NexPoint Real Estate Finance, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net loss attributable to common stockholders of $12.2 million ($0.65 per diluted share) for the three months ended September 30, 2026, compared to net income of $35.0 million ($0.80 per diluted share) in the same period in 2025.
• Reported Earnings Available for Distribution (EAD) of $12.2 million ($0.52 per diluted share) for the quarter, up from $11.6 million ($0.51 per diluted share) in Q3 2025.
• Reported Cash Available for Distribution (CAD) of $14.0 million ($0.60 per diluted share) for the quarter, up from $12.1 million ($0.53 per diluted share) in Q3 2025.
• Adjusted weighted average common shares outstanding – diluted increased to 23.3 million in Q3 2026 from 22.9 million in Q3 2025.
• Unrealized losses on investments and derivatives totaled $21.9 million in Q3 2026, compared to unrealized gains of $48.3 million in Q3 2025.
• Provision for credit losses was $0.5 million in Q3 2026, compared to $15.7 million in Q3 2025.

Guidance and Future Outlook:

• Provided Fourth Quarter 2026 EAD per diluted common share guidance of $0.425 at the midpoint (range: $0.37 to $0.47).
• Provided Fourth Quarter 2026 CAD per diluted common share guidance of $0.555 at the midpoint (range: $0.50 to $0.60).
• Estimated net income attributable to common stockholders for Q4 2026 to be between $6.8 million and $9.2 million.
• Management expects to continue deploying capital selectively into sectors with durable demand to support stable income and long-term value.

Business Segments and Product Lines:

• Outstanding total portfolio reached $1.0 billion, composed of 83 investments as of September 30, 2026.
• Portfolio composition by sector: Life sciences (40.7%), Multifamily (38.3%), Single-family rental (14.0%), Self-storage (4.6%), Industrial (2.2%), and Marinas (0.2%).
• Weighted-average loan-to-value (LTV) on senior loans, CMBS, CMBS I/O strips, preferred equity, promissory notes, and mezzanine investments was 64.7%.
• Weighted-average debt service coverage ratio (DSCR) on the same portfolio mix was 1.39x.
• Funded $8.4 million on a loan paying a monthly coupon of SOFR + 900 basis points.
• Funded $4.0 million on a preferred equity investment paying a 14.0% monthly return.
• Funded $2.2 million on a preferred equity investment paying a 13.0% monthly return.
• Raised $27.9 million in gross proceeds from a Series C preferred stock offering during the quarter.

Market and Competitive Landscape:

• Management noted that many lenders are working through legacy credit issues, while the Company's disciplined underwriting allows it to remain selective.
• The Company focuses on sectors with durable demand to support portfolio growth and risk-adjusted opportunities.

Risks and Challenges:

• The press release includes standard forward-looking statement disclaimers noting that actual results may differ materially due to risks, uncertainties, and assumptions, including those detailed in the Company's SEC filings (Form 10-K and Form 10-Q).
• Specific risks mentioned include the potential for actual results to differ from guidance regarding net income, EAD, CAD, and related coverage ratios.

Management Commentary and Tone:

• Matthew McGraner, Chief Investment Officer, stated that third-quarter results reflect the consistency of the company's strategy, with earnings covering the dividend and a portfolio focused on sectors with durable demand.
• Management emphasized a disciplined underwriting approach to stay selective and deploy capital where the best risk-adjusted opportunities exist.

Other Key Points:

• Announced a fourth-quarter 2026 dividend of $0.50 per common share on October 26, 2026.
• The Company intends not to settle Series B or Series C Preferred redemptions in shares of common stock when the common stock price is below book value.
• Series B and Series C Preferred redemptions are capped at 2% per month, 5% per quarter, and 20% per year, respectively.
• The Company maintains sufficient liquidity to pay cash to cover redemptions up to the quarterly redemption cap.
• Conference call scheduled for November 5, 2026, at 11:00 a.m. ET to discuss results.