Company: NREF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-052000
Chunk: 44

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 44
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Accounts payable and other accrued liabilities9,458 9,458 — — 9,458 Accrued interest payable10,020 10,020 — — 10,020 Bonds payable held 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 

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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. Management elected the fair value option to account for the Company's Level 3 assets as of September 30, 2025 (in thousands):FairValueValuation TechniqueUnobservable InputsRangeWeighted Average (1)NexPoint Storage Partners$26,010 Discounted cash flowTerminal cap rate5.00% - 5.50%5.25 %Discount rate7.00% - 9.00%8.00 %IQHQ Series D Preferred Stock18,703 Discounted cash flowDiscount rate15.25% - 16.75%16.00 %IQHQ Series E Preferred Stock137,013 Discounted cash flowDiscount rate15.76% - 17.26%16.51 %Private REIT25,556 Market approachNAV per share multiple0.95 - 1.05x1.00xIQHQ Warrants116,228 NAV ApproachMarketability Discount (2)29.00% - 50.00%39.50 %(1)Averages are weighted based on the fair value of the related instrument(2)Change in valuation technique as a result transitioning third party reportThe 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 December 31, 2024 (dollars in thousands):FairValueValuation TechniqueUnobservable InputsRangeWeighted Average (1)NexPoint Storage Partners$30,467 Discounted cash flowTerminal cap rate5.00% - 5.50%5.25 %Discount rate8.00% - 8