Company: NREF
Filing Date: 2025-03-14
Form Type: 424B5
Source: 0001437749-25-007771
Chunk: 14

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-03-14
Form: 424B5
Chunk 14
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 from this offering to our OP in exchange for Series B Preferred Units that have substantially the same economic terms as the Series B Preferred Stock. Because we conduct substantially all of our operations through our OP, our ability to pay dividends on the Series B Preferred Stock will depend almost entirely on payments and distributions we receive on our interests in the OP. If the OP fails to operate profitably and to generate sufficient cash from operations (and the operations of its subsidiaries), we may not be able to pay dividends on the Series B Preferred Stock. Furthermore, any new shares of Series A Preferred Stock or other preferred stock on parity with the Series A Preferred Stock and the Series B Preferred Stock will substantially increase the cash required to continue to pay cash dividends at stated levels. Any common stock or preferred stock that may be issued in the future to finance acquisitions, upon redemption of OP Units, upon vesting of equity awards or otherwise, would have a similar effect.

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Your interests in our Series B Preferred Stock or the rights of the holders of our common stock (which you may become upon receipt of redemption payments in shares of our common stock for any of your shares of Series B Preferred Stock) could be subordinated and/or diluted by the incurrence of additional debt or the issuance of additional shares of preferred stock or common stock, as applicable, and other transactions.

As of September 30, 2024, our total indebtedness was approximately $5.2 billion on a consolidated basis. The Series B Preferred Stock and common stock (which you may acquire upon receipt of redemption payments in shares of our common stock for any of your shares of Series B Preferred Stock) are subordinate, as to distributions and amounts payable upon liquidation, to all of our existing and future debt and liabilities and those of our subsidiaries. Our future debt may include restrictions on our ability to pay dividends to preferred stockholders and common stockholders in the event of a default under the debt facilities or under other circumstances.

In addition, our charter currently authorizes the issuance of up to 600,000,000 shares of capital stock, of which 500,000,000 shares are designated as common stock and 100,000,000 shares of preferred stock in one or more classes or series. Of the shares designated as preferred stock, 11,300,000 have been classified as Series A Preferred Stock and 16,000,000 have been classified as Series B Preferred Stock. Subject to limitations prescribed by Maryland law and our charter, our Board is authorized