||||
Amortization of stock-based compensation | 1,514 | 1,410 | ||||||
Provision for (reversal of) credit losses | 12,380 | (3) | ||||||
Equity in (income) losses of equity method investments | (54) | (46) | ||||||
Unrealized (gains) or losses (1) | (19,356) | 7,346 | ||||||
EAD | $ | 10,998 | $ | 19,532 | ||||
EAD per Diluted Common Share | $ | 0.48 | $ | 0.83 | ||||
Adjustments | ||||||||
Amortization of premiums | 2,617 | 2,803 | ||||||
Accretion of discounts | (2,083) | (12,553) | ||||||
Depreciation and amortization of real estate investments | 631 | 1,114 | ||||||
Amortization of deferred financing costs | — | 11 | ||||||
CAD | $ | 12,163 | $ | 10,907 | ||||
CAD per Diluted Common Share | $ | 0.53 | $ | 0.47 | ||||
Weighted-average common shares outstanding - basic | 17,740 | 17,461 | ||||||
Weighted-average common shares outstanding - diluted | 48,769 | 33,535 | ||||||
Shares attributable to potential redemption of Series B Preferred | (25,762) | (10,116) | ||||||
Shares attributable to potential redemption of Series C Preferred | (35) | — | ||||||
Adjusted weighted-average common shares outstanding - diluted (2) | 22,972 | 23,419 | ||||||
(1) | Unrealized gains represent the net change in unrealized gains on investments held at fair value. |
(2) | 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 or Series C Preferred Stock for our common shares. Prior periods have not been updated to reflect this adjustment because the dilutive effect of potential 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
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, first quarter 2026 guidance, including net income, net income attributable to common stockholders, EAD, CAD, EAD and CAD per diluted common share and related coverage ratios and related assumptions and estimates, the Company's intent to not settle Series B or Series C Preferred redemptions in shares of common stock when the Company's common stock price is below book value and the Company's approach to capital allocation that reflects delivering durable, risk-adjusted returns to shareholders and expansion into sectors underpinned by strong demographic and structural demand trends and the Company's continued focus on positioning to capitalize on market dislocations, grow book value and provide investors with a clear and consistent view of the Company's earnings trajectory and long-term value creation strategy. 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. The Company also adjusts 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. 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.
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.
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 and Series C 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 or Series C Preferred shares. We have the right to redeem the Series B and Series C Preferred shares for cash or shares of our common stock. Additionally, Series B and Series C Preferred redemptions are capped at
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 were NREF's Q4 2025 earnings and EPS (NYSE:NREF)?
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What guidance did NREF provide for Q1 2026 EAD and CAD per diluted share (NREF)?
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