Nexpoint Real Estate Finance Inc (NREF)
NYSE:NREF
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NexPoint Real Estate ate Finance
(NYSE:NREF)
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Rating:56Neutral
Price Target:
$14.00
â–²(5.66% Upside)
Action:DowngradedDate:04/01/26
The score is held back primarily by financial risk factors—high leverage despite improvement, declining revenue, and weak cash conversion—plus soft technical momentum. These are partially offset by very attractive headline valuation (low P/E and high yield) and a cautiously constructive earnings call focused on reducing leverage, improving CAD, and maintaining a covered dividend, though near-term credit and refinancing items add risk.
Positive Factors
Leverage Improvement
A material reduction in debt-to-equity over the last year demonstrates management progress on deleveraging. Lower leverage meaningfully reduces funding and mark-to-market sensitivity, improving resilience to rate or CRE valuation moves and supporting steadier dividend coverage over months.
Negative Factors
High Absolute Leverage
Despite improvement, very large absolute debt levels keep the company highly sensitive to funding and asset-value swings. Elevated debt amplifies refinancing, liquidity, and volatility risks, constraining strategic flexibility and making the business vulnerable if market conditions deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Leverage Improvement
A material reduction in debt-to-equity over the last year demonstrates management progress on deleveraging. Lower leverage meaningfully reduces funding and mark-to-market sensitivity, improving resilience to rate or CRE valuation moves and supporting steadier dividend coverage over months.
Read all positive factors
NexPoint Real Estate ate Finance (NREF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$249.47M
Dividend Yield14.36%
Average Volume (3M)62.35K
Price to Earnings (P/E)3.2
Beta (1Y)0.57
Revenue Growth15.51%
EPS Growth210.91%
CountryUS
Employees1
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.48
Shares Outstanding18,686,983
10 Day Avg. Volume51,758
30 Day Avg. Volume62,346
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.46
Price to Sales (P/S)1.57
P/FCF Ratio14.98
Enterprise Value/Market Cap18.69
Enterprise Value/Revenue36.96
Enterprise Value/Gross Profit40.97
Enterprise Value/Ebitda27.42
Forecast
1Y Price Target
$14.00Price Target Upside5.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.7
Revenue Forecast (FY)N/A
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 mu...
How the Company Makes Money
NREF generates earnings primarily from (1) interest income and related loan economics and (2) investment income from real estate-related positions. Its core revenue model is to raise capital (including equity capital and debt/secured financing) an...
NexPoint Real Estate ate Finance Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call contained multiple positive execution items — strong reported net income (driven by unrealized gains), improved CAD quarter‑over‑quarter, successful capital raises (Series B) and an accretive re‑REMIC transaction expected to add ~$0.30–$0.34 per share to annual CAD. Portfolio highlights include outperformance in the storage portfolio (91.7% occupancy, +13% NOI) and promising leasing momentum at the Alewife life‑science asset. Offsetting these positives were meaningful declines in EAD year‑over‑year (-~42%), a $12M CECL provision, near‑term refinancing of $180M of unsecured notes, and broader self‑storage industry softness. On balance, management demonstrated active portfolio and capital management with clear paths to improve CAD and leverage, while some earnings and credit items warrant caution.Positive Updates
Large YoY Increase in Reported Net Income (Non‑Cash Driven)
Net income was $0.52 per diluted share in Q4 2025 versus $0.043 in Q4 2024 — an increase of approximately +1,100%, primarily driven by unrealized gains on preferred stock and stock warrant investments (non‑cash).
Negative Updates
Earnings Available for Distribution (EAD) Decline YoY
EAD was $0.48 per diluted share in Q4 2025 versus $0.83 in Q4 2024, a decline of approximately -42% year‑over‑year, signaling lower distributable earnings on a GAAP‑adjusted cash basis compared with the prior year period.
Read all updates
Q4-2025 Updates
Positive
Negative
Large YoY Increase in Reported Net Income (Non‑Cash Driven)
Net income was $0.52 per diluted share in Q4 2025 versus $0.043 in Q4 2024 — an increase of approximately +1,100%, primarily driven by unrealized gains on preferred stock and stock warrant investments (non‑cash).
Read all positive updates
Company Guidance
Management's Q1 guidance calls for a $75.2 million reduction in debt, lowering the debt‑to‑equity ratio to 0.83x, and assumes the new HRR tranche will yield ~18.5%; they forecast earnings available for distribution (EAD) of $0.40 per diluted share at the midpoint (range $0.35–$0.45) and cash available for distribution (CAD) of $0.50 per diluted share at the midpoint (range $0.45–$0.55). The re‑REMIC transaction is expected to be roughly $0.30–$0.34 per share accretive to annual CAD through interest‑expense savings and reinvestment capacity; the Board has declared a $0.50 per share dividend for 2026 (Q4 dividend was $0.50 and was 1.06x covered by CAD), and book value per diluted share was $19.10 (up 1.4% Q/Q).NexPoint Real Estate ate Finance Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
34
Negative
Cash Flow
40
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 218.22M | 110.32M | 42.09M | 40.38M | 34.75M |
| Gross Profit | 136.48M | 99.25M | 37.90M | 35.99M | 34.75M |
| EBITDA | 167.92M | 90.39M | 0.00 | 57.35M | 0.00 |
| Net Income | 106.84M | 29.19M | 13.97M | 6.75M | 43.09M |
Balance Sheet | |||||
| Total Assets | 5.32B | 5.42B | 7.02B | 8.15B | 8.51B |
| Cash, Cash Equivalents and Short-Term Investments | 34.35M | 3.88M | 13.82M | 20.05M | 26.46M |
| Total Debt | 4.46B | 4.82B | 6.56B | 7.59B | 8.00B |
| Total Liabilities | 4.49B | 4.84B | 6.57B | 7.61B | 8.01B |
| Stockholders Equity | 751.38M | 482.18M | 355.94M | 383.98M | 238.01M |
Cash Flow | |||||
| Free Cash Flow | 22.92M | 29.28M | 31.56M | 65.80M | 49.30M |
| Operating Cash Flow | 22.92M | 29.28M | 31.56M | 65.80M | 49.30M |
| Investing Cash Flow | 321.54M | 956.54M | 741.34M | 950.58M | 517.88M |
| Financing Cash Flow | -424.26M | -995.42M | -776.60M | -1.03B | -567.41M |
NexPoint Real Estate ate Finance Technical Analysis
Negative
13.25
Price Trends
13.88
Negative
13.74
Negative
13.33
Negative
Market Momentum
-0.16
Negative
44.21
Neutral
59.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NREF, the sentiment is Negative. The current price of 13.25 is below the 20-day moving average (MA) of 13.35, below the 50-day MA of 13.88, and below the 200-day MA of 13.33, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 44.21 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NREF.
NexPoint Real Estate ate Finance Risk Analysis
NexPoint Real Estate ate Finance disclosed 106 risk factors in its most recent earnings report. NexPoint Real Estate ate Finance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NexPoint Real Estate ate Finance Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $184.39M | 8.79 | 5.46% | 13.82% | -18.06% | -18.94% | |
65 Neutral | $207.04M | 4.63 | 17.10% | 14.83% | 65.86% | -74.61% | |
60 Neutral | $236.52M | 7.15 | 11.63% | 15.86% | -1.57% | -15.32% | |
57 Neutral | $239.60M | 4.98 | 8.85% | 9.61% | 20.44% | -59.21% | |
56 Neutral | $249.47M | 3.21 | 19.02% | 14.36% | 15.51% | 210.91% | |
52 Neutral | $264.66M | -16.99 | -0.17% | 13.75% | -30.60% | 87.95% |
* Real Estate Sector Average
NREF
NexPoint Real Estate ate Finance
13.25
2.14
19.25%
ACRE
Ares Commercial
4.78
1.61
50.93%
SEVN
Seven Hills Realty Trust
8.16
-1.52
-15.70%
MITT
AG Mortgage
7.55
2.12
38.99%
AOMR
Angel Oak Mortgage
8.31
1.65
24.70%
REFI
Chicago Atlantic Real Estate ate Finance Inc
11.22
-0.37
-3.17%
NexPoint Real Estate ate Finance Corporate Events
Business Operations and StrategyPrivate Placements and Financing
NexPoint Real Estate Finance Provides New Intercompany Loan
Neutral
Jan 23, 2026
On January 16, 2026, NexPoint Real Estate Finance Operating Partnership, L.P., the operating partnership of NexPoint Real Estate Finance, Inc., provided a $16.7 million loan to NexPoint Storage Partners Operating Company, LLC, under a promissory n...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.