NexPoint Real Estate Finance, Inc. Reports Strong Q1 2026 Earnings and Provides Upbeat Q2 Guidance

Dallas, TX, April 30, 2026 – NexPoint Real Estate Finance, Inc. (“NREF” or the “Company”) (NYSE: NREF) has reported robust financial results for the first quarter ended March 31, 2026, and issued guidance for the second quarter of 2026. The Company’s disciplined, credit-first approach to capital deployment and sector selection has once again translated into consistent and durable earnings for shareholders.

Key Highlights from Q1 2026

• Net Income: NREF reported net income attributable to common stockholders of \$10.0 million, or \$0.42 per diluted share for Q1 2026. This demonstrates the company’s ongoing profitability amid a challenging macro environment.
• Cash Available for Distribution (CAD): The company generated \$13.5 million in CAD, or \$0.58 per diluted common share, reflecting healthy cash flow and distributable earnings.
• Portfolio Composition: The company’s total portfolio stands at \$1.1 billion, comprised of 90 investments. The allocation is as follows:
  • Single-family rental (SFR): 17.1%
  • Multifamily: 39.4%
  • Life sciences: 35.9%
  • Self-storage: 3.9%
  • Marinas: 1.6%
  • Industrial: 2.1%
• Risk Metrics: The portfolio maintains a weighted-average loan-to-value (LTV) ratio of 59.9% and a debt service coverage ratio (DSCR) of 1.32x across its senior loans, CMBS, preferred equity, and mezzanine investments, indicating strong credit quality and prudent risk management.
• New Investments: In Q1, NREF funded two significant loans:
  • \$7 million loan at SOFR + 900 basis points (bps)
  • \$23 million loan at SOFR + 1,250 bps

  These high-yielding investments could enhance future returns.

• Capital Raising: The company raised \$20.1 million in gross proceeds via a Series C preferred stock offering, strengthening its liquidity and capital base.
• Dividends: NREF announced a second quarter dividend of \$0.50 per common share, demonstrating its commitment to returning capital to shareholders.

Q2 2026 Guidance: Earnings Outlook and Dividend Coverage Ratios

• Net Income Guidance: For Q2 2026, net income attributable to common stockholders is projected to be between \$7.5 million and \$9.8 million, reflecting a cautious but stable outlook.
• Earnings Available for Distribution (EAD): Guidance for EAD per diluted common share is \$0.43 at the midpoint (range: \$0.38–\$0.48).
• Cash Available for Distribution (CAD): Guidance for CAD per diluted common share is \$0.54 at the midpoint (range: \$0.49–\$0.59).
• Dividend Coverage Ratios:
  • EAD Dividend Coverage Ratio: 0.76x to 0.96x
  • CAD Dividend Coverage Ratio: 0.98x to 1.18x (i.e. the dividend is well covered by distributable cash)
• Share Count Adjustments: Adjusted weighted average common shares outstanding – diluted stands at 23.8 million, which excludes the dilutive effect of potential redemptions of Series B and C Preferred Stock for common shares. Management specifically states an intention not to settle these redemptions in common stock if the price is below book value, which is important for equity dilution analysis.

Management Commentary

“NREF continues to deliver consistent earnings by maintaining a disciplined, credit-first approach to capital deployment across our core verticals. The strength of our portfolio reflects the conviction behind our sector selection — each representing long-term, structurally supported demand that we believe will continue to generate durable, risk-adjusted returns for our shareholders. We are focused on deepening our presence in these markets, staying opportunistic where dislocations present compelling entry points, and ensuring that our investors have a transparent, predictable view of how we are protecting and growing book value over time,” said Matthew McGraner, Chief Investment Officer.

Important Notes for Shareholders

• Capital Allocation and Risk: NREF’s concentration in multifamily, life sciences, and SFRs, along with low LTV and strong DSCR, support the company’s stance of prudent risk management and potential for stable returns.
• Preferred Stock Dilution Mitigation: Management’s stated intent not to settle Series B or C Preferred redemptions in common stock when share prices are below book value may limit dilution risk for existing shareholders—a potentially price-supportive measure.
• High-Yield Loan Investments: The funding of new high-coupon loans at SOFR + 900bps and SOFR + 1,250bps could drive higher income, but may carry heightened risk. Investors should monitor credit performance closely.
• Dividend Sustainability: With CAD per share covering the dividend, the payout appears sustainable in the near term. However, the EAD coverage ratio is under 1.0x, which could come under scrutiny if earnings weaken.
• Conference Call: Management will host a conference call on April 30, 2026, at 11:00 a.m. ET (10:00 a.m. CT) to discuss these results and answer investor questions. A replay will be available for 60 days on the company’s website.

Non-GAAP Financial Measures and Cautions

NREF continues to report and guide on non-GAAP measures such as EAD and CAD, which exclude certain non-cash and non-recurring items to better reflect distributable earnings and cash flow. Investors should note that these metrics are used for internal management performance evaluation and as components of management compensation, but may not be directly comparable to similar metrics reported by other REITs.

Forward-Looking Statements

The company’s guidance and outlook are subject to a range of risks, including but not limited to, market volatility, interest rate changes, and credit performance. Investors are encouraged to review the company’s filings with the SEC, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, for a comprehensive discussion of risks.

Disclaimer: This article is for informational purposes only and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. All forward-looking statements are subject to risks and uncertainties. Investors should review official company filings and consult their financial advisor before making any investment decisions.

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