Company: NREF
Filing Date: 2025-11-04
Form Type: 424B5
Source: 0001437749-25-033056
Chunk: 23

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-11-04
Form: 424B5
Chunk 23
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Dividend payments on the Series C Preferred Stock are not guaranteed. We may use borrowed funds or funds from other sources to pay dividends, which may adversely impact our operations.

Although dividends on the Series C Preferred Stock are cumulative, our Board must approve the actual payment of such distributions. Distributions declared by us will be authorized by our Board in its sole discretion out of assets legally available for distribution. Our Board can elect at any time or from time to time, and for an indefinite duration, not to pay any or all accrued distributions. Our Board could do so for any reason, and may be prohibited from doing so or may determine not to do so in the following instances, among others:

● poor historical or projected cash flows or earnings;

● the need to make payments on our indebtedness;

● concluding that payment of distributions on any or all such series of preferred stock would cause us to breach the terms of any indebtedness or other instrument or agreement;

● the capital requirements or financial condition of the Company;

● determining that the payment of distributions would violate applicable law regarding unlawful distributions to stockholders; or

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● other factors as our Board may deem relevant from time to time.

We may have to fund distributions from working capital, borrow to provide funds for such distributions, use proceeds of future offerings or sell assets to the extent distributions exceed earnings or cash flows from operations. Funding distributions from working capital would restrict our operations. If we are required to sell assets to fund dividends, such asset sales may occur at a time or in a manner that is not consistent with our disposition strategy. If we borrow to fund dividends, our leverage ratios and future interest costs would increase, thereby reducing our earnings and cash available for distribution from what they otherwise would have been. We may not be able to pay dividends in the future.

We intend to use the net proceeds from the offering of the Series C Preferred Stock to fund future investments and for other general corporate purposes, but this offering will not be conditioned upon the closing of pending investments and we will have broad discretion to determine alternative uses of proceeds.

As described under “Use of Proceeds,” we intend to use the net proceeds from the offering to fund future investments and for other general corporate purposes, which may include funding investments and repaying amounts outstanding under our debt obligations. However, the offering will not be conditioned upon the closing of definitive agreements to acquire or make new investments. We will have broad discretion in the application of the net proceeds from this offering, and holders of our