Nexpoint Real Estate Finance Inc (NREF)
NYSE:NREF
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NexPoint Real Estate ate Finance
(NYSE:NREF)
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Rating:68Neutral
Price Target:
$17.00
â–²(20.91% Upside)
Action:Downgraded
Date:06/03/26
The score is held back primarily by financial-risk factors—high leverage and weak/declining cash conversion—despite strong reported profitability. Offsetting this are a favorable technical setup, very inexpensive valuation with a high dividend yield, and an earnings call that reinforced dividend coverage and near-term distribution outlook alongside meaningful refinancing and accretive actions.
Positive Factors
Revenue & Profitability
Sustained revenue expansion (+51% TTM) and very high reported net margins indicate durable earnings power from core lending and investment activities. Over months, strong top-line growth and margin flexibility support cash generation potential and underwriting scale for repeatable deployment.
Negative Factors
Elevated Leverage
High gross leverage limits balance-sheet flexibility and magnifies losses in stress scenarios. Even with recent improvements, a thin equity base raises refinancing and covenant sensitivity risks, constraining the company’s ability to withstand credit or rate shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profitability
Sustained revenue expansion (+51% TTM) and very high reported net margins indicate durable earnings power from core lending and investment activities. Over months, strong top-line growth and margin flexibility support cash generation potential and underwriting scale for repeatable deployment.
Read all positive factors
NexPoint Real Estate ate Finance (NREF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$292.33M
Dividend Yield14.36%
Average Volume (3M)47.91K
Price to Earnings (P/E)2.8
Beta (1Y)0.62
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. Volume50,402
30 Day Avg. Volume47,914
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.33
Price to Sales (P/S)1.98
P/FCF Ratio10.89
Enterprise Value/Market Cap15.81
Enterprise Value/Revenue31.33
Enterprise Value/Gross Profit38.80
Enterprise Value/Ebitda30.07
Forecast
1Y Price Target
$14.50Price Target Upside3.13% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.67
Revenue Forecast (FY)N/A
NexPoint Real Estate ate Finance Business Overview & Revenue Model
Company Description
NexPoint Real Estate Finance, Inc. operates as a real estate finance company in the United States. It focuses on originating, structuring, and investing in first mortgage loans, mezzanine loans, preferred equity, and preferred stock, as well as mu...
How the Company Makes Money
NREF generates earnings primarily from (1) interest income and related loan economics and (2) investment income from real estate-related positions. Its core revenue model is to raise capital (including equity capital and debt/secured financing) an...
NexPoint Real Estate ate Finance Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presented several strong, tangible positive developments that materially improved capital flexibility and near-term economics — notably the refinancing into a $242M TRS facility (SOFR + 375 bps), the re-REMIC that produced $0.46 of book value uplift and expected $0.34 of annual CAD accretion, a sizable and accretive pipeline, meaningful CAD growth (+~28.9% YoY), low leverage (net debt/equity <1x), and operational initiatives (AI) to drive efficiency. Counterbalancing these positives are a sizable YoY decline in GAAP net income (~40%), modest unrealized losses that slightly compressed book value (-0.3%), concentration in residential and life sciences exposure, and ongoing rate volatility and short debt maturities that represent execution and market risk. Overall, the highlights — including structural liability relief, clear accretive capital recycling, improving CAD, and a strong pipeline — outweigh the lowlights.Positive Updates
Refinancing and New TRS Facility
Refinanced $180.0M of senior unsecured notes maturing May 1 with a new $242.0M total return swap facility priced at SOFR + 375 bps (3-year term + 1-year extension). Transaction upsized capacity (~$45M incremental deployment capacity), aligns floating-rate liabilities with assets, adds back-lever optionality, engaged 20+ counterparties, and avoided dilutive equity issuance.
Negative Updates
Net Income Decline
Reported net income of $0.42 per diluted share in Q1 2026 versus $0.70 in Q1 2025, a decrease of ~40% driven by small mark-to-market declines on preferred stock and warrants and a decrease in the change in net assets related to consolidated CMBS VIEs.
Read all updates
Q1-2026 Updates
Positive
Negative
Refinancing and New TRS Facility
Refinanced $180.0M of senior unsecured notes maturing May 1 with a new $242.0M total return swap facility priced at SOFR + 375 bps (3-year term + 1-year extension). Transaction upsized capacity (~$45M incremental deployment capacity), aligns floating-rate liabilities with assets, adds back-lever optionality, engaged 20+ counterparties, and avoided dilutive equity issuance.
Read all positive updates
Company Guidance
For Q2 the company guided earnings available for distribution of $0.43 per diluted share at the midpoint (range $0.38–$0.48) and cash available for distribution of $0.54 per diluted share at the midpoint (range $0.49–$0.59). For context, Q1 EAD was $0.43 and Q1 CAD was $0.58 (covering the $0.50 regular dividend 1.16x), the board declared a $0.50 per share dividend payable for 2026, and book value per share was $18.96—metrics management said are supported by recent refinancing (a $242M TRS at SOFR+375 bps), a $21M Series C preferred raise, and capital-recycling that drove $0.46 per share of book-value appreciation and ~$0.34 per share of expected annual CAD accretion.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 | 0.00 | 57.35M | 0.00 |
| 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 | 34.35M | 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 | 766.78M | 751.38M | 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
14.06
Price Trends
14.56
Positive
14.29
Positive
13.77
Positive
Market Momentum
0.28
Positive
62.75
Neutral
77.83
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 14.06 is below the 20-day moving average (MA) of 15.46, below the 50-day MA of 14.56, and above the 200-day MA of 13.77, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 62.75 is Neutral, neither overbought nor oversold. The STOCH value of 77.83 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $292.33M | 2.84 | 16.68% | 14.36% | -1.80% | 39.83% | |
67 Neutral | $191.84M | 12.42 | 5.14% | 13.82% | -7.31% | -22.36% | |
67 Neutral | $234.55M | 7.73 | 0.04% | 15.86% | 1.82% | -24.02% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
55 Neutral | $240.75M | 7.27 | 6.11% | 9.61% | 15.52% | -54.74% | |
52 Neutral | $271.30M | -14.07 | -3.88% | 13.75% | -35.42% | -46.68% | |
50 Neutral | $198.82M | 12.49 | 6.23% | 14.83% | 31.73% | -55.72% |
* Real Estate Sector Average
NREF
NexPoint Real Estate ate Finance
15.93
2.60
19.51%
ACRE
Ares Commercial
4.99
0.76
18.08%
SEVN
Seven Hills Realty Trust
8.51
-1.88
-18.13%
MITT
AG Mortgage
7.68
1.07
16.21%
AOMR
Angel Oak Mortgage
8.27
0.32
4.08%
REFI
Chicago Atlantic Real Estate ate Finance Inc
11.28
-1.10
-8.89%
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...
Business Operations and StrategyPrivate Placements and Financing
NexPoint Real Estate Finance Secures New Term Loan Facility
Positive
Apr 30, 2026
On April 29, 2026, NexPoint Real Estate Finance, Inc. entered into a $375 million senior secured term loan facility with Mizuho Capital Markets LLC, secured by certain investment assets and related collateral, maturing on May 1, 2029, with two six...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
NexPoint Real Estate Finance Enters New Related-Party Financing
Neutral
Apr 3, 2026
On January 16, 2026, NexPoint Real Estate Finance Operating Partnership, L.P. provided a $16.7 million loan to NexPoint Storage Partners Operating Company, LLC and affiliated co-borrowers under a promissory note allowing up to $40 million of borro...
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.