Company: NREF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001786248-25-000016
Chunk: 175

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 6
Chunk 175
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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 30, 2025Unconsolidated Entities:NexPoint Storage Partners, Inc.Common StockSelf-storageFair Value25.6%VIEResmark Forney Gateway Holdings, LLCCommon EquityMultifamilyEquity Method98.0%VIEResmark The Brook Holdings, LLCCommon EquityMultifamilyEquity Method98.0%VIEPrivate REITCommon StockGround leaseFair Value6.3%VIESK ApartmentsCommon EquityMultifamilyEquity Method12.3%VIECapital Acquisitions Partners, LLCMembership InterestsMultifamilyEquity Method79.1%VIEThe Company's maximum exposure to loss of value for the NSP investment is the fair value of the Company's $24.7 million NSP common stock investment. The Company's maximum exposure to loss of value for CAP is the $1.5 million carrying value. The Company's maximum exposure to loss of value for the Private REIT investment is the fair value of the Company's $26.1 million Private REIT common stock investment.

7. CMBS Structured Pass-Through Certificates

As of June 30, 2025, the Company held fourteen CMBS interest only strips ("CMBS I/O Strips") at fair value. The CMBS I/O Strips consist of interest only tranches of Freddie Mac structured pass-through certificates with underlying portfolios of fixed-rate mortgage loans secured primarily by stabilized multifamily properties. Multifamily structured credit risk notes ("MSCR Notes") are unguaranteed securities designed to transfer to investors a portion of the credit risk associated with eligible multifamily mortgages linked to a reference pool. Mortgage backed securities receive principal and interest on floating-rate