Highland Opportunities and Income Fund · NYSE:HFRO
Highland Opportunities and Income Fund — Q4 2025 Earnings Presentation
25 slides from Highland Opportunities and Income Fund's earnings presentation, March 2026
Slide 1: Q4 2025 Investor Presentation
Q4 2025 INVESTOR PRESENTATION Highland Opportunities and Income Fund
Slide 2: HFRO Snapshot
HIGHLAND OPPORTUNITIES AND INCOME FUND 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
Slide 3: Closing NAV Discount
HIGHLAND OPPORTUNITIES AND INCOME FUND Closing NAV Discount Recent Initiatives HIGHLIGHTS: As of March 23, 2025, NexPoint and affiliates owned 8.42% of the Fund On September 9, 2025, Brad Heiss was added as a portfolio manager Board Engagement OVERVIEW: Discount to NAV has continuously been ke
Slide 4: HFRO Portfolio Target Allocation
HIGHLAND OPPORTUNITIES AND INCOME FUND HFRO Portfolio Target Allocation The Fund will look to monetize positions in its current portfolio on an opportunistic basis over time in order to transition the portfolio to its target allocation Current Portfolio Target Allocation Commercial Bonds Equity (Pre
Slide 5: Portfolio Composition
HIGHLAND OPPORTUNITIES AND Asset Class INCOME FUND (% of Long Assets) Portfolio Composition • As of December 31, 2025, the Fund’s assets totaled $878MM. 71.4% 71.0% 73.1% 71.9% • The Fund’s long assets were approximately 71.4% commercial real estate (debt & equity) and 28.6% non-real estate related
Slide 6: Top Positions Snapshot
HIGHLAND OPPORTUNITIES AND INCOME FUND Top 10 Positions Snapshot 6
Slide 7: Top Positions (as of 12/31/25)
HIGHLAND OPPORTUNITIES AND INCOME FUND Top 10 Positions (as of 12/31/25) INVESTMENT % PORTFOLIO THESIS KEY HIGHLIGHTS NexPoint 12.3% Core SFR portfolio with potential upside Executing on opportunity to optimize portfolio, Homes Trust from NOI growth and home price and accretively disposing of lower
Slide 8: Top Positions (as of 12/31/25) (cont'd)
HIGHLAND OPPORTUNITIES AND INCOME FUND Top 10 Positions (as of 12/31/25) (cont’d) INVESTMENT % PORTFOLIO THESIS KEY HIGHLIGHTS ResMark 7.2% Investment in a joint venture with a Developing five separate build-to-rent residential Venture developer who has deep experience in the developments in Califor
Slide 9: Top Positions
HIGHLAND OPPORTUNITIES AND INCOME FUND Top Positions 9
Slide 10: NexPoint Homes Trust
TOP POSITION DETAIL 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) properties d
Slide 11: TRQ Plano LLC
TOP POSITION DETAIL TRQ Plano LLC TRQ Plano LLC, formerly EDS Legacy Partners , owns the former Electronic Data Systems (EDS) campus located at 5400 Legacy Drive in Plano, Texas, which is situated on 91 acres that is expected to be developed as part of a multisite innovation district INVESTMENT RATI
Slide 12: NexPoint Storage Partners
TOP POSITION DETAIL 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 portfolio that is
Slide 13: NexPoint Real Estate Finance
TOP POSITION DETAIL 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, hospitality, office, and marina sectors INVESTMENT RATIONALE & OBJECTIVE • Investment in common
Slide 14: Life Settlement Portfolio
TOP POSITION DETAIL Life Settlement Portfolio Actively managed life settlement portfolio providing unique access to investment grade assets generating double digit returns. INVESTMENT RATIONALE & OBJECTIVE • A Life Settlement investment is a life insurance policy where the original policyholder has
Slide 15: ResMark Venture
TOP POSITION DETAIL 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 & OBJECTIVE
Slide 16: CCS Medical
TOP POSITION DETAIL 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 • CCS is at the forefront of the rapidly growing distribution market for continuous glucose
Slide 17: Sapience Therapeutics
TOP POSITION DETAIL 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 purpose-built to
Slide 18: NXDT Hospitality Holdco
TOP POSITION DETAIL 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 owned convert
Slide 19: MidWave Wireless, Inc.
TOP POSITION DETAIL 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, representin
Slide 20: Appendix
HIGHLAND OPPORTUNITIES AND INCOME FUND Appendix 20
Slide 21: Selected Financial Highlights
APPENDIX Selected Financial Highlights Quarter Ended December 31, 2025 Balance Sheet Highlights 4Q2025 3Q2025 2Q2025 1Q2025 4Q2024 3Q2024 2Q2024 1Q 2024 Investment Portfolio at Fair Value $828 $840 $839 $877 $897 $963 $965 $988 Total Debt Outstanding $245 $245 $239 $240 $140 $140 $140 $140 Total Net
Slide 22: NexPoint's Leading Alternative Investment Platform
APPENDIX NexPoint’s Leading Alternative Investment Platform Firm Overview AUM $16.7 billion1 Focus Alternative investments Employees 127 total employees; 36 investment professionals2 Offices Headquartered in Dallas Texas, with employees across the US DELAWARE FIXED INCOME DIVERSIFIED PUBLIC REAL PRI
Slide 23: Fund Management
APPENDIX 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 credit,
Slide 24: Disclosures
APPENDIX 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 may be l
Slide 25: Visit Our Website / Contact
ADDRESS VISIT OUR WEBSITE 300 Crescent Court www.nexpointassetmgmt.com Suite 700 Dallas, TX 75201 CONTACT SALES (833) 697-7253 NVESTOR SUPPORT IR@nexpoint.com
Highland Opportunities and Income Fund — Q4 2025 Earnings Presentation on 6ix