Nexpoint Real Estate Finance, Inc. · NYSE:NREF
Nexpoint Real Estate Finance — Q2 2020 Earnings Presentation
18 slides from Nexpoint Real Estate Finance's earnings presentation, Aug 6, 2020
Slide 1: August 2020 Financial Supplement
exuiarT99.2 OSAUGUST 2020 | NYSE:INREF 20,2020 FINANCIAL SUPPLEMENT. NEXPOINT REAL ESTATE FINANCE
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 NexPoint Real Estate Finance, Inc. (“NREF” or the “Company”) is a publicly traded mortgage REIT (“mREIT”), with its shares listed on the New York Stock Exchange. The company primarily concentrates on investments in real estate sectors where its senior management team has
Slide 4: 2Q 2020 Highlights
2Q 2020 HIGHLIGHTS SEE “RECONCILIATIONS” SLIDE AS OF AUGUST 5, 2020 AND INCLUDES THE FREDDIE MAC K-SERIES B-PIECE AND INTEREST ONLY STRIPS EXPECTED TO CLOSE AUGUST 6, 2020 LOAN TO VALUE IS GENERALLY BASED ON THE INITIAL LOAN AMOUNT DIVIDED BY THE AS –IS APPRAISED VALUE AS OF THE DATE THE LOAN WAS OR
Slide 5: 2Q 2020 Financial Snapshot
2Q 2020 FINANCIAL SNAPSHOT Net interest income of $4.6MM, an increase of 41.4% over 1Q 2020 Net income of $19.3MM, with net income attributable to common stockholders of $5.3MM, or $1.00 per diluted common share; compared to net loss attributable to common stockholders of $(6.4)MM in 1Q 2020 Core ea
Slide 6: 2Q 2020 Financial Snapshot: Dividends and Guidance
2Q 2020 FINANCIAL SNAPSHOT NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS IN 3Q AND 4Q 2020 IS ESTIMATED TO BE $2.0MM AND $2.4MM AT THE MID-POINT, RESPECTIVELY. SEE “RECONCILIATIONS” SLIDES. NREF CLOSED IT’S IPO ON FEBRUARY 11, 2020, AS SUCH, THE QUARTER OVER QUARTER CHANGE SHOWN IN 2Q 2020 IS CALCU
Slide 7: Portfolio Commentary
PORTFOLIO COMMENTARY The current portfolio consists of senior loans, mezzanine debt, preferred equity and preferred stock investments in short-duration lease-term assets (multifamily, SFR, self-storage) that are geographically diverse in the United States. The portfolio has no exposure to constructi
Slide 8: Portfolio Commentary: Geographic and Asset Type Exposure
PORTFOLIO COMMENTARY AS OF AUGUST 5, 2020 AND INCLUDES THE FREDDIE MAC K-SERIES B-PIECE AND INTEREST ONLY STRIPS EXPECTED TO CLOSE AUGUST 6, 2020 AS A % OF OUTSTANDING PRINCIPAL AS OF JUNE 30, 2020 INCLUDING THE 2 FREDDIE MAC K-SERIES B-PIECES AND 3 FREDDIE MAC K-SERIES IO STRIPS CLOSED, OR EXPECTED
Slide 9: Pro Forma Capitalization
PRO FORMA CAPITALIZATION ESTIMATED AS OF AUGUST 6, 2020 AND AFTER GIVING EFFECT TO THE REPAYMENT OF THE $65MM BRIDGE FACILITY AND APPROXMATELY $60.7MM OF ADDITIONAL REPO FINANCING EXPECTED TO OCCUR AFTER THE DATE OF THIS SUPPLEMENT. SEE “RECONCILIATIONS” SLIDES. AS OF JUNE 30, 2020. MARKET VALUE OF
Slide 10: Recent Transaction: Floating-Rate CMBS B-Piece
RECENT TRANSACTION: FLOATING-RATE CMBS B-PIECE B-Piece Summary1 BASED ON JULY 1, 2020 CUT-OFF DATE. CALCULATED USING UNDERWRITTEN NET CASH FLOW INVESTMENT HAS A 0% FLOOR CALCULATED USING PROJECTED CASH FLOWS Payment Structure: Floating-rate with current pay Purchase Price/Par Value: $67MM / $67MM %
Slide 11: Expected Transaction: Fixed-Rate CMBS Investment
EXPECTED TRANSACTION: FIXED-RATE CMBS INVESTMENT Collateral Pool Summary1 Underlying Pool Balance: $1.5B Weighted Avg Mortgage Interest Rate: 3.22% Interest Only DSCR4: 2.2x Average Loan to Value: 69.0% Number of Properties: 62 Number of Units: 13,071 Weighted Avg Occupancy: 93.1% Weighted Avg Rent/
Slide 12: Appendices
APPENDICES INTENTIONALLY LEFT BLANK
Slide 13: Appendix: Portfolio
APPENDIX: PORTFOLIO # Investment1 Location Property Type Investment Date Current Principal Net Equity2 Coupon3 Remaining Term4 Loan to Value DSCR 1 Senior Loan Various SFR 2/11/2020 $508,700 $84,661 4.65% 8.2 68.1% 2 Senior Loan Various SFR 2/11/2020 62,023 10,211 5.35% 8.7 65.0% 3 Senior Loan Vario
Slide 14: Appendix: Portfolio
APPENDIX: PORTFOLIO # Investment1 Location Property Type Investment Date Current Principal Net Equity2 Coupon3 Remaining Term4 Loan to Value DSCR 1 CMBS B-Piece Various Multifamily 2/11/2020 $75,6935 $30,270 6.16%6 5.7 65.3% 2 CMBS B-Piece Various Multifamily 2/11/2020 56,6645 25,008 6.16%6 6.4 64.9
Slide 15: Appendix: 2Q 2020 Financial Summary
APPENDIX: 2Q 2020 FINANCIAL SUMMARY Balance Sheet Income Statement For the three months ended June 30, 2020 March 31, 2020 Interest income $9,821 $6,586 Interest expense 5,216 3,331 Net interest income 4,605 3,255 Other income (loss) 17,057 (24,924) Total operating expenses 2,389 1,199 Net income 19
Slide 16: Appendix: Reconciliations
APPENDIX: RECONCILIATIONS $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Reconciliation of Net Income (Loss) to Core Earnings 2Q 2020 1Q 2020 Net income attributable to common stockholders $5,270 $(6,353) Adjustments: Amortization of stock-based compensation 39 - Loan loss provision, n
Slide 17: Appendix: Reconciliations
APPENDIX: RECONCILIATIONS $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Reconciliation of 3Q 2020 Net Income to Core Earnings Low Mid High For the three months ended September 30, 2020 September 30, 2020 September 30, 2020 Net income attributable to common stockholders $1,858 $1,969 $
Slide 18: Contact NexPoint Real Estate Finance
CONTACT NEXPOINT REAL ESTATE FINANCE (NYSE:NREF) 300 Crescent Court, Suite 700 Dallas, Texas 75201 Website: www.nexpointfinance.com Phone: 972.628.4100
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