Company: NREF
Filing Date: 2025-11-04
Form Type: 424B5
Source: 0001437749-25-033056
Chunk: 24

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-11-04
Form: 424B5
Chunk 24
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 Series C Preferred Stock will not have the opportunity as part of their investment decision to assess whether the net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of the net proceeds from this offering, their ultimate use may vary substantially from their currently intended use, and result in investments that are not accretive to our results from operations.

The Series C Preferred Stock will bear a risk of early redemption by us.

We may voluntarily redeem some or all of the Series C Preferred Stock, for cash or equal value of shares of our common stock, beginning on the first day of the first quarter following the second anniversary of the issuance date. Any such redemptions may occur at a time that is unfavorable to holders of such preferred stock. We may have an incentive to voluntarily redeem shares of Series C Preferred Stock, if market conditions allow us to issue other preferred stock or debt securities at an interest or distribution rate that is lower than the distribution rate on the Series C Preferred Stock. Given the potential for early redemption of the Series C Preferred Stock, holders of such shares may face an increased reinvestment risk, which is the risk that the return on an investment purchased with proceeds from the sale or redemption of the Series C 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 C Preferred Stock may be redeemed, may be volatile and may expose investors to additional volatility risk.

There is no guarantee we will exercise our option to redeem all or a portion of the Series C 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 C 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 C 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 C Preferred Stock and dividends payable on such shares decline.

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