Company: NREF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001786248-25-000016
Chunk: 28

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 28
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 to be in-substance common stock and are accounted for as investments in equity securities measured at fair value. The securities do not have a readily determinable fair value, and the Company does not 

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elect the measurement alternative. The Company owns approximately 46.1% of the total outstanding shares of the Series E as of June 30, 2025.The investment in the Series E is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. As of June 30, 2025, the Company valued the investment at par as there is a continuous offering open. The following table presents "Preferred stock and warrant investments, at fair value" as of June 30, 2025 and December 31, 2024, respectively (in thousands, except share amounts):SharesFair ValueInvestmentInvestment DateProperty TypeJune 30, 2025December 31, 2024June 30, 2025December 31, 2024Preferred StockIQHQ Series D Preferred Stock11/9/2023Life Science18,949 18,949 $18,532 $18,949 IQHQ Series E Preferred Stock1/2/2025Life Science94,513 — 94,891 — WarrantsIQHQ, Inc.5/23/2024Life Science30,386,058 13,699,840 65,634 27,400 The following table presents “Change in unrealized gain (loss) on preferred stock and warrant investments” (in thousands): For the Three Months Ended June 30,For the Six Months Ended June 30,2025202420252024Change in unrealized gain on preferred stock investments$15,008 $38 $30,181 $102 Change in unrealized gain on warrants8,014 — 8,014 — Change in unrealized gain on preferred stock and warrant investments$23,022 $38 $38,195 $102 

6. Unconsolidated Variable Interest Entities

Unconsolidated VIEsThe Company continually reassesses whether it remains the primary beneficiary for VIEs consolidated under the VIE model.As of June 30, 2025, the Company has accounted for the following investments as unconsolidated VIEs:

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EntitiesInstrumentAsset TypeAccounting TreatmentPercentage Ownership as of June 30, 2025Relationship as of June