Company: NREF
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001786248-25-000004
Chunk: 37

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 9C
Chunk 37
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2, the Company evaluates loans classified as held-for-investment on a loan-by-loan basis every quarter. In conjunction with the review of the portfolio, the Company assesses the risk factors of each loan and assign a risk rating based on a variety of factors. Loans are rated “1” through “5,” from least risk to greatest risk, respectively. See Note 2 for a more detailed discussion of the risk factors and ratings. The following tables allocate the principal balance and net book value of the loan portfolio based on our internal risk ratings (dollars in thousands):Risk RatingDecember 31, 2024Number of LoansCarrying Value% of Loan Portfolio 1—$— — 2—— — 349739,960 97.24 %4220,979 2.76 %5—— — %51$760,939 100.00 %Risk RatingDecember 31, 2023Number ofLoansCarryingValue% of LoanPortfolio1—$— — 2—— — 346992,751 98.79 %4212,129 1.21 %5—— — 48$1,004,880 100.00 %Our loan portfolio had a weighted-average risk rating of 3.0 as of December 31, 2024, and 3.0 as of December 31, 2023.

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Table of Contents

The following tables present the carrying value of the loan portfolio by the Company's internal risk rating and year of origination as of December 31, 2024 and 2023 (dollars in thousands):December 31, 2024Carrying Value by Year of Origination (1)Risk RatingNumber ofLoansOutstanding Face Amount20242023202220212020PriorTotal Carrying Value1—$— $— $— $— $— $— $— $— 2—— — — — — — — — 349750,031 284,958 94,446 74,658 38,067 19,812 228,019 739,960 4221,100 — — 8,479 12,500 — — 20,979 5—— — — — — — — — 51$771,131 $284,958