Nexpoint Real Estate Finance, Inc. · NYSE:NREF
Nexpoint Real Estate Finance — Q3 2023 Earnings Presentation
20 slides from Nexpoint Real Estate Finance's earnings presentation, Nov 2, 2023
Slide 1: 3Q 2023 Financial Supplement
NYSE:NREF 3Q 2023 Financial Supplement November 2, 2023 CONTACT NEXPOINT REAL ESTATE FINANCE INVESTOR RELATIONS (NYSE:NREF) Kristen Thomas 300 Crescent Court, Suite 700 (p) 214.908.1854 Dallas, Texas 75201 (e) kthomas@nexpoint.com (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: 3Q 2023 Highlights
3Q 2023 Highlights $15.4MM $10.8MM $398.2MM 3Q 2023 Dividend N E T L O S S 3 Q 2 0 2 3 C A S H B O O K V A L U E P A I D O N I N 3 Q 2 0 2 3 A V A I L A B L E F O R $17.88 per common share, S E P T E M B E R 2 9 , FINANCIAL Net income (loss) attributable D I S T R I B U T I O N including redeemable
Slide 5: 3Q 2023 Earnings And Book Value
3Q 2023 Earnings And Book Value Book Value Per Common Share Growth Earnings and Book Value 2.2% 1.3% (0.9)% (4.2)% • Net interest income of $4.8MM, an increase of 14.6% compared (3.1)% (2.2)% (1.8)% to 2Q 2023 (7.1)% • Net loss of $15.4MM, with net loss attributable to common stockholders of $14.2MM
Slide 6: Net Income, EAD and CAD
Net Income, EAD and CAD Net Income (Loss) and EAD Per Diluted Share NET INCOME, EAD, CAD $1.20 (59.2)% 23.8% (3.8)% 4.7% AND GUIDANCE (18.4)% 5.0% (14.0)% 147.6% 317.6% $0.78 (10.8)% (66.7)% $0.49 $0.52 $0.50 $0.45 $0.40 $0.42 $0.37 $0.43 $0.39 $0.26 $0.33 NET INCOME/EAD/CAD $(0.17) $(0.49) 65.3% •
Slide 7: Dividend and Coverage
Dividend and Coverage Net Income and EAD Dividend Coverage $0 .60 1.50 x Dividend and Net $0 .50 0.98x 0.52x 1.04x 0.74x 1.00x 0.86x 0.90x 1.0 0x 0.80x 0.84x Income/EAD/CAD Coverage 0.66x 0.79x 0. 50x $0 .40 3Q 2023 DIVIDEND: 0. 00x $0 .30 -0.34x • 3Q dividend of $0.50 per common share was paid $0.5
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, a multifamily property and common stock investments in short-duration 5.4 lease-term asse
Slide 9: Portfolio Commentary: Geographic and Asset Type
Portfolio Commentary1 Geographic and Asset Type MN Exposure1 4% Life Sciences & Self- Specialty Storage Manufacturing 4.6% 1.5% MD 4% $1.6B SFR CURRENT 45.8% 3% PRINCIPAL1 CA 6% NC Multifamily 48.1% GA TX 21% 14% Preferred Mortgage Backed 10.9% Securities 2.5% FL Senior Loan LESS THAN 2.5% OF TOTAL
Slide 10: Portfolio
PORTFOLIO 10
Slide 11: Portfolio
Portfolio $s IN 0,000s EXCEPT PER SHARE DATA Investment Current Remaining # Investment 1 Location Property Type Date Principal Net Equity 2 Coupon 3 Term 4 Loan to Value DSCR 1 Senior Loan Various SFR 2/11/2020 $508,700 $69,689 4.65% 4.9 68.1% 2 Senior Loan Various SFR 2/11/2020 51,304 6,502 4.74% 2
Slide 12: Portfolio
Portfolio $s IN 0,000s EXCEPT PER SHARE DATA Property Investment Current Remaining # Investment 1 Location Type Date Principal Net Equity 2 Coupon 3 Term 4 Loan to Value DSCR 6 1 CMBS IO Strip Various Multifamily 5/18/2020 $2,430 $438 2.09% 23.0 68.8% 6 2 CMBS IO Strip Various Multifamily 8/6/2020 1
Slide 13: Portfolio
Portfolio $s IN 0,000s EXCEPT PER SHARE DATA Property Investment Remaining Loan to # Investment 1 Location Type Date Current Principal Net Equity 2 Coupon 3 Term 4 Value DSCR 13 Mezzanine Atlanta, GA Multifamily 10/20/2020 $3,310 $1,364 6.91% 5.8 80.3% 14 Mezzanine Temple Hills, MD Multifamily 10/20
Slide 14: Portfolio
Portfolio $s IN 0,000s EXCEPT PER SHARE DATA Property Investment Remaining # Investment 1 Location Type Date Current Principal Net Equity 2 Coupon 3 Term 4 Loan to Value DSCR Specialty 14 Preferred Equity Temecula, CA 4/6/2023 22,945 21,921 17.50% 1.0 N/A Manufacturing N/A 15 Preferred Equity Phoeni
Slide 15: Portfolio
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 REPRE
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 September 30, 2023 June 30, 2023 September 30, 2023 December 31, 2022 Interest income $18,014 $17,299 Cash and cash equivalents $10,977 $20,048 Interest expense (13,197)
Slide 18: Reconciliations
Reconciliations $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Reconciliation of 4Q 2023 Net Income to EAD Reconciliation of 4Q 2023 EAD to CAD Low Mid High Low Mid High For the three months ended Dec. 31, 2023 Dec. 31, 2023 Dec. 31, 2023 For the three months ended Dec. 31, 2023 Dec. 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 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 4Q 2021 3Q 2021 2Q 2021 Net income (loss) attributable to common stockholders $(14,186) $5,7
Slide 20: Reconciliations
Reconciliations $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Reconciliation of Earnings Available for Distribution to CAD 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 4Q 2021 3Q 2021 2Q 2021 Earnings Available for Distribution $9,820 $11,546 $11,881 $9,591 $9,165 $11,091 $
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