Nexpoint Real Estate Finance, Inc. · NYSE:NREF
Nexpoint Real Estate Finance — Q3 2024 Earnings Presentation
20 slides from Nexpoint Real Estate Finance's earnings presentation, Oct 31, 2024
Slide 1: 3Q 2024 Financial Supplement
28 APRIL 2022 NYSE:NR EF NYSE:NREF 3Q 2024 Financial 1Q 2022 FINANCIAL Supplement SUPPLEMENT October 31, 2024 CONTACT NEXPOINT REAL ESTATE FINANCE INVESTOR RELATIONS (NYSE:NREF) Kristen Griffith 300 Crescent Court, Suite 700 (e) kgriffith@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: 3Q 2024 Highlights
3Q 2024 Highlights $381.3MM 3Q 2024 Dividend $23.3MM $15.7MM B O O K V A L U E P A I D O N S E P T E M B E R N E T I N C O M E 3 Q 2 0 2 4 C A S H $16.95 per common share, including 3 0 , 2 0 2 4 I N 3 Q 2 0 2 4 A V A I L A B L E F O R FINANCIAL Paid a 3Q 2024 dividend of $0.50 per Net income attrib
Slide 5: 3Q 2024 Earnings And Book Value
3Q 2024 Earnings And Book Value Earnings and Book Value (3.1)% (2.2)% (1.8)% • Net interest income of $12.5MM, an increase of $5.8MM compared to 2Q 2024 (7.4)% 0.7% (6.9)% (1.1)% 2.7% • Net income of $23.3MM, with net income attributable to common stockholders of $16.1MM, or $0.74 per diluted common
Slide 6: Earnings per Share (EPS), EAD and CAD
Earnings per Share (EPS)1, EAD2 and CAD2 EPS, EAD, CAD AND GUIDANCE 130.0% 182.2% 10.6% 5.0% 247.8% (19.6)% (14.0)% 2.3% 148.2% EPS/EAD/CAD • Earnings per diluted share for 3Q 2024 is $0.74, compared to earnings per diluted (204.5)% share of $0.40 reported in 2Q 2024 (212.2)% (372.7)% • 3Q 2024 EAD
Slide 7: Dividend and Coverage
Dividend and Coverage Dividend and EPS/EAD/CAD Coverage 3Q 2024 DIVIDEND: • 3Q dividend of $0.50 per common share was paid on September 30, 2024 • 3Q 2024 EPS dividend coverage is 1.84x • 3Q 2024 EAD dividend coverage is 1.50x • 3Q 2024 CAD dividend coverage is 1.34x 4Q 2024 DIVIDEND: • 4Q 2024 divi
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, mortgage backed 3.9 securities, multifamily properties, promissory notes, and common stock investments in short-duration lease-te
Slide 9: Portfolio Commentary: Geographic and Asset Type Exposure
Portfolio Commentary1 Geographic and Asset Type Exposure1 MA 20% $1.1B CURRENT PRINCIPAL1 MD 5% CA 8% GA 6% TX 16% FL 6% LESS THAN 4.0% OF TOTAL OUTSTANDING PRINCIPAL BALANCE 60.2% WEIGHTED AVG LTV1 1. AS OF SEPTEMBER 30, 2024, AND EXCLUDING COMMON STOCK INVESTMENTS, PREFERRED STOCK INVESTMENT AND T
Slide 10: Portfolio
PORTFOLIO 10
Slide 11: Portfolio: Senior Loans
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 Senior Loans 1 Senior Loan Various Single-family 2/11/2020 $ 8,248 $ 1,194 5.4 % 3.3 55.9 % 2 Senior Loan Various Single-family 2
Slide 12: Portfolio: CMBS I/O Strips
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 CMBS I/O Strips 1 CMBS I/O Strip Various Multifamily 5/18/2020 $ 17,590 (6) $ 468 2.1 % 5.3 68.1 % 2 CMBS I/O Strip Various Multi
Slide 13: Portfolio: Mezzanine
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 12 Mezzanine Cockeysville, MD Multifamily 10/20/2020 $ 9,610 $ 3,957 7.4 % 6.8 84.3 % 13 Mezzanine Laurel, MD Multifamily 10/20/2
Slide 14: Portfolio: Preferred and Common Equity
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 16 Preferred Equity Knxoville, TN Marina 6/28/2024 $ 7,100 $ 7,065 13.0 % 4.1 67.1 % Total Preferred Equity $ 222,898 $ 222,557 1
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, promissory notes, stock warrants and mortgage-backed securities as well as the net equity of our CMBS B-Piece investments.
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, 2024 June 30, 2024 September 30, 2024 December 31, 2023 Interest income $ 23,559 $ 18,233 Cash and cash equivalents $ 34,707 $ 13,824 Interest expense (11,0
Slide 18: Reconciliations
Reconciliations $s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED Reconciliation of 4Q 2024 Net Income to EAD Reconciliation of 4Q 2024 EAD to CAD Low Mid High Low Mid High For the three months ended Dec. 31, 2024 Dec. 31, 2024 Dec. 31, 2024 For the three months ended Dec. 31, 2024 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 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 Net income (loss) attributable to common stockholders $ 16,116 $ 7,488 $ (14
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 2024 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 Earnings Available for Distribution $ 17,614 $ 15,959 $ (11,451) $ 10,101 $ 9,820 $ 11,456
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