Company: NREF
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001786248-25-000004
Chunk: 42

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 9C
Chunk 42
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 Company invested in the Series D-1 preferred stock (“Series D-1”) of IQHQ, Inc., a privately held life sciences real estate investment trust. The preferred stock dividend accumulates quarterly at a 10.5% dividend rate per annum. The Series D-1 are not deemed to be in-substance common stock and are accounted for as investments in equity securities measured at fair value. The securities do not have a readily determinable fair value, and the Company does not elect the measurement alternative. The Company owns approximately 11.8% and 9.5% of the total outstanding shares of preferred stock of the Series D-1 as of December 31, 2024 and 2023, respectively.The investment in the Series D-1 is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. As of December 31, 2024 and 2023, the Company valued this investment using the discounted cash flow method based on the present value of the expected future cash flows of the underlying investment. The discount rate of 11.5% considered the implied yield of both the payment in kind and cash interest margins.

F-25

Table of Contents

6. Unconsolidated Variable Interest Entities

Unconsolidated VIEsThe Company continually reassesses whether it remains the primary beneficiary for VIEs consolidated under the VIE model.As of December 31, 2024 and 2023, the Company has accounted for the following investments as unconsolidated VIEs:EntitiesInstrumentAsset TypeAccounting TreatmentPercentage Ownership as of December 31, 2024Relationship as of December 31, 2024Percentage Ownership as of December 31, 2023Relationship as of December 31, 2023Unconsolidated Entities:NexPoint Storage Partners, Inc.Common StockSelf-storageFair Value25.7 %VIE25.7 %VIEResmark Forney Gateway Holdings, LLCCommon EquityMultifamilyEquity Method98.0 %VIE98.0 %VIEResmark The Brook Holdings, LLCCommon EquityMultifamilyEquity Method98.0 %VIE98.0 %VIEPrivate REITCommon StockGround leaseFair Value6.3 %VIE6.4 %VIESK ApartmentsCommon EquityMultifamilyEquity Method12.3 %VIEN/AN/ACapital Acquisitions Partners, LLCMembership Inter