Nexpoint Real Estate Finance Stock Earnings Reports

NexPoint Real Estate Finance reported Q3 2025 net income of $1.12 per diluted share (vs. $0.74 a year prior), driven by unrealized gains on preferred stock and warrants. Earnings available for distribution (EAD) and cash available for distribution (CAD) were $0.51 and $0.53 per diluted share, respectively; the company paid a $0.50 quarterly dividend (covered 1.06x by CAD) and declared a $0.50 dividend for Q4. Book value rose 8% Q/Q to $18.79 per diluted share. Portfolio highlights: 88 investments, $1.1B outstanding, concentrated in multifamily (47.3%) and life sciences (33.9%), 87.4% of collateral stabilized, WA DSCR 1.41x, WA LTV 54.9%. Debt outstanding was $720.9M at a 5.3% WA cost; the company replaced $36.5M of notes with $45M of new senior unsecured notes at a 7.875% coupon and plans to term out remaining senior unsecured notes in 1H26. Capital raises: Series B preferred is near its $400M limit, prompting a planned Series C preferred offering of $200M at an 8% coupon to fund deployments targeting ~400 bps spreads. Active deployment and pipeline: funded life science preferreds and a high-coupon loan during the quarter, sold a multifamily asset for $60M (gain $3.7M), and outlined a $350M+ pipeline across multifamily, BTR, small-bay industrial/storage, and life sciences. Management expresses cautious optimism on multifamily and storage supply trends and highlights a stabilizing life sciences investment (Alewife) anchored by a large lease, which improves optionality (refinance, A-note, or sale). Q4 guidance: EAD $0.48/share midpoint (range $0.43–$0.53); CAD $0.50/share midpoint (range $0.45–$0.55). Management reiterated low leverage, healthy dividend coverage, and willingness to pursue accretive growth and opportunistic buybacks.