NREF Announces Fourth Quarter 2024 Results, Provides First Quarter 2025 Guidance
NexPoint Real Estate Finance (NYSE: NREF) has released its Q4 2024 financial results, reporting net income of $8.4 million ($0.43 per diluted share) and cash available for distribution of $10.9 million ($0.47 per diluted share).
The company maintains a diverse portfolio valued at $1.2 billion across 83 investments, with the following allocation: multifamily (49.7%), life sciences (31.0%), single-family rental (15.5%), specialty manufacturing (1.8%), self-storage (1.5%), and marinas (0.6%). The portfolio's weighted-average loan to value is 59.2% with a debt service coverage ratio of 1.32x.
Key Q4 activities include redeeming a $9.5MM mortgage-backed security and funding a $16.7MM loan with a monthly coupon of SOFR + 900 bps. For Q1 2025, NREF projects earnings available for distribution per diluted share of $0.455 and cash available for distribution of $0.505 at the midpoint.
NexPoint Real Estate Finance (NYSE: NREF) ha pubblicato i risultati finanziari del quarto trimestre 2024, riportando un reddito netto di 8,4 milioni di dollari (0,43 dollari per azione diluita) e liquidità disponibile per distribuzione di 10,9 milioni di dollari (0,47 dollari per azione diluita).
L'azienda mantiene un portafoglio diversificato del valore di 1,2 miliardi di dollari distribuito su 83 investimenti, con la seguente allocazione: residenziale multifamiliare (49,7%), scienze della vita (31,0%), affitti unifamiliari (15,5%), produzione specializzata (1,8%), self-storage (1,5%) e porti turistici (0,6%). Il rapporto medio ponderato prestito/valore è del 59,2% con un rapporto di copertura del servizio del debito di 1,32x.
Le principali attività del quarto trimestre includono il riscatto di un titolo garantito da mutuo da 9,5 milioni di dollari e il finanziamento di un prestito da 16,7 milioni di dollari con un coupon mensile di SOFR + 900 bps. Per il primo trimestre 2025, NREF prevede utili disponibili per distribuzione per azione diluita di 0,455 dollari e liquidità disponibile per distribuzione di 0,505 dollari al punto medio.
NexPoint Real Estate Finance (NYSE: NREF) ha publicado sus resultados financieros del cuarto trimestre de 2024, reportando un ingreso neto de 8.4 millones de dólares (0.43 dólares por acción diluida) y efectivo disponible para distribución de 10.9 millones de dólares (0.47 dólares por acción diluida).
La compañía mantiene un portafolio diverso valorado en 1.2 mil millones de dólares distribuido en 83 inversiones, con la siguiente asignación: multifamiliar (49.7%), ciencias de la vida (31.0%), renta unifamiliar (15.5%), manufactura especializada (1.8%), autoalmacenamiento (1.5%) y marinas (0.6%). El promedio ponderado de préstamo a valor del portafolio es del 59.2% con un índice de cobertura del servicio de la deuda de 1.32x.
Las actividades clave del cuarto trimestre incluyen el rescate de un valor respaldado por hipoteca de 9.5 millones de dólares y el financiamiento de un préstamo de 16.7 millones de dólares con un cupón mensual de SOFR + 900 puntos básicos. Para el primer trimestre de 2025, NREF proyecta ganancias disponibles para distribución por acción diluida de 0.455 dólares y efectivo disponible para distribución de 0.505 dólares en el punto medio.
NexPoint Real Estate Finance (NYSE: NREF)는 2024년 4분기 재무 결과를 발표하며 840만 달러의 순이익 (희석주당 0.43달러) 및 배당 가능 현금 1,090만 달러 (희석주당 0.47달러)를 보고했습니다.
회사는 83개의 투자에 걸쳐 12억 달러 가치의 다양한 포트폴리오를 유지하고 있으며, 다음과 같은 배분을 가지고 있습니다: 다가구 (49.7%), 생명 과학 (31.0%), 단독 주택 임대 (15.5%), 특수 제조 (1.8%), 자기 저장 (1.5%), 및 마리나 (0.6%). 포트폴리오의 가중 평균 대출 대 가치 비율은 59.2%이며, 부채 서비스 비율은 1.32배입니다.
4분기의 주요 활동에는 950만 달러의 모기지 담보 증권을 상환하고, 월별 쿠폰이 SOFR + 900 bps인 1,670만 달러의 대출을 자금 조달하는 것이 포함됩니다. 2025년 1분기 동안 NREF는 희석주당 배당 가능 수익을 0.455달러, 배당 가능 현금을 0.505달러로 예상합니다.
NexPoint Real Estate Finance (NYSE: NREF) a publié ses résultats financiers du quatrième trimestre 2024, rapportant un revenu net de 8,4 millions de dollars (0,43 dollar par action diluée) et des liquidités disponibles pour distribution de 10,9 millions de dollars (0,47 dollar par action diluée).
L'entreprise maintient un portefeuille diversifié d'une valeur de 1,2 milliard de dollars réparti sur 83 investissements, avec la répartition suivante : multifamilial (49,7 %), sciences de la vie (31,0 %), location unifamiliale (15,5 %), fabrication spécialisée (1,8 %), self-stockage (1,5 %) et marinas (0,6 %). Le ratio moyen pondéré du prêt par rapport à la valeur est de 59,2 % avec un ratio de couverture du service de la dette de 1,32x.
Les principales activités du quatrième trimestre incluent le rachat d'un titre adossé à des hypothèques de 9,5 millions de dollars et le financement d'un prêt de 16,7 millions de dollars avec un coupon mensuel de SOFR + 900 points de base. Pour le premier trimestre 2025, NREF prévoit des bénéfices disponibles pour distribution par action diluée de 0,455 dollar et des liquidités disponibles pour distribution de 0,505 dollar au point médian.
NexPoint Real Estate Finance (NYSE: NREF) hat seine finanziellen Ergebnisse für das 4. Quartal 2024 veröffentlicht und berichtet von einem Nettogewinn von 8,4 Millionen Dollar (0,43 Dollar pro verwässerter Aktie) sowie einem verfügbaren Bargeld für Ausschüttungen von 10,9 Millionen Dollar (0,47 Dollar pro verwässerter Aktie).
Das Unternehmen hält ein diversifiziertes Portfolio im Wert von 1,2 Milliarden Dollar über 83 Investitionen, mit folgender Verteilung: Mehrfamilienhäuser (49,7%), Lebenswissenschaften (31,0%), Einfamilienhausvermietung (15,5%), Spezialproduktion (1,8%), Self-Storage (1,5%) und Marinas (0,6%). Das gewichtete durchschnittliche Verhältnis von Darlehen zu Wert beträgt 59,2% mit einem Schuldendienstdeckungsgrad von 1,32x.
Wichtige Aktivitäten im 4. Quartal umfassen die Einlösung einer hypothekenbesicherten Anleihe über 9,5 Millionen Dollar und die Finanzierung eines Darlehens über 16,7 Millionen Dollar mit einem monatlichen Coupon von SOFR + 900 Basispunkten. Für das 1. Quartal 2025 prognostiziert NREF einen Gewinn pro verwässerter Aktie von 0,455 Dollar und ein verfügbares Bargeld für Ausschüttungen von 0,505 Dollar im Mittelwert.
- Strong Q4 net income of $8.4M ($0.43/share)
- Robust cash available for distribution of $10.9M ($0.47/share)
- Well-diversified $1.2B portfolio across 83 investments
- Conservative LTV of 59.2% with healthy DSCR of 1.32x
- New loan deployment at attractive SOFR + 900 bps rate
- None.
Insights
NREF delivered solid Q4 2024 results with
The company's conservative underwriting is evidenced by its
NREF's funding of a new
The Q1 2025 guidance suggests continued stability with modest sequential improvement - CAD guidance of
NREF's strategy of filling the void left by retreating traditional lenders appears well-timed, though it requires vigilant credit monitoring as they potentially take on deals that might have higher risk profiles. Their diversified approach across property types provides some insulation against sector-specific downturns, with their exposure to more volatile sectors like retail and office being particularly advantageous in the current market.
NREF reported net income attributable to common stockholders of
NREF reported cash available for distribution2 of
"NREF is pleased to announce another strong quarter, demonstrating steady and resilient earnings across our primary property types. In an environment where banks and traditional lenders are frequently sidelined or distracted by credit issues, we remain proactive and dedicated. Our ability to deploy capital in this challenging credit market enables us to seize market opportunities and generate long-term value for our shareholders," commented Chief Investment Officer Matthew McGraner.
Fourth Quarter 2024 Highlights
- Outstanding total portfolio of
$1.2 billion - Single-family rental ("SFR"), multifamily, life sciences, specialty manufacturing, self-storage and marinas represent
15.5% ,49.7% ,31.0% ,1.8% ,1.5% and0.6% of the Company's investment portfolio, respectively - Weighted-average loan to value ("LTV")4 and debt service coverage ratio ("DSCR") on our senior loans, CMBS, CMBS I/O strips, preferred equity, mezzanine, revolving credit facilities and promissory note investments are
59.2% and 1.32x3, respectively - During 4Q 2024, NREF redeemed a mortgage backed security with an outstanding principal balance of
$9 - During the quarter, the Company funded
$16
1 | Weighted-average shares outstanding - diluted assumes vesting of all outstanding unvested restricted stock units and the conversion of all redeemable non-controlling interests. |
2 | Earnings available for distribution ("EAD") and cash available for distribution ("CAD") are non-GAAP measures. Beginning in the second quarter of 2024, EAD per diluted common share and CAD per diluted common share are based on adjusted weighted average common shares outstanding - diluted. Adjusted weighted average common shares outstanding - diluted is a non-GAAP measure. For a discussion of why we consider these non-GAAP measures useful and reconciliations of these non-GAAP measures, see the "Reconciliations of Non-GAAP Financial Measures" and "Non-GAAP Financial Measures" sections of this release. |
3 | As of December 31, 2024; and excluding the common stock investments, the Hudson Montford and Alexander at the District multifamily properties. CMBS B-Pieces reflected on an unconsolidated basis. |
4 | Loan to value is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value. For our CMBS B-Pieces, LTV is based on the weighted-average LTV of the underlying loan pool. |
5 | Net income attributable to common stockholders in 1Q 2025 is estimated to be between |
Looking Ahead: First Quarter 2025 Guidance
Earnings Available for Distribution2
- 1Q 2025 EAD per diluted common share guidance is
$0.45
Low | Mid | High | ||||||||||
March 31, | March 31, | March 31, | ||||||||||
Net income | $ | 12,900 | $ | 14,061 | $ | 15,284 | ||||||
Net (income) loss attributable to Series A Preferred stockholders | (874) | (874) | (874) | |||||||||
Net (income) loss attributable to Series B Preferred stockholders | (4,029) | (4,029) | (4,029) | |||||||||
Net income attributable to common stockholders | $ | 7,997 | $ | 9,158 | $ | 10,381 | ||||||
Adjustments | ||||||||||||
Amortization of stock-based compensation | 1,463 | 1,463 | 1,463 | |||||||||
EAD | $ | 9,460 | $ | 10,621 | $ | 11,844 | ||||||
Weighted average common shares outstanding – basic | 17,538 | 17,538 | 17,538 | |||||||||
Weighted average common shares outstanding – diluted | 34,236 | 34,236 | 34,236 | |||||||||
Shares attributable to potential redemption of Series B Preferred | (10,652) | (10,652) | (10,652) | |||||||||
Adjusted weighted average common shares outstanding – diluted | 23,584 | 23,584 | 23,584 | |||||||||
EPS per Weighted Average Share – diluted | $ | 0.35 | $ | 0.39 | $ | 0.42 | ||||||
EAD per diluted common share | $ | 0.40 | $ | 0.45 | $ | 0.50 | ||||||
EPS Dividend Coverage Ratio | 0.70 | x | 0.78 | x | 0.84 | x | ||||||
EAD Dividend Coverage Raito | 0.80 | x | 0.90 | x | 1.00 | x | ||||||
Cash Available for Distribution2
- 1Q 2025 CAD per diluted common share guidance is
$0.50
Low | Mid | High | ||||||||||
March 31, | March 31, | March 31, | ||||||||||
EAD | $ | 9,460 | 10,621 | $ | 11,844 | |||||||
Adjustments | ||||||||||||
Amortization of premiums | 2,616 | 2,616 | 2,616 | |||||||||
Accretion of discounts | (2,458) | (2,458) | (2,458) | |||||||||
Amortization and depreciation | 1,079 | 1,079 | 1,079 | |||||||||
CAD | $ | 10,697 | $ | 11,858 | $ | 13,081 | ||||||
Weighted average common shares outstanding – basic | 17,538 | 17,538 | 17,538 | |||||||||
Weighted average common shares outstanding – diluted | 34,236 | 34,236 | 34,236 | |||||||||
Shares attributable to potential redemption of Series B Preferred | (10,652) | (10,652) | (10,652) | |||||||||
Adjusted weighted average common shares outstanding – diluted (1) | 23,584 | 23,584 | 23,584 | |||||||||
EPS per Weighted Average Share – diluted | $ | 0.35 | $ | 0.39 | $ | 0.42 | ||||||
CAD per diluted common share | $ | 0.45 | $ | 0.50 | $ | 0.55 | ||||||
EPS Dividend Coverage Ratio | 0.70 | x | 0.78 | x | 0.84 | x | ||||||
CAD Dividend Coverage Raito | 0.90 | x | 1.00 | x | 1.10 | x | ||||||
(1) | Adjusted weighted average common shares outstanding – diluted does not include the dilutive effect of the potential redemption of Series B Preferred Stock for common shares. |
Conference Call Details
The Company is scheduled to host a conference call on Thursday, February 27, 2025, at 11:00 a.m. ET (10:00 a.m. CT), to discuss fourth quarter 2024 financial results.
The conference call can be accessed live over the phone by dialing 888-660-4430 or +1 646-960-0537 and entering Conference ID 6891136. A live audio webcast of the call will be available online at the Company's website, https://nref.nexpoint.com (under "Resources"). An online replay will be available shortly after the call on the Company's website and continue to be available for 60 days.
A replay of the conference call will also be available through Thursday, March 13, 2025, by dialing 1 800- 770- 2030 or, for international callers, +1 609-800-9099 and entering passcode 6891136.
For additional commentary and portfolio information, please view NREF's earning supplement, which was posted on the Company's website, http://nref.nexpoint.com.
Reconciliations of Non-GAAP Financial Measures
The following table provides a reconciliation of Earnings Available for Distribution2 and Cash Available for Distribution2 to GAAP net income attributable to common stockholders and Adjusted Weighted Average Common Shares Outstanding – diluted to Weighted Average Common Shares Outstanding - diluted (in thousands, except per share amounts):
For the Three Months Ended December 31, | ||||||||
2024 | 2023 | |||||||
Net income (loss) attributable to common stockholders | $ | 8,377 | 13,635 | |||||
Net income attributable to redeemable noncontrolling interests | 2,448 | 3,346 | ||||||
Adjustments | ||||||||
Amortization of stock-based compensation | 1,410 | 1,017 | ||||||
Provision for (reversal of) credit losses | (3) | (1,937) | ||||||
Equity in (income) losses of equity method investments (1) | (46) | — | ||||||
Unrealized (gains) or losses (2) | 7,346 | (5,960) | ||||||
EAD | $ | 19,532 | $ | 10,101 | ||||
EAD per diluted common share (3) | $ | 0.83 | $ | 0.44 | ||||
Adjustments | ||||||||
Amortization of premiums | $ | 2,803 | 4,432 | |||||
Accretion of discounts | (12,553) | (3,767) | ||||||
Depreciation and amortization of real estate investments | 1,114 | 1,035 | ||||||
Amortization of deferred financing costs | 11 | (41) | ||||||
CAD | $ | 10,907 | $ | 11,760 | ||||
CAD per diluted common share (3) | $ | 0.47 | $ | 0.51 | ||||
Weighted-average common shares outstanding – basic | 17,461 | 17,232 | ||||||
Weighted-average common shares outstanding – diluted | 33,535 | 23,155 | ||||||
Shares attributable to potential redemption of Series B Preferred | 10,116 | — | ||||||
Adjusted weighted-average common shares outstanding – diluted (3) | 23,420 | 23,155 | ||||||
(1) | Starting in the third quarter of 2023, the Company has adjusted EAD to remove the (income) / loss from equity method investments as it does not represent distributable earnings. We will include income from equity method investments to the extent that we receive cash distributions and upon realizing gains and/or losses. |
(2) | Unrealized gains represent the net change in unrealized gains on investments held at fair value. |
(3) | Beginning in the second quarter of 2024, EAD per diluted common share and CAD per diluted common share are based on adjusted weighted average common shares outstanding – diluted. Adjusted weighted average common shares outstanding – diluted does not include the dilutive effective of the potential redemption of Series B Preferred Stock for our common shares. Prior periods have not been updated to reflect this adjustment because the dilutive effect of potential Series B Preferred redemptions were immaterial to prior periods. |
About NexPoint Real Estate Finance, Inc.
NexPoint Real Estate Finance, Inc., is a publicly traded REIT, with its common stock and
Forward-Looking Statements
This press release 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 identified by words such as "anticipate", "believe," "estimate", "expect," "intend," "may", "should" and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding the Company's business, strategy and industry in general, first quarter 2025 guidance, including net income, net income attributable to common stockholders, EAD, CAD, EAD and CAD per diluted common share and related coverage ratios, assumptions and estimates, the Company's intent to not settle Series B Preferred redemptions in shares of common stock when the Company's common stock price is below book value and the Company's ability to seize market opportunities and generate long-term value for its shareholders. They are not guarantees of future results and forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement, including those described in greater detail in our filings with the Securities and Exchange Commission (the "SEC"), particularly those described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company's Annual Report on Form 10-K and the Company's other filings with the SEC for a more complete discussion of risks and other factors that could affect any forward-looking statement. The statements made herein speak only as of the date of this press release and except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flows of the Company. The non-GAAP financial measures used within this press release are EAD, CAD, EAD and CAD per diluted common share and adjusted weighted average common shares outstanding - diluted.
EAD is defined as net income (loss) attributable to our common stockholders computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), excluding any unrealized gains or losses or other similar non-cash items that are included in net income (loss) for the applicable reporting period, regardless of whether such items are included in other comprehensive income (loss), or in net income (loss) and adding back amortization of stock-based compensation. Net income (loss) attributable to common stockholders may also be adjusted for the effects of certain GAAP adjustments and transactions that may not be indicative of our current operations. In addition, EAD in this press release includes the dilutive effect of non-controlling interests. We use EAD to evaluate our performance and to assess our long-term ability to pay distributions. We believe providing EAD as a supplement to GAAP net income (loss) to our investors is helpful to their assessment of our performance and our long-term ability to pay distributions. We also use EAD as a component of the management fee paid to our external manager. EAD does not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of our GAAP cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. Our computation of EAD may not be comparable to EAD reported by other REITs. Starting in the third quarter of 2023, the Company has adjusted EAD to remove the income/(losses) from equity method investments as they represent changes in the equity value of our investment rather than distributable earnings. The Company will include income from equity method investments to the extent that we receive cash distributions and upon realizing gains and/or losses.
We calculate CAD by adjusting EAD by adding back amortization of premiums, depreciation and amortization of real estate investment and amortization of deferred financing costs and by removing accretion of discounts. We use CAD to evaluate our performance and our current ability to pay distributions. We also believe that providing CAD as a supplement to GAAP net income (loss) to our investors is helpful to their assessment of our performance and our current ability to pay distributions. CAD does not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of our GAAP cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. Our computation of CAD may not be comparable to CAD reported by other REITs.
Starting in the second quarter of 2024, EAD per diluted common share and CAD per diluted common share are based on adjusted weighted average common shares outstanding – diluted. Adjusted weighted average common shares outstanding - diluted is calculating by subtracting the dilutive effect of potential redemptions of Series B Preferred shares for shares of our common stock from weighted average common shares outstanding - diluted. We believe providing adjusted weighted average common shares outstanding - diluted to our investors is helpful in their assessment of our performance without the potential dilutive effective of the Series B Preferred shares. We have the right to redeem the Series B Preferred shares for cash or shares of our common stock. Additionally, Series B Preferred redemptions are capped at
Adjusted weighted average common shares outstanding – diluted should not be considered as an alternative to the GAAP measure. Our computation of adjusted weighted average common shares outstanding – diluted may not be comparable to adjusted weighted average common shares outstanding - diluted reported by other companies.
Contact:
Kristen Griffith
Investor Relations
IR@nexpoint.com
Media: Comms@nexpoint.com
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SOURCE NexPoint Real Estate Finance, Inc.
FAQ
What was NREF's net income per share for Q4 2024?
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