Company: NREF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001786248-25-000016
Chunk: 190

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 6
Chunk 190
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ization rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Management elected the fair value option to account for the Company's Level 3 assets as of June 30, 2025 (in thousands):CarryingValueValuation TechniqueUnobservable InputsRangeWeighted Average (1)NexPoint Storage Partners$24,703 Discounted cash flowTerminal cap rate4.88% - 5.38%5.13 %Discount rate7.00% - 9.00%8.00 %IQHQ Series D Preferred Stock18,949 Discounted cash flowDiscount rate15.50% - 17.50%16.50 %IQHQ Series E Preferred Stock94,513 Discounted cash flowDiscount rate15.51% - 18.10%16.81 %Private REIT26,113 Market approachNAV per share multiple0.95 - 1.10x1.03xIQHQ Warrants30,386 Option pricing modelVolatility35.00% - 90.00%62.50 %(1)Averages are weighted based on the fair value of the related instrumentThe table below reflects a summary of changes for the Company's Level 3 common and preferred stock assets carried at fair value on the Consolidated Balance Sheets for the six months ended June 30, 2025:Balances as of December 31, 2024AdditionsChange in Unrealized Gains/(Losses)Balances as of June 30, 2025NexPoint Storage Partners$30,467 $— $(5,764)$24,703 IQHQ Series D Preferred Stock18,949 — (417)18,532 IQHQ Series E Preferred Stock— 64,710 30,181 94,891 Private REIT26,922 — (809)26,113 IQHQ Warrants27,400 30,220 8,014 65,634 Other Financial Instruments Carried at Fair ValueRedeemable noncontrolling interests in the OP and the 9.00% Series B Cumulative Redeemable Preferred Stock, par value $0.01 per share (the "Series B Preferred Stock") have redemption features and are marked to their redemption value if such value exceeds the carrying value. The redemption values are based on the fair value of the Company’s