Company: NREF
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001786248-25-000004
Chunk: 590

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 15
Chunk 590
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amortized purchase premiums/discounts and any allowance for loan losses.(2)The weighted-average of loans paying a fixed rate is weighted on current principal balance.(3)The weighted-average coupon is weighted on outstanding face amount.(4)The weighted-average life is weighted on outstanding face amount and assumes no prepayments. The maturity date for preferred equity investments represents the maturity date of the senior mortgage, as the preferred equity investments require repayment upon the sale or refinancing of the asset.

F-20

Table of Contents

For the years ended December 31, 2024 and 2023, the loans held for investment, net and preferred equity portfolio activity was as follows (in thousands):For the Year Ended December 31,20242023Balances, January 1,$1,004,880 $982,678 Recognition of retained preferred equity investment upon deconsolidation of real estate (Note 14)— 36,022 Cumulative effect of adoption of ASU 2016-13 (See Note 2)— (1,624)Originations306,980 92,701 Proceeds from principal repayments(555,485)(97,259)Decrease in loans, held for investment, net on consolidation of real estate— (9,685)PIK distribution reinvested in Preferred Units14,486 8,990 Amortization of loan premium, net (1)(10,645)(7,146)(Provision for) reversal of credit losses723 (4,299)Reversal of specific reserve of credit losses— 4,502 Balance as of December 31,$760,939 $1,004,880 (1)Includes net amortization of loan purchase premiums.As of December 31, 2024, and 2023, there were $8.8 million and $33.1 million of unamortized premiums on loans, held-for-investment, net, respectively, on the Consolidated Balance Sheets.As discussed in Note 2, the Company evaluates loans classified as held-for-investment on a loan-by-loan basis every quarter. In conjunction with the review of the portfolio, the Company assesses the risk factors of each loan and assign a risk rating based on a variety of factors. Loans are rated “1” through “5,” from least risk to greatest risk, respectively. See Note 2 for a more detailed discussion of the risk factors and ratings. The following tables allocate the principal balance and