Company: NREF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001786248-25-000016
Chunk: 22

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 22
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 asset.For the six months ended June 30, 2025 and 2024, the loans held for investment, net and preferred equity portfolio activity was as follows (in thousands):

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For the Six Months Ended June 30,20252024Balances, December 31,$760,939 $1,004,880 Originations33,586 187,368 Proceeds from principal repayments(39,671)(512,274)PIK distribution reinvested in Preferred Units6,355 7,296 Amortization of loan premium, net (1)1,490 (24,845)(Provision for) reversal of credit losses(8,909)422 Balance at June 30, $753,790 $662,847 (1)Includes net amortization of loan purchase premiums.As of June 30, 2025 and December 31, 2024, there were $7.3 million and $8.8 million of unamortized premiums on loans, held-for-investment, net, respectively, on the Consolidated Balance Sheets.As discussed in Note 2, the Company evaluates loans classified as held-for-investment on a loan-by-loan basis every quarter. In conjunction with the review of the portfolio, the Company assesses the risk factors of each loan and assign a risk rating based on a variety of factors. Loans are rated “1” through “5,” from least risk to greatest risk, respectively. See Note 2 for a more detailed discussion of the risk factors and ratings. The following tables allocate the principal balance and net book value of the loan portfolio based on our internal risk ratings (dollars in thousands):June 30, 2025Risk RatingNumber of LoansCarrying Value% of Loan Portfolio 1—$— — 2—— — 348732,795 97.21 %4112,501 1.66 %518,494 1.13 %50$753,790 100.00 %Risk RatingDecember 31, 2024Number of LoansCarrying Value% of Loan Portfolio1—$— — 2—— — 349739,960 97.24 %4220,979 2.76 %5—— — 51$760,939 100.00 %Our loan portfolio had a weighted-average risk rating of 3.0 as of June 30, 2025,