NexPoint Real Estate ate Finance (NREF) AI Stock Analysis

• Market Cap: $251.83M
• Dividend Yield: 14.07%
• Average Volume (3M): 61.53K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.51
• Revenue Growth: 15.51%
• EPS Growth: 210.91%
• Country: US
• Employees: 1
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.51
• Shares Outstanding: 17,721,828
• 10 Day Avg. Volume: 86,259
• 30 Day Avg. Volume: 61,526
• PEG Ratio: 0.13
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 2.48
• P/FCF Ratio: 9.32
• Enterprise Value/Market Cap: 21.76
• Enterprise Value/Revenue: 32.72
• Enterprise Value/Gross Profit: 34.34
• Enterprise Value/Ebitda: 36.48
• 1Y Price Target: $14.13
• Price Target Upside: -0.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.96
• Revenue Forecast (FY): $74.10M

• Rating: 74 Outperform
• Price Target: $16.00 ▲(12.60% Upside)

NexPoint Real Estate Finance's overall stock score is driven by its strong valuation and technical indicators, despite financial risks from high leverage and mixed earnings call results. The attractive P/E ratio and dividend yield, along with bullish technical momentum, are significant positives.

Positive Factors

Revenue Growth

The robust revenue growth indicates effective business expansion and strong demand for NREF's financing solutions, supporting long-term profitability.

High Profit Margins

High profit margins suggest strong operational efficiency, allowing NREF to maintain profitability even in challenging market conditions.

Successful Fundraising

The successful fundraising enhances NREF's balance sheet, providing capital for growth and reinforcing investor confidence in its strategic initiatives.

Negative Factors

High Leverage

High leverage can pose financial risks, potentially impacting NREF's ability to manage debt and maintain financial stability in the long term.

Negative Free Cash Flow Growth

Negative free cash flow growth may limit NREF's ability to reinvest in its business and meet financial obligations, affecting future operational flexibility.

Decline in Earnings Available for Distribution

A decline in earnings available for distribution may impact NREF's ability to sustain dividend payments, affecting investor returns and confidence.

NexPoint Real Estate ate Finance Business Overview & Revenue Model

Company Description

NexPoint Real Estate Finance, Inc. operates as a real estate finance company in the United States. It focuses on originating, structuring, and investing in first mortgage loans, mezzanine loans, preferred equity, and preferred stock, as well as multifamily commercial mortgage backed securities securitizations. The company intends to qualify as a real estate investment trust for U.S. federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2019 and is based in Dallas, Texas.

How the Company Makes Money

NexPoint Real Estate Finance generates revenue primarily through interest income from its loan portfolio, which consists of first mortgage loans, mezzanine loans, and preferred equity investments. The company earns interest on the loans it originates, which is a key revenue stream. Additionally, NREF may also generate income from management fees and servicing fees related to its investments. The company often partners with established real estate operators and developers, allowing it to access lucrative investment opportunities and share in the financial upside of successful projects. Furthermore, the firm's strategic focus on multifamily and other resilient property types contributes to the stability and growth of its earnings.

NexPoint Real Estate ate Finance Financial Statement Overview

Summary

NexPoint Real Estate Finance shows strong revenue growth and profitability with high margins. However, the high debt-to-equity ratio and negative free cash flow growth present potential risks. Effective management of debt levels is crucial to maintain financial stability.

Income Statement

NexPoint Real Estate Finance shows strong revenue growth with a 26.7% increase in TTM, indicating robust business expansion. The gross profit margin is high at 92.15%, reflecting efficient cost management. The net profit margin is also impressive at 55.04%, suggesting strong profitability. However, the EBIT and EBITDA margins are unusually high, which may require further investigation.

Balance Sheet

The company has a high debt-to-equity ratio of 13.53, indicating significant leverage, which could pose financial risks. Return on equity is solid at 21.54%, showing effective use of equity to generate profits. However, the high leverage could impact financial stability if not managed carefully.

Cash Flow

Free cash flow growth is negative at -17.23%, which is a concern for future liquidity. The operating cash flow to net income ratio is low at 0.14, suggesting potential cash flow issues. However, the free cash flow to net income ratio is stable at 1.0, indicating that the company is generating enough free cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	167.45M	110.32M	42.09M	40.38M	34.75M	19.49M
Gross Profit	159.55M	99.25M	37.90M	35.99M	34.75M	19.49M
EBITDA	150.18M	90.39M	0.00	57.35M	0.00	0.00
Net Income	96.42M	29.19M	13.97M	6.75M	43.09M	12.85M
Balance Sheet
Total Assets	5.28B	5.42B	7.02B	8.15B	8.51B	6.18B
Cash, Cash Equivalents and Short-Term Investments	21.56M	3.88M	13.82M	20.05M	26.46M	30.24M
Total Debt	4.48B	4.82B	6.56B	7.59B	8.00B	5.77B
Total Liabilities	4.50B	4.84B	6.57B	7.61B	8.01B	5.77B
Stockholders Equity	375.42M	482.18M	355.94M	383.98M	238.01M	128.24M
Cash Flow
Free Cash Flow	31.81M	29.28M	31.56M	65.80M	49.30M	32.90M
Operating Cash Flow	31.81M	29.28M	31.56M	65.80M	49.30M	32.90M
Investing Cash Flow	500.26M	956.54M	741.34M	950.58M	517.88M	-68.26M
Financing Cash Flow	-549.22M	-995.42M	-776.60M	-1.03B	-567.41M	68.83M

NexPoint Real Estate ate Finance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NREF, the sentiment is Positive. The current price of 14.21 is below the 20-day moving average (MA) of 14.23, above the 50-day MA of 13.54, and above the 200-day MA of 13.45, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 18.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NREF.

NexPoint Real Estate ate Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REFI	75 Outperform	$273.77M	7.68	11.82%	15.86%	-1.57%	-15.32%
NREF	74 Outperform	$251.83M	4.97	27.37%	14.07%	15.51%	210.91%
SEVN	66 Neutral	$205.20M	8.87	5.72%	13.65%	-18.06%	-18.94%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MITT	60 Neutral	$279.67M	9.47	9.03%	9.61%	20.44%	-59.21%
AOMR	55 Neutral	$217.00M	12.19	6.67%	14.70%	65.86%	-74.61%
ACRE	48 Neutral	$292.74M	-36.54	-1.42%	13.16%	-30.60%	87.95%

NexPoint Real Estate ate Finance Corporate Events

NexPoint Real Estate Finance Closes Series B Offering

On December 10, 2025, NexPoint Real Estate Finance announced the successful closing of its 9.00% Series B Cumulative Redeemable Preferred Stock offering, raising approximately $404.5 million, surpassing its initial $400 million target. This milestone reflects strong investor confidence and allows the company to strengthen its balance sheet and expand its real estate lending portfolio. Concurrently, NexPoint launched its 8.00% Series C Cumulative Redeemable Preferred Stock offering, aiming to raise $200 million, furthering its strategic growth initiatives and commitment to providing attractive investment solutions.

NexPoint Launches $200M Series C Preferred Stock Offering

On November 4, 2025, NexPoint Real Estate Finance, Inc. announced the launch of a $200 million public offering of 8.00% Series C Cumulative Redeemable Preferred Stock. The offering, managed by NexPoint Securities, Inc., aims to sell up to 8,000,000 shares at $25.00 each. The proceeds are intended for general corporate purposes, including funding investments and debt repayment. The Series C Preferred Stock will not be listed on any national securities exchange, and the offering is expected to conclude by December 29, 2026, unless extended or terminated earlier by the company’s board. The issuance of Series C Preferred Units in the operating partnership will mirror the economic terms of the Series C Preferred Stock, enhancing the company’s capital structure and offering potential benefits to stakeholders.

NexPoint Real Estate Finance Issues $45M in Notes

On October 10, 2025, NexPoint Real Estate Finance Operating Partnership entered into a note purchase agreement to issue $45 million in senior unsecured notes, intending to use the proceeds to repay existing debt and for general corporate purposes. The agreement includes provisions for redemption, extensions, and covenants, impacting the company’s financial operations and obligations, with potential implications for stakeholders due to changes in debt structure and financial commitments.

NexPoint Real Estate Finance Expands Preferred Stock Offering

On October 1, 2025, NexPoint Real Estate Finance, Inc. announced amendments to its offering of Series B Cumulative Redeemable Preferred Stock, increasing the total offering to 17,200,000 shares. The company plans to use the proceeds to support its operating partnership, enhancing its financial structure and market presence. The amendments also involve changes to the partnership and dealer manager agreements, reflecting strategic adjustments to optimize the offering process and align with regulatory requirements.