Company: NREF
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001786248-25-000004
Chunk: 148

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 148
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 used in the fair valuation of the Company's Level 3 assets carried at fair value on the Consolidated Balance Sheets as of December 31, 2023 (dollars in thousands):CarryingValueValuation TechniqueUnobservable InputsRangeWeighted Average (1)NexPoint Storage Partners$33,129 Discounted cash flowTerminal cap rate5.00% - 5.50%5.25 %Discount rate7.50% - 9.50%8.50 %IQHQ, Inc.14,776 Discounted cash flowDiscount rate11.00% - 12.00%11.50 %Private REIT28,400 Market approachNAV per share multiple1.00x - 1.20x1.10x(1)Averages are weighted based on the fair value of the related instrument.The 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 year ended December 31, 2024:Balances as of December 31, 2023AdditionsChange in Unrealized Gains/(Losses)Balances as of December 31, 2024NexPoint Storage Partners$33,129 $— $(2,662)$30,467 Private REIT28,400 — (1,478)26,922 IQHQ, Inc.14,776 3,506 667 18,949 The 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 year ended December 31, 2023:Balance as of December 31, 2022AdditionsChange in Unrealized Gains/(Losses)Balance as of December 31, 2023NexPoint Storage Partners$50,380 $— $(17,251)$33,129 Private REIT27,884 — 516 28,400 IQHQ Inc.— 14,510 266 14,776 Other Financial Instruments Carried at Fair ValueRedeemable noncontrolling interests in the OP have a redemption feature and are marked to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests in the OP (see Note 13). The redemption value is based on the fair value of the Company’s common stock at the redemption date, and