NexPoint continues preferred stock and common stock offerings

NexPoint Real Estate Finance, Inc. (NYSE:NREF), a Dallas-based real estate investment trust with a market capitalization of $356 million, announced today its continued offering of Series B Preferred Stock and common stock, according to a recent SEC filing. The company, incorporated in Maryland, is extending its equity offerings under a shelf registration statement that was declared effective on December 29, 2023. According to InvestingPro analysis, NREF currently offers an attractive 12.8% dividend yield and appears to be trading below its Fair Value.

As of today, NexPoint has sold 8,118,666 shares of its 9.0% Series B Cumulative Redeemable Preferred Stock, with the potential to offer an additional 7,881,334 shares at a public price of $25.00 per share. This offering is a continuation of the company’s strategy to raise capital through equity sales under its current registration statement. The company maintains strong liquidity with a current ratio of 13.32, indicating robust financial health. For deeper insights into NREF’s financial position and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

Additionally, the company has sold shares of common stock totaling $12.6 million and shares of its 8.50% Series A Cumulative Redeemable Preferred Stock, with a remaining capacity to sell shares worth $87.4 million. These sales are part of NexPoint’s "at the market" equity offering, which allows the company to sell shares directly into the market.

The offerings of Series B Preferred Stock and common stock, including Series A Preferred Stock, are registered with the SEC and will be sold pursuant to the respective prospectus supplements and the base prospectus related to the current registration statement.

In conjunction with the offerings, NexPoint has entered into an amendment with NexPoint Securities, Inc., the Dealer Manager and an affiliate of NexPoint Real Estate Advisors VII, L.P., to include the current registration statement in their Dealer Manager Agreement, initially dated November 2, 2023.

Legal opinions regarding Maryland law and U.S. federal income tax matters related to the offerings have been filed as exhibits with the SEC, providing the necessary legal framework for the continuation of these offerings.

NexPoint’s actions reflect its ongoing efforts to manage its capital structure and provide liquidity options. This SEC filing confirms that the company is not making an offer to sell these securities in any state where such an offer would be unlawful prior to registration or qualification under the securities laws of such state.

This article is based on a press release statement.

In other recent news, NexPoint Real Estate Finance Inc. reported its fourth-quarter 2024 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.83, compared to the forecasted $0.69. This performance was driven by a significant increase in interest income, highlighting the company’s strong portfolio performance. Meanwhile, InPoint Commercial Real Estate Income, Inc. announced that its Board of Directors has approved cash distributions for common stock and a dividend for its preferred stock. Stockholders of record as of February 28, 2025, will receive distributions, with payments scheduled for March 18, 2025. Additionally, holders of InPoint’s preferred stock will receive a dividend on March 28, 2025. NexPoint’s strategic investments, particularly in life sciences and infrastructure, are positioning the company for future growth, despite challenges in the multifamily sector. The company plans to fund approximately $75 million in construction financing and is actively underwriting $300 million in opportunities. InPoint’s routine distributions and dividends provide returns to investors based on the performance of its real estate portfolio.

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