Highland Opportunities and Income Fund · NYSE:HFRO
Highland Opportunities and Income Fund — Q2 2026 Earnings Presentation
30 slides from Highland Opportunities and Income Fund's earnings presentation, September 2026
Slide 1: Q2 2026 Fund Overview & Investor Update
Q2 2026 FUND OVERVIEW & INVESTOR UPDATE Highland Opportunities and Income Fund
Slide 2: HFRO Snapshot
F U N D O V E RVI E W & U P A T E S HFRO Snapshot Highland Opportunities and Income Fund (HFRO) is a Overview closed-end, non-diversified management investment company focused on delivering attractive returns Ticker HFRO through capital appreciation and interest income. CUSIP 43010E404 INVESTMENT OB
Slide 3: Closing NAV Discount: Latest Updates
F U N D O V E RVI E W & U P A T E S Closing NAV Discount Latest Updates The Adviser remains focused on identifying and pursuing opportunities to narrow the Fund’s discount. There were notable developments in Q2, including the monetization of a top-10 holding above the position’s mark and the announc
Slide 4: Closing NAV Discount: Other Recent Initiatives
F U N D O V E RVI E W & U P A T E S Closing NAV Discount Other Recent Initiatives Developments during and after Q2 add to several initiatives that have been introduced and/or expanded over the last 12 months. Reinforced Shareholder Expanded Portfolio Enhanced Shareholder Alignment Management Team Co
Slide 5: Closing NAV Discount: Ongoing Focus Areas
F U N D O V E RVI E W & U P A T E S Closing NAV Discount Ongoing Focus Areas The Adviser’s work to address the discount includes pursuing several ongoing initiatives with support of the Board, all of which remain priorities today. Board Engagement Transparency & Portfolio Performance & Communication
Slide 6: Portfolio Composition
F U N D O V E RVI E W & U P A T E S Asset Class Portfolio Composition CLOs Equity Loans Real Estate • As of June 30, 2026, the Fund’s assets totaled $890MM. • The Fund’s long assets were approximately 61.5% 61.5% 72.9% 71.4% 71.0% commercial real estate (debt & equity) and 38.5% non-real estate rela
Slide 7: HFRO Target Asset Allocation
F U N D O V E RVI E W & U P A T E S HFRO Target Asset Allocation The Fund will look to monetize positions in its current portfolio on an opportunistic basis over time to support gradual transition to its target allocation. Current Portfolio Target Asset Allocation Commercial Bonds Equity (Preferred,
Slide 8: TRQ Plano LLC 2Q26 Monetization Summary
F U N D O V E RVI E W & U P A T E S HOW THE POSITION WAS MONETIZED TRQ Plano LLC 2Q26 Monetization Summary 2018 Equity investment Fund acquired the SPE owning the Fund's second largest holding, was former EDS campus and held the property for lease. monetized in Q2 above mark 2023 Sold equity, conver
Slide 9: HFRO Discount to NAV
F U N D O V E RVI E W & U P A T E S HFRO Discount to NAV Fund discount to NAV is disconnected from market fundamentals. $890MM $245MM $645MM $394MM MidWave, $26.8 Fortis, $28.7 NXDT Hospitality, $36.3 CCS Medical, $38.0 Sapiences, $41.2 Top 10 Positions Life Settlement, $51.2 ResMark, $63.1 Discount
Slide 10: HFRO Discount to NAV
F U N D O V E RVI E W & U P A T E S HFRO Discount to NAV Current discount represents opportunity as Fund realizes value of top holdings. $11.68/sh Opportunities at Current Discount HFRO expects investment monetization’s in other top positions over next 1-2 years, providing catalysts for the Fund $
Slide 11: Top Positions Snapshot
HIGHLAND OPPORTUNITIES AND INCOME FUND Top 10 Positions Snapshot 11
Slide 12: Top Positions (as of 6/30/26)
T O P P O S IT I O N S S N A P S H O T Top 10 Positions (as of 6/30/26) INVESTMENT % PORTFOLIO THESIS KEY HIGHLIGHTS NexPoint 14.0% Core SFR portfolio with potential upside Executing on ongoing portfolio optimization Homes Trust from NOI growth and home price efforts focused on accretively disposing
Slide 13: Top Positions (as of 6/30/26) (cont'd)
T O P P O S IT I O N S S N A P S H O T Top 10 Positions (as of 6/30/26) (cont’d) INVESTMENT % PORTFOLIO THESIS KEY HIGHLIGHTS Sapience 5.0% Private company using proprietary Advancing main programs (focused on peptide- Therapeutics technology to create novel treatments based therapeutics to treat ca
Slide 14: Top Positions
HIGHLAND OPPORTUNITIES AND INCOME FUND Top Positions 14
Slide 15: NexPoint Homes Trust
T O P P O S IT I O N D E T A IL NexPoint Homes Trust A private REIT focused on acquiring, building, and operating single-family rental homes mostly in the Sunbelt states INVESTMENT RATIONALE & OBJECTIVE • Fills a significant growing need for expanded access to affordable single- family rental (SFR)
Slide 16: NexPoint Storage Partners
T O P P O S IT I O N D E T A IL NexPoint Storage Partners Invests in newly built, multi-story, climate-controlled, Class-A self-storage facilities—all managed by Extra Space Storage (NYSE: EXR)—in dense and growing markets in the U.S. INVESTMENT RATIONALE & OBJECTIVE • A best-in-class storage portfo
Slide 17: NexPoint Real Estate Finance
T O P P O S IT I O N D E T A IL NexPoint Real Estate Finance An externally managed commercial mortgage REIT listed on NYSE with a focus on investments in multifamily, single-family rental, self-storage, life science, office, and marina sectors INVESTMENT RATIONALE & OBJECTIVE • Investment in common
Slide 18: ResMark Venture
T O P P O S IT I O N D E T A IL ResMark Venture A JV with a multibillion-dollar international pension fund managed by an affiliate of The Resmark Companies invested in mostly residential development projects focused on single-family build-to-rent investments in suburban markets INVESTMENT RATIONALE
Slide 19: Life Settlement Portfolio
T O P P O S IT I O N D E T A IL Life Settlement Portfolio Actively managed life settlement portfolio providing unique access to investment grade assets generating double-digit returns INVESTMENT RATIONALE & OBJECTIVE • Life settlement investments provide opportunities to invest in life insurance pol
Slide 20: Sapience Therapeutics
T O P P O S IT I O N D E T A IL Sapience Therapeutics A privately held, clinical-stage biotechnology company focused on discovering and developing peptide therapeutics to address oncogenic and immune dysregulation that drive cancer INVESTMENT RATIONALE & OBJECTIVE • With two platforms that are purpo
Slide 21: CCS Medical
T O P P O S IT I O N D E T A IL CCS Medical A leading national distributor of home medical equipment and supplies for patients with chronic conditions, with a focus on diabetes management INVESTMENT RATIONALE & OBJECTIVE • Established leader in growing distribution market for continuous glucose moni
Slide 22: NXDT Hospitality Holdco
T O P P O S IT I O N D E T A IL NXDT Hospitality Holdco The subsidiary of an externally advised, publicly traded, diversified REIT focused on the acquisition, development, and management of opportunistic and value-add investments throughout the United States INVESTMENT RATIONALE & OBJECTIVE • HFRO o
Slide 23: Fortis Life and Annuity Insurance Company
T O P P O S IT I O N D E T A IL Fortis Life and Annuity Insurance Company Newly created insurance company domiciled in Texas with the ability to sell fixed annuities in 38 states and the District of Columbia INVESTMENT RATIONALE & OBJECTIVE • Investment in insurer provides direct exposure to large a
Slide 24: MidWave Wireless, Inc.
T O P P O S IT I O N D E T A IL MidWave Wireless, Inc. MidWave Wireless, Inc., formerly TerreStar Corporation, is one of the largest independent wireless spectrum license holders in the U.S. INVESTMENT RATIONALE & OBJECTIVE • MidWave’s mid-band spectrum investments cover every major domestic market,
Slide 25: Appendix
HIGHLAND OPPORTUNITIES AND INCOME FUND Appendix 25
Slide 26: Selected Financial Highlights
A P P E ND I X Selected Financial Highlights Quarter Ended June 30, 2026 Balance Sheet Highlights 2Q2026 1Q2026 4Q2025 3Q2025 2Q2025 1Q2025 4Q2024 3Q2024 Investment Portfolio at Fair Value $861 $825 $828 $840 $839 $877 $897 $963 Total Debt Outstanding $245 $245 $245 $245 $239 $240 $140 $140 Total Ne
Slide 27: NexPoint's Leading Alternative Investment Platform
A P P E ND I X NexPoint’s Leading Alternative Investment Platform Firm Overview AUM $16.7 billion1 Focus Alternative investments Employees 131 total employees; 39 Investment professionals2 Offices Headquartered in Dallas Texas, with employees across the U.S. DELAWARE FIXED INCOME DIVERSIFIED PUBLIC
Slide 28: Fund Management
A P P E ND I X Fund Management Jim Dondero, CFA Co-Founder & President • Has over 30 years of experience investing across the alternative landscape. Founded NexPoint in 2012 to bring alternative strategies to retail channels. • Established a number of integrated businesses to manage investments in c
Slide 29: Disclosures
A P P E ND I X Disclosures The performance data quoted here represents past performance and is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance ma
Slide 30: Contact Information
Contact Information SALES DESK WEBSITE (833) 697-7253 nexpointassetmgmt.com INVESTOR ADDRESS SUPPORT 300 Crescent Court, Suite 700 IR@nexpoint.com Dallas, TX 75201
Highland Opportunities and Income Fund — Q2 2026 Earnings Presentation on 6ix