NexPoint Real Estate Finance (NYSE:NREF) Releases Quarterly Earnings Results, Hits Expectations

NexPoint Real Estate Finance (NYSE:NREF) issued its earnings results on Thursday. The company reported $0.48 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.48, FiscalAI reports. The business had revenue of $33.84 million during the quarter, compared to analysts’ expectations of $11.64 million. NexPoint Real Estate Finance had a return on equity of 15.63% and a net margin of 122.60%. NexPoint Real Estate Finance updated its Q1 2026 guidance to 0.310-0.360 EPS.

Here are the key takeaways from NexPoint Real Estate Finance’s conference call:

• The board declared a Q1 2026 dividend of $0.50 per share; Q4 cash available for distribution (CAD) was $0.53 (1.06x coverage) and management’s Q1 CAD guidance midpoint is $0.50, supporting near-term dividend sustainability despite EAD being below the dividend.
• Completed a re-REMIC on FREMF 2017-K62 B‑Pieces that reduces mark-to-market repo financing by $75.2 million, lowers debt-to-equity to 0.83x and is expected to be roughly $0.30–$0.34 per share accretive to annual CAD.
• Portfolio totals $1.2 billion across 92 investments (47% multifamily, 30% life sciences, 17% single-family rental), is 82.5% stabilized with a 63.6% LTV and a weighted-average DSCR of 1.24x.
• Full-year net income improved to $2.09 per share (vs. $1.02), but full-year CAD declined 18.6% to $1.97 (from $2.42) and Q4 earnings‑available‑for‑distribution (EAD) of $0.48 remains below prior-year levels and below the current dividend on a per‑share basis.
• Recorded a roughly $12 million CECL provision in Q4 (one-third an updated general reserve, two-thirds related to previously identified preferred deals); management expects provisions to level off in 2026 but the charge weighed on quarterly results.

NexPoint Real Estate Finance Trading Down 0.9%

NREF traded down $0.14 during mid-day trading on Friday, reaching $14.53. The stock had a trading volume of 33,181 shares, compared to its average volume of 42,123. The stock has a market capitalization of $257.49 million, a P/E ratio of 5.01 and a beta of 1.19. NexPoint Real Estate Finance has a 52 week low of $12.14 and a 52 week high of $16.80. The company has a debt-to-equity ratio of 1.23, a quick ratio of 175.70 and a current ratio of 175.70. The firm’s fifty day simple moving average is $14.54 and its two-hundred day simple moving average is $14.36.

NexPoint Real Estate Finance Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 13th will be given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 13.8%. The ex-dividend date is Friday, March 13th. NexPoint Real Estate Finance’s dividend payout ratio (DPR) is presently 68.97%.

Insider Transactions at NexPoint Real Estate Finance

In related news, Director Brian Mitts sold 11,904 shares of the firm’s stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $14.51, for a total value of $172,727.04. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 55.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of NREF. Invesco Ltd. acquired a new stake in NexPoint Real Estate Finance during the 4th quarter worth $167,000. Nexpoint Asset Management L.P. increased its holdings in shares of NexPoint Real Estate Finance by 9.9% in the fourth quarter. Nexpoint Asset Management L.P. now owns 9,439,635 shares of the company’s stock worth $132,910,000 after acquiring an additional 852,271 shares in the last quarter. Cetera Investment Advisers acquired a new stake in shares of NexPoint Real Estate Finance during the fourth quarter worth about $281,000. Russell Investments Group Ltd. lifted its holdings in shares of NexPoint Real Estate Finance by 64.5% during the 4th quarter. Russell Investments Group Ltd. now owns 22,322 shares of the company’s stock valued at $314,000 after purchasing an additional 8,754 shares in the last quarter. Finally, Barclays PLC grew its position in shares of NexPoint Real Estate Finance by 4.3% in the 4th quarter. Barclays PLC now owns 22,858 shares of the company’s stock valued at $322,000 after purchasing an additional 951 shares during the period. Institutional investors own 67.79% of the company’s stock.

More NexPoint Real Estate Finance News

Here are the key news stories impacting NexPoint Real Estate Finance this week:

• Positive Sentiment: Q4 results showed net income and revenue strength: NREF reported net income attributable to common stockholders of $13.6M (GAAP) and revenue of $33.84M for the quarter, well above consensus on the revenue line — a sign of strong portfolio performance this quarter. NREF Announces Fourth Quarter 2025 Results
• Positive Sentiment: Earnings matched estimates: EPS of $0.48 met consensus expectations, reducing near‑term earnings surprise risk. NexPoint (NREF) Meets Q4 Earnings Estimates
• Positive Sentiment: Board declared a quarterly dividend, supporting income investors and signaling confidence in cash flows. NexPoint Declares Quarterly Dividend
• Positive Sentiment: Management highlighted strategic progress in life‑science and build‑to‑rent (BTR) initiatives — potential longer‑term growth drivers as the firm repositions its portfolio. NexPoint outlines Q1 2026 guidance while advancing strategies
• Neutral Sentiment: Earnings call transcript and slide deck are available for deeper review — useful for investors who want detail on drivers behind the revenue beat and portfolio performance. NexPoint Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Third‑party comparison piece contrasts NREF with Altisource (ASPS); useful context but not primary driver of today’s move. Financial Contrast: NREF vs ASPS
• Negative Sentiment: Disappointing near‑term guidance: management set Q1 2026 EPS guidance at $0.310–$0.360, below the street’s ~$0.45 consensus — the guidance cut is the main catalyst for the pullback as it signals a weaker short‑term earnings outlook. NREF Announces Q4 Results and Provides Q1 2026 Guidance
• Negative Sentiment: Year‑over‑year EPS declined (from $0.83 a year ago to $0.48), which, combined with weaker guidance, raises questions about sustainability of current earnings levels. NexPoint (NREF) Meets Q4 Earnings Estimates

Analyst Ratings Changes

A number of brokerages have issued reports on NREF. Keefe, Bruyette & Woods cut their price objective on NexPoint Real Estate Finance from $14.50 to $14.00 and set a “market perform” rating for the company in a report on Thursday, January 8th. Weiss Ratings reissued a “hold (c-)” rating on shares of NexPoint Real Estate Finance in a report on Monday, December 29th. Finally, Wall Street Zen upgraded shares of NexPoint Real Estate Finance from a “sell” rating to a “hold” rating in a research report on Saturday, November 8th. Three investment analysts have rated the stock with a Hold rating, According to MarketBeat, NexPoint Real Estate Finance has an average rating of “Hold” and an average target price of $14.50.

About NexPoint Real Estate Finance

NexPoint Real Estate Finance, Inc is a publicly traded real estate investment trust (REIT) focused on originating, acquiring and managing a diversified portfolio of commercial real estate debt investments. The company seeks to generate current income and capital appreciation by providing financing solutions across the capital structure for stabilized and transitional properties. Its investments include whole loans, mezzanine loans, preferred equity and other structured credit products secured by multifamily, office, industrial, retail and hospitality assets.

Since its initial public offering in March 2021, NexPoint Real Estate Finance has closed numerous transactions with borrowers nationwide, including both institutional sponsors and privately held owners.