NexPoint Real Estate Finance(NREF) - 2024 Q4 - Annual Results

Financial Performance - NREF reported net income attributable to common stockholders of $8.4 million, or$0.43 per diluted share for Q4 2024[2] - For Q1 2025, net income attributable to common stockholders is estimated to be between $8.0 million and$10.4 million[7] - Guidance for Q1 2025 EAD per diluted common share is $0.45 at the midpoint[9] - Guidance for Q1 2025 CAD per diluted common share is$0.50 at the midpoint[10] Cash Distribution - Cash available for distribution (CAD) for Q4 2024 was $10.9 million, or$0.47 per diluted common share[2] - CAD is calculated by adjusting EAD for amortization and depreciation, providing insight into the company's current ability to pay distributions[20] Investment Portfolio - The total portfolio outstanding is $1.2 billion, composed of 83 investments, with multifamily representing 49.7$9.5 million[8] - The company funded $16.7 million on a loan that pays a monthly coupon of SOFR + 900 bps during the quarter[8] Earnings Adjustments - EAD is defined as net income attributable to common stockholders, adjusted for certain GAAP items, and includes the dilutive effect of non-controlling interests[18] - Starting Q3 2023, EAD has been adjusted to exclude income/losses from equity method investments, focusing on distributable earnings[18] - EAD and CAD per diluted common share will be based on adjusted weighted average common shares outstanding starting Q2 2024[21] Shareholder Considerations - The adjusted weighted average common shares outstanding - diluted excludes the dilutive effect of potential redemptions of Series B Preferred shares[21] - Series B Preferred redemptions are capped at 2% monthly, 5% quarterly, and 20% annually, with sufficient liquidity maintained for cash cover[21] - The company intends to avoid settling Series B Preferred redemptions in common stock when the stock price is below book value[21] Reporting Standards - EAD and CAD should not be considered alternatives to GAAP net income or cash flows from operating activities[20] - The computation of EAD and CAD may not be comparable to those reported by other REITs[20] - Adjusted weighted average common shares outstanding - diluted should not be considered an alternative to GAAP measures[22]