NREF Announces Third Quarter 2024 Results, Provides Fourth Quarter 2024 Guidance
NexPoint Real Estate Finance (NREF) reported strong Q3 2024 financial results with net income of $16.1 million, or $0.75 per diluted share. The company's total portfolio stands at $1.1 billion across 83 investments, with multifamily representing the largest sector at 52.3%. Cash available for distribution was $15.8 million ($0.67 per diluted share). For Q4 2024, NREF provides guidance with EAD per diluted share of $0.795 at midpoint. The portfolio maintains healthy metrics with a weighted-average LTV of 60.2% and DSCR of 1.36x, with no loans in forbearance.
NexPoint Real Estate Finance (NREF) ha riportato forti risultati finanziari per il terzo trimestre del 2024, con un reddito netto di 16,1 milioni di dollari, ovvero 0,75 dollari per azione diluita. Il portafoglio totale dell'azienda si attesta a 1,1 miliardi di dollari suddivisi in 83 investimenti, con il settore multifamiliare che rappresenta la fetta più grande al 52,3%. I contanti disponibili per la distribuzione ammontano a 15,8 milioni di dollari (0,67 dollari per azione diluita). Per il quarto trimestre del 2024, NREF fornisce una previsione con EAD per azione diluita di 0,795 dollari nel punto centrale. Il portafoglio mantiene metriche sane con un rapporto LTV medio ponderato del 60,2% e un DSCR di 1,36x, senza prestiti in moratoria.
NexPoint Real Estate Finance (NREF) reportó resultados financieros sólidos para el tercer trimestre de 2024, con un ingreso neto de 16,1 millones de dólares, o 0,75 dólares por acción diluida. El portafolio total de la compañía se sitúa en 1,1 mil millones de dólares a través de 83 inversiones, siendo el sector multifamiliar el más grande con un 52,3%. El efectivo disponible para distribución fue de 15,8 millones de dólares (0,67 dólares por acción diluida). Para el cuarto trimestre de 2024, NREF proporciona una guía con EAD por acción diluida de 0,795 dólares en el punto medio. El portafolio mantiene métricas saludables con un LTV promedio ponderado del 60,2% y un DSCR de 1,36x, sin préstamos en concesión.
NexPoint Real Estate Finance (NREF)는 2024년 3분기 강력한 재무 결과를 보고하며, 순이익은 1,610만 달러, 즉 주당 0.75달러로 나타났습니다. 회사의 총 포트폴리오는 83개의 투자로 구성된 11억 달러입니다. 다가구 부문이 52.3%로 가장 큰 비중을 차지하고 있습니다. 배당금으로 사용할 수 있는 현금은 1,580만 달러(주당 0.67달러)입니다. 2024년 4분기 NREF는 주당 EAD의 중간값으로 0.795달러를 안내합니다. 포트폴리오는 평균 LTV가 60.2%이고 DSCR이 1.36배로 건강한 지표를 유지하며, 유예 중인 대출은 없습니다.
NexPoint Real Estate Finance (NREF) a déclaré de solides résultats financiers pour le troisième trimestre 2024, avec un revenu net de 16,1 millions de dollars, soit 0,75 dollar par action diluée. Le portefeuille total de l'entreprise s'élève à 1,1 milliard de dollars repartis sur 83 investissements, le secteur multifamilial représentant la plus grande part avec 52,3%. Les liquidités disponibles pour distribution s'élevaient à 15,8 millions de dollars (0,67 dollar par action diluée). Pour le quatrième trimestre 2024, NREF fournit des prévisions avec un EAD par action diluée de 0,795 dollar au point médian. Le portefeuille maintient des indicateurs sains avec un LTV moyen pondéré de 60,2% et un DSCR de 1,36x, sans prêts en sursis.
NexPoint Real Estate Finance (NREF) hat im dritten Quartal 2024 starke finanzielle Ergebnisse gemeldet, mit einem Nettogewinn von 16,1 Millionen Dollar, was 0,75 Dollar pro verwässerter Aktie entspricht. Das gesamte Portfolio des Unternehmens beträgt 1,1 Milliarden Dollar aus 83 Investitionen, wobei der Mehrfamiliensektor mit 52,3% den größten Anteil ausmacht. Der für die Ausschüttung verfügbare Cash-Betrag betrug 15,8 Millionen Dollar (0,67 Dollar pro verwässerter Aktie). Für das vierte Quartal 2024 gibt NREF eine Prognose mit einem EAD pro verwässerter Aktie von 0,795 Dollar im Mittelwert ab. Das Portfolio weist gesunde Kennzahlen mit einem gewichteten durchschnittlichen LTV von 60,2% und einem DSCR von 1,36x auf, ohne ausstehende Darlehen in Stundung.
- Net income of $16.1 million in Q3 2024, showing strong financial performance
- Robust portfolio of $1.1 billion across 83 investments
- No loans in forbearance, indicating strong portfolio quality
- Healthy portfolio metrics with 60.2% LTV and 1.36x DSCR
- Successfully sold CMBS B-Piece with 9.20% bond equivalent yield
- CAD dividend coverage ratio projected at 1.00x for Q4 2024, showing tight dividend coverage
Insights
The Q3 2024 results demonstrate solid performance with
Key positives include strategic portfolio diversification across real estate sectors, with multifamily (
Q4 2024 guidance projects continued stability with EAD per share of
NREF's portfolio composition reflects strategic positioning in resilient real estate sectors. The focus on multifamily and life sciences/specialty manufacturing provides stability, while the
The sale of an
NREF reported net income attributable to common stockholders of
NREF reported cash available for distribution2 of
"NREF is pleased to report another strong quarter, showcasing consistent and resilient earnings across our core property types. Amidst a landscape where banks and traditional lenders are often sidelined or preoccupied with credit issues, we remain active and focused. Our readiness to deploy capital in this challenging credit market allows us to capitalize on market dislocations and create long-term value for our shareholders," commented Chief Investment Officer Matthew McGraner.
Third Quarter 2024 Highlights
- Outstanding total portfolio of
$1.1 billion - Single-family rental ("SFR"), multifamily, life sciences and specialty manufacturing, self-storage and marinas represent
17.0% ,52.3% ,26.7% ,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 SFR, CMBS, CMBS I/O strips, preferred equity, mezzanine, credit risk transfer and mortgage-backed security investments are
60.2% and 1.36x3, respectively - As of October 31, 2024, there are no loans currently in forbearance in our portfolio
- During 3Q 2024, NREF sold a CMBS B-Piece with an outstanding principal balance of
$82 9.20% - During the quarter, the Company funded
$28
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 September 30, 2024; and excluding the common stock investments, preferred stock investment, 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 4Q 2024 is estimated to be between |
Looking Ahead: Fourth Quarter 2024 Guidance
Earnings Available for Distribution2
- 4Q 2024 EAD per diluted common share guidance is
$0.79
Low | Mid | High | ||||||||||
Dec. 31, 2024 | Dec. 31, 2024 | Dec. 31, 2024 | ||||||||||
Net income | $ | 20,074 | $ | 21,131 | $ | 22,399 | ||||||
Net (income) loss attributable to Series A Preferred stockholders | (874) | (874) | (874) | |||||||||
Net (income) loss attributable to Series B Preferred stockholders | (3,106) | (3,106) | (3,106) | |||||||||
Net income attributable to common stockholders | $ | 16,094 | $ | 17,151 | $ | 18,419 | ||||||
Adjustments | ||||||||||||
Amortization of stock-based compensation | 1,411 | 1,411 | 1,411 | |||||||||
EAD | $ | 17,505 | $ | 18,562 | $ | 19,830 | ||||||
Weighted average common shares outstanding - basic | 17,461 | 17,461 | 17,461 | |||||||||
Weighted average common shares outstanding - diluted | 31,317 | 31,317 | 31,317 | |||||||||
Shares attributable to potential redemption of Series B Preferred | (7,897) | (7,897) | (7,897) | |||||||||
Adjusted weighted average common shares outstanding - diluted | 23,420 | 23,420 | 23,420 | |||||||||
EPS per Weighted Average Share - diluted | $ | 0.61 | $ | 0.65 | $ | 0.69 | ||||||
EAD per diluted common share | $ | 0.75 | $ | 0.79 | $ | 0.85 | ||||||
EPS Dividend Coverage Ratio | 1.22 | x | 1.30 | x | 1.38 | x | ||||||
EAD Dividend Coverage Ratio | 1.50 | x | 1.58 | x | 1.70 | x | ||||||
Cash Available for Distribution2
- 4Q 2024 CAD per diluted common share guidance is
$0.50
Low | Mid | High | ||||||||||
Dec. 31, 2024 | Dec. 31, 2024 | Dec. 31, 2024 | ||||||||||
EAD | $ | 17,505 | 18,562 | $ | 19,830 | |||||||
Adjustments | ||||||||||||
Amortization of premiums | 2,071 | 2,071 | 2,071 | |||||||||
Accretion of discounts | (10,041) | (10,041) | (10,041) | |||||||||
Amortization and depreciation | 1,079 | 1,079 | 1,079 | |||||||||
CAD | $ | 10,614 | $ | 11,671 | $ | 12,939 | ||||||
Weighted average common shares outstanding - basic | 17,461 | 17,461 | 17,461 | |||||||||
Weighted average common shares outstanding - diluted | 31,317 | 31,317 | 31,317 | |||||||||
Shares attributable to potential redemption of Series B Preferred | (7,897) | (7,897) | (7,897) | |||||||||
Adjusted weighted average common shares outstanding - diluted | 23,420 | 23,420 | 23,420 | |||||||||
EPS per Weighted Average Share - diluted | $ | 0.61 | $ | 0.65 | $ | 0.69 | ||||||
CAD per diluted common share | $ | 0.45 | $ | 0.50 | $ | 0.55 | ||||||
EPS Dividend Coverage Ratio | 1.22 | x | 1.30 | x | 1.38 | x | ||||||
CAD Dividend Coverage Ratio | 0.90 | x | 1.00 | x | 1.10 | x | ||||||
Conference Call Details
The Company is scheduled to host a conference call on Thursday, October 31, 2024, at 11:00 a.m. ET (10:00 a.m. CT), to discuss third 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, November 14, 2024, by dialing 1 800- 770- 2030 or, for international callers, +1 647- 362- 9199 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 September 30, | ||||||||
2024 | 2023 | |||||||
Net income (loss) attributable to common stockholders | $ | 16,116 | (15,550) | |||||
Net income attributable to redeemable noncontrolling interests | 3,940 | (2,374) | ||||||
Adjustments | ||||||||
Amortization of stock-based compensation | 1,411 | 1,285 | ||||||
Provision for (reversal of) credit losses | (298) | 6,276 | ||||||
Equity in (income) losses of equity method investments (1) | 1,105 | 1,675 | ||||||
Unrealized (gains) or losses (2) | (4,660) | 18,508 | ||||||
EAD | $ | 17,614 | $ | 9,820 | ||||
EAD per diluted common share (3) | $ | 0.75 | $ | 0.43 | ||||
Adjustments | ||||||||
Amortization of premiums | $ | 4,093 | 3,530 | |||||
Accretion of discounts | (7,071) | (3,038) | ||||||
Depreciation and amortization of real estate investments | 1,099 | 476 | ||||||
Amortization of deferred financing costs | 12 | (26) | ||||||
CAD | $ | 15,747 | $ | 10,762 | ||||
CAD per diluted common share | $ | 0.67 | $ | 0.47 | ||||
Weighted-average common shares outstanding - basic | 17,461 | 17,232 | ||||||
Weighted-average common shares outstanding - diluted | 30,468 | 23,086 | ||||||
Shares attributable to potential redemption of Series B Preferred | 7,048 | — | ||||||
Adjusted weighted-average common shares outstanding - diluted | 23,420 | 23,086 | ||||||
(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. |
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, fourth quarter 2024 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 and 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. 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.
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: pro-nexpoint@prosek.com
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SOURCE NexPoint Real Estate Finance, Inc.
FAQ
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