NexPoint Real Estate Finance Inc
For the period ended Jun 30, 2024. Filed Aug 8, 2024.
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Jun 30, 2024 · Filed Aug 8, 2024
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Item 5.
- CMBS Trusts
As of June 30, 2024, the Company consolidated all of the CMBS Entities that it determined are VIEs and for which the Company is the primary beneficiary. The Company elected the fair-value measurement alternative in accordance with ASU 2014-13 for each of the trusts and carries the fair values of the trust’s assets and liabilities at fair value in its Consolidated Balance Sheets, recognizes changes in the trust’s net assets, including changes in fair-value adjustments and net interest earned, in its Consolidated Statements of Operations and records cash interest received from the trusts and cash interest paid to bondholders of the CMBS not beneficially owned by the Company as investing and financing cash flows, respectively.
The following table presents the Company’s recognized Trust’s Assets and Liabilities (in thousands):
| Trust's Assets | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Mortgage loans held in variable interest entities, at fair value | $5,600,925 | $5,677,763 |
| Accrued interest receivable | 4,132 | 3,902 |
| Trust's Liabilities | ||
| Bonds payable held in variable interest entities, at fair value | (5,219,412) | (5,289,997) |
| Accrued interest payable | (3,200) | (3,220) |
The following table presents “Change in net assets related to consolidated CMBS variable interest entities” (in thousands):
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Net interest earned | $15,822 | $10,887 | $25,058 | $21,530 |
| Unrealized gain (loss) | (2,906) | (4,001) | (3,726) | (3,641) |
| Change in net assets related to consolidated CMBS variable interest entities | $12,916 | $6,886 | $21,332 | $17,889 |
The following tables present the geographies and property types of collateral underlying the CMBS trusts consolidated by the Company as a percentage of the collateral unpaid principal balance:
| Geography | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Texas | 14.64% | 15.84% |
| Florida | 13.06% | 14.07% |
| Arizona | * | 4.05% |
| California | 8.95% | 8.69% |
| Georgia | 5.01% | 4.00% |
| Washington | 7.12% | 7.75% |
| New Jersey | * | 4.02% |
| Colorado | 9.13% | 7.74% |
| North Carolina | 4.82% | 4.17% |
| New York | 4.03% | * |
| Other (33 and 32 states each at <4%) | 33.24% | 29.68% |
| 100.00% | 100.00% |
*Included in “Other.”
| Collateral Property Type | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Multifamily | 98.78% | 97.45% |
| Manufactured Housing | 1.22% | 2.55% |
| 100.00% | 100.00% |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.