Company: NREF
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001786248-25-000010
Chunk: 120

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 1A
Chunk 120
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31,20252024Net interest earned$6,119 $5,360 Realized gain46 3,876 Unrealized gain (loss)919 (820)Change in net assets related to consolidated CMBS variable interest entities$7,084 $8,416 

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The following tables present the geographies and property types of collateral underlying the CMBS trusts consolidated by the Company as a percentage of the collateral unpaid principal balance:GeographyMarch 31, 2025December 31, 2024Texas17.02 %16.54 %Colorado9.71 %10.99 %Washington9.50 %9.24 %California9.39 %9.26 %Florida7.88 %7.65 %Georgia5.32 %5.16 %New York5.01 %4.87 %North Carolina4.88 %4.74 %Arizona2.34 %3.15 %Other (32 and 32 states each at <4%)28.95 %28.40 %100.00 %100.00 %*Included in “Other.”Collateral Property TypeMarch 31, 2025December 31, 2024Multifamily100.00 %99.57 %Manufactured Housing— %0.43 %100.00 %100.00 %

5. Common and Preferred Stock Investments

Common Stock Investments, at fair valueThe Company owns approximately 25.6% of the total outstanding shares of common stock of NexPoint Storage Partners, Inc. ("NSP") and thus can exercise significant influence over NSP. The Company elected the fair value option in accordance with ASC 825-10-10 for NSP.The investment in NSP is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. The Company's valuation policy for common stock is to use readily available market prices on the relevant valuation date to the extent they are available. On a quarterly basis, the Company determines the value using widely accepted valuation techniques. A bottoms-up approach was used by valuing the wholly-owned self-storage assets in aggregate and development loans individually. In this bottoms-up approach, the discounted cash flow methodology is applied to the self-storage assets owned by NSP. Additionally, the income approach is used to determine the fair value of the development loans owned by NSP