Company: NREF
Filing Date: 2025-03-14
Form Type: 424B5
Source: 0001437749-25-007771
Chunk: 19

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-03-14
Form: 424B5
Chunk 19
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 redemption of the Series B Preferred Stock may be lower than the return previously obtained from the investment in such shares. The trading price of the common stock, for which the Series B Preferred Stock may be redeemed, may be volatile and may expose investors to additional volatility risk.

There is a no guarantee we will exercise our option to redeem all or a portion of the Series B Preferred Stock in connection with a Change of Control.

Substantially all of the investments we presently hold and the investments we expect to acquire in the future are, and will be, illiquid. If we were to determine to liquidate all or a portion of our portfolio quickly, for example in order to complete a cash redemption of Series B Preferred Stock in connection with a Change of Control, we may realize significantly less than the value at which we have previously recorded our investments.

Holders of the Series B Preferred Stock will be subject to inflation risk.

Inflation is the reduction in the purchasing power of money resulting from the increase in the price of goods and services. Inflation risk is the risk that the inflation-adjusted, or “real,” value of an investment in preferred stock or the income from that investment will be worth less in the future. As inflation occurs, the real value of the Series B Preferred Stock and dividends payable on such shares decline.

Holders of the Series B Preferred Stock have extremely limited voting rights.

The voting rights of holders of shares of Series B Preferred Stock will be extremely limited. Our common stock is the only class or series of our stock carrying full voting rights. Holders of Series B Preferred Stock have certain limited voting rights with respect to amendments to our charter (including the Articles Supplementary establishing the Series B Preferred Stock) in a manner that materially and adversely affects the rights of the holders of Series B Preferred Stock and with respect to the authorization, creation or increase in the number of shares of any class or series of our capital stock expressly designated as ranking senior to the Series B Preferred Stock as to distribution rights and rights upon our liquidation, dissolution or winding up. Other than in these limited circumstances, holders of Series B Preferred Stock will generally not have voting rights.

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The amount of the liquidation preference is fixed and holders of Series B Preferred Stock will have no right to receive any greater payment.

The payment due upon liquidation is fixed at the liquidation preference, plus an amount equal to accrued but unpaid cash dividends thereon, if any, to but not including the date of payment, whether or not authorized