NexPoint Real Estate Finance reported third‑quarter 2025 results for the period ended September 30, 2025. Net income attributable to common stockholders rose to $35.0 million, or $1.14 per diluted share, up from $16.1 million, or $0.75 per diluted share, in the same quarter a year earlier. Cash available for distribution increased to $12.1 million, or $0.53 per diluted share, from $10.6 million, or $0.46 per diluted share, in Q2 2025.
The earnings increase was driven by higher interest income from the portfolio and a reduction in interest expense following earlier deleveraging. Management highlighted continued deployment of capital into high‑yield opportunities across life sciences, self‑storage, and workforce‑rental housing, aiming to capture dislocations in those markets. The company’s focus on stable or light‑transitional properties remains a key differentiator in its niche segments.
For the fourth quarter, NexPoint provided guidance of net income between $8.3 million and $10.6 million, translating to earnings per diluted share of $0.27 to $0.34. Earnings available for distribution is projected between $6.5 million and $8.3 million, while cash available for distribution is expected to fall between $7.0 million and $9.0 million. Coverage ratios for both metrics are projected to improve, with CAD coverage ranging from 0.80× to 0.95×.
The company’s portfolio as of September 30, 2025, was valued at $1.1 billion across 88 investments, with a mix of 47.3% multifamily, 33.9% life sciences, 15.9% single‑family rental, 1.8% self‑storage, and 1.1% marinas. NexPoint deployed capital in Q3 2025 by purchasing $42.5 million of preferred stock, funding a $6.5 million loan at SOFR + 900 bps, and selling a multifamily property for $60.0 million, realizing a $3.7 million gain. It also raised $65.7 million from a Series B preferred stock offering.
NexPoint declared a Q4 dividend of $0.50 per share. Management noted that while the company remains focused on stable, high‑yield assets, it faces headwinds from rising interest rates and tightening credit conditions that could impact future cash flows.
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