NexPoint Real Estate Finance, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>NexPoint Real Estate Finance, Inc. has filed its annual report detailing its 2023 financial performance and operations.</b>

AI Summary

NexPoint Real Estate Finance, Inc. (NREF-PA) filed a Annual Report (10-K) with the SEC on March 22, 2024. NexPoint Real Estate Finance, Inc. filed its 2023 Form 10-K on March 22, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Maryland (MD). Its principal business address is 300 Crescent Court, Suite 700, Dallas, TX 75201. The filing includes data for fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking NexPoint Real Estate Finance, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of NexPoint's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors assessing the company's performance and future outlook. The detailed financial data and disclosures within the report are essential for stakeholders to understand the company's asset portfolio, liabilities, and overall market position within the real estate investment trusts sector.

Risk Assessment

Risk Level: medium — NexPoint Real Estate Finance, Inc. shows moderate risk based on this filing. The company operates in the real estate investment trusts sector, which is subject to market fluctuations, interest rate changes, and regulatory risks, as indicated by the nature of its business and the standard disclosures in a 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand NexPoint's exposure to real estate market dynamics and interest rate sensitivity.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-03-22 — Filing Date (Filed as of date)
• 2021, 2022, 2023 — Fiscal Years Covered (Data periods)

Key Players & Entities

• NexPoint Real Estate Finance, Inc. (company) — Filer name
• 2023 (date) — Fiscal year end
• March 22, 2024 (date) — Filing date
• 300 Crescent Court, Suite 700, Dallas, TX 75201 (address) — Business address
• Maryland (location) — State of incorporation
• Real Estate Investment Trusts (industry) — Standard Industrial Classification

FAQ

Risk Factors

• Market Risks [medium — market]: The company is subject to risks associated with the real estate market, including economic downturns and changes in property values.
• Interest Rate Sensitivity [medium — financial]: Fluctuations in interest rates can impact the company's borrowing costs and the value of its investments.
• Regulatory Compliance [low — regulatory]: The company must comply with various regulations applicable to real estate investment trusts.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-22: 10-K Filing Date — Date the annual report was officially submitted to the SEC.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share NREF New York Stock Exchange
• $25.00 — Preferred Units (liquidation preference $25.00 per unit) in our OP (the "Series A Pref
• $68,840 — at the District Atlanta, GA 10/10/2023 $68,840 $ 63,500 280 100 % Redemptions and Sa
• $400.0 million — $25.00 per share, for gross proceeds of $400.0 million. Beginning on the first day of the cale
• $10.5 million — B Preferred Stock for gross proceeds of $10.5 million in this offering. Notes Offering On N
• $15.0 million — 2023, the Company issued an additional $15.0 million in aggregate principal amount of its 5.
• $13.6 million — interest, for proceeds of approximately $13.6 million after original issue discount and under
• $180.0 million — ees. As of December 31, 2023, there was $180.0 million in aggregate principal amount of the 5.
• $100.0 million — aving an aggregate sales price of up to $100.0 million (the "2022 ATM Program"). The 2022 Equi
• $12.6 million — referred Stock for total gross sales of $12.6 million. For additional information about the 2
• $10.0 million — k at an aggregate market value of up to $10.0 million in shares of its common stock, par valu

Filing Documents

• nref-20231231.htm (10-K) — 4194KB
• nref-formofrsuawardagreemea.htm (EX-10.11) — 37KB
• nref-formofrsuawardagreeme.htm (EX-10.12) — 59KB
• nrefinsidertradingpolicyex.htm (EX-19.1) — 58KB
• a211-listofsubsidiariesoft.htm (EX-21.1) — 20KB
• a123123nref-exx311.htm (EX-31.1) — 10KB
• a123123nref-exx312.htm (EX-31.2) — 10KB
• a123123nref-exx321.htm (EX-32.1) — 6KB
• nref-20231231_g1.jpg (GRAPHIC) — 45KB
• 0001786248-24-000004.txt (&nbsp;) — 18565KB
• nref-20231231.xsd (EX-101.SCH) — 119KB
• nref-20231231_cal.xml (EX-101.CAL) — 97KB
• nref-20231231_def.xml (EX-101.DEF) — 768KB
• nref-20231231_lab.xml (EX-101.LAB) — 1041KB
• nref-20231231_pre.xml (EX-101.PRE) — 868KB
• nref-20231231_htm.xml (XML) — 3396KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 53

Cybersecurity

Item 1C. Cybersecurity 53 Item 2.

Properties

Properties 53 Item 3.

Legal Proceedings

Legal Proceedings 53 Item 4. Mine Safety Disclosures 53 PART II Item 5.

Market for Registrant ' s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant ' s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 54 Item 6. [Reserved] 54 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 55 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 75 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 75 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 75 Item 9A.

Controls and Procedures

Controls and Procedures 75 Item 9B. Other Information 76 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 76 PART III Item 10. Directors, Executive Officers and Corporate Governance 77 Item 11.

Executive Compensation

Executive Compensation 77 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 77 Item 13. Certain Relationships and Related Transactions, and Director Independence 77 Item 14. Principal Accountant Fees and Services 77 PART IV Item 15. Exhibit and Financial Statement Schedules 79 Index to Consolidated Financial Statements F- 1 ii Table of Contents Cautionary Statement Regarding Forward-Looking Statements This annual report ("Annual Report") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. In particular, statements relating to our liquidity and capital resources, our performance and results of operations contain forward-looking statements. Furthermore, all of the statements regarding future financial performance (including market conditions and demographics) are forward-looking statements. We caution investors that any forward-looking statements presented in this Annual Report are based on management's then-current beliefs and assumptions made by, and information currently available to, management. When used, the words "anticipate," "believe," "could," "expect," "intend," "may," "might," "plan," "estimate," "project," "should," "will," "would," "result," the negative version of these words and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against

Business

Item 1. Business General NexPoint Real Estate Finance, Inc. (the "Company", "we", "our") is a commercial mortgage REIT incorporated in Maryland on June 7, 2019 that has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"). The Company is focused on originating, structuring and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties and common equity investments, as well as multifamily and single-family rental ("SFR") commercial mortgage backed securities securitizations ("CMBS securitizations"), multifamily structured credit risk notes ("MSCR Notes") and mortgage backed securities, or our target assets. We primarily focus on investments in real estate sectors where our senior management team has operating expertise, including in the multifamily, SFR, self-storage, life science, hospitality and office sectors predominantly in the top 50 metropolitan statistical areas ("MSAs"). Substantially all of the Company's business is conducted through NexPoint Real Estate Finance Operating Partnership, L.P. (the "OP"), the Company's operating partnership. As of December 31, 2023, the Company held approximately 83.82% of the common limited partnership units in the OP ("OP Units") which represents 100% of the Class A OP Units, and the OP owned all of the common limited partnership units ("SubOP Units") of its three subsidiary partnerships (collectively, the "Subsidiary OPs") (see Note 13 to our consolidated financial statements). The OP also directly owns all of the membership interests of a limited liability company (the "Mezz LLC") through which it owns a portfolio of mezzanine loans, as further discussed below. NexPoint Real Estate Finance OP GP, LLC (the "OP GP") is the sole general partner of the OP. In addition to OP Units, the Company holds all 2,000,000 of the issued and outstanding 8.50% Series A Cumulative Redeemable Preferred Units (liquidation preference $25.00 pe

View Full Filing

View this 10-K filing on SEC EDGAR