Highland Opportunities and Income Fund · NYSE:HFRO
Highland Opportunities and Income Fund — Q2 2025 Earnings Presentation
26 slides from Highland Opportunities and Income Fund's earnings presentation, September 2025
Slide 1: Q2 2025 Investor Presentation
Q2 2025 INV ESTOR PRESENTAT ION Highland Opportunities and Income Fund
Slide 2: HFRO Snapshot
HIG HLAND OPPORTUNIT IES AN D IN COM E F UND 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 INVE
Slide 3: HFRO Investment Merits
HIG HLAND OPPORTUNIT IES AN D IN COM E F UND HFRO Investment Merits Attractive real estate portfolio Core real estate holdings poised Permanent capital and a solid comprised of debt and equity to unlock value as interest rates balance sheet with no leverage or positions with capital decline in the c
Slide 4: Closing NAV Discount
HIG HLAND OPPORTUNIT IES AN D IN COM E F UND Closing NAV Discount Board Engagement OVERVIEW: ▪ Discount to NAV has continuously been key focus of Board ▪ Board engagement with Adviser is ongoing to review existing initiatives and evaluate additional opportunities to reduce the discount HIGHLIGHTS/RE
Slide 5: Portfolio Composition
HIG HLAND OPPORTUNIT IES AN D Asset Class INCOM E FUN D (% of Long Assets) Portfolio Composition 100.0% 80.0% • As of June 30, 2025, the Fund’s assets totaled $874MM. 60.0% • The Fund’s long assets were approximately 73.1% commercial real estate (debt & equity) and 26.9% 40.0% non-real estate relate
Slide 6: Three Core Themes in Current Portfolio
HIG HLAND OPPORTUNIT IES AN D IN COM E F UND Three Core Themes in Current Portfolio Thesis One: Opportunity in RESIDENTIAL RENTAL MARKET (single family rentals (SFR) and multifamily) in face of housing affordability challenges and migration out of large coastal metros • Investments: NexPoint Homes T
Slide 7: Top Holdings Snapshot
HIGHLAND OPPORTUNITIES AND INCOME FUND Top 10 Holdings Snapshot 7
Slide 8: Top Holdings (as of 6/30)
HIG HLAND OPPORTUNIT IES AN D IN COM E F UND Top 10 Holdings (as of 6/30) INVESTMENT % PORTFOLIO THESIS KEY HIGHLIGHTS NexPoint 13.1% Core SFR portfolio with potential upside Executing on opportunity to optimize portfolio, Homes Trust from NOI growth and home price including upgrading property manag
Slide 9: Top Holdings (as of 6/30) (cont'd)
HIG HLAND OPPORTUNIT IES AN D IN COM E F UND Top 10 Holdings (as of 6/30) (cont’d) INVESTMENT % PORTFOLIO THESIS KEY HIGHLIGHTS CCS Medical 6.6% Positioned to capture value from Focused on the build-out of the pharmacy LIFE SCIENCE AND strategy of integrating chronic care channel, as well as other g
Slide 10: Top Holdings
HIGHLAND OPPORTUNITIES AND INCOME FUND Top Holdings 10
Slide 11: NexPoint Homes Trust
TOP H OLD ING S D ETAIL 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) properti
Slide 12: EDS Legacy Partners
TOP H OLD ING S D ETAIL 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 and includes ~1.6 million square feet of space, being redeveloped into a life sciences and medical complex INVESTMENT RATIONALE
Slide 13: NexPoint Storage Partners
TOP H OLD ING S D ETAIL 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
Slide 14: NexPoint Real Estate Finance
TOP H OLD ING S D ETAIL 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 co
Slide 15: ResMark Venture
TOP H OLD ING S D ETAIL 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 & OBJEC
Slide 16: CCS Medical
TOP H OLD ING S D ETAIL 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 glu
Slide 17: Sapience Therapeutics
TOP H OLD ING S D ETAIL 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
Slide 18: NXDT Hospitality Holdco
TOP H OLD ING S D ETAIL NXDT Hospitality Holdco 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 convertible debt of N
Slide 19: MidWave Wireless, Inc.
TOP H OLD ING S D ETAIL 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, represe
Slide 20: Easton Village
TOP H OLD ING S D ETAIL Easton Village Owns 88% of the Easton Village apartment complex in Boise, Idaho. Consists of 144 market rate, multifamily units within six garden style buildings on 7.47 acres of land with robust amenities. INVESTMENT RATIONALE & OBJECTIVE • An attractive investment in a mult
Slide 21: Appendix
HIGHLAND OPPORTUNITIES AND INCOME FUND Appendix 21
Slide 22: Selected Financial Highlights
APPEN DIX Selected Financial Highlights Quarter Ended June 30, 2025 Balance Sheet Highlights 2Q2025 1Q2025 4Q2024 3Q2024 2Q2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 Investment Portfolio at Fair Value $839 $877 $897 $963 $965 $988 $1,008 $1,046 $1,035 Total Debt Outstanding $239 $240 $140 $140 $140 $140 $
Slide 23: NexPoint's Leading Alternative Investment Platform
APPEN DIX NexPoint’s Leading Alternative Investment Platform Firm Overview AUM $16.9 billion1 Focus Alternative investments Employees 106 total employees; 27 investment professionals2 Offices Headquartered in Dallas Texas, with employees across the US DELAW AR E F IXED IN COM E DIVERS IFIED P UBL IC
Slide 24: Fund Management
APPEN DIX 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 25: Disclosures
APPEN DIX 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
Slide 26: 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 — Q2 2025 Earnings Presentation on 6ix