Nexpoint Real Estate Finance, Inc. · NYSE:NREF
Nexpoint Real Estate Finance — IPO Roadshow (July 2020)
14 slides from Nexpoint Real Estate Finance's IPO roadshow presentation, Jul 15, 2020
Slide 1: Issuer Free Writing Prospectus dated July 15, 2020
Filed Pursuant to Rule 433 Issuer Free Writing Prospectus dated July 15, 2020 Registration No. 333-239862 The Company has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in th
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS IMPORTANT INFORMATION NexPoint Real Estate Finance, Inc. (“NREF,” “we,” “us” or the “Company”) has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (“SEC”) in connection with the offering to which this presentation relates
Slide 3: Offering Overview
OFFERING OVERVIEW ISSUER NexPoint Real Estate Finance, Inc. SECURITY Series A Cumulative Redeemable Preferred Stock OFFERING SIZE $50 million OVERALLOTMENT 15% of base deal LIQUIDATION PREFERENCE $25.00 PRICE GUIDANCE 8.250% - 8.500% OPTIONAL REDEMPTION Redeemable at Issuer’s option five years from
Slide 4: Presenters
PRESENTERS Matthew Goetz Matt McGraner Paul Richards Chief Financial Officer and Executive Vice President Brian Mitts Chief Investment Officer and Executive Vice President Senior Vice President – Investments and Asset Management VP of Originations and Investments
Slide 5: Current Portfolio: Company Overview
CURRENT PORTFOLIO NexPoint Real Estate Finance is a publicly traded mortgage REIT (“mREIT”), with its shares listed on the New York Stock Exchange under the symbol “NREF.” The Company primarily concentrates on investments in real estate sectors where its senior management team has operating expertis
Slide 6: Series A Preferred and NREF Highlights
SERIES A PREFERRED AND NREF HIGHLIGHTS 99.7% of the investments collateralized by stabilized properties with 92% occupancy (7) Portfolio-wide weighted average DSCR of 1.8x (7) Weighted average loan-to-value (“LTV”) of 67.0% (7) 7.9 weighted average years to maturity (7) of portfolio investments with
Slide 7: Portfolio Commentary
PORTFOLIO COMMENTARY SINGLE-FAMILY RENTAL: SFR exhibits resiliency akin to multifamily Current portfolio of loans is capitalized by a secured credit facility with Freddie Mac – matched in both duration and structure of the underlying loans Subject to Freddie Mac forbearance program to help mitigate
Slide 8: Capitalization
CAPITALIZATION PRO FORMA FOR INVESTMENTS AND REPURCHASE AGREEMENTS ENTERED INTO SUBSEQUENT TO MARCH 31, 2020. WEIGHTED AVERAGE LIFE AS OF MAY 31, 2020 EXCEPT FOR TWO TRANSACTIONS UNDER THE MASTER REPURCHASE AGREEMENT THAT OCCURRED ON JUNE 9, 2020. AS OF MAY 31, 2020 EXCEPT FOR TWO TRANSACTIONS UNDER
Slide 9: Expected Use of Proceeds Summary
EXPECTED USE OF PROCEEDS SUMMARY NOTE: THE DETAILS OF THESE INVESTMENTS, INCLUDING EXPECTED YIELDS, ARE SUBJECT TO CHANGE PENDING THE FINALIZATION OF THE TERMS OF THE CMBS INVESTMENTS. ASSUMES 50% LEVERAGE AT 1-MONTH LIBOR + 2.75%. REPRESENTS WEIGHTED AVERAGE OF VALUES FOR CLASS D, X2A, X2B AND X3 T
Slide 10: Expected Use of Proceeds: Floating-Rate CMBS B-Piece
EXPECTED USE OF PROCEEDS: FLOATING-RATE CMBS B-PIECE DEAL SUMMARY (1) UNDERLYING POOL BALANCE: $896 million WEIGHTED AVG MORTGAGE INTEREST RATE: 1-Month LIBOR + 2.1% I/O DSCR (4): 2.3x AVERAGE LOAN-TO-VALUE: 65.2% NUMBER OF PROPERTIES: 42 NUMBER OF UNITS: 9,435 WEIGHTED AVG OCCUPANCY: 95% WEIGHTED A
Slide 11: Expected Use of Proceeds: Fixed-Rate CMBS Investment
EXPECTED USE OF PROCEEDS: FIXED-RATE CMBS INVESTMENT CLASS D TRANCHE SUMMARY (1) UNDERLYING POOL BALANCE: $1.5B WTD. AVG. MORTGAGE INTEREST RATE: 4.8% I/O DSCR (5): 2.1x AVERAGE LOAN-TO-VALUE: 68.7% NUMBER OF PROPERTIES: 64 NUMBER OF UNITS: 13,237 WEIGHTED AVG OCCUPANCY: 94% WEIGHTED AVG RENT/UNIT:
Slide 12: Recent Investments
RECENT INVESTMENTS # Investment Location Investment Date Investment Structure (2) Par Value Purchase Price Coupon (3) BEY (3)(4) Maturity Date (1) Loan to Value (5) $ % of Par 1 Freddie Mac K-1510 CMBS Various 4/15/2020 I/O N/A $0.9M N/A 3.5% 8.1% 1/25/2037 65% 2 Freddie Mac K-1513 CMBS Various 4/15
Slide 13: Pro Forma Capitalization
PRO FORMA CAPITALIZATION REFLECTS RECENT INVESTMENTS DETAILED ON PAGE 12 AND THE REPURCHASE AGREEMENTS ENTERED INTO TO FINANCE THESE INVESTMENTS. ASSUMES $50 MILLION PREFERRED EQUITY OFFERING WITH PROCEEDS ALLOCATED TO INVESTMENTS DETAILED ON PAGE 9 WITH THE REMAINDER FINANCED BY REPURCHASE AGREEMEN
Slide 14: Pro Forma Coverage
PRO FORMA COVERAGE NOTE: ASSUMES 1-MONTH LIBOR OF 0.18% AS OF JUNE 30, 2020. ASSUMES SERIES A PREFERRED STOCK HAS AN 8.000% DIVIDEND PER ANNUM AND ASSUMES $50 MILLION PREFERRED STOCK OFFERING. CALCULATED BASED ON NET INCOME PLUS INTEREST EXPENSE DIVIDED BY THE SUM OF INTEREST EXPENSE AND THE ANTICIP
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