Investor Presentaiton
NexPoint Real Estate Finance
Top 10
Exposures
1.
2.
3.
NexPoint Storage
Partners
NexPoint Homes
NexPoint Real
Estate Finance
4.
EDS Legacy
Partners
5.
IQHQ
6.
QuarterNorth
Energy
INVESTMENT BACKGROUND
NexPoint Real Estate Finance, Inc. is an externally managed commercial
mortgage real estate investment trust (REIT), with its shares of common stock
listed on the New York Stock Exchange under the symbol "NREF." The REIT is
primarily focused on investments in real estate sectors where its senior
management team has operating expertise, including in the multifamily,
single-family rental, self-storage, and life science sectors predominantly in
the top 50 metropolitan statistical areas. The REIT targets lending or investing
in properties that are stabilized or have a "light transitional" business plan,
meaning a property that requires limited deferred funding to support leasing
or ramp-up of operations and for which most capital expenditures are for
value-add improvements
7.
NexPoint
Hospitality Trust
•
8.
CCS Medical
9.
Freddie Mac 21K-
F103
10. Easton Village
Ventures
INVESTMENT UPDATE
In November, NREF reported its financial results for the quarter ended
September 30, 2023. NREF reported a net loss of $17.0 million, or $0.90 per
diluted share¹, for the three months ended September 30, 2023. NREF
reported cash available for distribution² of $10.8 million, or $0.47 per diluted
share, for the three months ended September 30, 2023. NREF's portfolio
continues to provide stable and defensive yields despite a challenging
commercial real estate environment. NREF announced an offering of up to
16,000,000 shares of NREF's 9.00% Series B Cumulative Redeemable
Preferred Stock in November.
Outstanding total portfolio of $1.6 billion, composed of 89
investments.3
Weighted-average loan to value ("LTV")³ and debt service coverage
ratio ("DSCR") on the SFR, CMBS, CMBS IO strips, preferred,
mezzanine, credit risk transfer, and mortgage-backed security
investments are 69.0% and 1.77x3, respectively.
As of November 15, 2023, there are no loans currently in
forbearance in the portfolio.
INVESTMENT HIGHLIGHTS
Initial Investment
% of HFRO
Investment
Investment Type
Industry
Life Sciences
4.6%
2020
7.76%
$81.2M
Common Stock
Real Estate - Finance
Multifamily
48.1%
$1.6B
Mortgage Back Securities
2.5%
Mezz
8.4%
10 Strips
3.5%
Current
Principal³
Self-Storage
1.5%
SFR
45.8%
Preferred
10.9%
69.0%
Weighted
Avg LTV³
Senior Loan
42.8%
1.
2.
CMBS B-Pieces
31.2%
MSCR Notes
0.7%
Weighted-average diluted shares outstanding assumes vesting of all outstanding unvested restricted stock units and the conversion of all redeemable non-controlling interests.
Earnings available for distribution and cash available for distribution are non-GAAP measures. For a discussion of why we consider these non-GAAP measures useful and reconciliations of earnings available for
distribution and cash available for distribution to net income (loss) attributable to common stockholders, see the "Reconciliations of Non-GAAP Financial Measures" and "Non-GAAP Financial Measures" sections of NREF
release.
3.
As of September 30, 2023; CMBS B-Pieces reflected on an unconsolidated basis.
NOVEMBER 2023
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