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Nexpoint Real Estate Finance Inc (NREF)
:NREF
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NexPoint Real Estate ate Finance
(NYSE:NREF)
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Rating:61Neutral
Price Target:―
NexPoint Real Estate Finance receives a moderate score of 61. The company's financial performance reflects mixed results with high leverage and revenue instability, balanced by stable cash flows. Positive earnings call guidance and strong income growth are notable strengths. However, technical indicators suggest weak momentum, and challenges in lab leasing and credit loss provisions present risks. The high dividend yield enhances its attractiveness for income-focused investors.
Positive Factors
Interest Income Growth
The surge in interest income reflects effective capital deployment and favorable interest rate conditions, bolstering long-term revenue potential.
Strategic Sector Focus
Focus on multifamily and life sciences sectors positions NREF to capitalize on growing demand and sector resilience, supporting sustained growth.
Dual Listing
Dual listing enhances market visibility and access to a broader investor base, potentially improving liquidity and shareholder value over time.
Negative Factors
Revenue Instability
Volatile revenue growth indicates challenges in maintaining consistent income streams, which could impact long-term financial stability.
High Leverage
High leverage can limit financial flexibility and increase risk, especially in volatile market conditions, potentially affecting long-term sustainability.
Credit Loss Provisions
Credit loss provisions indicate underlying asset risk, which could impact future profitability and necessitate cautious risk management strategies.
NexPoint Real Estate ate Finance (NREF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$236.94M
Dividend Yield15.05%
Average Volume (3M)52.06K
Price to Earnings (P/E)4.7
Beta (1Y)0.62
Revenue Growth48.38%
EPS Growth210.91%
CountryUS
Employees1
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.51
Shares Outstanding17,721,828
10 Day Avg. Volume59,317
30 Day Avg. Volume52,057
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.82
Price to Sales (P/S)2.48
P/FCF Ratio9.32
Enterprise Value/Market Cap23.11
Enterprise Value/Revenue41.43
Enterprise Value/Gross Profit44.97
Enterprise Value/Ebitda40.24
Forecast
1Y Price Target
$14.13Price Target Upside5.76% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)1.9
Revenue Forecast (FY)$74.10M
NexPoint Real Estate ate Finance Business Overview & Revenue Model
Company DescriptionNexPoint Real Estate Finance (NREF) is a real estate investment trust (REIT) that focuses on originating, structuring, and investing in commercial real estate debt. The company primarily operates within the commercial real estate sector, deploying capital through senior loans, mezzanine loans, and preferred equity. NREF's core services include real estate financing solutions tailored to meet the needs of property owners and developers across various property types, including multifamily, office, and industrial spaces.
How the Company Makes MoneyNexPoint Real Estate Finance generates revenue primarily through interest income from its investment portfolio of commercial real estate debt. The company's key revenue streams include income from senior loans, mezzanine loans, and preferred equity investments. These financing solutions provide borrowers with capital while allowing NREF to earn interest over the duration of the loan agreements. Additionally, the company may benefit from origination fees and other transaction-related income. NREF's earnings are significantly influenced by factors such as interest rates, property market conditions, and the creditworthiness of its borrowers. The company's strategic partnerships with real estate operators and developers enhance its ability to source and manage profitable investment opportunities.
NexPoint Real Estate ate Finance Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were notable achievements such as increased net income, book value growth, and successful asset leasing in the life sciences sector, there were also significant challenges, including decreased earnings available for distribution and flat storage sector revenue. The multifamily bridge lending sector is also facing pressure, although there is cautious optimism for improvement in the coming years.Q3-2025 Updates
Positive Updates
Increase in Net Income
Net income for Q3 2025 was $1.12 per diluted share, up from $0.74 per diluted share in Q3 2024, driven by unrealized gains on preferred stock and stock warrant investments.
Book Value Increase
Book value per share increased by 8% from Q2 2025 to $18.79 per diluted share, mainly due to unrealized gains on preferred stock investments and stock warrants.
Successful Asset Sales and Fundraising
Sold a multifamily property for $60 million, resulting in a $3.7 million gain, and raised $65.7 million in gross proceeds from the Series B preferred stock raise.
Life Science Leasing Success
Secured a long-term lease with Lila Sciences for 245,000 square feet at the Alewife project, stabilizing the project and driving leasing momentum.
Negative Updates
Decline in Earnings Available for Distribution
Earnings available for distribution decreased to $0.51 per diluted share in Q3 2025 from $0.75 per diluted share in Q3 2024.
Flat and Declining Revenue in Storage Sector
Q3 same-store storage revenue expected to be flat year-over-year, with same-store NOI slightly down due to decreased movement in the housing sector.
Pressure in Multifamily Bridge Lending
Continued softness in the bridge lending space for multifamily, particularly affecting floating rate bridge loans from 2021 and 2022.
Company Guidance
During the NexPoint Real Estate Finance Q3 2025 earnings call, Paul Richards provided guidance for the fourth quarter, forecasting earnings available for distribution at $0.48 per diluted share at the midpoint, with a range of $0.43 to $0.53. Cash available for distribution is expected to be $0.50 per diluted share at the midpoint, with a range of $0.45 to $0.55. The call highlighted a series of financial activities, including the declaration of a $0.50 dividend per share for Q4 2025, and the successful Series B preferred stock raise nearing its $400 million limit. NexPoint plans to launch a Series C preferred offering of $200 million at an 8% coupon. The company's portfolio includes 88 investments totaling $1.1 billion, with a significant allocation to multifamily (47.3%) and life sciences (33.9%). The debt profile includes $720.9 million of outstanding debt at a 5.3% average cost, with a debt-to-equity ratio of 0.93x. The call also detailed strategic actions, such as a new $45 million senior unsecured note offering at a 7.875% coupon, replacing older notes.NexPoint Real Estate ate Finance Financial Statement Overview
Summary
NexPoint Real Estate Finance demonstrates a mixed financial performance with areas of concern. Income statement metrics reveal instability in revenue and profitability. The balance sheet suggests high leverage with fluctuating equity levels, typical of the REIT sector but risky if not managed well. Cash flows are relatively stable and show growth potential, although volatility in investing and financing cash flows suggests strategic or market-driven changes.Income Statement
The income statement shows mixed performance. The gross profit margin remains solid as gross profit matches total revenue, but net profit margin fluctuates due to inconsistent net income. Revenue growth is volatile, with a decline from 2023 to 2024 after a previous increase, indicating instability. The EBIT margin is negative in 2024, reflecting operational challenges, while the lack of EBITDA suggests limited operational efficiency.45
Neutral
Balance Sheet
The balance sheet reveals moderate financial health. A significant reduction in total debt from 2023 to 2024 is a positive sign, but the debt-to-equity ratio is unavailable due to no reported debt in 2024. ROE was strong in earlier years but has been inconsistent. The equity ratio illustrates low shareholder equity relative to total assets, suggesting high leverage which is typical for the REIT industry but presents risk.50
Neutral
Cash Flow
Cash flow analysis shows moderate stability. Operating cash flow remains positive, supporting net income, with a stable operating cash flow to net income ratio. Free cash flow shows positive growth in 2024, reflecting improved liquidity. However, cash flows from investing and financing activities are highly volatile, indicating potential strategic shifts or external financial pressures.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 132.15M | 110.32M | 109.16M | 40.38M | 97.92M | 59.97M |
| Gross Profit | 121.78M | 99.25M | 99.23M | 35.99M | 92.19M | 54.11M |
| EBITDA | 136.07M | 90.39M | 0.00 | 57.35M | 113.24M | 55.60M |
| Net Income | 72.73M | 29.19M | 13.97M | 6.75M | 43.09M | 12.85M |
Balance Sheet | ||||||
| Total Assets | 5.40B | 5.42B | 7.02B | 8.15B | 8.51B | 6.18B |
| Cash, Cash Equivalents and Short-Term Investments | 13.74M | 3.88M | 13.82M | 20.05M | 26.46M | 30.24M |
| Total Debt | 4.66B | 4.58B | 6.56B | 7.59B | 8.00B | 5.77B |
| Total Liabilities | 4.72B | 4.84B | 6.57B | 7.61B | 8.01B | 5.77B |
| Stockholders Equity | 344.84M | 333.13M | 347.34M | 383.98M | 238.01M | 128.24M |
Cash Flow | ||||||
| Free Cash Flow | 38.43M | 29.28M | 31.56M | 65.80M | 49.30M | 32.90M |
| Operating Cash Flow | 38.43M | 29.28M | 31.56M | 65.80M | 49.30M | 32.90M |
| Investing Cash Flow | 449.11M | 956.54M | 741.34M | 950.58M | 517.88M | -68.26M |
| Financing Cash Flow | -481.13M | -995.42M | -776.60M | -1.03B | -567.41M | 68.83M |
NexPoint Real Estate ate Finance Technical Analysis
Negative
13.36
Price Trends
13.99
Negative
13.84
Negative
13.89
Negative
Market Momentum
-0.18
Negative
44.98
Neutral
68.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NREF, the sentiment is Negative. The current price of 13.36 is below the 20-day moving average (MA) of 13.46, below the 50-day MA of 13.99, and below the 200-day MA of 13.89, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 68.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NREF.
NexPoint Real Estate ate Finance Risk Analysis
NexPoint Real Estate ate Finance disclosed 106 risk factors in its most recent earnings report. NexPoint Real Estate ate Finance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NexPoint Real Estate ate Finance Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $141.62M | 9.06 | 5.72% | 13.64% | -18.06% | -18.94% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $242.12M | 8.83 | 9.03% | 10.62% | 20.44% | -59.21% | |
61 Neutral | $236.94M | 4.68 | 27.24% | 15.05% | 48.38% | 210.91% | |
61 Neutral | $272.07M | 7.03 | 11.82% | 15.98% | -1.57% | -15.32% | |
50 Neutral | $217.93M | 5.93 | 14.91% | 13.99% | 75.08% | -21.03% | |
48 Neutral | $241.47M | ― | -3.30% | 15.15% | -27.60% | 62.75% |
* Real Estate Sector Average
NREF
NexPoint Real Estate ate Finance
13.36
-0.59
-4.23%
ACRE
Ares Commercial
4.62
-1.03
-18.23%
SEVN
Seven Hills Realty Trust
9.24
-2.46
-21.03%
MITT
AG Mortgage
7.68
1.55
25.29%
AOMR
Angel Oak Mortgage
9.15
0.78
9.32%
REFI
Chicago Atlantic Real Estate ate Finance Inc
12.89
-0.63
-4.66%
NexPoint Real Estate ate Finance Corporate Events
Executive/Board Changes
NexPoint Real Estate Finance Announces Leadership Changes
Neutral
Dec 27, 2024
NexPoint Real Estate Finance, Inc. has announced changes in its senior leadership as Brian Mitts resigns from his key financial positions effective December 31, 2024. Paul Richards will assume the roles of Chief Financial Officer and principal financial officer on January 1, 2025, bringing his extensive experience in asset management and finance from his previous roles within the company and its affiliates.
Executive/Board Changes
NexPoint Announces Key Leadership Changes in Finance
Neutral
Nov 14, 2024
Brian Mitts, CFO of NexPoint Real Estate Finance, is stepping down but will remain on the board, with a comprehensive separation agreement involving stock options and severance. His successor, Paul Richards, brings a wealth of experience from various roles within the company and its affiliates. Meanwhile, David Willmore is set to become the Chief Accounting Officer, offering over a decade of expertise in finance and accounting. These leadership changes mark significant shifts within NexPoint’s financial management structure.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.