Company: NREF
Filing Date: 2025-11-04
Form Type: 424B5
Source: 0001437749-25-033056
Chunk: 27

Company: NexPoint Real Estate Finance, Inc.
Filing Date: 2025-11-04
Form: 424B5
Chunk 27
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 stock and the Series A Preferred Stock are no longer listed on the NYSE or another appropriate exchange, we may be required to register any offering of Series C Preferred Stock in any state in which such offering was subsequently made. This could require the termination of any continuous offering(s) of Series C Preferred Stock and could result in our raising an amount of gross proceeds that is substantially less than the amount of the gross proceeds we expect to raise if the maximum offering amounts are sold. This would reduce our ability to make additional investments and limit the diversification of our portfolio.

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Investors in the Series C Preferred Stock will not enjoy the protections afforded by registration of this offering under state securities laws.

The Series C Preferred Stock is a covered security because it is senior to our common stock and equal in seniority to the Series A Preferred Stock which is listed on the NYSE and therefore is exempt from state registration. As a result, investors will not receive the possible protection afforded by the review of this offering by the various state regulators nor the protections afforded by the substantive requirements of the states with respect to public offerings of non-traded REITs.

To the extent that our distributions represent a return of capital for tax purposes, stockholders may recognize an increased gain or a reduced loss upon subsequent sales (including cash redemptions) of their shares of Series C Preferred Stock.

The dividends payable by us on the Series C Preferred Stock may exceed our current and accumulated earnings and profits as determined for U.S. federal income tax purposes. If that were to occur, it would result in the amount of distributions that exceed our earnings and profits being treated first as a return of capital to the extent of the stockholder’s adjusted tax basis in the stockholder’s Series C Preferred Stock and then, to the extent of any excess over the stockholder’s adjusted tax basis in the stockholder’s Series C Preferred Stock, as capital gain. Any distribution that is treated as a return of capital will reduce the stockholder’s adjusted tax basis in the stockholder’s Series C Preferred Stock, and subsequent sales (including cash redemptions) of such stockholder’s Series C Preferred Stock will result in recognition of an increased taxable gain or reduced taxable loss due to the reduction in such adjusted tax basis.

Holders may recognize dividend income on constructive dividends without a corresponding cash payment.

If the redemption price of a share of our Series C Preferred Stock exceeds its issue price by more than a de minimis amount, the amount of such excess may be deemed