Company: NREF
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001786248-25-000010
Chunk: 24

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 24
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 to the self-storage assets owned by NSP. Additionally, the income approach is used to determine the fair value of the development loans owned by NSP whereby contractual cash flows are discounted at observable market discount rates. In addition, as a secondary check for reasonableness, a top-down approach was applied whereby observable market terminal capitalization rates and discount rates are applied to the consolidated NSP cash flows. The valuation relies primarily on the bottoms-up approach but uses the top-down approach to corroborate the bottoms-up conclusion with a reasonable precision.The Company owns approximately 6.3% of the total outstanding shares of common stock of a private ground lease REIT (the "Private REIT") as of March 31, 2025. The Company elected the fair value option in accordance with ASC 825-10-10 for the Private REIT.The investment in the Private REIT is a Level 3 asset in the fair value hierarchy. As of March 31, 2025, the Company valued this investment based on the Private REIT's market approach price of $19.14 per share.    

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The following table presents "Common stock investments, at fair value" as of March 31, 2025 and December 31, 2024, respectively (in thousands, except share amounts):SharesFair ValueInvestmentInvestment DateProperty TypeMarch 31, 2025December 31, 2024March 31, 2025December 31, 2024Common StockNexPoint Storage Partners11/6/2020Self-storage41,963 41,963 $29,289 $30,467 Private REIT4/14/2022Ground lease1,394,213 1,394,213 26,686 26,922 The following table presents “Change in unrealized gain (loss) on common stock investments” (in thousands): For the Three Months Ended March 31,20252024Change in unrealized gain (loss) on NexPoint Storage Partners$(1,178)$635 Change in unrealized gain (loss) on Private REIT(236)(1,506)Change in unrealized gain (loss) on common stock investments$(1,414)$(871)Equity Method InvestmentsThe Company owns approximately 98.0% of the total outstanding common equity of each of Resmark Forney Gateway Holdings, LLC ("RFGH") and Resmark The Brook Holdings, LLC ("RTB"). These investments are held in entities