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NexPoint Real Estate ate Finance
(NYSE:NREF)
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Rating:64Neutral
Price Target:
$18.00
â–²(7.21% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily held back by financial profile risk—high leverage and weak cash-flow quality despite strong reported profitability. Support comes from constructive technical trend signals and very attractive valuation metrics (low P/E and high yield), while the earnings call was moderately positive due to stable guidance and refinancing progress but tempered by earnings volatility, book value decline, and concentration/refinancing exposure.
Positive Factors
Revenue and Margin Expansion
Sustained TTM revenue growth and very high net margins indicate durable earnings power from the firm’s financing business. High margins support distributable income and reinvestment capacity, underpinning long‑term dividend coverage and ability to fund new originations despite earnings volatility.
Negative Factors
Elevated Leverage
Very high leverage materially limits financial flexibility and amplifies downside risk in commercial real estate stress. With limited equity cushion, asset value declines or credit losses can erode net worth quickly and constrain the company’s ability to refinance or pursue growth without costly external funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Expansion
Sustained TTM revenue growth and very high net margins indicate durable earnings power from the firm’s financing business. High margins support distributable income and reinvestment capacity, underpinning long‑term dividend coverage and ability to fund new originations despite earnings volatility.
Read all positive factors
NexPoint Real Estate ate Finance (NREF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$319.66M
Dividend Yield11.79%
Average Volume (3M)68.51K
Price to Earnings (P/E)4.3
Beta (1Y)0.58
Revenue Growth-1.80%
EPS Growth39.83%
CountryUS
Employees1
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)3.98
Shares Outstanding18,848,028
10 Day Avg. Volume51,321
30 Day Avg. Volume68,510
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.33
Price to Sales (P/S)1.98
P/FCF Ratio10.89
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$15.50Price Target Upside-7.68% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.69
Revenue Forecast (FY)N/A
NexPoint Real Estate ate Finance Business Overview & Revenue Model
Company Description
NexPoint Real Estate Finance, Inc. (NREF) is a U.S.-based real estate finance firm. Its core activities involve the origination, structuring, and investment in a diverse range of real estate-backed financial products. These encompass senior mortga...
How the Company Makes Money
NREF primarily makes money by earning investment income from its real estate finance portfolio. The key revenue stream is interest income and related yields generated from originating and holding real estate loans and structured credit investments...
NexPoint Real Estate ate Finance Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a predominantly constructive operational and capital‑markets picture: CAD and EAD increased year‑over‑year, the company executed a material refinancing (Mizuho facility + TRS) that reduced near‑term liability risk and cost pressure, and originations and portfolio metrics showed signs of improvement (residential lease trends, Alewife leasing, self‑storage performance). Key challenges include a large YoY drop in GAAP net income, EAD still trailing the declared dividend (though CAD covers it), modest book value decline, sector/geographic concentration (life science and Massachusetts) and relatively short debt maturities that imply refinancing exposure. Overall, positive execution on capital structure and high‑yield deployments outweigh the remaining earnings volatility and concentration/refinancing risks, with management signaling continued pipeline conversion and credit discipline.Positive Updates
Strong Cash Available for Distribution (CAD) Growth and Dividend Coverage
CAD was $0.58 per diluted share in Q2 2026 versus $0.46 in Q2 2025, an increase of ~26%. The company paid a regular dividend of $0.50 per share and CAD coverage was 1.16x. The board declared a $0.50 dividend for Q3 2026.
Negative Updates
Sharp Decline in Reported Net Income
Net income was $0.29 per diluted share in Q2 2026 versus $0.54 in Q2 2025, a decrease of ~46%, reflecting volatility in GAAP earnings relative to prior year.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Cash Available for Distribution (CAD) Growth and Dividend Coverage
CAD was $0.58 per diluted share in Q2 2026 versus $0.46 in Q2 2025, an increase of ~26%. The company paid a regular dividend of $0.50 per share and CAD coverage was 1.16x. The board declared a $0.50 dividend for Q3 2026.
Read all positive updates
Company Guidance
Management guided Q3 EAD of $0.43 per diluted share at the midpoint (range $0.38–$0.48) and CAD of $0.55 per diluted share at the midpoint (range $0.50–$0.60), and the board declared a $0.50 per share Q3 dividend (matching the Q2 regular dividend); for context Q2 reported net income of $0.29 per diluted share, EAD $0.46, CAD $0.58 with CAD coverage of 1.16x, and book value per diluted share was down 1.9% to $18.60.NexPoint Real Estate ate Finance Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
38
Negative
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 147.54M | 126.13M | 110.32M | 42.09M | 40.38M | 34.75M |
| Gross Profit | 119.15M | 112.10M | 99.25M | 37.90M | 35.99M | 34.75M |
| EBITDA | 153.73M | 168.86M | 90.39M | 2.46M | 57.35M | 83.47M |
| Net Income | 103.57M | 105.10M | 29.19M | 13.97M | 6.75M | 43.09M |
Balance Sheet | ||||||
| Total Assets | 5.23B | 5.32B | 5.42B | 7.02B | 8.15B | 8.51B |
| Cash, Cash Equivalents and Short-Term Investments | 25.25M | 31.11M | 3.88M | 13.82M | 20.05M | 26.46M |
| Total Debt | 4.35B | 4.46B | 4.82B | 6.56B | 7.59B | 8.00B |
| Total Liabilities | 4.39B | 4.49B | 4.84B | 6.57B | 7.61B | 8.01B |
| Stockholders Equity | 388.66M | 749.54M | 482.18M | 355.94M | 383.98M | 238.01M |
Cash Flow | ||||||
| Free Cash Flow | 16.28M | 22.92M | 29.28M | 31.56M | 65.80M | 49.30M |
| Operating Cash Flow | 16.28M | 22.92M | 29.28M | 31.56M | 65.80M | 49.30M |
| Investing Cash Flow | 334.96M | 321.54M | 956.54M | 741.34M | 950.58M | 517.88M |
| Financing Cash Flow | -349.47M | -317.16M | -995.42M | -776.60M | -1.03B | -567.41M |
NexPoint Real Estate ate Finance Technical Analysis
Positive
16.79
Price Trends
15.86
Positive
14.79
Positive
13.99
Positive
Market Momentum
0.37
Positive
58.06
Neutral
67.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NREF, the sentiment is Positive. The current price of 16.79 is above the 20-day moving average (MA) of 16.78, above the 50-day MA of 15.86, and above the 200-day MA of 13.99, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 58.06 is Neutral, neither overbought nor oversold. The STOCH value of 67.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NREF.
NexPoint Real Estate ate Finance Risk Analysis
NexPoint Real Estate ate Finance disclosed 104 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $208.03M | 6.68 | 10.01% | 18.49% | 1.82% | -24.02% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $319.66M | 4.26 | 17.22% | 11.91% | -1.80% | 39.83% | |
64 Neutral | $170.83M | 11.27 | 3.78% | 14.13% | -2.38% | -35.43% | |
61 Neutral | $220.49M | 13.00 | 7.31% | 14.55% | 31.73% | -55.72% | |
55 Neutral | $221.67M | 17.27 | 6.11% | 12.72% | 15.52% | -54.74% | |
50 Neutral | $236.35M | -11.99 | -3.88% | 12.93% | -35.42% | -46.68% |
* Real Estate Sector Average
NREF
NexPoint Real Estate ate Finance
16.92
4.81
39.73%
ACRE
Ares Commercial
4.70
1.06
29.05%
SEVN
Seven Hills Realty Trust
7.73
-1.27
-14.13%
MITT
AG Mortgage
7.03
0.59
9.09%
AOMR
Angel Oak Mortgage
8.89
1.10
14.12%
REFI
Chicago Atlantic Real Estate ate Finance Inc
9.93
-1.36
-12.03%
NexPoint Real Estate ate Finance Corporate Events
Executive/Board ChangesPrivate Placements and FinancingShareholder Meetings
NexPoint Real Estate Finance Holds 2026 Annual Stockholders Meeting
Positive
Jun 2, 2026
On June 2, 2026, NexPoint Real Estate Finance, Inc. held its Annual Meeting of Stockholders, at which shareholders elected seven directors to terms expiring at the 2027 annual meeting and approved, on an advisory basis, the compensation of the com...
Business Operations and StrategyPrivate Placements and Financing
NexPoint Enters New $20 Million Revolving Credit Facility
Positive
May 13, 2026
On May 7, 2026, NexPoint Real Estate Finance Operating Partnership, L.P., acting as administrative agent and sole lender, entered into a secured $20 million revolving credit agreement with VineBrook Homes Operating Partnership, L.P., the operating...
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.