Nexpoint Real Estate Finance, Inc. · NYSE:NREF
Nexpoint Real Estate Finance — Q2 2023 Earnings Presentation
20 slides from Nexpoint Real Estate Finance's earnings presentation, Jul 27, 2023
Slide 1: 2Q 2023 Financial Supplement
NYSE:NREF 2Q 2023 Financial Supplement July 27, 2023 CONTACT NEXPOINT REAL ESTATE FINANCE INVESTOR RELATIONS (NYSE:NREF) Kristen Thomas 300 Crescent Court, Suite 700 (p) 214.908.1854 Dallas, Texas 75201 (e) kthomas@nexpoint.com (w) nref.nexpoint.com
Slide 2: Cautionary Statements
Cautionary Statements FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be id
Slide 3: NexPoint Real Estate Finance Company Overview
NexPoint Real Estate Finance Company Overview NexPoint Real Estate Finance, Inc. (“NREF” or the “Company”) is a publicly traded mortgage REIT, with its shares listed on the New York Stock Exchange. The company concentrates on investments in real estate sectors where senior management has operating e
Slide 4: 2Q 2023 Highlights
2Q 2023 Highlights $9.3MM $11.3MM $429.4MM 2Q 2023 N E T I N C O M E I N 2 Q 2 0 2 3 2 Q 2 0 2 3 C A S H A V A I L A B L E F O R B O O K V A L U E $19.28 per common share, Dividend FINANCIAL Net income attributable to D I S T R I B U T I O N including redeemable non- P A I D O N $0.49 per diluted J
Slide 5: 2Q 2023 Earnings And Book Value
2Q 2023 Earnings And Book Value Book Value Per Common Share Growth Earnings and Book Value 3.2% 2.2% 1.3% (0.9)% (4.2)% (3.1)% Net interest income of $4.2MM, an increase of 6.5% compared to (2.2)% (1.6)% 1Q 2023 Net income of $9.3MM, with net income attributable to common stockholders of $6.4MM,
Slide 6: Net Income, EAD and CAD
Net Income, EAD and CAD Net Income (Loss) and EAD Per Diluted Share NET INCOME, EAD, CAD AND GUIDANCE $1.20 23.8% (59.2)% 0.0% 5.0% (11.5)% 37.9% (18.4)% 317.6% (2.7)% $0.78 (66.7)% $0.49 $0.42 $0.52 $0.46 $0.46 NET INCOME/EAD/CAD $0.40 $0.37 $0.36 $0.40 $0.26 Net income per diluted common share f
Slide 7: Dividend and Coverage
Dividend and Coverage Net Income and EAD Dividend Coverage $1.40 3.00x 2.50x $1.20 2.40x 2.00x Dividend and Net $1.00 1.56x 1.50x Income/EAD/CAD Coverage $0.80 1.04x 1.00x 0.98x 0.92x 0.92x 0.80x 0.84x 2Q 2023 DIVIDEND: 0.74x 0.72x $0.60 $1.20 0.52x 0.81x 0.50x 2Q dividend of $0.50 per common shar
Slide 8: Portfolio Commentary
Portfolio Commentary Defensive Portfolio Characteristics The current portfolio consists of senior loans, CMBS B-Pieces, CMBS I/O Strips, mezzanine debt, preferred equity, MSCR notes, mortgage-backed securities, a multifamily property and common stock investments in short-duration 5.1 lease-term asse
Slide 9: Portfolio Commentary: Geographic and Asset Type Exposure
Portfolio Commentary1 Geographic and Asset Type WA MN Exposure1 3% 4% Self- Life Sciences 4.1% Storage 1.5% MD 4% $1.6B SFR CURRENT 44.0% 3% PRINCIPAL1 CA 6% NC Multifamily 50.4% GA TX 21% AZ 14% Preferred 3% Mortgage Backed 10.5% Securities 2.4% Senior Loan FL LESS THAN 2.5% OF TOTAL OUSTANDING PRI
Slide 10: Portfolio
PORTFOLIO 10
Slide 11: Portfolio
Portfolio $s IN 0,000s EXCEPT PER SHARE DATA Investment Current Remaining # Investment1 Location Property Type Date Principal Net Equity2 Coupon3 Term4 Loan to Value DSCR 1 Senior Loan Various SFR 2/11/2020 $508,700 $70,903 4.65% 5.2 68.1% 2 Senior Loan Various SFR 2/11/2020 51,304 6,651 4.74% 2.3 5
Slide 12: Portfolio
Portfolio $s IN 0,000s EXCEPT PER SHARE DATA Investment Current Net Remaining # Investment1 Location Property Type Date Principal Equity2 Coupon3 Term4 Loan to Value DSCR 1 CMBS IO Strip Various Multifamily 5/18/2020 $17,5906 $501 2.09% 23.3 69.4% 2 CMBS IO Strip Various Multifamily 8/6/2020 108,643
Slide 13: Portfolio
Portfolio $s IN 0,000s EXCEPT PER SHARE DATA Investment Remaining # Investment1 Location Property Type Date Current Principal Net Equity2 Coupon3 Term4 Loan to Value DSCR 13 Mezzanine Atlanta, GA Multifamily 10/20/2020 $3,310 $1,366 6.91% 6.0 80.3% 14 Mezzanine Temple Hills, MD Multifamily 10/20/202
Slide 14: Portfolio
Portfolio $s IN 0,000s EXCEPT PER SHARE DATA Property Investment Remaining # Investment1 Location Type Date Current Principal Net Equity2 Coupon3 Term4 Loan to Value DSCR 14 Preferred Equity Temecula, CA Life Sciences 4/6/2023 21,976 21,921 17.50% 0.2 N/A N/A 15 Preferred Equity Phoenix, AZ SFR 5/16
Slide 15: Portfolio
Portfolio (1) OUR TOTAL PORTFOLIO REPRESENTS THE CURRENT PRINCIPAL AMOUNT OF THE CONSOLIDATED SFR LOANS, CMBS I/O STRIPS, MEZZANINE LOANS, PREFERRED EQUITY, MULTIFAMILY PROPERTY, MSCR NOTES AND MORTGAGE-BACKED SECURITIES AS WELL AS THE NET EQUITY OF OUR CMBS B-PIECE INVESTMENTS. (2) NET EQUITY REPRE
Slide 16: Financials
FINANCIALS 16
Slide 17: Financials
Financials $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Income Statement Balance Sheet For the three months ended June 30, 2023 Mar. 31, 2023 June 30, 2023 December 31, 2022 Interest income $17,299 $16,161 Cash and cash equivalents $19,657 $20,048 Interest expense (13,094) (12,212) R
Slide 18: Reconciliations
Reconciliations $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Reconciliation of 3Q 2023 Net Income to EAD Reconciliation of 3Q 2023 EAD to CAD Low Mid High Low Mid High For the three months ended Sep. 30, 2023 Sep. 30, 2023 Sep. 30, 2023 For the three months ended Sep. 30, 2023 Sep. 3
Slide 19: Reconciliations
Reconciliations $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Reconciliation of Net Income (Loss) to Earnings Available for Distribution 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 4Q 2021 3Q 2021 2Q 2021 1Q 2021 Net income attributable to common stockholders $6,429 $6,567 $(3,733
Slide 20: Reconciliations
Reconciliations $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Reconciliation of Earnings Available for Distribution to CAD 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 4Q 2021 3Q 2021 2Q 2021 1Q 2021 Earnings Available for Distribution $10,566 $11,881 $9,591 $9,165 $11,091 $26,407
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