NexPoint Real Estate Finance Inc

16. Subsequent Events

Dividends Declared

The Board declared a dividend to Series B Preferred stockholders of $0.1875 on January 2, 2024, paid on February 5, 2024, to Series B Preferred stockholders of record as of January 25, 2025.

The Board declared a dividend to Series B Preferred stockholders of $0.1875 on January 18, 2024, paid on March 5, 2024, to Series B Preferred stockholders of record as of February 23, 2024.

The Board declared a dividend to Series B Preferred stockholders of $0.1875 on February 21, to be paid on April 5, 2024, to Series B Preferred stockholders of record as of March 25, 2024.

The Board declared the first regular quarterly dividend of 2024 to common stockholders of $0.50 per share on February 26, 2024, to be paid on March 28, 2024, to common stockholders of record on March 15, 2024.

The Board declared a dividend to Series A Preferred stockholders of $0.53125 per share on February 26, 2024, to be paid on April 25, 2024, to Series A Preferred stockholders of record on April 15, 2024.

Series B Preferred

As of February 28, 2024, since December 31, 2023, the Company has issued an additional 771,477 shares of Series B Preferred Stock for gross proceeds of $18.1 million.

Second Amendment and Restatement of Bylaws

On January 3, 2024, the Board approved and adopted a second amendment and restatement of the Company’s Bylaws.

SFR Loan

On January 25, 2024, one of the Company’s SFR loans was prepaid in its entirety for a total principal of $508.7 million, of which $465.7 million of financing was repaid. As a result, the Company recognized prepayment income of $8.9 million and wrote off the premium on the loan of $25.4 million. The Company received net cash of $52.8 million on the paydown.

Long Term Incentive Plan

On January 26, 2024, the Amended & Restated NexPoint Real Estate Finance, Inc. 2020 Long Term Incentive Plan was approved by stockholders and on January 30, 2024, the Company filed a registration statement on Form S-8 registering an additional 2,308,000 shares of common stock, which the Company may issue pursuant to the amended LTIP.

Loan Commitments

On January 26, 2024, the Company, along with related party The Ohio State Life Insurance Company (“OSL”), entered into a Mezzanine Loan and Security Agreement whereby it made a loan in the maximum principal amount of up to $218.0 million to IQHQ-Alewife Holdings, LLC, which is solely owned by IQHQ, LP. The Company has an ownership interest in the Series D-1 preferred stock in IQHQ, Inc., who is the limited partner in IQHQ, LP; however, the Company has no controlling financial interest nor significant influence in IQHQ, LP. The loan is secured by a first mortgage with a first lien position and other security interests. The Company made the initial advances of $20.0 million, and subsequent advances of the mezzanine loan may be made by the Company or OSL. The Company’s portion of the total commitment is $208.0 million.

On February 9, 2024, the Company additionally contributed approximately $8.1 million aggregate principal amount under the Mezzanine Loan and Security Agreement.

On March 7, 2024, the Company additionally contributed approximately $15.2 million aggregate principal amount under the Mezzanine Loan and Security Agreement.

Mortgage Backed Security Dispositions

On February 1, 2024, the Company, through one of the Subsidiary OPs, sold approximately $10.1 million aggregate principal amount of the Class G2 tranche of the AMSR 2020-SFR4 G2 at a price equal to 96.4% of par value.

CMBS Acquisitions

On February 22, 2024, the Company, through one of the Subsidiary OPs, purchased approximately $30.9 million aggregate principal amount of the Class C tranche of the FREMF 2024-K515 CMBS at a price equal to 85.6% of par value, representing 100% of the Class C tranche. The investment pays a fixed coupon of 5.9% with an all-in unlevered yield of 9.75%. On February 23, 2024, the Company through one of the Subsidiary OPs, entered into a repurchase agreement and borrowed approximately $17.2 million. The loan bears interest at a rate of 2.0% over SOFR.

On February 29, 2024, the Company, through one of the Subsidiary OPs, purchased approximately $49.2 million aggregate principal amount of the Class A, E1, and E2 tranches of the VINEB 2024 SFR1 CMBS at a blended price equal to 90.2% of par value. The investment has a blended unlevered yield of 6.9%. On March 1, 2024, the Company through one of the Subsidiary OPs, entered into a repurchase agreement and borrowed approximately $35.8 million. The loans bear interest at a rate of 1.0%,1.6%, and 1.6% over SOFR, respectively.

Connections at Buffalo Pointe Contribution

On March 1, 2024, the Company additionally contributed approximately $0.7 million aggregate principal amount under the Buffalo Pointe Contribution Agreement.