NREF Announces Second Quarter 2025 Results, Provides Third Quarter 2025 Guidance
DALLAS, July 31, 2025 /PRNewswire/ -- NexPoint Real Estate Finance, Inc. ("NREF" or the "Company") (NYSE:NREF) today reported its financial results for the quarter ended June 30, 2025.
NREF reported net income attributable to common stockholders of $12.3 million, or 0.54 per diluted share1, for the three months ended June 30, 2025.
NREF reported cash available for distribution2 of $10.6 million, or $0.46 per diluted common share2, for the three months ended June 30, 2025.
"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, composed of 86 investments3
Single-family rental ("SFR"), multifamily, life sciences, specialty manufacturing, self-storage and marinas represent 15.5%, 49.5%, 32.7%, 0.1%, 1.6% and 0.7% 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 $39.5MM of preferred stock
During the quarter, the Company funded $6.5MM on a loan that pays a monthly coupon of SOFR + 900 bps.
During the quarter, the Company purchased a $15.3MM CMBS I/O strip with bond equivalent yield of 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 $6.9MM and $9.4MM. See reconciliations below.
Looking Ahead: Third Quarter 2025 Guidance
Earnings Available for Distribution2
3Q 2025 EAD per diluted common share guidance is $0.425 at the midpoint
Low
Mid
High
September 30, 2025
September 30, 2025
September 30, 2025
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
