NexPoint Real Estate Finance Inc

For the period ended Dec 31, 2023. Filed Mar 22, 2024.

About this filing

A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Mar 22, 2024

NREF$13.52+0.9%Stored close · as of Nov 9, 2026

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Contents

Item 1. 2

Our Portfolio

Our portfolio consists of SFR Loans, CMBS B-Pieces, CMBS I/O Strips, mezzanine loans, preferred equity investments, common equity investments, multifamily properties, MSCR Notes and mortgage backed securities with a combined unpaid principal balance of $1.6 billion as of December 31, 2023 and assumes the CMBS Entities’ assets and liabilities are not consolidated. The following table sets forth additional information relating to our portfolio as of December 31, 2023 (dollars in thousands):

Investment (1) · InvestmentDate · CurrentPrincipalAmount · Net Equity (2) · Location · Property Type · Coupon · Current Yield (3) · RemainingTerm (4)(years)
SFR Loans
1	Senior loan	2/11/2020	$508,700		$68,452	Various	Single-family	4.65%	4.43%	4.67
2	Senior loan	2/11/2020	9,316		1,374	Various	Single-family	5.35%	5.25%	4.09
3	Senior loan	2/11/2020	10,015		1,345	Various	Single-family	5.30%	5.05%	4.67
4	Senior loan	2/11/2020	5,361		720	Various	Single-family	5.24%	4.98%	4.76
5	Senior loan	2/11/2020	34,967		4,331	Various	Single-family	4.74%	4.64%	1.75
6	Senior loan	2/11/2020	9,473		1,254	Various	Single-family	6.10%	5.75%	4.76
7	Senior loan	2/11/2020	36,164		4,649	Various	Single-family	5.55%	5.20%	4.84
8	Senior loan	2/11/2020	5,645		751	Various	Single-family	5.99%	5.64%	4.92
9	Senior loan	2/11/2020	8,641		1,199	Various	Single-family	5.88%	5.60%	5.01
10	Senior loan	2/11/2020	6,473		911	Various	Single-family	5.46%	5.23%	5.17
11	Senior loan	2/11/2020	10,522		1,430	Various	Single-family	4.72%	4.64%	2.17
	Total		645,277		86,416			4.79%	4.57%	4.49
CMBS B-Piece
1	CMBS B-Piece	2/11/2020	21,024	(5)	6,611	Various	Multifamily	9.76%	9.76%	2.16
2	CMBS B-Piece	2/11/2020	28,581	(5)	9,585	Various	Multifamily	10.59%	10.58%	2.90
3	CMBS B-Piece	4/23/2020	81,999	(5)	26,582	Various	Multifamily	3.50%	5.11%	6.16

CMBS I/O Strips
4	CMBS B-Piece	7/30/2020		16,349	(5)	5,536	Various	Multifamily	14.43%	14.43%	3.48
5	CMBS B-Piece	8/6/2020		108,643	(5)	21,877	Various	Multifamily	—%	9.12%	6.49
6	CMBS B-Piece	4/20/2021		25,751	(5)	6,435	Various	Multifamily	11.57%	11.57%	7.16
7	CMBS B-Piece	6/30/2021		108,305	(5)	27,358	Various	Multifamily	0.00%	10.19%	3.00
8	CMBS B-Piece	5/2/2022		32,556	(5)	10,708	Various	Multifamily	4.43%	4.76%	14.91
9	CMBS B-Piece	7/28/2022		63,397	(5)	21,945	Various	Multifamily	10.57%	10.57%	5.57
	Total			486,605		136,637			4.40%	9.00%	5.64
1	CMBS I/O Strip	5/18/2020		17,590	(6)	504	Various	Multifamily	2.02%	14.64%	22.75
2	CMBS I/O Strip	8/6/2020		108,643	(6)	5,538	Various	Multifamily	2.98%	17.98%	6.49
3	CMBS I/O Strip	4/28/2021	(7)	64,550	(6)	1,382	Various	Multifamily	1.59%	17.68%	6.07
4	CMBS I/O Strip	5/27/2021		20,000	(6)	1,172	Various	Multifamily	3.39%	17.79%	6.40
5	CMBS I/O Strip	6/7/2021		4,266	(6)	122	Various	Multifamily	2.31%	22.31%	4.91
6	CMBS I/O Strip	6/11/2021	(8)	104,471	(6)	1,335	Various	Multifamily	1.18%	14.57%	5.40
7	CMBS I/O Strip	6/24/2021		25,387	(6)	296	Various	Multifamily	1.17%	18.07%	6.40
8	CMBS I/O Strip	8/10/2021		25,000	(6)	721	Various	Multifamily	1.89%	17.98%	6.32
9	CMBS I/O Strip	8/11/2021		6,942	(6)	421	Various	Multifamily	3.10%	15.24%	7.57
10	CMBS I/O Strip	8/24/2021		1,625	(6)	70	Various	Multifamily	2.61%	16.15%	7.07
11	CMBS I/O Strip	9/1/2021		34,625	(6)	1,015	Various	Multifamily	1.92%	17.01%	6.49
12	CMBS I/O Strip	9/11/2021		20,902	(6)	1,113	Various	Multifamily	2.95%	15.14%	7.74
	Total			434,001		13,689			2.06%	16.75%	6.87
Mezzanine Loans
1	Mezzanine	6/12/2020		7,500		7,500	Houston, TX	Multifamily	11.00%	11.00%	1.50
2	Mezzanine	10/20/2020		5,470		2,249	Wilmington, DE	Multifamily	7.50%	7.33%	5.34
3	Mezzanine	10/20/2020		10,380		4,294	White Marsh, MD	Multifamily	7.42%	7.23%	7.50
4	Mezzanine	10/20/2020		14,253		5,879	Philadelphia, PA	Multifamily	7.59%	7.41%	5.42
5	Mezzanine	10/20/2020		3,700		1,518	Daytona Beach, FL	Multifamily	7.83%	7.66%	4.76
6	Mezzanine	10/20/2020		12,000		4,963	Laurel, MD	Multifamily	7.71%	7.52%	7.25
7	Mezzanine	10/20/2020		3,000		1,241	Temple Hills, MD	Multifamily	7.32%	7.14%	7.59
8	Mezzanine	10/20/2020		1,500		621	Temple Hills, MD	Multifamily	7.22%	7.04%	7.59
9	Mezzanine	10/20/2020		5,540		2,277	Lakewood, NJ	Multifamily	7.33%	7.17%	5.34
10	Mezzanine	10/20/2020		6,829		2,804	Rosedale, MD	Multifamily	7.53%	7.36%	5.01
11	Mezzanine	10/20/2020		3,620		1,498	North Aurora, IL	Multifamily	7.42%	7.23%	7.50
12	Mezzanine	10/20/2020		9,610		3,976	Cockeysville, MD	Multifamily	7.42%	7.23%	7.50
13	Mezzanine	10/20/2020		7,390		3,057	Laurel, MD	Multifamily	7.42%	7.23%	7.50
14	Mezzanine	10/20/2020		2,135		876	Tyler, TX	Multifamily	7.74%	7.57%	4.76
15	Mezzanine	10/20/2020		1,190		489	Las Vegas, NV	Multifamily	7.71%	7.54%	5.17
16	Mezzanine	10/20/2020		3,310		1,361	Atlanta, GA	Multifamily	6.91%	6.75%	5.50
17	Mezzanine	10/20/2020		2,880		1,182	Des Moines, IA	Multifamily	7.89%	7.72%	4.84
18	Mezzanine	10/20/2020		4,010		1,646	Urbandale, IA	Multifamily	7.89%	7.72%	4.84
19	Mezzanine	11/18/2021		12,600		12,506	Irving, TX	Multifamily	16.33%	16.45%	4.92
20	Mezzanine	12/29/2021		7,760		7,749	Rogers, AR	Multifamily	16.33%	16.35%	1.03
21	Mezzanine	6/9/2022		4,500		4,477	Rogers, AR	Multifamily	16.03%	16.11%	1.44
22	Mezzanine	10/5/2022	(9)	4,030		3,998	Kirkland, WA	Multifamily	16.03%	16.16%	4.01
	Total			133,207		76,161			9.61%	9.50%	5.36
Preferred Equity
1	Preferred Equity	5/29/2020	(10)	11,698		11,698	Houston, TX	Multifamily	11.00%	11.00%	6.34
2	Preferred Equity	9/29/2021		9,505		9,492	Holly Springs, NC	Life Science	10.00%	10.01%	0.75
3	Preferred Equity	12/28/2021	(11)	11,377		11,377	Las Vegas, NV	Multifamily	10.50%	10.50%	8.17
4	Preferred Equity	1/14/2022		23,956		23,955	Vacaville, CA	Life Science	10.00%	10.00%	0.75

Common Equity
5	Preferred Equity	4/7/2022	(12)	4,000		3,967		Beaumont, TX		Self-Storage		15.33%		15.46%		6.67
6	Preferred Equity	6/8/2022		4,000		3,967		Temple, TX		Self-Storage		14.61%		14.73%		6.67
7	Preferred Equity	7/1/2022	(13)	9,000		8,935		Medley, FL		Self-Storage		11.00%		11.08%		3.50
8	Preferred Equity	8/10/2022		8,500		8,450		Plano, TX		Multifamily		16.12%		16.22%		1.69
9	Preferred Equity	9/30/2022		9,000		8,943		Fort Worth, TX		Multifamily		15.03%		15.13%		1.75
10	Preferred Equity	10/19/2022		19,908		19,923		Woodbury, MN		Life Science		10.00%		9.99%		0.75
11	Preferred Equity	2/10/2023		28,685		28,562		Forney, TX		Multifamily		11.00%		11.05%		1.12
12	Preferred Equity	2/24/2023		20,464		20,373		Richmond, VA		Multifamily		11.00%		11.05%		1.12
13	Preferred Equity	4/6/2023		23,957		23,971		Temecula, CA		Life Science		17.50%		17.49%		0.75
14	Preferred Equity	5/16/2023	(14)	7,150		7,083		Phoenix, AZ		Single-family		13.50%		13.63%		3.33
15	Preferred Equity	5/17/2023	(15)	4,192		4,151		Houston, TX		Life Science		13.00%		13.13%		2.98
	Total			195,392		194,847						12.20%		12.24%		2.21
1	Common Stock	11/6/2020		N/A	33,129		N/A		Self-Storage		N/A		N/A		N/A
2	Common Stock	4/14/2022		N/A	28,400		N/A		Ground Lease		N/A		N/A		N/A
3	Common Equity	2/10/2023		N/A	—		Forney, TX		Multifamily		N/A		N/A		N/A
4	Common Equity	2/24/2023		N/A	—		Richmond, VA		Multifamily		N/A		N/A		N/A
5	Common Equity	9/8/2023		N/A	—		Atlanta, GA		Multifamily		N/A		N/A		N/A
	Total				61,529
Preferred Stock
1	Preferred Stock	11/9/2023		N/A	14,776		Various		Life Science		10.50%		N/A		5.00
Real Estate
1	Real Estate	12/31/2021	(16)	N/A	25,989		Charlotte, NC		Multifamily		N/A		N/A		N/A
2	Real Estate	10/10/2023	(17)	N/A	4,905		Atlanta, GA		Multifamily		N/A		N/A		N/A
	Total				30,894
MSCR Notes
1	MSCR Note	5/25/2022		4,000		2,020		Various		Multifamily		14.83%		14.83%		28.42
2	MSCR Note	5/25/2022		5,000		2,248		Various		Multifamily		11.83%		11.83%		28.42
3	MSCR Note	9/23/2022		1,500		676		Various		Multifamily		12.18%		13.38%		27.92
	Total			10,500		4,944						13.02%		13.19%		28.35
Mortgage Backed Securities
1	Mortgage Backed Securities	6/1/2022		10,074		3,410		Various		Single-family		4.87%		5.01%		1.89
2	Mortgage Backed Securities	6/1/2022		10,419		3,524		Various		Single-family		8.64%		8.91%		2.30
3	Mortgage Backed Securities	7/28/2022		575		275		Various		Single-family		6.23%		6.31%		3.80
4	Mortgage Backed Securities	7/28/2022		1,057		361		Various		Single-family		3.60%		4.12%		4.47
5	Mortgage Backed Securities	9/12/2022		3,927		1,325		Various		Multifamily		11.57%		11.55%		7.07
6	Mortgage Backed Securities	9/29/2022		8,000		7,960		Various		Self-Storage		11.10%		11.12%		3.71
7	Mortgage Backed Securities	3/10/2023		5,747		1,987		Various		Multifamily		13.93%		13.95%		1.16
	Total			39,799		18,842						9.06%		9.19%		2.86

(1)Our total portfolio represents the current principal amount of the consolidated SFR Loans, CMBS I/O Strips, mezzanine loans, preferred equity, multifamily properties, MSCR Notes and mortgage backed securities as well as the net equity of our CMBS B-Piece investments.

(2)Net equity represents the carrying value less borrowings collateralized by the investment.

(3)Current yield is the annualized income earned divided by the cost basis of the investment.

(4)The weighted-average life is weighted on current principal balance and assumes no prepayments. The maturity date for preferred equity investments represents the maturity date of the senior mortgage, as the preferred equity investments require repayment upon the sale or refinancing of the asset.

(5)The CMBS B-Pieces are shown on an unconsolidated basis reflecting the value of our investments.

(6)The number shown represents the notional value on which interest is calculated for the CMBS I/O Strips. CMBS I/O Strips receive no principal payments and the notional value decreases as the underlying loans are paid off.

(7)The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively.

(8)The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021 and September 29, 2021, February 3, 2022 and March 18, 2022, respectively.

(9)The Company reclassified this investment from preferred equity to a mezzanine loan effective January 1, 2023.

(10)The Company, through the Subsidiary OPs, invested $10.0 million on May 29, 2020, an aggregate of $1.2 million on January 9, 2023, March 6, 2023 and March 28, 2023, and $0.2 million on May 25, 2023 in this preferred equity investment.

(11)The Company, through the Subsidiary OPs, invested $5.0 million, $1.8 million, $40.1 million and $18.5 million in this real estate investment on December 28, 2021, January, 27, 2022, February 1, 2022 and July 26, 2022, respectively.

(12)The Company, through the Subsidiary OPs, invested $2.7 million and $1.3 million in this preferred equity investment on April 7, 2022 and May 3, 2022, respectively.

(13)The Company reclassified this investment from a mezzanine loan to preferred equity effective January 1, 2023.

(14)The Company, through the Subsidiary OPs, invested $0.5 million and $0.7 million in this preferred equity investment on May 16, 2023 and June 12, 2023, respectively.

(15)The Company, through the Subsidiary OPs, invested $3.7 million and $0.3 million in this preferred equity investment on May 17, 2023 and June 24, 2023, respectively.

(16)Real Estate is a 204-unit multifamily property. As of December 31, 2023, the property was 95.1% occupied, with effective rent per occupied unit of $1,693 per month.

(17)Real Estate is a 280-unit multifamily property. As of December 31, 2023, the property was 68.6% occupied with effective rent per occupied unit of $1,633 per month.

The following table details overall statistics for our portfolio as of December 31, 2023 (dollars in thousands):

	TotalPortfolio	Floating RateInvestments	Fixed RateInvestments	Common EquityInvestments	Preferred Stock Investment	Real Estate Investments
Number of investments	87	26	53	5	1	2
Principal balance (1)	$1,563,654	$341,533	$1,222,121	N/A	N/A	N/A
Carrying value	$1,687,460	$338,673	$1,145,931	$61,529	$14,776	$126,551
Weighted-average cash coupon	5.92%	9.91%	4.81%	N/A	N/A	N/A
Weighted-average all-in yield	6.93%	12.47%	5.29%	N/A	N/A	N/A

(1)Cost is used in lieu of principal balance for CMBS I/O Strips.

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.