8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): February 17, 2022

NEXPOINT REAL ESTATE FINANCE, INC.

(Exact Name Of Registrant As Specified In Charter)

Maryland	001-39210	84-2178264
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

300 Crescent Court, Suite 700

Dallas, Texas 75201

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (833) 679-6246

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐         Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐         Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

☐         Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 

☐         Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share 8.50% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share	NREF NREF-PRA	New York Stock Exchange New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

The following information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this report, regardless of any general incorporation language in the filing. On February 17, 2022, NexPoint Real Estate Finance, Inc. (the “Company”) issued a press release and detailed presentation announcing its financial results for the Company’s fiscal year and fourth quarter ended December 31, 2021. The full text of the press release and detailed presentation are furnished herewith as Exhibit 99.1 and Exhibit 99.2, respectively, to this report.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Exhibit Description
99.1	Press Release of NexPoint Real Estate Finance, Inc. dated February 17, 2022
99.2	Presentation of NexPoint Real Estate Finance, Inc. dated February 17, 2022
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NEXPOINT REAL ESTATE FINANCE, INC.
By:	/s/ Brian Mitts
Name: Title:	Brian Mitts Chief Financial Officer, Executive VP-Finance, Secretary and Treasurer

Date: February 17, 2022

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:

Jackie Graham

Director, Investor Relations

JGraham@nexpoint.com

Media: MediaRelations@nexpoint.com

NREF Announces Fourth Quarter and Full Year 2021 Results

Dallas, TX, February 17, 2022, – NexPoint Real Estate Finance, Inc. ("NREF" or the "Company") (NYSE: NREF) today reported its financial results for the fourth quarter and full year ended December 31, 2021.

Reported net income of $21.0 million and $83.5 million, or $0.92 and $3.93 per diluted share¹, for the three and twelve months ended December 31, 2021, respectively.

Reported earnings available for distribution² of $11.8 million and $38.5 million, or $0.54 and $1.89 per diluted share¹, for the three and twelve months ended December 31, 2021, respectively.

Fourth Quarter 2021 Highlights

• Outstanding total portfolio of $1.7 billion, composed of 69 investments³

• Single-family rental (“SFR”), multifamily, and life sciences represent 44.9%, 53.2%, and 1.9% of the Company’s debt portfolio, respectively

• Weighted average loan to value (“LTV”)⁴ and debt service coverage ratio (“DSCR”) on NREF’s SFR, CMBS, CMBS IO strips, preferred, mezz, and convertible note investments are investments are 67.9% and 1.99x³, respectively

• As of February 16, 2022, there are no loans currently in forbearance in our portfolio³

• During the fourth quarter 2021, NREF originated mezzanine and convertible notes with an aggregate principal amount of $40.8 million

• On November 8, 2021, NREF purchased $30 million of a preferred equity investment with a current yield of 10.0%

• On December 9, 2021, NREF purchased a $61.3 million floating rate Freddie Mac K-Series B-Piece with an estimated yield of SOFR + 525 bps

• On December 20, 2021, NREF issued $60 million of 5.75% Senior Unsecured Notes due 2026

• Year-over-year increase of earnings per diluted share, earnings available for distribution per diluted share, cash available for distribution² per diluted share and book value per combined share (common shares and noncontrolling interests) of 125.9%, 22.7%, 34.0% and 10.4%, respectively

• On February 17, 2022, NREF announced a first quarter 2022 dividend of $0.50 per common share, an increase of 5.3% over the fourth quarter 2021 dividend

Full Year 2021 Highlights

• Reported book value of $462 million, or $21.51 per common share including redeemable noncontrolling interests (“NCI”) in the Operating Partnership, a 10.4% increase over reported book value per common share including redeemable NCI in the Operating Partnership on December 31, 2020

• Raised the annual dividend run rate to $1.90 per common share, a 18.8% increase from a year ago

• Declared dividends of $14.7 million, or $1.90 per common share, representing a dividend yield of 8.8% on a book value per common share of $21.51 as of December 31, 2021

• As of February 16, 2022, the Company’s debt to book value ratio was 2.53x

• Issued $135 million of 5.75% senior Unsecured Notes due in 2026

¹ Weighted-average diluted shares outstanding assumes vesting of all outstanding unvested restricted stock units and the conversion of all redeemable non-controlling interests.

² Earnings available for distribution and cash available for distribution are non-GAAP measures. For a discussion of why we consider these non-GAAP measures useful and reconciliations of earnings available for distribution and cash available for distribution to net income (loss) attributable to common stockholders, see the “Reconciliations of Non-GAAP Financial Measures” and Non-GAAP Financial Measures” sections of this release.

³ As of February 16, 2022, CMBS B-Pieces reflected on an unconsolidated basis

⁴ LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value for our CMBS B-Pieces. For NREF’s CMBS B-Pieces, LTV is based on the weighted averaged LTV of the underlying loan pool.

Reconciliations of Non-GAAP Financial Measures

The following table provides a reconciliation of Earnings Available for Distribution and Cash Available for Distribution to GAAP net income attributable to common stockholders (in thousands, except per share amounts):

	For the Three Months Ended December 31,						For the Year Ended December 31,
	2021			2020			2021			2020
Net income attributable to common stockholders	$	12,435		$	9,320		$	39,577		$	11,099
Net income attributable to redeemable noncontrolling interests		7,640			16,030			40,387			21,323
Adjustments
Amortization of stock-based compensation		538			256			2,023			548
Loan loss (benefit) provision (1)		—			41			—			320
One-time non-cash items (2)		—			(2,094	)		—			(2,094	)
Unrealized (gains) or losses (3)		(8,832	)		(15,111	)		(43,503	)		(3,981	)
EAD	$	11,781		$	8,442		$	38,484		$	27,215
EAD per Diluted Weighted-Average Share	$	0.54		$	0.44		$	1.89		$	1.46
Adjustments
Amortization of premiums	$	5,337		$	2,660		$	15,769		$	8,280
Accretion of discounts		(3,271	)		(1,611	)		(9,196	)		(3,160	)
Stock dividends received		—			(564	)		—			(1,254	)
CAD	$	13,847		$	8,927		$	45,057		$	31,081
CAD per Diluted Weighted-Average Share	$	0.63		$	0.47		$	2.21		$	1.67
Weighted-average common shares outstanding - basic		9,163			5,087			6,601			5,206
Weighted-average common shares outstanding – diluted (4)		21,911			19,164			20,366			18,648

(1) We have modified our calculation of Earnings Available for Distribution to exclude any add back of loan loss provision, net.

(2) One-time non-cash item is the make-whole premium in a preferred stock investment converted to common stock.

(3) Unrealized gains represent the net change in unrealized gains on investments held at fair value.

(4) Weighted-average diluted shares outstanding assumes vesting of all outstanding unvested restricted stock units and the conversion of all redeemable non-controlling interests.

Conference Call Details

The Company is scheduled to host a conference call on Thursday, February 17, 2022 at 11:00 a.m. ET (10:00 am CT), to discuss fourth quarter and full year 2021 financial results.

The conference call can be accessed live over the phone by dialing 888-220-8474 or, for international callers, +1 646-828-8193 and using passcode Conference ID: 9213782. A live audio webcast of the call will be available online at the Company's website, http://www.nref.nexpoint.com (under "Resources"). An online replay will be available shortly after the call on the Company's website and continue to be available for 60 days.

A replay of the conference call will also be available through Thursday, February 24, 2022 by dialing 888-203-1112 or, for international callers, +1 719-457-0820 and entering passcode 9213782.

Supplemental Information

For additional commentary and portfolio information, please view NREF’s earning supplement, which was posted on the Company’s website, http://nref.nexpoint.com.

About NexPoint Real Estate Finance, Inc.

NexPoint Real Estate Finance, Inc., is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol “NREF” primarily focused on originating, structuring and investing in first-mortgage loans, mezzanine loans, preferred equity and alternative-structured financings in commercial real estate properties, as well as multifamily commercial mortgage-backed securities. More information about NREF is available at http://nref.nexpoint.com.

Forward-Looking Statements

This press release 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. Forward-looking statements can often be identified by words such as "anticipate", "estimate", "expect," "intend," "may", "should" and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding the Company’s business and industry in general. They are not guarantees of future results and forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement, including the ultimate duration and severity of the COVID-19 pandemic, and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or treat its impact, as well as those described in greater detail in our filings with the Securities and Exchange Commission, particularly those described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers 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 any forward-looking statement. The statements made herein speak only as of the date of this press release and except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flows of the Company. The non-GAAP financial measures used within this press release are earnings available for distribution (“EAD”) and cash available for distribution (“CAD”). EAD has replaced our prior presentation of Core Earnings. In addition, Core Earnings results from prior reporting periods have been relabeled EAD. In line with evolving industry practices, we believe EAD more accurately reflects the principal purpose of the measure than the term Core Earnings and will serve as a useful indicator for investors in evaluating our performance and our long-term ability to pay distributions.

EAD is defined as net income (loss) attributable to our common stockholders computed in accordance with GAAP, including net income (loss) attributable to non-controlling interests and realized gains and losses not otherwise included in net income (loss), excluding any unrealized gains or losses or other similar non-cash items that are included in net income (loss) for the applicable reporting period, regardless of whether such items are included in other comprehensive income (loss), or in net income (loss) and adding back amortization of stock-based compensation. We use EAD to evaluate our performance which excludes the effects of certain GAAP adjustments and transactions that we believe are not indicative of our current operations and to assess our long-term ability to pay distributions. We believe providing EAD as a supplement to GAAP net income (loss) to our investors is helpful to their assessment of our performance and our long-term ability to pay distributions. We also use EAD as a component of the management fee paid to our manager. EAD does not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of our GAAP cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. Our computation of EAD may not be comparable to EAD reported by other REITs.

We calculate CAD by adjusting EAD by adding back amortization of premiums and by removing accretion of discounts and non-cash items, such as stock dividends. We use CAD to evaluate our performance and our current ability to pay distributions. We also believe that providing CAD as a supplement to GAAP net income (loss) to our investors is helpful to their assessment of our performance and our current ability to pay distributions. CAD does not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of our GAAP cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. Our computation of CAD may not be comparable to CAD reported by other REITs.

EX-99.2

Exhibit 99.2

Cautionary Statements

FORWARD LOOKING STATEMENTS 

This presentation 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. Forward-looking statements can often be identified by words such as "anticipate", "estimate", "expect," "intend," "may", "should" and similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding the Company’s business and industry in general, estimated yields on investment, guidance for financial results for the first quarter of 2022 and full year 2022, including the Company's estimated net income, earnings available for distribution (“EAD”), cash available for distribution (“CAD”) and dividend coverage ratios and related assumptions. They are not guarantees of future results and forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement, including the ultimate duration and severity of the COVID-19 pandemic, and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or treat its impact, as well as those described in greater detail in our filings with the Securities and Exchange Commission, particularly those described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers 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 any forward-looking statement. The statements made herein speak only as of the date of this presentation and except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.

NON-GAAP FINANCIAL MEASURES 

This presentation contains non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flows of the Company. The non-GAAP financial measures used within this presentation are EAD and CAD. EAD has replaced our prior presentation of Core Earnings. In addition, Core Earnings results from prior reporting periods have been relabeled EAD. In line with evolving industry practices, we believe EAD more accurately reflects the principal purpose of the measure than the term Core Earnings and will serve as a useful indicator for investors in evaluating our performance and our long-term ability to pay distributions.

EAD is defined as the net income (loss) attributable to our common stockholders computed in accordance with GAAP inlcuding net income (loss) attributable to non-controlling interests, including realized gains and losses not otherwise included in net income (loss), excluding any unrealized gains or losses or other similar non-cash items that are included in net income (loss) for the applicable reporting period, regardless of whether such items are included in other comprehensive income (loss), or in net income (loss) and adding back amortization of stock-based compensation. We use EAD to evaluate our performance which excludes the effects of certain GAAP adjustments and transactions that we believe are not indicative of our current operations and to assess our long-term ability to pay distributions. We believe providing EAD as a supplement to GAAP net income (loss) to our investors is helpful to their assessment of our performance and our long-term ability to pay distributions. We also use EAD as a component of the management fee paid to NREA (as defined below), our manager. EAD does not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of our GAAP cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. Our computation of EAD may not be comparable to EAD reported by other REITs.

We calculate CAD by adjusting EAD by adding back amortization of premiums and by removing accretion of discounts and non-cash items, such as stock dividends. We use CAD to evaluate our performance and our current ability to pay distributions. We also believe that providing CAD as a supplement to GAAP net income (loss) to our investors is helpful to their assessment of our performance and our current ability to pay distributions. CAD does not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of our GAAP cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. Our computation of CAD may not be comparable to CAD reported by other REITs.

ADDITIONAL INFORMATION

For additional information, see our filings with the SEC. Our filings with the SEC are available on our website, nref.nexpoint.com, under the “Financials" tab.

NEXPOINT REAL ESTATE FINANCE Page | 2

Company Overview

NexPoint Real Estate Finance, Inc. (“NREF” or the “Company”) is a publicly traded mortgage REIT (“mREIT”), with its shares listed on the New York Stock Exchange. The company concentrates on investments in real estate sectors where senior management has operating expertise, including multifamily, single-family rental (”SFR”), and self-storage, in the top 50 metropolitan statistical areas. The Company targets lending or investing in stabilized properties or properties with “light-transitional” business plans.

NREF is externally managed by NexPoint Real Estate Advisors VII, L.P. (“NREA”), an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor with extensive real estate and fixed income experience.

2.8% DISCOUNT TO BOOK¹ 9.6% IMPLIED DIVIDEND YIELD² 8.2% INSIDER OWNERSHIP³

NREF Total Return Vs Peers

(1)	BASED ON December 31, 2021, BOOK VALUE INCLUDING REDEEMABLE NCI IN THE OPERATING PARTNERSHIP AS REPORTED BY THE COMPANY IN THIS PRESENTATION AND THE SHARE PRICE AS OF CLOSE OF TRADING February 16, 2022
(2)	IMPLIED DIVIDEND YIELD IS CALCULATED USING THE ANNOUNCED 1Q DIVIDEND OF $0.500 PER COMMON SHARE, ANNUALIZED, DIVIDED BY THE SHARE PRICE AS OF CLOSE OF TRADING ON February 16, 2022
(3)	AS OF THE CLOSE OF TRADING ON December 31, 2021
(4)	BLOOMBERG. TOTAL RETURN, INCLUDING DIVIDENDS, AS OF CLOSE OF TRADING ON February 16, 2022

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Q4 2021 Highlights

FINANCIAL	●	4Q 2021 net income of $21.0MM, with net income attributable to redeemable noncontrolling interests of $7.6MM, net income attributable to common stockholders of $12.4MM, or $0.92 per diluted common share; compared to net income of $25.2MM, with net income attributable to redeemable noncontrolling interests of $11.1MM, net income attributable to common stockholders of $13.2MM, or $1.17 per diluted common share in 3Q 20211
	●	4Q 2021 earnings available for distribution of $11.8MM, or $0.54 per diluted share compared to $10.5MM, or $0.51 per diluted share in 3Q 20212
	●	Book value of $461.93MM, or $21.51 per common share, including redeemable non-controlling interests in the Operating Partnership and excluding Series A Preferred Stock; a 2.2% increase over 3Q 2021 book value on a per share basis
	●	Paid a 4Q 2021 dividend of  $0.475 per common share on December 30, 2021
	●	Announced 1Q 2022 dividend of $0.500 per common share to be paid on March 31, 2022
PORTFOLIO	●	Outstanding total portfolio of $1.7B, comprised of 69 investments 3
	●	SFR, multifamily and life sciences represent 44.9%, 53.2% and 1.9% of our debt portfolio, respectively
	●	Weighted average loan to value (“LTV”) 4 and debt service coverage ratio (“DSCR”) on our SFR, CMBS, CMBS IO strips, preferred, mezz and convertible note investments are 67.9% and 1.99x3, respectively
	●	As of February 16, 2022, there are no loans currently in forbearance in our portfolio
	●	During 4Q 2021 we originated mezzanine and convertible notes with an aggregate principal amount of $40.8MM
	●	On October 25, 2021, a $12.1MM single-family rental first mortgage loan was repaid in full
	●	On November 8, 2021, we purchased $30.0MM of a preferred equity investment with a current yield of 10.0%
	●	On December 9, 2021, we purchased a $61.3MM floating rate Freddie Mac K-Series B-Piece, with an estimated yield of SOFR +525 bps
	●	On December 27, 2021, a $8.1 MM single-family rental first mortgage loan was repaid in full
	●	On December 31, 2021, we purchased a 204-unit multifamily property in Charlotte, North Carolina for $62.0MM
CAPITALIZATION	●	As of February 16, 2022, the Company’s debt to book value ratio was 2.53x
	●	Secured credit facility, matched in structure and term of the underlying SFR loans, with a weighted average remaining term of 6.5 years as of December 31, 2021
	●	As of February 16, 2022, outstanding repo financing was $302.7MM, which equates to a 57.5% advance rate on our CMBS B-Piece and IO Strip portfolio5
	●	On December 20, 2021, NREF issued $60.0MM of 5.75% Senior Unsecured Notes due 2026

(1) DILUTED EPS ASSUMES VESTING OF ALL OUTSTANDING UNVESTED RESTRICTED STOCK UNITS AND CONVERSION OF ALL REDEEMABLE NON-CONTROLLING INTERESTS

(2) EAD PER DILUTED SHARE ASSUMES VESTING OF ALL OUTSTANDING UNVESTED RESTRICTED STOCK UNITS AND CONVERSION OF ALL REDEEMABLE NON-CONTROLLING INTERESTS. SEE “RECONCILIATIONS” SLIDE

(3) AS OF February 16, 2022 AND CMBS B-PIECES REFLECTED ON AN UNCONSOLIDATED BASIS

(4) LOAN TO VALUE IS GENERALLY BASED ON THE INITIAL LOAN AMOUNT DIVIDED BY THE AS–IS APPRAISED VALUE AS OF THE DATE THE LOAN WAS ORIGINATED OR BY THE CURRENT PRINCIPAL AMOUNT AS OF THE DATE OF THE MOST RECENT AS-IS APPRAISED VALUE. FOR OUR CMBS B-PIECES, LTV IS BASED ON THE WEIGHTED AVERAGE LTV OF THE UNDERLYING LOAN POOL

(5) BASED ON ACTUAL COLLATERAL POSTED

NEXPOINT REAL ESTATE FINANCE Page | 4

4Q 2021 Earnings and Book Value

● Net interest income of $8.0MM, an increase of 22.0% over 3Q 2021

● Net income of $21.0MM, with net income attributable to redeemable noncontrolling interests of $7.6MM, net income attributable to common stockholders of $12.4MM, or $0.92 per diluted common share; compared to net income of  $25.2MM, with net income attributable to redeemable noncontrolling interests of $11.1MM, net income attributable to common stockholders of $13.2MM, or $1.17 per diluted common share in 3Q 2021

● Earnings available for distribution of $11.8MM, or $0.54 per diluted common share; compared to $10.5MM, or $0.51 per diluted common share in 3Q 2021

● BV per common share including redeemable NCI in the Operating Partnership increased 2.2% to $21.51/share, compared to $21.04/share at the end of 3Q 2021

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Net Income, EAD, CAD and Guidance

NET INCOME/EAD/CAD:

● Net income per diluted common share for the 4Q 2021 is $0.92, compared to $1.17 per diluted common share reported in 3Q 2021

● 4Q 2021 EAD per diluted share is $0.54, an increase of 5.9% compared to 3Q 2021 reported EAD per diluted share

● 4Q 2021 CAD per diluted share is $0.63, an increase of 1.6% over 3Q 2021 reported CAD per diluted share

Q1 GUIDANCE:

● 1Q 2022 EAD per diluted share guidance is $1.22¹ at the mid-point

● 1Q 2022 CAD per diluted share guidance is $1.57¹ at the mid-point

FULL YEAR GUIDANCE:

● 2022 EAD per diluted share guidance is $2.72² at the mid-point

● 2022 CAD per diluted share guidance is $3.21² at the mid-point

(1) NET INCOME IN 1Q 2022 IS ESTIMATED TO BE BETWEEN $25.1MM AND $27.3MM. SEE “RECONCILIATIONS” SLIDES

(2) NET INCOME IN 2022 IS ESTIMATED TO BE BETWEEN $56.1MM AND $58.3MM. SEE “RECONCILIATIONS” SLIDES

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Dividend and EAD/CAD Coverage

4Q 2021 DIVIDEND:

● 4Q dividend of $0.475/common share was paid December 30, 2021

● 4Q 2021 EAD dividend coverage is 1.14x

● 4Q 2021 CAD dividend coverage is 1.33x

1Q 2022 DIVIDEND:

● 1Q 2022 dividend of $0.500 per common share declared by the Board of Directors to be paid on March 31, 2022, a 5.3% increase from 4Q 2021 dividend per common share

● 1Q 2022 estimated EAD dividend coverage of 2.44x¹ at the mid-point

● 1Q 2022 estimated CAD dividend coverage of 3.14x¹ at the mid-point

(1) NET INCOME IN 1Q 2022 IS ESTIMATED TO BE BETWEEN $25.1MM AND $27.3MM. SEE “RECONCILIATIONS” SLIDES

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Portfolio Commentary

Defensive Portfolio Characteristics

The current portfolio consists of senior loans, mezzanine debt, preferred equity and common stock investments in short-duration lease-term assets (multifamily, SFR, self-storage, life sciences) that are geographically diverse in the United States. The portfolio has minimal exposure to construction loans, no heavy transitional loans, no land loans and no for-sale loans. As of February 16, 2022, there are no loans currently in forbearance in our portfolio.

6.5 YEARS AVERAGE REMAINING TERM⁵ 90.8% OF PORTFOLIO STABILIZED⁵ 67.9% WEIGHTED AVG LOAN TO VALUE⁵ 1.99x WEIGHTED AVG DSCR⁵

MULTIFAMILY ●    Historically low losses for Freddie Mac debt issuances secured by multifamily assets, including periods of market stress ●    Aggregate losses in Freddie Mac’s origination history have averaged 5 bps per year dating back to 1994¹ ●    Since 2009 and through December 2021, there have been $40.4MM in losses on $478B of combined issuance² ●    As of December 27, 2021, $2.1B of outstanding UPB, representing 0.6% of total securitized UPB, are currently in forbearance³

SINGLE-FAMILY RENTAL ●    Although this is a relatively new asset class that was institutionalized in the wake of the global financial crisis, we believe SFR will exhibit resiliency akin to multifamily ●   Current portfolio of SFR loans is capitalized by a secured credit facility with Freddie Mac, is matched in both duration and structure of the underlying loans, has 6.5 years of average weighted term to maturity and a 250 bps interest rate spread⁴ ●    Subject to Freddie Mac forbearance program to help mitigate cash flow interruptions to the bondholders

SELF-STORAGE ●    Sticky COVID-related demand continues to be a tailwind moving into 2022 ●    Occupancies across the sector remain at all-time highs with other fundamentals remaining strong ●    Historically, self-storage has outperformed other real estate asset types during economic downturns

LIFE SCIENCES ●    Secular demand growth can be reliably estimated by looking into past performance over the last 10-15 years. ●    Increases in technology, spending and medical talent have created strong demand for real estate that meets unique and specific requirements

(1) FREDDIE MAC; 4Q 2020

(2) FREDDIE MAC; DECEMBER 2021

(3)	DECEMBER (2021) SECURITIZATION FORBEARANCE REPORT – FREDDIE MAC
(4)	AS OF DECEMBER 31, 2021

(5) AS OF February 16, 2022, AND EXCLUDING THE NEXPOINT STORAGE PARTNERS, INC COMMON STOCK (FORMERLY, JCAP SERIES A PREFERRED), AND THE HUDSON MONTFORD MULTIFAMILY PROPERTY

NEXPOINT REAL ESTATE FINANCE Page | 8

Geographic and Asset Type Exposure¹

(1) AS OF February 16, 2022 AND EXCLUDING THE NEXPOINT STORAGE PARTNERS, INC COMMON STOCK (FORMERLY, JCAP SERIES A PREFERRED), AND THE HUDSON MONTFORD MULTIFAMILY PROPERTY

NEXPOINT REAL ESTATE FINANCE Page | 9

Portfolio

#	Investment1	Location	Property Type	Investment Date	Current Principal			Net Equity2		Coupon3				Remaining Term4		Loan to Value			DSCR
1	Senior Loan	Various	SFR	2/11/2020	$	508,700		$	77,873		4.65	%			6.7		68.11	%	1.30x
2	Senior Loan	Various	SFR	2/11/2020		62,023			9,597		4.95	%			7.2		65.00	%	1.56x
3	Senior Loan	Various	SFR	2/11/2020		51,304			7,517		4.74	%			3.8		54.10	%	1.89x
4	Senior Loan	Various	SFR	2/11/2020		37,639			6,014		5.55	%			6.8		71.86	%	1.35x
5	Senior Loan	Various	SFR	2/11/2020		10,350			1,599		4.72	%			6.7		68.45	%	1.13x
6	Senior Loan	Various	SFR	2/11/2020		10,401			1,627		5.35	%			6.1		70.52	%	1.20x
7	Senior Loan	Various	SFR	2/11/2020		10,523			1,586		5.30	%			4.2		63.16	%	1.91x
8	Senior Loan	Various	SFR	2/11/2020		9,583			1,473		6.10	%			6.8		72.08	%	2.27x
9	Senior Loan	Various	SFR	2/11/2020		8,910			1,395		5.88	%			7.0		54.48	%	1.05x
10	Senior Loan	Various	SFR	2/11/2020		7,601			1,187		5.34	%			7.1		72.07	%	1.63x
11	Senior Loan	Various	SFR	2/11/2020		6,685			1,043		5.46	%			7.2		70.22	%	1.42x
12	Senior Loan	Various	SFR	2/11/2020		6,086			938		4.83	%			6.8		70.09	%	1.70x
13	Senior Loan	Various	SFR	2/11/2020		6,541			972		5.47	%			2.1		66.97	%	1.01x
14	Senior Loan	Various	SFR	2/11/2020		5,760			885		5.99	%			6.9		70.00	%	1.72x
15	Senior Loan	Various	SFR	2/11/2020		5,550			858		5.24	%			6.8		56.12	%	1.42x
16	Senior Loan	Various	SFR	2/11/2020		5,487			766		5.33	%			1.6		65.46	%	1.43x
17	Senior Loan	Various	SFR	2/11/2020		5,260			818		5.46	%			7.0		72.05	%	1.35x
18	Senior Loan	Various	SFR	2/11/2020		4,684			730		5.35	%			7.1		73.18	%	0.81x
	Total SFR					763,087			116,878		4.83	%			6.4		66.99	%	1.38x
1	CMBS B-Piece	Various	Multifamily	2/11/2020	$	35,644	5	$	15,476		6.14	%	6		4.2		64.01	%	6.36x
2	CMBS B-Piece	Various	Multifamily	2/11/2020		34,900	5		16,302		6.09	%	6		4.9		62.69	%	5.35x
3	CMBS B-Piece	Various	Multifamily	4/23/2020		81,999	5		25,163		3.50	%			8.2		63.74	%	2.29x
4	CMBS B-Piece	Various	Multifamily	7/30/2020		51,428	5		22,320		9.09	%	7		5.5		66.72	%	3.57x
5	CMBS B-Piece	Various	Multifamily	8/6/2020		108,643	5		26,388		11.43	%	8		8.5		68.96	%	3.46x
6	CMBS B-Piece	Various	Multifamily	4/20/2021		76,047	5		30,134		6.30	%	9		9.2		70.29	%	2.56x
7	CMBS B-Piece	Various	Multifamily	6/30/2021		108,035	5		31,026		6.88	%	8		5.0		66.70	%	1.86x
8	CMBS B-Piece	Various	Multifamily	12/9/2021		61,277	5		25,325		5.30	%			2.8		74.92	%	2.16x
	Total CMBS B-Pieces					557,973			192,134		7.12	%			6.5		67.68	%	3.03x
1	CMBS IO Strip	Various	Multifamily	5/18/2020	$	2,451	10	$	871		2.02	%			24.7		65.42	%	2.02x
2	CMBS IO Strip	Various	Multifamily	8/6/2020		8,046	10		3,292		0.10	%			8.5		68.96	%	3.46x
3	CMBS IO Strip	Various	Multifamily	8/6/2020		22,388	10		8,323		2.98	%			8.5		68.96	%	3.46x
4	CMBS IO Strip	Various	Multifamily	4/28/2021		7,439	10		1,986		1.59	%			8.1		63.74	%	2.29x
5	CMBS IO Strip	Various	Multifamily	5/27/2021		4,781	10		1,537		3.38	%			8.4		67.20	%	2.10x
6	CMBS IO Strip	Various	Multifamily	6/7/2021		596	10		218		2.31	%			6.9		63.87	%	2.44x
7	CMBS IO Strip	Various	Multifamily	6/11/2021		7,464	10		3,079		1.25	%			6.9		63.67	%	1.50x
8	CMBS IO Strip	Various	Multifamily	6/24/2021		2,020	10		736		1.20	%			6.9		64.06	%	1.65x
9	CMBS IO Strip	Various	Multifamily	8/10/2021		3,306	10		1,201		1.89	%			7.8		68.50	%	1.88x
10	CMBS IO Strip	Various	Multifamily	8/11/2021		1,713	10		628		3.10	%			9.6		67.12	%	2.24x
11	CMBS IO Strip	Various	Multifamily	8/24/2021		323	10		317		2.61	%			9.1		61.32	%	4.18x
12	CMBS IO Strip	Various	Multifamily	9/1/2021		4,912	10		4,827		1.92	%			8.5		67.59	%	2.07x
13	CMBS IO Strip	Various	Multifamily	9/11/2021		4,908	10		4,884		2.95	%			9.6		62.71	%	2.32x
	Total CMBS IO Strip					70,347			31,899		2.13	%			8.8		66.79	%	2.65x

$s IN 0,000s EXCEPT PER SHARE DATA

NEXPOINT REAL ESTATE FINANCE Page | 10

#	Investment1	Location	Property Type	Investment Date	Current Principal		Net Equity2		Coupon3				Remaining Term4		Loan to Value			DSCR
1	Mezzanine	Houston, TX	Multifamily	6/12/2020	$	7,500	$	7,500		11.00	%	11		1.5		79.27	%	1.08x
2	Mezzanine	Philadelphia, PA	Multifamily	10/20/2020		14,253		5,975		7.59	%			7.4		89.39	%	1.33x
3	Mezzanine	Laurel, MD	Multifamily	10/20/2020		12,000		5,021		7.71	%			9.3		84.91	%	1.43x
4	Mezzanine	White Marsh, MD	Multifamily	10/20/2020		10,380		4,344		7.42	%			9.5		84.78	%	1.44x
5	Mezzanine	Cockeysville, MD	Multifamily	10/20/2020		9,610		4,022		7.42	%			9.5		84.26	%	1.47x
6	Mezzanine	Laurel, MD	Multifamily	10/20/2020		7,390		3,093		7.42	%			9.5		80.29	%	1.61x
7	Mezzanine	North Aurora, IL	Multifamily	10/20/2020		6,829		2,850		7.53	%			7.0		70.99	%	1.37x
8	Mezzanine	Lakewood, NJ	Multifamily	10/20/2020		5,540		2,313		7.33	%			7.3		81.06	%	1.37x
9	Mezzanine	Wilmington, DE	Multifamily	10/20/2020		5,470		2,284		7.50	%			7.3		89.27	%	1.25x
10	Mezzanine	Urbandale, IA	Multifamily	10/20/2020		4,010		1,674		7.89	%			6.9		83.80	%	1.55x
11	Mezzanine	Daytona Beach, FL	Multifamily	10/20/2020		3,700		1,544		7.83	%			6.8		81.48	%	1.47x
12	Mezzanine	Rosedale, MD	Multifamily	10/20/2020		3,620		1,515		7.42	%			9.5		83.26	%	1.40x
13	Mezzanine	Atlanta, GA	Multifamily	10/20/2020		3,310		1,382		6.91	%			7.5		80.31	%	1.28x
14	Mezzanine	Temple Hills, MD	Multifamily	10/20/2020		3,000		1,256		7.32	%			9.6		83.09	%	1.59x
15	Mezzanine	Des Moines, IA	Multifamily	10/20/2020		2,880		1,202		7.89	%			6.9		81.64	%	1.32x
16	Mezzanine	Tyler, TX	Multifamily	10/20/2020		2,135		891		7.74	%			6.8		83.12	%	1.72x
17	Mezzanine	Temple Hills, MD	Multifamily	10/20/2020		1,500		628		7.22	%			9.6		78.63	%	1.70x
18	Mezzanine	Las Vegas, NV	Multifamily	10/20/2020		1,190		497		7.71	%			7.2		75.49	%	1.47x
19	Mezzanine	Vancouver, WA	Multifamily	10/20/2020		1,082		453		8.70	%			8.8		84.32	%	1.77x
20	Mezzanine	Los Angeles, CA	Multifamily	1/21/2021		24,844		24,483		13.25	%	12		2.1		N/A		N/A
21	Mezzanine	Irving , TX	Multifamily	11/18/2021		12,600		12,476		11.00	%			6.9		91.90	%	1.57x
22	Mezzanine	Rogers, AR	Multifamily	12/29/2021		7,760		7,682		11.00	%			3.0		86.56	%	0.58x
	Total Mezzanine					150,603		93,084		9.12	%			6.5		70.30	%	1.37x
1	Preferred Equity	Houston, TX	Multifamily	5/29/2020	$	10,000	$	10,000		11.00	%			8.3		73.44	%	1.45x
2	Preferred Equity	Holly Springs, NC	Life Sciences	9/29/2021		6,891		6,858		10.00	%			1.8		N/A		N/A
3	Preferred Equity	Atlanta , GA	Multifamily	10/26/2021		9,750		9,656		11.00	%			2.8		92.30	%	1.14x
4	Preferred Equity	Danbury, CT	Life Sciences	11/18/2021		6,878		6,809		10.00	%			1.7		46.03	%	2.23x
5	Preferred Equity	Las Vegas, NV	Multifamily	12/28/2021		46,847		46,847		10.50	%			10.2		98.65	%	1.09x
6	Preferred Equity	Vacaville, CA	Life Sciences	1/14/2022		19,594		19,496		10.00	%			1.7		21.82	%	0.67x
	Total Preferred Equity					99,960		99,666		10.43	%			6.5		87.40	%	1.05x
1	Convertible Note	Jersey City, NJ	Multifamily	12/28/2021		20,478		20,377		9.00	%			2.0		N/A		N/A
2	Convertible Note	Bronx, NY	Multifamily	1/12/2022		38,656		38,463		9.00	%			2.0		N/A		N/A
	Total Convertible Notes					59,134		58,840		9.00	%			2.0		N/A		N/A
1	Common Stock	N/A	Self-Storage	11/6/2020		N/A	$	58,460		N/A				N/A		N/A		N/A
1	Multifamily Property	Las Vegas , NV	Multifamily	12/31/2021		N/A	$	30,094		N/A				N/A		N/A		N/A
	Portfolio Total				$	1,701,104	$	681,055		6.32	%			6.5		67.90	%	1.99x

$s IN 0,000s EXCEPT PER SHARE DATA

(1) AS OF February 16, 2022, OUR TOTAL PORTFOLIO REPRESENTS THE CURRENT PRINCIPAL AMOUNT OF THE CONSOLIDATED SFR LOANS, MEZZANINE LOANS, PREFERRED EQUITY, CONVERTIBLE NOTES, COMMON STOCK, AND MULTIFAMILY PROPERTY AS WELL AS THE NET EQUITY OF OUR CMBS B-PIECE INVESTMENTS

(2) NET EQUITY REPREESENTS THE CARRYING VALUE LESS BORROWINGS

(3) THE WEIGHTED AVERAGE COUPON IS WEIGHTED ON THE CURRENT PRINCIPAL BALANCE

(4) THE WEIGHTED AVERAGE LIFE IS WEIGHTED ON THE CURRENT PRINCIPAL BALANCE AND ASSUMES NO PREPAYMENTS. THE MATURITY DATE USED FOR PREFERRED EQUITY INVESTMENTS REPRESENTS THE MATURITY DATE OF THE SENIOR MORTGAGE, AS THE PREFERRED EQUITY INVESTMENTS HAVE NO STATED MATURITY DATE AND REQUIRE REPAYMENT UPON THE SALE OR REFINANCING OF THE ASSET

(5) THE CMBS B-PIECES ARE SHOWN ON AN UNCONSOLIDATED BASIS REFLECTING THE VALUE OF OUR INVESTMENTS

(6) FLOATING RATE CMBS B-PIECE YIELDS 1M LIBOR PLUS 600 BPS. AS OF February 16, 2022, 1M LIBOR WAS 0.12%

(7) FLOATING RATE CMBS B-PIECE YIELDS 1M LIBOR PLUS 900 BPS. AS OF February 16, 2022, 1M LIBOR WAS 0.12%

(8) REPRESENTS THE BOND EQUIVALENT YIELD FOR THE FIXED RATE CMBS B-PIECE

(9) FLOATING RATE CMBS B-PIECE YIELDS 30-DAY AVERAGE SOFR PLUS 625BPS. AS OF February 16, 2022, SOFR WAS 0.05%

(10)  CURRENT PRINCIPAL FOR CMBS IO STRIPS ARE SHOWN AS CURRENT COST

(11) MEZZANINE INVESTMENT IS FIXED AND PAYS 6.5% CURRENT INTEREST, PAID MONTHLY, WITH THE REMAINING 4.50% ACCRUING AND DUE AT MATURITY

(12) MEZZANINE INVESTMENT YIELDS WSJ PRIME PLUS 1000 BPS. AS OF February 16, 2022, WSJ PRIME WAS 3.25%

NEXPOINT REAL ESTATE FINANCE Page | 11

Financials

$s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED

Income Statement

For the three months ended	December 31, 2021			September 30, 2021
Interest income	$	15,927		$	14,372
Interest expense		(7,896	)		(7,790	)
Net interest income		8,031			6,582
Other income (loss)		16,433			21,963
Total operating expenses		(3,507	)		(3,354	)
Net income		20,957			25,191
Preferred stock dividends		(882	)		(874	)
Net (income) attributable to redeemable NCI		(7,640	)		(11,084	)
Net income attributable to common stockholders	$	12,435		$	13,233
Weighted average common shares outstanding, diluted¹		21,911			20,721
Net income per share, diluted	$	0.92		$	1.17

Balance Sheet

	December 31, 2021		December 31, 2020
Cash and cash equivalents	$	26,459	$	30,241
Restricted cash		6,773		3,230
Real estate investment, net		62,269		-
Loans, held-for-investment, net		241,517		127,777
Common stock investment, at fair value		58,460		44,626
Mortgage loans, held-for-investment, net		847,364		918,114
Accrued interest and dividends		8,319		5,078
Mortgage loans held in variable interest entities, at fair value		7,192,547		5,007,515
CMBS structured pass through certificates, at fair value		69,816		38,984
Accounts receivable and other assets		393		745
Total Assets	$	8,513,917	$	6,176,310
Secured financing agreements, net	$	786,226	$	840,453
Master repurchase agreements		286,324		161,465
Unsecured notes, net		168,325		34,960
Mortgages payable, net		32,176		-
Accounts payable and other accrued liabilities		3,903		1,779
Accrued interest payable		3,985		2,311
Bonds payable held in variable interest entities, at fair value		6,726,272		4,731,429
Total Liabilities		8,007,211		5,772,397
Redeemable NCI in the Operating Partnership		261,423		275,670
Total Stockholders Equity		245,283		128,243
Total Liabilities and Stockholders’ Equity	$	8,513,917	$	6,176,310

(1) WEIGHTED AVERAGE DILUTED SHARES ASSUMES VESTING OF ALL OUTSTANDING UNVESTED RESTRICTED STOCK UNITS AND CONVERSION OF ALL REDEEMABLE NON-CONTROLLING INTERESTS

Book Value

	December 31, 2021		December 31, 2020
Common stockholders' equity	$	200,503	$	90,733
Redeemable noncontrolling interests in the OP		261,423		275,670
Total equity	$	461,926	$	366,403
Redeemable OP and Sub OP units		12,308		13,787
Common shares outstanding		9,164		5,023
Combined book value per share	$	21.51	$	19.48

NEXPOINT REAL ESTATE FINANCE Page | 12

Reconciliations

$s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED

Reconciliation of 1Q 2022 Net Income to EAD

	Low		Mid		High
For the three months ended	Mar. 31, 2022		Mar. 31, 2022		Mar. 31, 2022
Net income attributable to common stockholders	$	18,952	$	19,790	$	20,628
Net income attributable to redeemable noncontrolling interests		6,163		6,426		6,689
Adjustments:
Amortization of stock-based compensation		652		652		652
EAD	$	25,767	$	26,868	$	27,969
Weighted average common shares outstanding, basic		14,214		14,214		14,214
Weighted average common shares outstanding, diluted¹		22,023		22,023		22,023
EAD per diluted weighted average share	$	1.17	$	1.22	$	1.27
Announced 1Q dividend	$	0.500	$	0.500	$	0.500
Estimated 1Q dividend coverage ratio	2.34x		2.44x		2.54x

(1) WEIGHTED AVERAGE DILUTED SHARES ASSUMES VESTING OF ALL OUTSTANDING UNVESTED RESTRICTED STOCK UNITS AND CONVERSION OF ALL REDEEMABLE NON-CONTROLLING INTERESTS

Reconciliation of 1Q 2022 EAD to CAD

	Low			Mid			High
For the three months ended	Mar. 31, 2022			Mar. 31, 2022			Mar. 31, 2022
EAD	$	25,767		$	26,868		$	27,969
Adjustments:
Amortization of premiums		10,579			10,579			10,579
Accretion of discounts		(2,871	)		(2,871	)		(2,871	)
Cash Available for Distribution	$	33,475		$	34,576		$	35,677
Weighted average common shares outstanding, basic		14,214			14,214			14,214
Weighted average common shares outstanding, diluted¹		22,023			22,023			22,023
CAD per diluted weighted average share	$	1.52		$	1.57		$	1.62
Announced 1Q dividend	$	0.500		$	0.500		$	0.500
Estimated 1Q dividend coverage ratio	3.04x			3.14x			3.24x

(1) WEIGHTED AVERAGE DILUTED SHARES ASSUMES VESTING OF ALL OUTSTANDING UNVESTED RESTRICTED STOCK UNITS AND CONVERSION OF ALL REDEEMABLE NON-CONTROLLING INTERESTS

NEXPOINT REAL ESTATE FINANCE Page | 13

Reconciliations

$s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED

Reconciliation of  full year Net Income to EAD

	Low		Mid		High
For the year ended	Dec. 31, 2022		Dec. 31, 2022		Dec. 31, 2022
Net income attributable to common stockholders	$	41,960	$	42,804	$	43,648
Net income attributable to redeemable noncontrolling interests		14,166		14,431		14,696
Adjustments:
Amortization of stock-based compensation		3,103		3,103		3,103
EAD	$	59,229	$	60,338	$	61,447
Weighted average common shares outstanding, basic		15,045		15,045		15,045
Weighted average common shares outstanding, diluted¹		22,183		22,183		22,183
EAD per diluted weighted average share	$	2.67	$	2.72	$	2.77
Estimated 2022 dividend	$	2.000	$	2.000	$	2.000
Estimated 2022 dividend coverage ratio	1.34x		1.36x		1.39x

(1) WEIGHTED AVERAGE DILUTED SHARES ASSUMES VESTING OF ALL OUTSTANDING UNVESTED RESTRICTED STOCK UNITS AND CONVERSION OF ALL REDEEMABLE NON-CONTROLLING INTERESTS

Reconciliation of full year 2022 EAD to CAD

	Low			Mid			High
For the year ended	Dec. 31, 2022			Dec. 31, 2022			Dec. 31, 2022
EAD	$	59,229		$	60,338		$	61,447
Adjustments:
Amortization of premiums		23,158			23,158			23,158
Accretion of discounts		(12,288	)		(12,288	)		(12,288	)
Cash Available for Distribution	$	70,099		$	71,208		$	72,317
Weighted average common shares outstanding, basic		15,045			15,045			15,045
Weighted average common shares outstanding, diluted¹		22,183			22,183			22,183
CAD per diluted weighted average share	$	3.16		$	3.21		$	3.26
Estimated 2022 dividend	$	2.000		$	2.000		$	2.000
Estimated 2022 dividend coverage ratio	1.58x			1.61x			1.63x

(1) WEIGHTED AVERAGE DILUTED SHARES ASSUMES VESTING OF ALL OUTSTANDING UNVESTED RESTRICTED STOCK UNITS AND CONVERSION OF ALL REDEEMABLE NON-CONTROLLING INTERESTS

NEXPOINT REAL ESTATE FINANCE Page | 14

Reconciliation of Net Income (Loss) to Earnings Available for Distribution

$s IN 0,000s EXCEPT PER SHARE DATA OR AS OTHERWISE INDICATED

	4Q 2021			3Q 2021			2Q 2021			1Q 2021
Net income attributable to common stockholders	$	12,435		$	13,233		$	5,542		$	8,367
Net income attributable to redeemable noncontrolling interests		7,640			11,084			5,834			15,829
Adjustments:
Amortization of stock-based compensation		538			538			557			391
Loan loss provision, net		-			-			-			124
Unrealized (gains) or losses		(8,832	)		(14,336	)		(3,859	)		(16,476	)
EAD	$	11,781		$	10,519		$	8,074		$	8,235
Weighted average common shares outstanding, basic		9,163			6,863			5,306			5,023
Weighted average common shares outstanding, diluted1		21,911			20,721			19,603			19,199
EAD per diluted weighted average share	$	0.54		$	0.51		$	0.41		$	0.43
Dividend per common share	$	0.48		$	0.48		$	0.48		$	0.48
EAD dividend coverage ratio	1.14x			1.07x			0.87x			0.91x

(1) WEIGHTED AVERAGE DILUTED SHARES ASSUMES VESTING OF ALL OUTSTANDING UNVESTED RESTRICTED STOCK UNITS AND CONVERSION OF ALL REDEEMABLE NON-CONTROLLING INTERESTS

Reconciliation of Earnings Available for Distribution to CAD

	4Q 2021			3Q 2021			2Q 2021			1Q 2021
Earnings Available for Distribution	$	11,781		$	10,519		$	8,074		$	8,235
Adjustments:
Amortization of premiums		5,337			5,390			2,808			2,516
Accretion of discounts		(3,271	)		(2,976	)		(1,680	)		(1,668	)
Cash Available for Distribution	$	13,847		$	12,933		$	9,202		$	9,083
Weighted average common shares outstanding, basic		9,163			6,863			5,306			5,023
Weighted average common shares outstanding, diluted1		21,911			20,721			19,603			19,199
CAD per diluted weighted average share	$	0.63		$	0.62		$	0.47		$	0.47
Dividend per common share	$	0.48		$	0.48		$	0.48		$	0.48
CAD dividend coverage ratio	1.33x			1.31x			0.99x			0.99x

(1) WEIGHTED AVERAGE DILUTED SHARES ASSUMES VESTING OF ALL OUTSTANDING UNVESTED RESTRICTED STOCK UNITS AND CONVERSION OF ALL REDEEMABLE NON-CONTROLLING INTERESTS

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Document And Entity Information	Feb. 17, 2022
Document Information [Line Items]
Entity, Registrant Name	NEXPOINT REAL ESTATE FINANCE, INC.
Document, Type	8-K
Document, Period End Date	Feb. 17, 2022
Entity, Incorporation, State or Country Code	MD
Entity, File Number	001-39210
Entity, Tax Identification Number	84-2178264
Entity, Address, Address Line One	300 Crescent Court, Suite 700
Entity, Address, City or Town	Dallas
Entity, Address, State or Province	TX
Entity, Address, Postal Zip Code	75201
City Area Code	833
Local Phone Number	679-6246
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity, Emerging Growth Company	true
Entity, Ex Transition Period	false
Amendment Flag	false
Entity, Central Index Key	0001786248
CommonStock Custom [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock
Trading Symbol	NREF
Security Exchange Name	NYSE
SeriesACumulativeRedeemablePreferredStock850 Custom [Member]
Document Information [Line Items]
Title of 12(b) Security	8.50% Series A Cumulative Redeemable Preferred Stock
Trading Symbol	NREF-PRA
Security Exchange Name	NYSE