Company: NREF
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001786248-25-000010
Chunk: 165

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 6
Chunk 165
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 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. As of March 31, 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 elect the measurement alternative. The Company owns approximately 38.3% of the total outstanding shares of the Series E as of March 31, 2025.

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Table of Contents

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 March 31, 2025, the Company valued the investment at par as there is a continuous offering open. 

6. Unconsolidated Variable Interest Entities

Unconsolidated VIEsThe Company continually reassesses whether it remains the primary beneficiary for VIEs consolidated under the VIE model.As of March 31, 2025, the Company has accounted for the following investments as unconsolidated VIEs:EntitiesInstrumentAsset TypeAccounting TreatmentPercentage Ownership as of March 31, 2025Relationship as of March 31, 2025Unconsolidated Entities:NexPoint Storage Partners, Inc.Common StockSelf-storageFair Value25.6%VIEResmark Forney Gateway Holdings, LLCCommon EquityMultifamilyEquity Method98.0%VIEResmark The Brook Holdings, LLCCommon EquityMultifamilyEquity Method98.0%VIEPrivate REITCommon StockGround leaseFair Value6.4%VIESK ApartmentsCommon EquityMultifamilyEquity Method12.3%VIECapital Acquisitions Partners, LLCMembership InterestsMultifamilyEquity Method79.1%VIEThe Company's maximum exposure to loss of value for the NSP investment is the fair value of the Company's $29.3 million NSP common stock investment. The Company's maximum exposure to loss of value for