NREF Announces Second Quarter 2025 Results, Provides Third Quarter 2025 Guidance
NexPoint Real Estate Finance (NYSE:NREF) reported strong Q2 2025 financial results with net income of $12.3 million, or $0.54 per diluted share. The company's total portfolio stands at $1.1 billion across 86 investments, with a diverse allocation across property sectors including multifamily (49.5%), life sciences (32.7%), and single-family rental (15.5%).
Key Q2 highlights include $39.5 million in preferred stock purchases, a $6.5 million loan funding with SOFR + 900 bps monthly coupon, and a $15.3 million CMBS I/O strip acquisition with 7.24% yield. For Q3 2025, NREF projects EAD per diluted share of $0.425 at midpoint and CAD per diluted share of $0.505.
The company maintains strong portfolio metrics with a weighted-average LTV of 58.5% and DSCR of 1.44x on senior investments, demonstrating disciplined risk management in the current complex credit landscape.
NexPoint Real Estate Finance (NYSE:NREF) ha riportato solidi risultati finanziari nel secondo trimestre 2025 con un utile netto di 12,3 milioni di dollari, pari a 0,54 dollari per azione diluita. Il portafoglio totale dell'azienda ammonta a 1,1 miliardi di dollari distribuiti su 86 investimenti, con una diversificata allocazione nei settori immobiliari, tra cui multifamily (49,5%), scienze della vita (32,7%) e affitti di case unifamiliari (15,5%).
I principali risultati del secondo trimestre includono acquisti di azioni privilegiate per 39,5 milioni di dollari, un finanziamento di prestito da 6,5 milioni di dollari con SOFR + 900 punti base di cedola mensile e un'acquisizione di strip CMBS I/O da 15,3 milioni di dollari con un rendimento del 7,24%. Per il terzo trimestre 2025, NREF prevede un EAD per azione diluita di 0,425 al punto medio e un CAD per azione diluita di 0,505.
L'azienda mantiene solidi indicatori di portafoglio con un rapporto medio ponderato LTV del 58,5% e DSCR di 1,44x sugli investimenti senior, dimostrando una gestione disciplinata del rischio nel complesso scenario creditizio attuale.
NexPoint Real Estate Finance (NYSE:NREF) reportó sólidos resultados financieros en el segundo trimestre de 2025 con un ingreso neto de 12,3 millones de dólares, o 0,54 dólares por acción diluida. La cartera total de la compañía asciende a 1,1 mil millones de dólares en 86 inversiones, con una asignación diversa en sectores inmobiliarios que incluyen multifamiliar (49,5%), ciencias de la vida (32,7%) y alquiler de viviendas unifamiliares (15,5%).
Los aspectos destacados del segundo trimestre incluyen compras de acciones preferentes por 39,5 millones de dólares, un préstamo financiado de 6,5 millones de dólares con SOFR + 900 puntos básicos de cupón mensual, y una adquisición de strip CMBS I/O por 15,3 millones de dólares con un rendimiento del 7,24%. Para el tercer trimestre de 2025, NREF proyecta un EAD por acción diluida de 0,425 en el punto medio y un CAD por acción diluida de 0,505.
La compañía mantiene métricas sólidas de cartera con un promedio ponderado LTV de 58,5% y DSCR de 1,44x en inversiones senior, demostrando una gestión disciplinada del riesgo en el complejo panorama crediticio actual.
NexPoint Real Estate Finance (NYSE:NREF)는 2025년 2분기에 순이익 1,230만 달러, 희석 주당 0.54달러의 강력한 재무 실적을 보고했습니다. 회사의 총 포트폴리오는 86건의 투자로 11억 달러에 달하며, 다가구 주택(49.5%), 생명과학(32.7%), 단독 주택 임대(15.5%) 등 다양한 부동산 섹터에 분산 투자되어 있습니다.
2분기 주요 성과로는 3,950만 달러 규모의 우선주 매입, SOFR + 900bps 월 쿠폰이 적용된 650만 달러 대출 자금 조달, 7.24% 수익률의 1,530만 달러 CMBS I/O 스트립 인수가 포함됩니다. 2025년 3분기에는 희석 주당 EAD를 중간값 기준 0.425달러, 희석 주당 CAD를 0.505달러로 예상하고 있습니다.
회사는 선순위 투자에 대해 가중평균 LTV 58.5% 및 DSCR 1.44배라는 강력한 포트폴리오 지표를 유지하며, 현재 복잡한 신용 환경에서 엄격한 리스크 관리를 보여주고 있습니다.
NexPoint Real Estate Finance (NYSE:NREF) a annoncé de solides résultats financiers pour le deuxième trimestre 2025 avec un revenu net de 12,3 millions de dollars, soit 0,54 dollar par action diluée. Le portefeuille total de la société s'élève à 1,1 milliard de dollars répartis sur 86 investissements, avec une allocation diversifiée dans les secteurs immobiliers comprenant le multifamilial (49,5 %), les sciences de la vie (32,7 %) et la location de maisons individuelles (15,5 %).
Les points forts du deuxième trimestre incluent 39,5 millions de dollars d'achats d'actions privilégiées, un financement de prêt de 6,5 millions de dollars avec un coupon mensuel SOFR + 900 points de base, et une acquisition de strip CMBS I/O de 15,3 millions de dollars avec un rendement de 7,24 %. Pour le troisième trimestre 2025, NREF prévoit un EAD par action diluée de 0,425 au point médian et un CAD par action diluée de 0,505.
La société maintient de solides indicateurs de portefeuille avec un LTV moyen pondéré de 58,5 % et un DSCR de 1,44x sur les investissements senior, démontrant une gestion rigoureuse des risques dans le contexte actuel de crédit complexe.
NexPoint Real Estate Finance (NYSE:NREF) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 12,3 Millionen US-Dollar bzw. 0,54 US-Dollar je verwässerter Aktie. Das Gesamtportfolio des Unternehmens beläuft sich auf 1,1 Milliarden US-Dollar verteilt auf 86 Investitionen, mit einer vielfältigen Aufteilung auf Immobiliensektoren wie Mehrfamilienhäuser (49,5 %), Biowissenschaften (32,7 %) und Einfamilienhausvermietung (15,5 %).
Wichtige Highlights des zweiten Quartals sind 39,5 Millionen US-Dollar an Vorzugsaktienkäufen, eine Kreditfinanzierung in Höhe von 6,5 Millionen US-Dollar mit SOFR + 900 Basispunkten monatlichem Kupon und der Erwerb eines CMBS I/O-Strips im Wert von 15,3 Millionen US-Dollar mit einer Rendite von 7,24 %. Für das dritte Quartal 2025 prognostiziert NREF einen EAD je verwässerter Aktie von 0,425 im Mittel und einen CAD je verwässerter Aktie von 0,505.
Das Unternehmen hält starke Portfoliokennzahlen mit einem gewichteten durchschnittlichen LTV von 58,5 % und einem DSCR von 1,44x bei Senior-Investitionen, was ein diszipliniertes Risikomanagement im aktuellen komplexen Kreditumfeld demonstriert.
- Net income increased to $12.3 million in Q2 2025 from $7.5 million in Q2 2024
- Well-diversified $1.1 billion portfolio across 86 investments
- Conservative portfolio metrics with 58.5% LTV and 1.44x DSCR
- Strong deployment of capital with $39.5MM preferred stock purchase and new investments
- Projected Q3 2025 EPS dividend coverage ratio declining to 0.72x at midpoint
- EAD per diluted share decreased to $0.43 in Q2 2025 from $0.68 in Q2 2024
- Provision for credit losses increased to $5.28 million in Q2 2025
Insights
NREF posted solid Q2 results with stable income, maintaining a diversified $1.1B portfolio, though Q3 guidance indicates lower earnings ahead.
NREF's Q2 2025 results demonstrate resilience in a challenging lending environment, with net income of
The portfolio's weighted-average loan-to-value ratio stands at
However, the Q3 2025 guidance suggests a concerning sequential earnings decline. The midpoint EAD projection of
NREF's ability to identify opportunities in a market where traditional lenders face credit challenges is noteworthy, but investors should closely monitor whether management can reverse the projected earnings decline in coming quarters and maintain dividend coverage above 1.0x.
NREF reported net income attributable to common stockholders of
NREF reported cash available for distribution2 of
"NREF is pleased to report another strong quarter, reflecting the consistency and resilience of our earnings across our core property sectors. In a market environment where many banks and traditional lenders are focused on navigating ongoing credit challenges, we remain disciplined, opportunistic, and fully committed to our strategic investment approach. Our ability to deploy capital effectively in today's complex credit landscape positions us to capture compelling opportunities and generate long-term value for our shareholders," said Matthew McGraner, Chief Investment Officer.
Second Quarter 2025 Highlights
- Outstanding total portfolio of
$1.1 billion - Single-family rental ("SFR"), multifamily, life sciences, specialty manufacturing, self-storage and marinas represent
15.5% ,49.5% ,32.7% ,0.1% ,1.6% and0.7% of the Company's investment portfolio, respectively as of June 30, 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, mezzanine and revolving credit facilities investments are
58.5% and 1.44x3, respectively - During 2Q 2025, NREF purchased
$39 - During the quarter, the Company funded
$6 - During the quarter, the Company purchased a
$15 7.24% .
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 June 30, 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 3Q 2025 is estimated to be between
Looking Ahead: Third Quarter 2025 Guidance
Earnings Available for Distribution2
- 3Q 2025 EAD per diluted common share guidance is
$0.42
Low | Mid | High | ||||||||||
September 30, | September 30, | September 30, | ||||||||||
Net income | $ | 14,944 | $ | 16,243 | $ | 17,380 | ||||||
Net (income) loss attributable to Series A Preferred stockholders | (874) | (874) | (874) | |||||||||
Net (income) loss attributable to Series B Preferred stockholders | (7,124) | (7,124) | (7,124) | |||||||||
Net income attributable to common stockholders | $ | 6,946 | $ | 8,245 | $ | 9,382 | ||||||
Adjustments | ||||||||||||
Amortization of stock-based compensation | 1,550 | 1,550 | 1,550 | |||||||||
EAD | $ | 8,496 | $ | 9,795 | $ | 10,932 | ||||||
Weighted average common shares outstanding – basic | 17,722 | 17,722 | 17,722 | |||||||||
Weighted average common shares outstanding – diluted | 43,069 | 43,069 | 43,069 | |||||||||
Shares attributable to potential redemption of Series B Preferred | (20,007) | (20,007) | (20,007) | |||||||||
Adjusted weighted average common shares outstanding – diluted (1) | 23,062 | 23,062 | 23,062 | |||||||||
EPS per Weighted Average Share – diluted | $ | 0.33 | $ | 0.36 | $ | 0.38 | ||||||
EAD per diluted common share | $ | 0.37 | $ | 0.42 | $ | 0.47 | ||||||
EPS Dividend Coverage Ratio | 0.66 | x | 0.72 | x | 0.76 | x | ||||||
EAD Dividend Coverage Ratio | 0.74 | x | 0.84 | x | 0.94 | x | ||||||
Cash Available for Distribution2
- 3Q 2025 CAD per diluted common share guidance is
$0.50
Low | Mid | High | ||||||||||
September 30, | September 30, | September 30, | ||||||||||
EAD | $ | 8,496 | $ | 9,795 | $ | 10,932 | ||||||
Adjustments | ||||||||||||
Amortization of premiums | 2,394 | 2,394 | 2,394 | |||||||||
Accretion of discounts | (1,171) | (1,171) | (1,171) | |||||||||
Amortization and depreciation | 584 | 584 | 584 | |||||||||
CAD | $ | 10,303 | $ | 11,602 | $ | 12,739 | ||||||
Weighted average common shares outstanding – basic | 17,722 | 17,722 | 17,722 | |||||||||
Weighted average common shares outstanding – diluted | 43,069 | 43,069 | 43,069 | |||||||||
Shares attributable to potential redemption of Series B Preferred | (20,007) | (20,007) | (20,007) | |||||||||
Adjusted weighted average common shares outstanding – diluted (1) | 23,062 | 23,062 | 23,062 | |||||||||
EPS per Weighted Average Share – diluted | $ | 0.33 | $ | 0.36 | $ | 0.38 | ||||||
CAD per diluted common share | $ | 0.45 | $ | 0.50 | $ | 0.55 | ||||||
EPS Dividend Coverage Ratio | 0.66 | x | 0.72 | x | 0.76 | x | ||||||
CAD Dividend Coverage Ratio | 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 Preferred Stock for common shares. |
Conference Call Details
The Company is scheduled to host a conference call on Thursday, July 31, 2025, at 11:00 a.m. ET (10:00 a.m. CT), to discuss second 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, August 14, 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 June 30, | ||||||||
2025 | 2024 | |||||||
Net income (loss) attributable to common stockholders | $ | 12,286 | 7,488 | |||||
Net income (loss) attributable to redeemable noncontrolling interests | 3,437 | 2,275 | ||||||
Adjustments | ||||||||
Amortization of stock-based compensation | 1,688 | 1,454 | ||||||
Provision for (reversal of) credit losses | 5,284 | (2) | ||||||
Equity in (income) losses of equity method investments | 1,017 | 892 | ||||||
Unrealized (gains) or losses (1) | (13,706) | 3,852 | ||||||
EAD | $ | 10,006 | $ | 15,959 | ||||
EAD per diluted common share | $ | 0.43 | $ | 0.68 | ||||
Adjustments | ||||||||
Amortization of premiums | $ | 2,558 | 1,682 | |||||
Accretion of discounts | (2,561) | (3,693) | ||||||
Depreciation and amortization of real estate investments | 614 | 1,082 | ||||||
Amortization of deferred financing costs | 12 | 12 | ||||||
CAD | $ | 10,629 | $ | 15,042 | ||||
CAD per diluted common share | $ | 0.46 | $ | 0.64 | ||||
Weighted-average common shares outstanding – basic | 17,712 | 17,422 | ||||||
Weighted-average common shares outstanding – diluted | 39,460 | 27,788 | ||||||
Shares attributable to potential redemption of Series B Preferred | (16,408) | (4,357) | ||||||
Adjusted weighted-average common shares outstanding – diluted | 23,052 | 23,431 | ||||||
(1) | Unrealized gains represent the net change in unrealized gains on investments held at fair value. |
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, third 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 deploy capital effectively to capture compelling opportunities and generate long-term value for 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. 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 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
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
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