Company: NREF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001786248-25-000016
Chunk: 174

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 6
Chunk 174
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 Company owns approximately 11.8% of the total outstanding shares of the Series D-1 as of June 30, 2025.The investment in the Series D-1 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 this investment at par, which is supported by a discounted cash flow based on the present value of the expected future cash flows of the underlying investment.On January 2, 2025, the Company invested in the Series E preferred stock ("Series E") of IQHQ through the IQHQ Subscription Agreement (as defined in Note 15). The Series E dividend accumulates quarterly at a 16.5% dividend rate per annum. The Series E are not deemed 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,