Q4 2025 NexPoint Real Estate Finance Inc Earnings Call

February 26, 2026

Speaker #2: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad.

Speaker #2: And if you would like to withdraw your question, press star one again. Thank you. I'd now like to turn the call over to Kristen Griffith, Investor Relations.

Speaker #2: Please go ahead. Thank you. Good day, everyone, and welcome to NextPoint Real Estate Finance's conference call to review the company's results for the fourth quarter ended December 31st, 2025.

Kristen Griffith: Thank you. Good day, everyone, welcome to NexPoint Real Estate Finance's conference call to review the company's results for Q4 ended 31 December 2025. On the call today are Paul Richards, Executive Vice President and Chief Financial Officer, and Matt McGraner, Executive Vice President and Chief Investment Officer. As a reminder, this call is being webcast through the company's website at nref.nexpoint.com. Before we begin, I would like to remind everyone that this conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on management's current expectations, assumptions, and beliefs.

Kristen Griffith: Thank you. Good day, everyone, welcome to NexPoint Real Estate Finance's conference call to review the company's results for Q4 ended 31st December 2025. On the call today are Paul Richards, Executive Vice President and Chief Financial Officer, and Matt McGraner, Executive Vice President and Chief Investment Officer. As a reminder, this call is being webcast through the company's website at nref.nexpoint.com.

Speaker #2: On the call today are Paul Richards, Executive Vice President and Chief Financial Officer, and Matt McGraner, Executive Vice President and Chief Investment Officer. As a reminder, this call is being webcast through the company's website at nraf.nextpoint.com.

Speaker #2: Before we begin, I would like to remind everyone that this conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions, and beliefs.

Kristen Griffith: Before we begin, I would like to remind everyone that this conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on management's current expectations, assumptions, and beliefs.

Speaker #2: Listeners should not place undue reliance on any forward-looking statements in our encouraged to review the company's annual report on Form 10-K and the company's other filings with the SEC for a more complete discussion of risk and other factors that could affect the forward-looking statements.

Kristen Griffith: Listeners should not place undue reliance on any forward-looking statements and are encouraged to review the company's annual report on Form 10-K and the company's other filings with the SEC for a more complete discussion of risks and other factors that could affect the forward-looking statements. The statements made during this conference call speak as of today's date, and except as required by law, NREF does not undertake any obligation to publicly update or revise any forward-looking statements. This conference call also includes an analysis of non-GAAP financial measures. For a more complete discussion of these non-GAAP financial measures, see the company's presentation that was filed earlier today. I would now like to turn the call over to Paul Richards. Please go ahead, Paul.

Speaker #2: The statements made during this conference call speak as of today's date and accept as required by law NREF does not undertake any obligation to publicly update or revise any forward-looking statement.

Speaker #2: This conference call also includes an analysis of non-GAAP financial measures. For a more complete discussion of these non-GAAP financial measures, see the company's presentation that was filed earlier today.

Kristen Griffith: This conference call also includes an analysis of non-GAAP financial measures. For a more complete discussion of these non-GAAP financial measures, see the company's presentation that was filed earlier today. I would now like to turn the call over to Paul Richards. Please go ahead, Paul.

Speaker #2: I would now like to turn the call over to Paul Richards. Please go ahead, Paul.

Speaker #3: Thanks, Kristen, and good morning, everyone. I'll walk through our quarterly results, cover the balance sheet, and provide guidance for Q1 before turning it over to Matt for a deeper dive on the portfolio and the macro lending environment.

Paul Richards: Thanks, Kristen. Good morning, everyone. I'll walk through our quarterly results, cover the balance sheet, and provide guidance for Q1 before turning it over to Matt for a deeper dive on the portfolio and the macro lending environment. Q4 results are as follows: We reported net income of $0.52 per diluted share, compared to $0.43 in Q4 2024. The increase was driven by unrealized gains on our preferred stock and stock warrant investments. Earnings available for distribution came in at $0.48 per diluted share, compared to $0.83 in Q4 2024. Cash available for distribution was $0.53 per diluted share, up from $0.47 in the prior year or prior quarter. We paid a $0.50 per share in Q4, which was 1.06 times covered by cash available for distribution.

Speaker #3: Fourth quarter results are as follows. We report a net income of $52 per diluted share compared to $43 in Q4, '24. The increase was driven by an unrealized gains on our preferred stock and stock warrant investments.

Speaker #3: Earnings available for distribution came in at $48 per diluted share compared to $83 in Q4, '24. Cash available for distribution was $53 per diluted share, up from $47 in the prior year, our prior quarter.

Paul Richards: Earnings available for distribution came in at $0.48 per diluted share, compared to $0.83 in Q4 2024. Cash available for distribution was $0.53 per diluted share, up from $0.47 in the prior year or prior quarter. We paid a $0.50 per share in Q4, which was 1.06 times covered by cash available for distribution.

Speaker #3: We paid a regular dividend of $0.50 per share in the fourth quarter, which was 1.06 times covered by cash available for distribution. The board has declared a dividend of $0.50 per share for the first quarter of 2026.

Paul Richards: The board has declared a dividend of $0.50 per share for Q1 2026. Book value per share increased 1.4% from Q3 to $19.10 per diluted share, primarily driven by unrealized gains on preferred stock investments and stock warrants. Turning to new investment activity during the quarter. We funded $5.7 million on a loan with a monthly coupon of SOFR plus 900 basis points, with a 14% floor, along with $22.5 million on a loan paying an 11% monthly coupon. We also funded a combined $17.4 million across 2 marina loans at a 13% monthly coupon. On the capital market side, we raised $60.5 million in gross proceeds from our Series B Preferred Stock offering.

Speaker #3: Book value per share increased 1.4% from Q3 to $19.10 per diluted share, primarily driven by unrealized gains on preferred stock investments and stock warrants.

Speaker #3: Turning to new investment activity during the quarter, we funded $5.7 million on a loan with a monthly coupon of SOFR plus $900 basis points with a 14% floor, along with $22.5 million on a loan paying an 11% monthly coupon.

Speaker #3: We also funded a combined $17.4 million across two marina loans at a 13% monthly coupon. On the capital markets side, we raised $60.5 million in gross proceeds from our Series B preferred stock offering.

Paul Richards: On the capital market side, we raised $60.5 million in gross proceeds from our Series B Preferred Stock offering.

Speaker #3: For the full year, we reported net income of $2.09 per diluted share, more than double the $1.02 we reported in 2024. The increase was primarily driven by higher net interest income, interest income increased 17.4 million to 89.9 million for 2025, up from 72.5 million in the prior year, driven by higher rates on the portfolio.

Paul Richards: For the full year, we reported net income of $2.09 per diluted share, more than double the $1.02 we reported in 2024. The increase is primarily driven by higher net interest income. Interest income increased $17.4 million to $89.9 million for 2025, up from $72.5 million in the prior year, driven by higher rates on the portfolio. At the same time, interest expense declined from $44.4 million to $42.8 million. Earnings available for distribution was $1.84 per diluted share, up 3.4% from $1.78 in 2024. Cash available for distribution was $1.97 per diluted share, compared to $2.42 in the prior year, a decrease of 18.6%.

Speaker #3: At the same time, interest expense declined from 44.4 million to 42.8 million. Earnings available for distribution was $1.84 per diluted share, up 3.4% from $1.78 in 2024.

Paul Richards: Cash available for distribution was $1.97 per diluted share, compared to $2.42 in the prior year, a decrease of 18.6%.

Speaker #3: Cash available for distribution was $1.97 per diluted share, compared to $2.42 in the prior year, a decrease of 18.6%. Moving to the portfolio and balance sheet, our portfolio consists of 92 investments with a total outstanding balance of $1.2 billion.

Paul Richards: Moving to the portfolio and balance sheet. Our portfolio consists of 92 investments with a total outstanding balance of $1.2 billion. By sector, we are allocated as follows: 47% multifamily, 30% life sciences, 17% single-family rental, and the balance across storage, marina, and industrial. By investment type, 28% CMBS B-piece, 23% preferred equity, 20% mezzanine loan, 14% revolving credit facilities, 10% senior loans, and the remainder in I/O strips and promissory notes. Geographically, our collateral is concentrated in Massachusetts at 24%, Texas at 16%, and California at 7%, with the Massachusetts and California exposure heavily weighted towards life sciences. Florida, Georgia, and Maryland round out the top states, reflecting our continued preference for Sun Belt markets.

Speaker #3: By sector, we are allocated as follows. 47% multifamily, 30% life sciences, 70% 17% single-family rental, and the balance across storage marina and industrial. By investment type, 28% CMBS BPs, 23% preferred equity, 20% mezzanine loan, 14% revolving credit facilities, 10% senior loans, and the remainder in IO strips and promissory notes.

Speaker #3: Geographically, our collateral is concentrated in Massachusetts at 24%, Texas at 16%, and California at 7%. With the Massachusetts and California exposure heavily weighted towards life science, Florida, Georgia, and Maryland round out the top states reflecting our continued preference for Sunbelt markets.

Paul Richards: Florida, Georgia, and Maryland round out the top states, reflecting our continued preference for Sun Belt markets.

Speaker #3: The collateral on our portfolio is 82.5% stabilized, with a 63.6% loan-to-value ratio and a weighted average debt service coverage ratio of 1.24.

Paul Richards: The collateral on our portfolio is 82.5% stabilized, with a 63.6 loan-to-value ratio and a weighted average debt service coverage ratio of 1.24 times. We have $771.2 million of debt outstanding at a weighted average cost of 5.3% and a weighted average maturity of roughly 1 year. Our secured debt is collateralized by $689.2 million of assets, with a weighted average maturity of 3.6 years and a debt-to-equity ratio of 0.92 times. During the quarter, we refinanced $36.5 million unsecured notes with a new $45 million unsecured offering at 7.875%, a modest step up from the 7.5% notes we issued in October 2020, when we were in a zero interest rate environment.

Speaker #1: More times We have $771.2 million of debt outstanding at a weighted average cost of 5.3% and a weighted average maturity of roughly one year .

Speaker #1: Our secured debt is collateralized by 689.2 million of assets , with a weighted average maturity of 3.6 years and a debt to equity ratio of 0.92 times during the quarter .

Paul Richards: During the quarter, we refinanced $36.5 million unsecured notes with a new $45 million unsecured offering at 7.875%, a modest step up from the 7.5% notes we issued in October 2020, when we were in a zero interest rate environment.

Speaker #1: We refinanced 36.5 million unsecured notes with a new 45 million unsecured offering at 7.875% , a modest step up from the 7.5% notes we issued in October of 2020 .

Speaker #1: When we were in a zero interest rate environment, the new notes carry a two-year term with prepayment flexibility, which positions us real well in a declining interest rate environment.

Paul Richards: The new notes carry a 2-year term with prepayment flexibility, which positions us real well in a declining interest rate environment. We're pleased with this execution and look forward to terming out the remaining unsecured notes in the first half of 2026. We have $180 million of unsecured notes maturing in May, and we are actively reviewing several options to achieve the best execution and pricing on the refinancing. We also recently launched our Series C 8% Preferred Stock at $25 per share. Through the end of the year, we have sold approximately 80,000 shares for a total gross proceeds of $2 million and a total of $14.1 million through today. Subsequent to quarter end, we entered into a Re-REMIC transaction on our FREMF 2017-K62 DB piece with Mizuho.

Paul Richards: The new notes carry a two-year term with prepayment flexibility, which positions us real well in a declining interest rate environment. We're pleased with this execution and look forward to terming out the remaining unsecured notes in the first half of 2026. We have $180 million of unsecured notes maturing in May, and we are actively reviewing several options to achieve the best execution and pricing on the refinancing. We also recently launched our Series C 8% Preferred Stock at $25 per share.

Speaker #1: We're pleased with this execution and look forward to turning out the remaining unsecured notes in the first half 2026 . On that note , we have 180 million of unsecured notes maturing in May , and we are actively reviewing reviewing several options to achieve the best execution and pricing on the refinancing .

Speaker #1: We also recently launched our series C , 8% preferred stock at $25 per share through the end of the year , we have sold approximately 80,000 shares for a total gross proceeds of 2 million and a total of 14.1 million through today .

Paul Richards: Through the end of the year, we have sold approximately 80,000 shares for a total gross proceeds of $2 million and a total of $14.1 million through today. Subsequent to quarter end, we entered into a Re-REMIC transaction on our FREMF 2017-K62 DB piece with Mizuho.

Speaker #1: Lastly , subsequent to quarter end , we entered into a transaction on our 2017 . K62 piece with Mizuho . Under this structure , we are selling the beeps and purchasing the horizontal risk retention tranche , which represents roughly 5.8% of the Re mix .

Paul Richards: Under this structure, we are selling the B-piece and purchasing the horizontal risk retention tranche, which represents roughly 5.8% of the Re-REMIC. This transaction reduces our mark-to-market repo financing by $75.2 million, and our debt-to-equity ratio would decrease to 0.83x, and the HRR tranche carries an expected yield of 18.5%. On a go-forward basis, the interest expense savings and reinvestment capacity are expected to be around $0.30 to $0.34 per share accretive to annual CAD. We view this as a compelling example of actively managing our B-piece portfolio to unlock value and improve our capital efficiency. Moving to guidance for Q1. Earnings available for distribution, $0.40 per diluted share at the midpoint, with a range of $0.35 to $0.45.

Speaker #1: This transaction reduces our mark to mark repo financing by 75.2 million , and our debt to equity ratio would decrease to 0.83 times .

Speaker #1: And the HRR tranche carries an expected yield of 18.5% on a go forward basis . The interest expense savings and reinvestment capacity are expected to be around 30 to 44 , 30 to $0.34 per share , accretive to annual CAD .

Paul Richards: We view this as a compelling example of actively managing our B-piece portfolio to unlock value and improve our capital efficiency. Moving to guidance for Q1. Earnings available for distribution, $0.40 per diluted share at the midpoint, with a range of $0.35-$0.45.

Speaker #1: We view this as a compelling example of actively managing our BP portfolio to unlock value and improve our capital efficiency . Moving to guidance for the first quarter earnings available for distribution , $0.40 per diluted share at the midpoint , with a range of 35 to $0.45 .

Speaker #1: Cash available for distribution $0.50 per diluted share at the midpoint , with a range of 45 to $0.55 . And with that , I'd like to turn it over to Matt for a detailed discussion of the portfolio and the current market environment .

Paul Richards: Cash available for distribution, $0.50 per diluted share at the midpoint, with a range of $0.45 to $0.55. With that, I'd like to turn it over to Matt for a detailed discussion of the portfolio and the current market environment. Matt?

Paul Richards: Cash available for distribution, $0.50 per diluted share at the midpoint, with a range of $0.45-$0.55. With that, I'd like to turn it over to Matt for a detailed discussion of the portfolio and the current market environment. Matt?

Speaker #1: Matt . Appreciate it . Paul . I'm excited to speak to everyone today about pipeline and trends in our main verticals . I also want to thank our team here .

Matt McGraner: I appreciate it, Paul. I'm excited to speak to everyone today about NREF's pipeline and trends in our main verticals. I also want to thank our team here, as Paul just mentioned, and all of our partners for another quality quarter for the business and our shareholders with great execution. As it relates to our main verticals, I'm very pleased with our portfolio of assets in this era of major AI disruption. Indeed, NexPoint has been steady and intentional about our asset selection, and thankfully, NexPoint, and by extension, NREF especially, is not investing in AI scare trade assets or assets historically levered to these property types. We are intentional about our residential and self-storage exposure, both recession-resilient property types necessary for everyday life. Indeed, the introduction of AI to these property types is only improving efficiency and margins in these businesses and not rendering them obsolete.

Speaker #1: As Paul just mentioned , and all of our partners , for another quality quarter for the business and our shareholders with great execution as it relates to our main verticals .

Speaker #1: I'm very pleased with our portfolio of assets in this era of major AI disruption . Indeed . Next point has been steady and intentional about our asset selection and thankfully , next point .

Speaker #1: And by extension , NRF especially is not investing in AI scare trade assets or assets . Historically levered to these property types . We are intentional about our residential and self-storage exposure , both recession resilient property types necessary for everyday life .

Matt McGraner: We are intentional about our residential and self-storage exposure, both recession-resilient property types necessary for everyday life. Indeed, the introduction of AI to these property types is only improving efficiency and margins in these businesses and not rendering them obsolete.

Speaker #1: Indeed , the introduction of AI to these property types is only improving efficiency in margins in these businesses and not rendering them obsolete .

Speaker #1: Even our life science exposures in first to fill assets in elite educational districts producing this AI talent . What's more , the demand funnel for our life science collateral is widening to AI companies themselves , which need the purpose built lab type buildings to house their compute infrastructure .

Matt McGraner: Even our life-to-fill assets in elite educational districts producing this AI talent. What's more, the demand funnel for our life science collateral is widening to AI companies themselves, which need the purpose-built lab-type buildings to house their compute infrastructure. Our Airlife project is a perfect example. Lab and AI tenants could go to older converted assets for half the rent, but they must have the infrastructure and bones of these purpose-built, well-located assets, and they'll pay for it. Let me start there with life science for the quarter. Our largest single asset exposure in life science, LY Park, is now 64% leased at a 9 cap rate, with RFPs, LOIs, and leases now totaling 2.8 times the square footage of the project.

Speaker #1: Our Alewife project is a perfect example . Lab and AI tenants could go to older converted assets for half the rent , but they must have the infrastructure and bones of these purpose built well located assets , and they'll pay for it .

Speaker #1: So let me start there with life science for the quarter . Our largest single asset exposure in life science . Life Park is now 64% leased at a nine debt cap rate , with RFPs , alloys and leases .

Matt McGraner: Let me start there with life science for the quarter. Our largest single asset exposure in life science, LY Park, is now 64% leased at a nine cap rate, with RFPs, LOIs, and leases now totaling 2.8 times the square footage of the project.

Speaker #1: Now totaling 2.8 times the square footage of the project . Momentum has materially increased since the lease , and we expect this continue to have the project fully leased in 2026 , yielding a debt cap rate with a 12 handle .

Matt McGraner: Momentum has materially increased since the Lila lease, and we expect this trend to continue to have the project fully leased in 2026, yielding a debt cap rate with a 12 handle. More broadly, certainly less expensive alternatives exist in the suburbs or in second gen space, but first to fill buildings in impossible to recreate locations, again, in elite educational centers, is our exposure. What we are fairly certain of are 2 things: number 1, health, wellness, and longevity of life was already a rapidly growing trend before the latest AI disruption. If we do get the productivity gains and GDP growth as a result, we believe the population will prioritize spending in their health, i.e., living longer and entertainment.

Matt McGraner: Momentum has materially increased since the Lila lease, and we expect this trend to continue to have the project fully leased in 2026, yielding a debt cap rate with a 12 handle. More broadly, certainly less expensive alternatives exist in the suburbs or in second gen space, but first to fill buildings in impossible to recreate locations, again, in elite educational centers, is our exposure. What we are fairly certain of are two things: number one, health, wellness, and longevity of life was already a rapidly growing trend before the latest AI disruption.

Speaker #1: More broadly , certainly less expensive alternative alternatives exist in the suburbs or in second gen space , but first , to fill buildings in impossible to recreate locations again in elite educational centers is our exposure and what we are fairly certain of are two things .

Speaker #1: Number one , health , wellness and longevity of life was already a rapidly growing trend before the latest AI disruption . And if we do get the productivity gains and GDP growth as a result , we believe the population will prioritize spending in their health , i.e. living longer and entertainment drug discovery and delivery are key tenets of life science demand , and we believe each of these have a massive tailwind for purpose built new life science product in elite academic ecosystems .

Matt McGraner: If we do get the productivity gains and GDP growth as a result, we believe the population will prioritize spending in their health, i.e., living longer and entertainment.

Matt McGraner: Drug discovery and delivery are key tenets of life sciences demand. We believe each of these have a massive tailwind for purpose-built, new life sciences product in elite academic ecosystems. The second tenet of our thesis in leaning in when we did, is that new supply over the near term is non-existent. Our basis in our collateral is 30, 60-- 30 to 60% below replacement cost for these assets. That's just replacement costs, let alone the need to justify a profit for a new life sciences development. In short, we really like our portfolio and where it's positioned, especially relative to comps and the demographic that AI tailwinds are real. On the residential front, we continue to work through the highest supply cycle since the 1980s and do see the new lease inflection this year.

Speaker #1: The second tenet of our thesis , in leaning in when we did , is that new supply over the near term is nonexistent .

Speaker #1: Our basis in our collateral is 3030 to 60% below replacement costs for these assets . And that's just replacement costs , let alone the need to justify a profit for a new life .

Speaker #1: Science development . In short , we really like our portfolio and where it's positioned , especially relative to comps and the demographics and AI tailwinds are real on the residential front , we continue to work through the highest supply cycle since the 1980s and do see the new lease inflection this year .

Matt McGraner: In short, we really like our portfolio and where it's positioned, especially relative to comps and the demographic that AI tailwinds are real. On the residential front, we continue to work through the highest supply cycle since the 1980s and do see the new lease inflection this year.

Speaker #1: I've detailed this on prior calls , but just to quickly repeat , we think multi-family rents will inflect positive with most of our market exposure occurring in the second half of 2026 .

Matt McGraner: I've detailed this on prior calls, but just to quickly repeat, we think multifamily rents will inflect positive, with most of our market exposure occurring in the second half of 2026. We attribute this to four main factors. Persistent structural demand, the cost to own a home is 3 times more to rent an apartment in our markets. A 60% decline in new market rate deliveries from the peak. Construction starts running approximately 70% below their 2020 peak, locking in a multi-year supply trough, and finally, concession burn off, resulting in immediate gains to gross potential rents. We do think AI will have some job cannibalizing effect, particularly in the entry-level white-collar job market, but also see an encouraging residential trend offsetting potential job weakness.

Matt McGraner: I've detailed this on prior calls, but just to quickly repeat, we think multifamily rents will inflect positive, with most of our market exposure occurring in the second half of 2026. We attribute this to four main factors. Persistent structural demand, the cost to own a home is three times more to rent an apartment in our markets. A 60% decline in new market rate deliveries from the peak. Construction starts running approximately 70% below their 2020 peak, locking in a multi-year supply trough, and finally, concession burn off, resulting in immediate gains to gross potential rents.

Speaker #1: We attribute this to four main factors persistent structural demand , the cost to own a home is three times more . To rent an apartment in our markets , a 60% decline in new market rate deliveries from the peak construction starts running approximately 70% below their 2020 peak , locking in a multiyear supply trough and finally , concession burn off , resulting in immediate gains to gross potential rents .

Speaker #1: We do think AI will have some job cannibalizing effect , particularly in the entry level , white collar job market , but also see an encouraging residential trend offsetting potential job weakness that is , advances in health and wellness are adding longevity to the population , creating somewhat of a demographic backstop to demand .

Matt McGraner: We do think AI will have some job cannibalizing effect, particularly in the entry-level white-collar job market, but also see an encouraging residential trend offsetting potential job weakness.

Matt McGraner: That is, advances in health and wellness are adding longevity to the population, creating somewhat of a demographic backstop to demand. The 65 plus population is growing at 3% to 5% across our markets, and a late 2025 study from Harvard projects the senior renter population to double from 5.8 million households to 12.2 million households by 2030. On the self-storage front, Q3 REIT earnings came in at or slightly above expectations. Excuse me, Q4 REIT earnings came in slightly above expectations, but revenue was flat to slightly negative year-over-year. Looking forward, Q4 and full-year performance is expected to show flat revenue and a 50 to 150 basis point decline in NOI. Some sell-side analysts have already trimmed their 2026 and 2027 estimates.

Speaker #1: The 65-plus population is growing at 3 to 5% across our markets. In a late 2025 study from Harvard Projects, the senior renter population is projected to double from 5.8 million households to 12.2 million households by 2030.

Speaker #1: On the self storage front , Q3 reasonings came in at or slightly above expectations . Excuse me . Q4 read . Expectations , earnings came in slightly above expectations , but revenue was flat to slightly negative year over year .

Matt McGraner: Excuse me, Q4 REIT earnings came in slightly above expectations, but revenue was flat to slightly negative year-over-year. Looking forward, Q4 and full-year performance is expected to show flat revenue and a 50 to 150 basis point decline in NOI. Some sell-side analysts have already trimmed their 2026 and 2027 estimates.

Speaker #1: Looking forward , Q4 and full year performance is expected to show flat revenue and 50 to 150 basis point decline in NOI . Some sell side analysts have already trimmed their 2026 and 2027 estimates .

Speaker #1: Occupancy generally remains under pressure, with the industry average ending 2025 at 89%, down 210 basis points from the start of the year.

Matt McGraner: Occupancy generally remains under pressure, with industry average ending 2025 at 89%, down 210 basis points from the start of the year. The primary culprit is a sluggish housing market, as home sales remain near multi-year lows and mortgage rates stay elevated, reducing a key demand driver for self-storage. Rates are the bright spot. However, after two years of falling rates, some down 20% from COVID era highs, move-in rates have been trending up since May 2025 and should help offset some of the occupancy weakness. Also good news, supply remains constrained at just under 3% of existing stock, with the already projecting deliveries as low as 1% over the next couple of years.

Speaker #1: The primary culprit is a sluggish housing market , as home sales remain near multi-year lows and mortgage rates stay elevated , reducing a key demand driver for self-storage rates are the bright spot .

Speaker #1: However , after two years of falling following rates , some down 20% from Covid era highs , moving rates have been trending up since May of 2025 and should help offset some of the occupancy weakness .

Speaker #1: Also , good news supply remains constrained at just under 3% of existing stock , with Yardi projecting deliveries as low as 1% over the next couple of years .

Matt McGraner: Also good news, supply remains constrained at just under 3% of existing stock, with the already projecting deliveries as low as 1% over the next couple of years.

Speaker #1: Again , high financing financing costs , expensive land and material cost inflation are deterring new development , which should eventually restore pricing power and return to NOI growth to the historical 3 to 5% range .

Matt McGraner: Again, financing costs, expensive land, and material cost inflation are deterring new development, which should eventually restore pricing power and return to NOI growth to the historical 3% to 5% range. Our NexPoint Storage portfolio significantly outperformed the broader industry in 2025, finishing the year at 91.7% occupancy, exceeding its NOI budget by 3.2% and growing NOI 13% over 2024. Looking into 2026, NOI growth is expected to moderate to 4%, reflecting portfolio stabilization, softer demand, and rate constraints on our two LA properties, but still notably higher than the broader industry. On the SFR and BTR front, fundamentals continue to outperform the broader multifamily segment generally.

Speaker #1: Our next point storage portfolio significantly outperformed the broader industry in 2025 , finishing the year at 91.7% occupancy , exceeding its NOI budget by 3.2% , and growing NOI 13% over 2024 .

Matt McGraner: Looking into 2026, NOI growth is expected to moderate to 4%, reflecting portfolio stabilization, softer demand, and rate constraints on our two LA properties, but still notably higher than the broader industry. On the SFR and BTR front, fundamentals continue to outperform the broader multifamily segment generally.

Speaker #1: Looking into 2026 , NOI growth is expected to moderate to 4% , reflecting portfolio stabilization , softer demand and rate constraints on on our two LA properties .

Speaker #1: But still notably higher than the than the broader industry on the SFR and BTR front . Fundamentals continue to outperform the broader multifamily segment generally .

Speaker #1: Our SFR collateral remains some of the best performing within our portfolio , with steady occupancies in the mid 90s with positive new lease and renewal growth , as well .

Matt McGraner: Our SFR collateral remains some of the best performing within our portfolio, with steady occupancies in the mid-90s, with positive new lease and renewal growth as well. In recent discussion with the agencies, notwithstanding recent proposed regulation limiting institutional ownership in the sector, Fannie and Freddie remain open to finance Build-to-Rent assets. Indeed, we believe this is an immense area of opportunity, regardless of regulation, to either take subordinate risk off of the agencies or fill a direct lending void to institutional portfolios of scattered site SFR, should this void materialize. I'm also very pleased with our pipeline and the menu of capital options available to us to capitalize on these opportunities. Today, our 90...

Speaker #1: In recent discussion with the agencies and notwithstanding recent proposed regulation limiting institutional ownership in the sector , Fannie and Freddie remain open to finance , build to rent assets .

Speaker #1: Indeed , we believe this is an immense area of opportunity , regardless of regulation , to either take subordinate risk off of the agencies or fill a direct lending void to institutional portfolios of scattered site SFR .

Speaker #1: Should this void materialize . I'm also very pleased with our pipeline and menu of capital options available to us . To capitalize on these opportunities .

Matt McGraner: I'm also very pleased with our pipeline and the menu of capital options available to us to capitalize on these opportunities. Today, our 90...

Speaker #1: Today , our 90 hour rolling 90 day pipeline consists senior and mezzanine investments in $90 million of multifamily product , 5055 million of BTR , 45 million of small bay , industrial and self-storage , and 70 million of life sciences and advanced manufacturing .

Matt McGraner: our 90-day pipeline consists of senior mezzanine investments in $90 million of multifamily product, $55 million of BTR, $45 million of small bay industrial and self-storage, and $70 million of life sciences and advanced manufacturing. As Paul mentioned, our underlying credit profile of the portfolio remains very strong atop commercial mortgage REIT sector. Also given our healthy dividend coverage, very low leverage, stable book value, and capital options available to us, you can expect that we will also continue to opportunistically buy back stock while pursuing these new investments, particularly after the refinancing of our bonds. Again, very pleased with the portfolio's performance and look forward to deploying more capital this year in 2026.

Speaker #1: As Paul mentioned , our underlying credit profile of the portfolio remains very strong atop commercial a top commercial mortgage REIT sector . And also given our healthy dividend coverage , very low leverage , stable book value and capital options available to us , you can expect that we will also continue to opportunistically buy back stock while these new investments , particularly after the refinancing of our bonds .

Matt McGraner: Also given our healthy dividend coverage, very low leverage, stable book value, and capital options available to us, you can expect that we will also continue to opportunistically buy back stock while pursuing these new investments, particularly after the refinancing of our bonds. Again, very pleased with the portfolio's performance and look forward to deploying more capital this year in 2026.

Speaker #1: Again , very pleased with the portfolio's performance and look forward to deploying more capital this year in 2026 . Again , I want to thank the team here for their hard work , and now we'd like to turn the call over to the operator for questions

Matt McGraner: Again, wanna thank the team here for their hard work, and now we'd like to turn the call over to the operator for questions.

Speaker #2: As a reminder , if you'd like to ask a question , simply press star , followed by the number one on your telephone keypad .

Operator: As a reminder, if you'd like to ask a question, simply press star followed by the number 1 on your telephone keypad. Your first question comes from the line of Crispin Love from Piper Sandler. Your line is live.

Speaker #2: Your first question comes from the line of Crispin Love from Piper . Piper Sandler . Your line is live .

Speaker #3: Hi . How's it going ? Can you guys hear me ? All right .

[Operator 2]: Hi, how's it going? Can you guys hear me all right?

Operator: Hi, how's it going? Can you guys hear me all right?

Speaker #1: Yeah . You're great .

Matt McGraner: Yeah.

Paul Richards: Hear you great.

Speaker #3: Awesome . Thank you so much . This is Ben Graham for Crispin Love . Thanks for taking the question . I'm wondering if you could discuss dividend sustainability and your confidence in the current level .

[Operator 2]: Awesome. Thank you so much. This is Ben Graman for Crispin Love. Thanks for taking the question. I'm wondering if you could discuss dividend sustainability and your confidence in the current level. The EAD guidance range is below the dividend, but cash available for distribution is in line. I'm wondering what the major factors are that are dividing yours and the board's decision on the dividend here, and when do you believe you could be covering the dividend on a more consistent basis with EAD? Thank you.

Operator: Awesome. Thank you so much. This is Ben Graman for Crispin Love. Thanks for taking the question. I'm wondering if you could discuss dividend sustainability and your confidence in the current level. The EAD guidance range is below the dividend, but cash available for distribution is in line. I'm wondering what the major factors are that are dividing yours and the board's decision on the dividend here, and when do you believe you could be covering the dividend on a more consistent basis with EAD? Thank you.

Speaker #3: The guidance range is below the dividend , but cash available for distribution is in line . And I'm wondering what the major factors are that are dividing yours and the board's decision on the dividend here .

Speaker #3: And when do you believe you could be covering the dividend on a more consistent basis with the ad ? Thank you

Speaker #1: Yeah , great .

Paul Richards: Yeah. Hey, great getting to talk to you. Yes, our EAD is a little below our CAD, but the majority of that is, you know, again, the bridge from EAD to CAD, amortization of premiums, some accretion of discounts, and depreciation on REO. You know, we believe that CAD is the better indicator of, you know, dividend coverage and sustainability, hence why we have continued to recommend a $0.50 dividend to the board, and they have, you know, approved it every time. You know, we feel very good on the go forward. You know, one, from the Re-REMIC transaction we discussed. Two, from the continued Series C raise and redeployment at 200 to 400 basis point net interest margin for that number to grow over time as well.

Speaker #4: Great getting to talk to you . So yes , our Ede is a little below our cad , but the majority of that is , you know , again , the bridge from E80 to CAD and amortization of premiums , some accretion of discounts and depreciation on Rio .

Speaker #4: So , you know , we we believe that CAD is the better indicator of , dividend coverage and sustainability . Hence why we have continued to recommend a 50 cent dividend to the board .

Speaker #4: And they have , you approved it every time . So you know we feel very good on the go forward . You know one from the transaction .

Paul Richards: You know, we feel very good on the go forward. You know, one, from the Re-REMIC transaction we discussed. Two, from the continued Series C raise and redeployment at 200 to 400 basis point net interest margin for that number to grow over time as well.

Speaker #4: We discussed two from the continued Series C raise and redeployment at 200 to 400 basis points. Net interest margin for that number to grow over time as well.

Speaker #4: So you know , we feel well positioned . For the future for dividend sustainability .

Paul Richards: You know, we feel well-positioned, you know, for the future for dividend sustainability.

Speaker #1: Yeah I just add to that . You know , we've consistently out earned our dividend since our inception . Again have a stable book value going on the the offensive and really like our cost of capital again to drive drive the results that you're seeing here which which , you know , relative to the comps we think is pretty good

Matt McGraner: Yeah, I'd just add to that, you know, we've consistently outearned our dividend since our inception. Again, have a stable book value, going on the offensive and really like our cost to capital, again, to drive the results that you're seeing here, which, you know, relative to the comps, we think is pretty good.

Speaker #3: Awesome . Thank you so much for the color there . And then if I could ask one more question , when you look at your portfolio areas between multifamily single family rental , self-storage , life sciences , etc.

[Operator 2]: Awesome. Thank you so much for the color there. If I could ask one more question. When you look at your portfolio areas between multifamily, single-family rental, self-storage, life sciences, et cetera, I'm wondering what areas you're most excited about today. Further, how do you expect the administration's focus on real estate, mortgage, and single-family affordability to impact some of the areas where you're invested? Thank you.

Paul Richards: Awesome. Thank you so much for the color there. If I could ask one more question. When you look at your portfolio areas between multifamily, single-family rental, self-storage, life sciences, et cetera, I'm wondering what areas you're most excited about today. Further, how do you expect the administration's focus on real estate, mortgage, and single-family affordability to impact some of the areas where you're invested? Thank you.

Speaker #3: , I'm wondering what areas you're most excited about today . And then further , how do you expect the administration's focus on real estate , mortgage and single family affordability to impact some of the areas where you're invested ?

Speaker #3: Thank you

Matt McGraner: Yeah, I think, you know, I'm glad, as I mentioned, that we leaned into life sciences when we did last year, at a time when, you know, there was no capital available, 'cause we're starting to see, you know, folks reenter that market, which are gonna reduce spreads. Right now, I think, where we're spending the most time is on the BTR and the multifamily front, on the new construction and stretch senior side. You know, providing B notes and selling off A notes for both new construction and/or new lease-up deals, both on the BTR front and on the multifamily front.

Speaker #1: Yeah , I think , you know , I'm glad , as I mentioned , that we leaned into life sciences when we did last year at a time when , you know , there was no capital available because we're starting to see , you know , folks reenter that market , which are going to reduce spreads .

Speaker #1: So right now , I think where we're spending the most time is on the BTR and the multifamily front on on the new construction and stretch stretch , senior side , you know , providing vnotes and selling off a notes for both new construction and or new lease up deals , both on the BTR front and and on the multifamily front as it relates to , you know , the recent proposed regulations .

Matt McGraner: As it relates to, you know, the recent proposed regulations, I think it's still too early to tell, but our organization has been involved in some of the, you know, the regulatory process, if you will, and lobbying process in DC. I think from our exposure, we feel very good about mainly focusing on Build-to-Rent assets, which are adding to the housing stock and not detracting from it. We still think that there's gonna be a need to provide capital in that, in that space. I think the opportunity remains for BTR assets. What's more interesting, and I think more in the bull's eye of the proposed regulations, are scattered site SFR.

Speaker #1: I think it's still too early to tell , but our organization has been involved in some of the , you know , the the regulatory process , if you will , and lobbying process and D.C.

Speaker #1: and , you know , I think from from our exposure , you know , we feel very good about mainly focusing on , you know , build to rent assets , which are adding to the housing stock and not detracting from it .

Speaker #1: And so we still think that there's going to be a need to provide capital in that, in that space. So I think the opportunity remains for BTR assets.

Speaker #1: What's more interesting , and I think more in the bull's eye of the proposed regulations are scattered site SFR , you know , there's been proposals on , you know , limiting institutional buyers from purchasing homes off of the MLS and how that all shakes , shakes out in terms of , you know , the finance ability .

Matt McGraner: you know, there's been proposals on, you know, limiting institutional buyers from purchasing homes off of the MLS, and how that all shakes out in terms of, you know, the financeability, it's probably too early to tell. I think the ABS market on the scattered site front is still very active and still, you know, I'd say wide open, even, you know, post the announcements. I think that market still continues to trade well and still, I think the origination volume is still open.

Speaker #1: It's probably too early to tell . But I think the ABS market on the scattered site front is still very active . And still , you know , I'd say wide open even , you know , post post the announcements .

Speaker #1: I think that market's continues to trade well and still I think the origination volume is still open . But to the extent that it's closed and scattered , site becomes a little bit of a , you know , out of favor with the , you know , with the broader , you know , lending environment because of political pressure .

Matt McGraner: To the extent that it's closed and scattered site becomes a little bit of a, you know, out of favor with the, you know, with the broader, you know, lending environment because of political pressure, I do think that that's an opportunity for us to enter that market and provide capital and liquidity because we're very, obviously very comfortable with it.

Speaker #1: I do think that that's an opportunity for us to enter that market and provide capital and liquidity, because we're obviously very comfortable with it.

Speaker #3: Awesome. Thank you so much for taking my questions.

[Operator 2]: Awesome. Thank you so much for taking my questions.

Paul Richards: Awesome. Thank you so much for taking my questions.

Speaker #1: You bet .

Matt McGraner: You bet.

Speaker #2: Your next question comes from the line of Jade Rahmani from KBW . Your line is live .

Operator: Your next question comes from the line of Jade Rahmani from KBW. Your line is live.

Speaker #5: Thank you very much . Can you touch on the provision for credit loss that took place in the quarter ? Around 12 million .

Jade Rahmani: Thank you very much. Can you touch on the provision for credit loss that took place in the quarter, around $12 million, and what you expect on that going forward?

Speaker #5: And what do you expect on that going forward?

Speaker #4: Absolutely . Jade . Hey , this is Paul . I would say that one third of it was just our general reserve . We include we updated our calculation to be , again , more conservative .

Paul Richards: Absolutely, Jade. Hey, this is Paul. I would say that one third of it was just our general reserve. We updated our calculation to be, again, more conservative. It now includes a severe downside component to the CECL provision to align with our peer group. The other, you know, call it 66%, we're on deals that we've already taken a CECL reserve on, which are on a few of the prep deals that we spoke about last quarter. On the go forward expectations, I, you know, again, I, I think you're kind of at that trough, and there aren't any more, really more problem areas on the press book or in the portfolio.

Speaker #4: And now includes a severe downside component to the Cecil provision to align with our peer group . And the other , you know , call it 66% were on deals that we've already taken a Cecil Reserve on , which we're on a few of the deals that we spoke about last quarter .

Speaker #4: On the go forward expectations . I , you know , again , I think you're kind of at that trough and there shouldn't be really there aren't any more really more problem areas on the pref book or in the portfolio .

Speaker #4: So I you know , I think this would probably level off in , in 26 .

Paul Richards: I, you know, I think this would probably level off in 2026.

Speaker #5: Thank you very much . And just on the life science project , which has bucked the trend in the industry of a downdraft in leasing activity , could you give your thoughts as to , you know , what the project specific characteristics are that drove , you know , the positive performance ?

Jade Rahmani: Thank you very much. Just on the life science project, which has bucked the trend in the industry of a downdraft in leasing activity, could you give your thoughts as to, you know, what the project's specific characteristics are that drove, you know, the positive performance? If you're seeing, you know, outside of this project, any uptick in life science leasing activity that might make you know, look at other deals in that sector?

Speaker #5: And if you're seeing , you know , outside of this project , any uptick in life science leasing activity that might make you , you know , look at other deals in that sector

Speaker #1: Yeah , you bet . I'd say the Alewife Park project is is one of the the very few , you know , purpose built life science on grade all the , you know , all the qualities that you need and you know , more importantly , you know , in West Cambridge on on mass transit lines .

Matt McGraner: Yeah, you bet. I'd say the Alewife Park project is one of the very few, you know, purpose-built, life science, slab on grade, all the, you know, all the qualities that you need, and, you know, more importantly, you know, in West Cambridge on mass transit lines. I think, you know, when this project opened and CO'd, it was probably into the worst, you know, I would say some of the worst, you know, market dynamics that we faced, you know, historically in life science. You know, I think part of it is, again, the infrastructure that Lila Sciences needed.

Speaker #1: And I think , you know , when , when this project opened and code , it was probably into the worst , you know , I would say some of the worst , you know , market dynamics that we faced , you know , historically in life science , you know , I think part of it is the , the again , the infrastructure that Lila size is needed .

Matt McGraner: You know, we were the only building that could, you know, at that time, house their needs and their infrastructure. You know, it's kind of a, it's the cluster effect. Once you get a good tenant such as Lila, backed by a very well-heeled investor base, you know, those tenants can continue to drive more leasing activity, and people want to be around them. I think, you know, we might have gotten lucky, but I'll take it. I would say, more broadly, I think across the portfolio, I think activity is in the last, you know, 30, 60 days coming out of JP Morgan in San Francisco. There's been a, you know, I would say, a lot of optimism.

Speaker #1: You know , we were the only building that could , you know , at that at that time house , their needs and their infrastructure .

Speaker #1: And then , you know , it's kind of a it's the cluster effect . Once you get a good tenant such as Lila , backed by a very well-heeled investor base , you know , the those those tenants can continue to drive more leasing activity .

Speaker #1: And people want to be around them . So I think , you know , we might have gotten lucky , but I'll take it .

Speaker #1: I would say more broadly , I think across the portfolio , I think activity is in the last , you know , 30 , 60 days coming out of J.P.

Matt McGraner: I would say, more broadly, I think across the portfolio, I think activity is in the last, you know, 30, 60 days coming out of JP Morgan in San Francisco. There's been a, you know, I would say, a lot of optimism.

Speaker #1: Morgan in San Francisco . There's there's been a , you know , I would say a lot of optimism . We're seeing , you know , more capital .

Matt McGraner: We're seeing, you know, more capital. Yeah, the CFOs, you know, folks in charge of capital allocation decisions start making those decisions finally. I do think, you know, some of the biggest demands and winding of the funnel will come from AI, and whether or not it's life sciences, you know, AI designed the life sciences. I don't think we really care. I think the, you know, again, these buildings or these companies, these AI companies with this compute infrastructure, they have to go in to purpose-built new buildings. You know, with all the quality, you know, the air quality, the infrastructure like that. I think that's, you know, that's helped our leasing activity a lot, and I can...

Speaker #1: Yeah . Like CFOs , you know , folks in charge of capital allocation decisions . Start making those decisions finally . And then I do think , you know , some of the , you know , some of the biggest demand and widening of the funnel will come from AI and whether or not it's life sciences , you know , AI , design , a life sciences , I don't think we really care .

Speaker #1: I think the , you know , again , these buildings or these companies , these AI companies with this compute infrastructure , they they have to go in to purpose built new buildings , you know , with all the , the quality , you know , the air quality , the infrastructure like that .

Matt McGraner: You know, with all the quality, you know, the air quality, the infrastructure like that. I think that's, you know, that's helped our leasing activity a lot, and I can...

Speaker #1: I think that's , you know , that's helped our leasing activity a lot . And I can , you know , I don't see that .

Matt McGraner: Yeah, I don't see that, I don't see that waning anytime soon.

Speaker #1: I don't see that waning anytime soon

Speaker #5: Thank you .

Jade Rahmani: Thank you.

Speaker #4: Thanks , Shane .

Paul Richards: Thanks, Jay.

Speaker #2: Your final question comes from the line of Gabe Poggi from Raymond James . Your line is live .

Operator: Your final question comes from the line of Gabe Poggi from Raymond James. Your line is live.

Speaker #6: Hey . Good morning guys . Thanks for taking the time . Can you give a little more details around the loans you made in the quarter , specifically the $22.5 million loan ?

David Brown: Hey, good morning, guys. Thanks for taking the time. Can you give a little more details around the loans you made in the quarter? You know, specifically the $22 and a half million loan, you know, at 11%. I assume the SOFR 9 is at Alewife, but just any kind of incremental color around those loans would be helpful.

Gabe Poggi: Hey, good morning, guys. Thanks for taking the time. Can you give a little more details around the loans you made in the quarter? You know, specifically the $22 and a half million loan, you know, at 11%. I assume the SOFR 9 is at Alewife, but just any kind of incremental color around those loans would be helpful.

Speaker #6: You know , at 11% , I assume the Sofa nine is at Alewife , but just any kind of incremental color around those those loans would be helpful .

Speaker #4: Sure . Yeah . As you mentioned , there was the the one loan , which was our continued commitment on the Alewife project .

Paul Richards: Sure. Yeah, as you mentioned, there was the one loan, which was our continued commitment on the Alewife project. The other two loans, which were roughly, you know, I think it was around $10 million, plus on the preferred side for two marinas that, you know, we really, you know, believe in the cash flow, et cetera. The last one was a self-storage deal in Hialeah. Again, very sound, very great detachment point, covered 13%. You know, again, we expect to find these types of deals using more of a rifle shot approach, as Matt mentioned in our sales or in our pipeline funnel.

Speaker #4: The other two loans , which were roughly , you know , I think it was around $10 million plus on the preferred side for two marinas that , you know , we really believe in the cash flow , etc.

Speaker #4: , and the last one was a it was a self storage , a self storage deal in Hialeah . And again , very sound , very great detachment point covered 13% .

Speaker #4: You know , again , we expect to find these types of deals using more of a rifle shot approach . As Matt mentioned in our sales or in our pipeline funnel .

Paul Richards: You know, again, we expect to find these types of deals using more of a rifle shot approach, as Matt mentioned in our sales or in our pipeline funnel.

Speaker #4: So , you know , you can expect to see more of the multifamily and these types of deals in the future .

Paul Richards: You know, you can expect to see more of the multifamily and these types of deals in the future.

Speaker #6: Got it . And then , Matt , you talked about with obviously the potential regulation out of D.C. , but the opportunity set just to go direct on build to rent , right .

David Brown: Got it. Matt, you talked about, you know, obviously the potential regulation out of DC, but the opportunity set just to go direct on Build-to-Rent, right? Whether you're that solution capital, so to speak, pref, mez, et cetera. Can you talk about how big that sandbox could be for you guys as you just think about the whole? What NexPoint holistically looks at, what NREF has touched, and how you think about how big that bucket could be over time?

Gabe Poggi: Got it. Matt, you talked about, you know, obviously the potential regulation out of DC, but the opportunity set just to go direct on Build-to-Rent, right? Whether you're that solution capital, so to speak, pref, mez, et cetera. Can you talk about how big that sandbox could be for you guys as you just think about the whole? What NexPoint holistically looks at, what NREF has touched, and how you think about how big that bucket could be over time?

Speaker #6: Whether you're that solution capital , so to speak , Présentés , etc. . Can you talk about how big that sandbox could be for you guys as you just think about the whole what next point holistically looks at what net NRF is touched and how you think about how big that bucket could be over time .

Speaker #1: Yeah , you bet . That's a great question . You know , for for our single family equity business , they have , you know , roughly $550 million of beta under contract or reviewing , you know , at any given month about , you know , about 200 million of of new build to rent construction and product and , you know , we're seeing all of that , obviously , in terms of deal flow .

Matt McGraner: Yeah, you bet. That's a great question. you know, for our single family, equity business, they have, you know, roughly $550 million of BTR under contract or reviewing, you know, at any given month, about, you know, about $200 million of new Build-to-Rent construction and product. you know, we're seeing all of that obviously, in terms of deal flow and look at both the debt and the equity. it's been a, it's been a steady pipeline.

Speaker #1: And look at both the debt and the equity . And so it's been a it's been a steady pipeline . And it's been an origination funnel for us and one that we're we're really trying to , you know , get the word out .

Matt McGraner: It's been an origination funnel for us, and one that we're really trying to, you know, get the word out, you know, with the Walker & Dunlop and the JLLs and CBRE and say, Hey, we're open for business on build-to-rent, new construction, CLO financing. We can take over at CFO, you know, play up and down the cap stack wherever the opportunity is. Again, like, you got to be smart about the asset selection. I mean, we're not going to go, you know, finance a, you know, a new greenfield project next to a cow pasture.

Speaker #1: You know , with the Walker and Dunlop's and the JLS and CBS and say , hey , we're open for business on Build to Rent new construction CFO financing .

Speaker #1: We can take over at CFO , you know , play up and down the stack wherever , wherever the opportunity is . And again like you got to be you got to be smart about the asset selection .

Speaker #1: I mean , we're not going to go , you know , finance a , you know , a greenfield , a new greenfield project next to a cow pasture .

Speaker #1: We're looking mainly to , to on the smaller side , 50 to 120 , 150 units that just feel more like an extension of a community versus , you know , like I said , like , you know , random housing project in the middle of nowhere .

Matt McGraner: We're looking mainly to on the smaller side, 50 to 125, 150 units that just feel more like an extension of the community, versus, you know, like I said, like, you know, random housing project in the middle of nowhere. Like the backdrop for it, you know, and certainly, you know, certainly think there's plenty to do there in 2026 and beyond.

Matt McGraner: We're looking mainly to on the smaller side, 50-125, 150 units that just feel more like an extension of the community, versus, you know, like I said, like, you know, random housing project in the middle of nowhere. Like the backdrop for it, you know, and certainly, you know, certainly think there's plenty to do there in 2026 and beyond.

Speaker #1: So like , like the like the backdrop for it , you know , and certainly , you know , certainly think there's there's plenty of plenty to do there in 2026 and beyond .

Speaker #6: Thanks , guys .

David Brown: Thanks, guys.

Gabe Poggi: Thanks, guys.

Speaker #1: Thanks , Gabe .

Matt McGraner: Thanks, guys.

Speaker #2: There are no further questions. I'd like to turn it back over to the management team for closing remarks.

Operator: There are no further questions. I'd like to turn it back over to the management team for closing remarks.

Speaker #1: Yeah , thank you very much . This morning for all your interest and participation in RF . And we look forward to speaking to you next quarter .

Paul Richards: Yeah. Thank you very much this morning, for all your interest and participation in NREF. We look forward to speaking to you next quarter. Thanks again.

Speaker #1: Thanks again .

Operator: This concludes today's meeting. You may now disconnect.

Q4 2025 NexPoint Real Estate Finance Inc Earnings Call

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