Here are 1-2 brief analogies for NexPoint Real Estate Finance (NREF):

• Like Bank of America, but entirely focused on lending money for commercial properties such as offices, apartment complexes, and warehouses, rather than being a full-service bank.
• They are like the commercial real estate lending division of a major bank such as Wells Fargo, but purely focused on that one area of financing.

• Commercial Real Estate Loan Origination: NREF provides debt financing solutions, including senior loans, mezzanine loans, and preferred equity, for sponsors of various commercial real estate properties.
• Commercial Real Estate Debt Investment: NREF invests in commercial mortgage-backed securities (CMBS) and other real estate-related debt instruments in the secondary market.

NexPoint Real Estate Finance (NREF) is a real estate finance company that originates, acquires, and manages structured real estate investments. Its primary business involves providing debt and equity financing for various types of commercial real estate projects.

NREF's "customers" are primarily other companies and institutional entities that borrow money or receive investment capital for their real estate ventures. However, due to the confidential nature of lending relationships and standard industry practices within the financial industry, NREF does not publicly disclose the specific names of its individual borrowers or investment counterparties. Therefore, it is not possible to list specific major customer company names with their stock symbols as would be typically expected for a company selling goods or services to a few identifiable public corporations.

Instead, NREF serves a diverse base of institutional and professional clients within the real estate sector. Its customer base can be broadly categorized as:

• Real Estate Developers: Companies or partnerships involved in the acquisition, development, and construction of commercial properties across various asset classes (e.g., multifamily, office, industrial, retail, self-storage, hospitality). These entities seek financing for their projects from inception through completion.
• Real Estate Investors & Sponsors: Private equity funds, institutional investors, asset managers, or sophisticated individual investors (e.g., family offices) who acquire, manage, and reposition existing real estate assets or portfolios. They typically seek financing for acquisitions, refinancing, or value-add strategies.
• Commercial Property Owners: Businesses that own real estate as part of their core operations (e.g., corporations with a large real estate footprint) and require financing for expansion, renovation, recapitalization, or other strategic real estate initiatives related to their owned properties.

• NexPoint Real Estate Advisors VII, L.P.
• Barclays PLC (NYSE: BCS)
• Citigroup Inc. (NYSE: C)
• Deutsche Bank AG (NYSE: DB)
• The Goldman Sachs Group, Inc. (NYSE: GS)
• Jefferies Financial Group Inc. (NYSE: JEF)
• JPMorgan Chase & Co. (NYSE: JPM)
• Mizuho Financial Group, Inc. (NYSE: MFG)
• Nomura Holdings, Inc. (NYSE: NMR)
• Bank of America Corporation (NYSE: BAC)
• Royal Bank of Canada (NYSE: RY)
• UBS Group AG (NYSE: UBS)

James Dondero, President and Chairman of the Board

James Dondero is the founder and principal of NexPoint, an alternative investment platform established in 2012, specializing in real estate. He also co-founded Highland Capital Management, a leading alternative investment firm, and has over 30 years of experience in alternative investments. Mr. Dondero has established numerous integrated businesses for managing investments across various areas, including real estate, private equity, high-yield, and structured credit. He holds multiple leadership roles across NexPoint's businesses and serves on the boards of companies in the financial services and real estate industries, such as NexBank Capital, Inc. and SeaOne Holdings, LLC.

Paul Richards, Chief Financial Officer, Executive Vice President-Finance, Treasurer and Assistant Secretary

Paul Richards assumed the role of Chief Financial Officer on January 1, 2025. He has been with NexPoint for over a decade, holding key leadership positions for several public REITs. Mr. Richards possesses significant experience in capital markets and financing, having executed more than $4 billion in debt financings and over $3 billion in equity offerings, special situations, and other capital markets initiatives for NexPoint's real estate platform. He has also served as Vice President of Originations and Investments for NexPoint Real Estate Finance and as Vice President of Asset Management for NexPoint Hospitality Trust and VineBrook Homes Trust.

Matthew McGraner, Executive VP & Chief Investment Officer

Matthew McGraner has served as Executive Vice President and Chief Investment Officer since March 2015, having joined NexPoint in May 2013. He leads the operations of NexPoint's real estate platform, overseeing investment sourcing and execution, risk management, and business development. Since joining NexPoint, Mr. McGraner has directed the acquisition and financing of over $11.8 billion in real estate investments. Prior to NexPoint, he was an associate at Jones Day, where his practice focused on private equity, real estate, and mergers and acquisitions, advising on $16.3 billion in M&A and private equity transactions. He also co-founded several small businesses and real estate investment companies before his legal career.

Dennis "D.C." Sauter, General Counsel & Secretary

Dennis "D.C." Sauter manages the legal matters for NexPoint Real Estate Finance, including corporate governance, real estate transactions, and capital markets transactions. He has been a licensed attorney and a member of the State Bar of Texas since 2001.

Dustin Norris, Executive Vice President

Dustin Norris serves as Executive Vice President of NexPoint Real Estate Finance, as well as President of NexPoint Securities, Inc. and Head of Distribution and Chief Product Strategist at NexPoint, roles he has held since joining the company in 2010. He is responsible for business development, sales, and marketing efforts for various investment vehicles, including real estate investment trusts, closed-end funds, and private placements. Mr. Norris previously worked at Deloitte & Touche LLP in the Audit and Enterprise Risk Services Group, focusing on financial services and energy. He also held roles at Highland Capital Management, including Senior Manager in Fund Accounting and Reporting and Director of Product Strategy. Mr. Norris is a Certified Public Accountant (CPA) and is involved with private equity investments.

The key risks to NexPoint Real Estate Finance (NREF) primarily revolve around the inherent volatility of real estate markets, its external management structure, and sensitivities to interest rate fluctuations.

1. Real Estate Market and Economic Conditions: NREF's business is significantly exposed to the risks associated with the real estate market and broader economic conditions. A prolonged economic slowdown, recession, or declining real estate values can materially and adversely affect the company. Unfavorable market conditions can impact occupancy levels, rental rates, and rent collections, thereby reducing the net income generated by the properties in which NREF invests. Furthermore, the overall market value of NREF's assets can be impaired, affecting its ability to sell, recapitalize, or refinance these assets.

2. External Management, Fees, and Conflicts of Interest: As an externally managed commercial mortgage real estate investment trust, NREF pays substantial fees and expenses to its Advisor and its affiliates. These payments increase the risk that investors may not earn a profit on their investment. There are also significant potential conflicts of interest that could affect NREF's investment returns. Additionally, a failure to qualify as a REIT for federal income tax purposes would reduce the income available for distribution and limit distributions to stockholders.

3. Interest Rate Fluctuations and Capital Markets Risks: The trading prices of common and preferred equity securities issued by REITs, including NREF, are historically affected by changes in interest rates. An increase in interest rates can lead prospective purchasers to demand a higher annual yield, which could reduce the market price of NREF's securities. Future issuances of debt and equity securities may also negatively affect the market price of common stock and could be dilutive to current common stockholders.

A clear emerging threat for NexPoint Real Estate Finance (NREF) is the ongoing fundamental re-pricing and potential devaluation of commercial real estate assets, exacerbated by higher interest rates and structural shifts such as the long-term impact of remote work on office demand. This environment creates significant refinancing risk for borrowers with maturing loans originated in a lower interest rate environment, leading to increased loan defaults, necessary modifications, or foreclosures across the commercial real estate debt market. This directly impacts the credit quality and performance of NREF's existing loan portfolio and its capacity to originate new profitable loans while maintaining adequate risk parameters.

Additionally, the broader tightening of credit conditions and reduced liquidity in commercial real estate debt markets poses an emerging threat. Traditional lenders are increasing underwriting standards and reducing their overall exposure to certain commercial real estate sectors, which can limit NREF's ability to execute its lending strategy, increase its cost of capital, and hinder its capacity to grow or effectively manage its portfolio through dispositions or refinancing.

NexPoint Real Estate Finance (NREF) operates in the U.S. commercial real estate debt and structured finance markets.

The addressable market sizes for their main products and services are as follows:

• Commercial Real Estate Debt Market (U.S.): The U.S. commercial real estate (CRE) debt outstanding was approximately $5.9 trillion as of the fourth quarter of 2023.
• Structured Finance Market (U.S.): The United States structured finance market size is projected to be approximately $804.30 billion in 2025.

NexPoint Real Estate Finance (NREF) is expected to drive future revenue growth over the next 2-3 years through a strategic focus on key real estate sectors, continued capital deployment into high-quality investments, and active capital raising initiatives.

Here are 3-5 expected drivers of future revenue growth:

1. Strategic Capital Deployment in Resilient Sectors: NREF plans to continue its disciplined capital allocation, particularly focusing on life sciences, self-storage, and workforce rental housing. These sectors are considered resilient and aligned with long-term demographic and structural demand drivers, positioning the company to capitalize on market dislocations and generate durable value.
2. Growth in Life Sciences Investments: The company demonstrated its commitment to the life sciences sector by funding $42.5 million in a life science preferred stock investment during Q3 2025. Continued investment and expansion in this high-growth area, including preferred equity and loans, are expected to contribute to future revenue.
3. New Loan Originations with Attractive Coupons: NREF has shown its ability to originate new loans with favorable terms, such as the $6.5 million loan funded in Q3 2025 that pays a monthly coupon of SOFR plus 900 basis points. The ability to secure such loans will directly boost interest income and, consequently, revenue.
4. Capital Raising through Preferred Stock Offerings: NREF recently raised $65.7 million from a Series B preferred stock offering and plans to launch a new Series C preferred offering of $200 million at an 8% coupon. The net proceeds from these offerings are intended for general corporate purposes, including funding new investments and repaying debt, which will provide fresh capital to fuel revenue-generating activities.
5. Strategic Asset Dispositions and Reinvestment: The company actively manages its portfolio through strategic dispositions, as evidenced by the sale of a multifamily property for $60 million in Q3 2025, which generated a $3.7 million gain. These proceeds can be redeployed into higher-yielding assets or new strategic opportunities, optimizing the portfolio and driving future revenue growth.

Share Repurchases

• On March 9, 2020, NexPoint Real Estate Finance's Board of Directors authorized the repurchase of up to $10.0 million of its common stock, with this authorization expiring on March 9, 2022.
• In the third quarter of 2025, NREF purchased $42.5 million of preferred stock.
• In the second quarter of 2025, the company purchased $39.5 million of preferred stock.

Share Issuance

• In February 2020, NREF completed an initial public offering (IPO) of 5,000,000 shares of common stock at $19.00 per share, generating gross proceeds of approximately $95.0 million.
• In August 2021, NREF priced a public offering of 2,000,000 shares of its common stock at $21.00 per share, with an option for underwriters to purchase an additional 300,000 shares. The net proceeds were intended to repay debt and fund investments.
• In the third quarter of 2025, NREF raised $65.7 million in gross proceeds from a Series B preferred stock offering, which as of October 2025, was nearing its $400 million offering limit.
• In November 2025, NREF launched a continuous public offering of up to 8,000,000 shares of 8.00% Series C Cumulative Redeemable Preferred Stock at $25.00 per share, targeting gross proceeds of $200 million.

Outbound Investments

• NREF's investment strategy involves originating, structuring, and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties, and common stock investments, as well as various commercial mortgage-backed securities, primarily across multifamily, single-family rental, self-storage, and life sciences sectors.
• During the third quarter of 2025, NREF funded a $6.5 million loan.
• In the second quarter of 2025, the company funded a $6.5 million loan and purchased a $15.3 million CMBS I/O strip with a bond equivalent yield of 7.24%.
• In Q3 2025, NREF sold a multifamily property for $60.0 million, resulting in a $3.7 million gain.

Capital Expenditures

• NREF targets lending or investing in properties that are stabilized or have a “light transitional” business plan, meaning properties that require limited deferred funding to support leasing or ramp-up of operations, and for which most capital expenditures are for value-add improvements.