Company: NREF
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001786248-25-000010
Chunk: 117

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 1A
Chunk 117
---
 held for investment, net and preferred equity portfolio activity was as follows (in thousands):

14

For the Three Months Ended March 31,20252024Balances, December 31,$760,939 $1,004,880 Originations22,546 60,247 Proceeds from principal repayments(20,665)(511,169)PIK distribution reinvested in Preferred Units3,242 3,448 Amortization of loan premium, net (1)957 (25,670)(Provision for) reversal of credit losses(3,625)420 Balance at March 31, $763,394 $532,156 (1)Includes net amortization of loan purchase premiums.As of March 31, 2025 and December 31, 2024, there were $7.8 million and $8.8 million of unamortized premiums on loans, held-for-investment, net, respectively, on the Consolidated Balance Sheets.As discussed in Note 2, the Company evaluates loans classified as held-for-investment on a loan-by-loan basis every quarter. In conjunction with the review of the portfolio, the Company assesses the risk factors of each loan and assign a risk rating based on a variety of factors. Loans are rated “1” through “5,” from least risk to greatest risk, respectively. See Note 2 for a more detailed discussion of the risk factors and ratings. The following tables allocate the principal balance and net book value of the loan portfolio based on our internal risk ratings (dollars in thousands):March 31, 2025Risk RatingNumber of LoansCarrying Value% of Loan Portfolio 1—$— — 2—— — 349742,408 97.25 %4112,500 1.64 %518,486 1.11 %51$763,394 100.00 %Risk RatingDecember 31, 2024Number of LoansCarrying Value% of Loan Portfolio1—$— — 2—— — 349739,960 97.24 %4220,979 2.76 %5—— — 51$760,939 100.00 %Our loan portfolio had a weighted-average risk rating of 3.0 as of March 31, 2025, and 3.0 as of December 31, 2024.

15

The following tables present the