(NREF) Nexpoint Real Estate Finance - Overview
Stock: Mortgage, Mezzanine, Preferred, Securities, Multifamily
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 13.60% |
| Yield on Cost 5y | 21.79% |
| Yield CAGR 5y | 1.29% |
| Payout Consistency | 94.9% |
| Payout Ratio | 101.0% |
| Risk 5d forecast | |
|---|---|
| Volatility | 28.6% |
| Relative Tail Risk | -0.78% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.24 |
| Alpha | -1.16 |
| Character TTM | |
|---|---|
| Beta | 0.529 |
| Beta Downside | 0.642 |
| Drawdowns 3y | |
|---|---|
| Max DD | 33.14% |
| CAGR/Max DD | 0.18 |
Description: NREF Nexpoint Real Estate Finance December 31, 2025
NexPoint Real Estate Finance, Inc. (NYSE: NREF) is a U.S. commercial mortgage REIT that originates, structures, and invests in a diversified set of real-estate-related assets, including first-lien mortgage loans, mezzanine debt, preferred equity, convertible notes, and both multifamily and single-family rental CMBS securitizations. The firm also holds promissory notes, revolving credit facilities, stock warrants, and direct equity positions in rental properties.
Because NREF has elected REIT tax status, it avoids federal corporate income tax provided it distributes at least 90 % of its taxable earnings to shareholders each year, a requirement that drives its historically high dividend yield (≈ 8 % on a trailing-12-month basis).
Key operational metrics from the most recent 10-K (2023) show total assets of roughly $5.5 billion, a weighted-average loan-to-value ratio of 68 %, and an average coupon of 5.5 % across its loan portfolio. Multifamily assets represent about 45 % of the portfolio, reflecting the sector’s strong demand driven by a persistent housing shortage and higher rental inflation.
Sector-level drivers that materially affect NREF’s performance include the Federal Reserve’s interest-rate trajectory (which influences net interest margin on new loan originations), the health of the U.S. multifamily rental market (occupancy rates have stayed above 95 % nationally), and macro-economic trends in credit spreads that impact the pricing of mezzanine and preferred-equity capital.
For a deeper, data-rich analysis of NREF’s valuation and risk profile, you might explore the company’s metrics on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 1.0
| Net Income: 96.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 0.11 > 1.0 |
| NWC/Revenue: 2908 % < 20% (prev 5029 %; Δ -2121 % < -1%) |
| CFO/TA 0.01 > 3% & CFO 31.8m > Net Income 96.4m |
| Net Debt (4.45b) to EBITDA (150.2m): 29.66 < 3 |
| Current Ratio: 18.10 > 1.5 & < 3 |
| Outstanding Shares: last quarter (43.9m) vs 12m ago 43.93% < -2% |
| Gross Margin: error (current vs previous; cannot be calculated due to missing/invalid data or negative margin) |
| Asset Turnover: 3.05% > 50% (prev 1.75%; Δ 1.30% > 0%) |
| Interest Coverage Ratio: 2.28 > 6 (EBITDA TTM 150.2m / Interest Expense TTM 42.3m) |
Altman Z'' 6.15
| A: 0.92 (Total Current Assets 5.15b - Total Current Liabilities 284.8m) / Total Assets 5.28b |
| B: -0.00 (Retained Earnings -19.0m / Total Assets 5.28b) |
| C: 0.02 (EBIT TTM 96.5m / Avg Total Assets 5.48b) |
| D: -0.00 (Book Value of Equity -19.0m / Total Liabilities 4.50b) |
| Altman-Z'' Score: 6.15 = AAA |
What is the price of NREF shares?
Over the past week, the price has changed by +0.54%, over one month by +6.76%, over three months by +16.30% and over the past year by +7.12%.
Is NREF a buy, sell or hold?
- StrongBuy: 0
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the NREF price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 14.5 | -2.4% |
| Analysts Target Price | 14.5 | -2.4% |
| ValueRay Target Price | 17.3 | 16.3% |
NREF Fundamental Data Overview February 03, 2026
P/S = 2.2181
P/B = 0.7137
Revenue TTM = 167.4m USD
EBIT TTM = 96.5m USD
EBITDA TTM = 150.2m USD
Long Term Debt = 4.22b USD (from longTermDebt, last quarter)
Short Term Debt = 257.6m USD (from shortTermDebt, last quarter)
Debt = 4.48b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.45b USD (from netDebt column, last quarter)
Enterprise Value = 4.79b USD (336.2m + Debt 4.48b - CCE 21.6m)
Interest Coverage Ratio = 2.28 (Ebit TTM 96.5m / Interest Expense TTM 42.3m)
EV/FCF = 150.6x (Enterprise Value 4.79b / FCF TTM 31.8m)
FCF Yield = 0.66% (FCF TTM 31.8m / Enterprise Value 4.79b)
FCF Margin = 19.00% (FCF TTM 31.8m / Revenue TTM 167.4m)
Net Margin = 57.58% (Net Income TTM 96.4m / Revenue TTM 167.4m)
Gross Margin = unknown ((Revenue TTM 167.4m - Cost of Revenue TTM 5.41m) / Revenue TTM)
Tobins Q-Ratio = 0.91 (Enterprise Value 4.79b / Total Assets 5.28b)
Interest Expense / Debt = 0.23% (Interest Expense 10.4m / Debt 4.48b)
Taxrate = 21.0% (US default 21%)
NOPAT = 76.2m (EBIT 96.5m * (1 - 21.00%))
Current Ratio = 18.10 (Total Current Assets 5.15b / Total Current Liabilities 284.8m)
Debt / Equity = 11.92 (Debt 4.48b / totalStockholderEquity, last quarter 375.4m)
Debt / EBITDA = 29.66 (Net Debt 4.45b / EBITDA 150.2m)
Debt / FCF = 140.0 (Net Debt 4.45b / FCF TTM 31.8m)
Total Stockholder Equity = 494.3m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.76% (Net Income 96.4m / Total Assets 5.28b)
RoE = 19.50% (Net Income TTM 96.4m / Total Stockholder Equity 494.3m)
RoCE = 2.05% (EBIT 96.5m / Capital Employed (Equity 494.3m + L.T.Debt 4.22b))
RoIC = 1.60% (NOPAT 76.2m / Invested Capital 4.77b)
WACC = 0.72% (E(336.2m)/V(4.81b) * Re(7.87%) + D(4.48b)/V(4.81b) * Rd(0.23%) * (1-Tc(0.21)))
Discount Rate = 7.87% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: 100.0 | Cagr: 59.53%
[DCF Debug] Terminal Value 84.42% ; FCFF base≈30.3m ; Y1≈25.5m ; Y5≈19.1m
Fair Price DCF = N/A (negative equity: EV 583.7m - Net Debt 4.45b = -3.87b; debt exceeds intrinsic value)
EPS Correlation: -16.34 | EPS CAGR: -27.95% | SUE: -1.87 | # QB: 0
Revenue Correlation: 43.02 | Revenue CAGR: 32.07% | SUE: 1.51 | # QB: 1
EPS next Quarter (2026-03-31): EPS=0.46 | Chg30d=+0.003 | Revisions Net=-1 | Analysts=3
EPS next Year (2026-12-31): EPS=1.92 | Chg30d=-0.010 | Revisions Net=-2 | Growth EPS=-0.3% | Growth Revenue=+7.9%