Nexpoint Real Estate Finance, Inc. · NYSE:NREF
Nexpoint Real Estate Finance — Q4 2023 Earnings Presentation
20 slides from Nexpoint Real Estate Finance's earnings presentation, Feb 29, 2024
Slide 1: 4Q 2023 Financial Supplement
28 APRIL 2022 NYSE:NR EF NYSE:NREF 4Q 2023 Financial 1Q 2022 FINANCIAL SUPPLEMENT Supplement February 29, 2024 CONTACT NEXPOINT REAL ESTATE FINANCE INVESTOR RELATIONS (NYSE:NREF) Kristen Thomas 300 Crescent Court, Suite 700 (e) kthomas@nexpoint.com Dallas, Texas 75201 (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: 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 of common stock and 8.50% Series A Cumulative Redeemable Preferred Stock listed on the New York Stock Exchange. The Company concentrates on i
Slide 4: 4Q 2023 Highlights
4Q 2023 Highlights $17.9MM $11.8MM $399.3MM 4Q 2023 Dividend N E T I N C O M E 4 Q 2 0 2 3 C A S H B O O K V A L U E P A I D O N DECEMBER 29, 2023 I N 4 Q 2 0 2 3 A V A I L A B L E F O R $17.93 per common share, including Paid a 4Q 2023 dividend of $0.50 per FINANCIAL Net income attributable to D I
Slide 5: 4Q 2023 Earnings And Book Value
4Q 2023 Earnings And Book Value Earnings and Book Value (4.2)% (3.1)% • Net interest income of $3.8MM, a decrease of 26.3% compared (2.2)% (1.8)% (7.4)% 0.7% to 3Q 2023 • Net income of $17.9MM, with net income attributable to common stockholders of $13.6MM, or $0.73 per diluted common share; compare
Slide 6: Net Income, EAD and CAD
Net Income, EAD and CAD 182.2% NET INCOME, EAD, CAD (3.8)% 2.3% (14.0)% (10.8)% AND GUIDANCE NET INCOME/EAD/CAD • Net income (loss) per diluted common share for 4Q 2023 is $0.74, compared to net loss of $(0.90) per diluted common (372.7)% share reported in 3Q 2023 • 4Q 2023 EAD per diluted common sh
Slide 7: Dividend and Coverage
Dividend and Coverage Dividend and Net Income/EAD/CAD SPECIAL DIVIDEND: Coverage 4Q 2023 DIVIDEND: • 4Q dividend of $0.50 per common share was paid December 29, 2023 • $12.5MM of undistributed earnings distributed throughout 2023 • 4Q 2023 Net Income dividend coverage is 1.48x • $0.74 per share for
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, multifamily properties and common stock investments in short-duration lease-term assets 5
Slide 9: Portfolio Commentary
Portfolio Commentary1 Geographic and Asset Type Exposure1 MN 5% $1.6B MD 4% CURRENT PRINCIPAL1 3% CA NC 7% GA 20% TX 15% FL LESS THAN 2.5% OF TOTAL OUTSTANDING PRINCIPAL BALANCE 17% 68.8% WEIGHTED AVG LTV1 1. AS OF DECEMBER 31, 2023, AND EXCLUDING COMMON STOCK INVESTMENTS, PREFERRED STOCK INVESTMENT
Slide 10: Portfolio
PORTFOLIO 10
Slide 11: Portfolio
Portfolio $s IN 0,000s EXCEPT PER SHARE DATA # 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 $ 68,452 4.7 % 4.7 68.1 % 2 Senior loan Various SFR 2/11/2020 9,316 1,374 5.4 % 4.1
Slide 12: Portfolio
Portfolio $s IN 0,000s EXCEPT PER SHARE DATA # Investment1 Location Property Type Investment Date Current Principal Net Equity2 Coupon3 Remaining Term4 Loan to Value DSCR 1 CMBS I/O Strip Various Multifamily 5/18/2020 $ 17,590 (6) $ 504 2.0 % 22.8 68.7 % 2 CMBS I/O Strip Various Multifamily 8/6/2020
Slide 13: Portfolio
Portfolio $s IN 0,000s EXCEPT PER SHARE DATA # Investment1 Location Property Type Investment Date Current Principal Net Equity2 Coupon3 Remaining Term4 Loan to Value DSCR 13 Mezzanine Laurel, MD Multifamily 10/20/2020 $ 7,390 $ 3,057 7.4 % 7.5 80.3 % 14 Mezzanine Tyler, TX Multifamily 10/20/2020 2,1
Slide 14: Portfolio
Portfolio $s IN 0,000s EXCEPT PER SHARE DATA # Investment1 Location Property Type Investment Date Current Principal Net Equity2 Coupon3 Remaining Term4 Loan to Value DSCR 14 Preferred Equity Phoenix, AZ Single-family 5/16/2023 $ 7,150 $ 7,083 13.5 % 3.3 N/A 15 Preferred Equity Houston, TX Life Scien
Slide 15: Portfolio footnotes
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 repres
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 December 31, 2023 September 30, 2023 December 31, 2023 December 31, 2022 Interest income $ 16,884 $ 18,014 Cash and cash equivalents $ 13,824 $ 20,048 Interest expense (1
Slide 18: Reconciliations
Reconciliations $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Reconciliation of 1Q 2024 Net Income to EAD Reconciliation of 1Q 2024 EAD to CAD Low Mid High Low Mid High For the three months ended Mar. 31, 2024 Mar. 31, 2024 Mar. 31, 2024 For the three months ended Mar. 31, 2024 Mar. 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 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 Net income (loss) attributable to common stockholders $ 13,635 $ (15,550) $ 5,747 $
Slide 20: Reconciliations
Reconciliations $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Reconciliation of Earnings Available for Distribution to CAD 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 Earnings Available for Distribution $ 10,101 $ 9,820 $ 11,546 $ 11,881 $ 9,591 $ 9,165 $ 11,091 $
NexPoint Real Estate Finance — Q4 2023 Earnings Presentation on 6ix