Company: NREF
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001786248-25-000010
Chunk: 137

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 1A
Chunk 137
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 in variable interest entities, at fair value4,029,214 — 4,029,214 — 4,029,214 Total Liabilities$4,844,380 $19,478 $4,242,671 $585,896 $4,848,045 

31

The significant unobservable inputs used in the fair value measurement of the Company’s investments are the discount rate and terminal capitalization rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. The following is a summary of significant unobservable inputs used in the fair valuation of the Company's Level 3 assets carried at fair value on the Consolidated Balance Sheets as of March 31, 2025 (in thousands):CarryingValueValuation TechniqueUnobservable InputsRangeWeighted Average (1)NexPoint Storage Partners$29,289 Discounted cash flowTerminal cap rate4.88% - 5.38%5.13 %Discount rate7.00% - 9.00%8.00 %IQHQ Series D18,949 Cost approachPrice per share$1,000.00 100.00 %IQHQ Series E55,013 Cost approachPrice per share$1,000.00 100.00 %Private REIT26,686 Market approachNAV per share multiple0.95 - 1.15x1.05 %(1)Averages are weighted based on the fair value of the related instrumentThe 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 three months ended March 31, 2025:Balances as of December 31, 2024AdditionsChange in Unrealized Gains/(Losses)Balances as of March 31, 2025NexPoint Storage Partners$30,467 $— $(1,178)$29,289 IQHQ Series D Preferred Stock18,949 — — 18,949 Private REIT26,922 — (236)26,686 IQHQ Series E Preferred Stock— 39,840 15,173 55,013 Other Financial Instruments Carried at Fair ValueRedeemable noncontrolling interests in the OP and the 9.00% Series B Cumulative Redeemable Preferred Stock,