NREF Announces Second Quarter 2026 Results, Provides Third Quarter 2026 Guidance
Rhea-AI Summary
NexPoint Real Estate Finance (NYSE: NREF) reported second quarter 2026 net income attributable to common stockholders of $5.4 million, or $0.29 per diluted share. Cash available for distribution (CAD) was $13.9 million, or $0.58 per diluted common share, and earnings available for distribution (EAD) totaled $11.2 million, or $0.46 per diluted common share.
The company reported an outstanding investment portfolio of $1.1 billion across 85 investments, concentrated in life sciences, multifamily, self-storage, industrial, single-family rental, and marinas. During the quarter, NREF funded three loans totaling approximately $70.1 million with coupons ranging from SOFR + 900 bps to a fixed 14.0%, and raised $22.6 million in gross proceeds from its Series C preferred stock offering. On July 27, 2026, NREF declared a third quarter common dividend of $0.50 per share.
For third quarter 2026, NREF guided net income attributable to common stockholders to $7.4–$9.8 million, EAD to $9.2–$11.6 million (or $0.38–$0.48 per diluted common share), and CAD to $12.1–$14.4 million (or $0.50–$0.60 per diluted common share). The company estimated EAD dividend coverage of 0.76–0.96x and CAD dividend coverage of 1.00–1.20x for the quarter, and highlighted a portfolio weighted-average loan-to-value of 63.4% and debt service coverage ratio of 1.39x on key credit exposures.
Positive
- CAD up year over year to $13.9M vs. $10.6M in Q2 2025
- EAD increased to $11.2M vs. $10.0M in Q2 2025
- CAD per diluted share rose to $0.58 vs. $0.46 a year earlier
- EAD per diluted share improved to $0.46 vs. $0.43 in Q2 2025
- Q3 2026 CAD guidance of $12.1M–$14.4M, or $0.50–$0.60 per diluted share
- $22.6M gross proceeds raised from Series C preferred stock offering
Negative
- Net income to common declined to $5.4M vs. $12.3M in Q2 2025
- EPS to common fell to $0.29 from $0.69 in Q2 2025
- Q3 2026 EPS dividend coverage guided below 1.0x at 0.64x–0.72x
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 30 | Q1 earnings report | Positive | +0.6% | Reported first-quarter results and provided second-quarter guidance |
| Feb 26 | Q4 earnings report | Positive | +0.3% | Reported fourth-quarter results and provided first-quarter guidance |
| Oct 30 | Q3 earnings report | Positive | +1.1% | Reported third-quarter results and provided fourth-quarter guidance |
| Jul 31 | Q2 earnings report | Positive | -3.8% | Reported second-quarter results and provided third-quarter projections |
| May 01 | Q1 earnings report | Positive | -2.3% | Reported first-quarter results and provided second-quarter projections |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were mixed, averaging -0.82%, with three positive and two negative observations.
Key Terms
loan to value financial
debt service coverage ratio financial
sofr financial
cmbs financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
NREF reported net income attributable to common stockholders of
NREF reported cash available for distribution2 of
"NREF's earnings this quarter reaffirm the consistency our investors have come to rely on, even as broader credit conditions remain unsettled. That stability stems from a portfolio built around life sciences, self-storage, multifamily, and industrial — sectors we selected for their structural, cycle-resistant demand rather than short-term momentum. As rate uncertainty causes many traditional lenders to pull back, we are able to underwrite new opportunities from a position of strength, reinforcing the durability of our earnings and the steady growth of book value. Our focus remains on translating that discipline into long-term, transparent value creation for our shareholders," said Matthew McGraner, Chief Investment Officer.
Second Quarter 2026 Highlights
- Outstanding total portfolio of
$1.1 billion - Single-family rental ("SFR"), multifamily, life sciences, self-storage, marinas, and industrial represent
15.1% ,37.6% ,39.4% ,4.2% ,1.6% and2.1% of the Company's investment portfolio, respectively as of June 30, 2026 - 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
63.4% and 1.39x3, respectively - During the quarter, the Company funded
$7 - The Company funded
$20 14.0% . - The Company funded
$42 14.0% . - During the quarter, the Company raised
$22 - On July 27, 2026 NREF announced a third 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 June 30, 2026; and excluding the common stock, revolving credit facility investments and the Alexander at the District, Ridgeview Place 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 3Q 2026 is estimated to be between
Looking Ahead: Third Quarter 2026 Guidance
Earnings Available for Distribution2
- 3Q 2026 EAD per diluted common share guidance is
$0.43
Low | Mid | High | ||||||||||
For the Three Months Ended | September | September | September | |||||||||
Net income | $ | 18,512 | $ | 19,694 | $ | 20,876 | ||||||
Net (income) loss attributable to Series A preferred stockholders | (874) | (874) | (874) | |||||||||
Net (income) loss attributable to Series B preferred stockholders | (8,984) | (8,984) | (8,984) | |||||||||
Net (income) loss attributable to Series C preferred stockholders | (1,210) | (1,210) | (1,210) | |||||||||
Net income attributable to common stockholders | 7,444 | 8,626 | 9,808 | |||||||||
Adjustments: | ||||||||||||
Amortization of stock-based compensation | 1,763 | 1,763 | 1,763 | |||||||||
EAD | $ | 9,207 | $ | 10,389 | $ | 11,571 | ||||||
Weighted average common shares outstanding - basic | 18,848 | 18,848 | 18,848 | |||||||||
Weighted average common shares outstanding - diluted | 55,161 | 55,161 | 55,161 | |||||||||
Shares attributable to potential redemption of Series B preferred | (27,361) | (27,361) | (27,361) | |||||||||
Shares attributable to potential redemption of Series C preferred | (3,764) | (3,764) | (3,764) | |||||||||
Adjusted weighted average common shares outstanding - | 24,036 | 24,036 | 24,036 | |||||||||
EPS per Weighted Average Share - diluted | $ | 0.32 | $ | 0.34 | $ | 0.36 | ||||||
EAD per diluted common share (1) | $ | 0.38 | $ | 0.43 | $ | 0.48 | ||||||
EPS Dividend Coverage Ratio | 0.64 | x | 0.68 | x | 0.72 | x | ||||||
EAD Dividend Coverage Ratio (1) | 0.76 | x | 0.86 | x | 0.96 | x | ||||||
(1) | Adjusted weighted average common shares outstanding – diluted does not include the dilutive effect |
Cash Available for Distribution2
- 3Q 2026 CAD per diluted common share guidance is
$0.55
Low | Mid | High | ||||||||||
For the Three Months Ended | September 30, | September 30, | September 30, | |||||||||
EAD | $ | 9,207 | 10,389 | $ | 11,571 | |||||||
Adjustments: | ||||||||||||
Amortization of premiums | 2,437 | 2,437 | 2,437 | |||||||||
Accretion of discounts | (1,584) | (1,584) | (1,584) | |||||||||
Amortization and depreciation | 2,012 | 2,012 | 2,012 | |||||||||
CAD | $ | 12,072 | $ | 13,254 | $ | 14,436 | ||||||
Weighted average common shares outstanding - basic | 18,848 | 18,848 | 18,848 | |||||||||
Weighted average common shares outstanding - diluted | 55,161 | 55,161 | 55,161 | |||||||||
Shares attributable to potential redemption of Series B preferred | (27,361) | (27,361) | (27,361) | |||||||||
Shares attributable to potential redemption of Series C preferred | (3,764) | (3,764) | (3,764) | |||||||||
Adjusted weighted average common shares outstanding - diluted (1) | 24,036 | 24,036 | 24,036 | |||||||||
EPS per Weighted Average Share - diluted | $ | 0.32 | $ | 0.34 | $ | 0.36 | ||||||
CAD per diluted common share (1) | $ | 0.50 | $ | 0.55 | $ | 0.60 | ||||||
EPS Dividend Coverage Ratio | 0.64 | x | 0.68 | x | 0.72 | x | ||||||
CAD Dividend Coverage Ratio (1) | 1.00 | x | 1.10 | x | 1.20 | x | ||||||
(1) | Adjusted weighted average common shares outstanding – diluted does not include the dilutive effect |
Conference Call Details
The Company is scheduled to host a conference call on, August 6, 2026, at 11:00 a.m. ET (10:00 a.m. CT), to discuss second quarter 2026 financial results.
The conference call can be accessed live over the phone by dialing 833-461-5787 or, for international callers, +1 365-657-4084 and using passcode Conference ID: 492 613 888. A live audio webcast of the call will be available online at the Company's website, 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.
For additional commentary and portfolio information, please view NREF's earning supplement, which was posted on the Company's website, 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, | ||||||||
2026 | 2025 | |||||||
Net income attributable to common stockholders | $ | 5,433 | $ | 12,285 | ||||
Net income attributable to redeemable noncontrolling interests | 1,252 | 3,437 | ||||||
Adjustments | ||||||||
Amortization of stock-based compensation | 1,751 | 1,688 | ||||||
Provision for (reversal of) credit losses | 773 | 5,284 | ||||||
Equity in (income) losses of equity method investments | 705 | 1,017 | ||||||
Unrealized (gains) or losses (1) | 1,268 | (13,706) | ||||||
EAD | $ | 11,182 | $ | 10,005 | ||||
EAD per Diluted Common Share | $ | 0.46 | $ | 0.43 | ||||
Adjustments | ||||||||
Amortization of premiums | 2,628 | 2,558 | ||||||
Accretion of discounts | (1,650) | (2,561) | ||||||
Depreciation and amortization of real estate investments | 1,728 | 614 | ||||||
Amortization of deferred financing costs | (4) | 12 | ||||||
CAD | $ | 13,884 | $ | 10,628 | ||||
CAD per Diluted Common Share | $ | 0.58 | $ | 0.46 | ||||
Weighted-average common shares outstanding - basic | 18,844 | 17,712 | ||||||
Weighted-average common shares outstanding - diluted | 53,978 | 39,460 | ||||||
Shares attributable to potential redemption of Series B Preferred | (27,442) | (16,408) | ||||||
Shares attributable to potential redemption of Series C Preferred | (2,474) | — | ||||||
Adjusted weighted-average common shares outstanding - diluted (2) | 24,062 | 23,052 | ||||||
(1) | Unrealized gains represent the net change in unrealized gains on investments held at fair value. |
(2) | Adjusted weighted average common shares outstanding – diluted does not include the dilutive |
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 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 focus on sectors with structural, cycle-resistant demand reinforcing the Company's earnings and steady growth of book value and the Company's focus on long-term, transparent value creation 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 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.