NexPoint Real Estate Finance
Market Cap
US$361.5m
Last Updated
2021/03/05 00:35 UTC
Data Sources
Company Financials +
Executive Summary
NexPoint Real Estate Finance, Inc. operates as a commercial real estate finance company in the United States. More Details
Snowflake Analysis
Good value with reasonable growth potential.
Share Price & News
How has NexPoint Real Estate Finance's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NREF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: NREF's weekly volatility has decreased from 12% to 5% over the past year.
Market Performance
7 Day Return
-0.9%
NREF
0.6%
US Mortgage REITs
-2.4%
US Market
1 Year Return
2.3%
NREF
-21.7%
US Mortgage REITs
31.2%
US Market
Return vs Industry: NREF exceeded the US Mortgage REITs industry which returned -21.7% over the past year.
Return vs Market: NREF underperformed the US Market which returned 31.2% over the past year.
Shareholder returns
| NREF | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.9% | 0.6% | -2.4% |
| 30 Day | 12.4% | 3.7% | -3.0% |
| 90 Day | -5.3% | 5.6% | 3.2% |
| 1 Year | 13.2%2.3% | -13.1%-21.7% | 34.1%31.2% |
| 3 Year | n/a | 7.8%-21.3% | 48.1%38.6% |
| 5 Year | n/a | 55.9%-9.4% | 116.5%92.3% |
Long-Term Price Volatility Vs. Market
How volatile is NexPoint Real Estate Finance's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Is NexPoint Real Estate Finance, Inc. (NYSE:NREF) Popular Amongst Insiders?8 months ago | Simply Wall St
Need To Know: Analysts Are Much More Bullish On NexPoint Real Estate Finance, Inc. (NYSE:NREF) RevenuesValuation
Is NexPoint Real Estate Finance undervalued compared to its fair value and its price relative to the market?
8.84x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NREF ($18.84) is trading above our estimate of fair value ($7.12)
Significantly Below Fair Value: NREF is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NREF is good value based on its PE Ratio (8.8x) compared to the US Mortgage REITs industry average (19.4x).
PE vs Market: NREF is good value based on its PE Ratio (8.8x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: NREF is good value based on its PEG Ratio (0.2x)
Price to Book Ratio
PB vs Industry: NREF is good value based on its PB Ratio (0.7x) compared to the US Mortgage REITs industry average (0.9x).
Next Steps
Future Growth
How is NexPoint Real Estate Finance forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
49.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NREF's forecast earnings growth (49.8% per year) is above the savings rate (2%).
Earnings vs Market: NREF's earnings (49.8% per year) are forecast to grow faster than the US market (19.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NREF's revenue (17.9% per year) is forecast to grow faster than the US market (10.1% per year).
High Growth Revenue: NREF's revenue (17.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NREF's Return on Equity is forecast to be low in 3 years time (7.7%).
Next Steps
Past Performance
How has NexPoint Real Estate Finance performed over the past 5 years?
30.3%
Last years revenue growth
Earnings and Revenue History
Quality Earnings: NREF has high quality earnings.
Growing Profit Margin: NREF became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if NREF's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: NREF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: NREF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (-37.7%).
Return on Equity
High ROE: NREF's Return on Equity (8.5%) is considered low.
Next Steps
Financial Health
How is NexPoint Real Estate Finance's financial position?
Financial Position Analysis
Short Term Liabilities: NREF's short term assets ($6.1B) exceed its short term liabilities ($165.6M).
Long Term Liabilities: NREF's short term assets ($6.1B) exceed its long term liabilities ($5.6B).
Debt to Equity History and Analysis
Debt Level: NREF's debt to equity ratio (1428.1%) is considered high.
Reducing Debt: Insufficient data to determine if NREF's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: NREF's debt is not well covered by operating cash flow (0.6%).
Interest Coverage: Insufficient data to determine if NREF's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is NexPoint Real Estate Finance current dividend yield, its reliability and sustainability?
10.08%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: NREF's dividend (10.08%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: NREF's dividend (10.08%) is in the top 25% of dividend payers in the US market (3.72%)
Stability and Growth of Payments
Stable Dividend: Too early to tell whether NREF's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if NREF's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (66.6%), NREF's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NREF's dividends in 3 years are not forecast to be well covered by earnings (121.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Jim Dondero (57 yo)
no data
Tenure
US$850,500
Compensation
Mr. James David Dondero, also known as Jim, CFA, CMA, CPA, serves as the President at NexPoint Real Estate Advisors VII, L.P. He also serves as President at Nexpoint Insurance Solutions, L.P. Mr. Dondero h...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | no data | US$850.50k | 3% $ 10.9m | |
| Executive VP & Chief Investment Officer | 1.08yrs | US$1.16m | 0.62% $ 2.2m | |
| Senior Vice President of Investments & Asset Management | 1.08yrs | US$577.60k | 0.73% $ 2.6m | |
| Executive VP of Finance | 1.75yrs | no data | 0.67% $ 2.4m | |
| General Counsel | 0.92yr | no data | no data |
1.1yrs
Average Tenure
45yo
Average Age
Experienced Management: NREF's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | no data | US$850.50k | 3% $ 10.9m | |
| Executive VP of Finance | 1.75yrs | no data | 0.67% $ 2.4m | |
| Independent Director | 1.08yrs | US$84.28k | 0.79% $ 2.9m | |
| Independent Director | 1.08yrs | US$93.30k | no data | |
| Independent Director | 0.67yr | US$8.60k | 0.064% $ 232.6k | |
| Independent Director | 1.08yrs | US$91.04k | 0.31% $ 1.1m |
1.1yrs
Average Tenure
61.5yo
Average Age
Experienced Board: NREF's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 251.6%.
Top Shareholders
Company Information
NexPoint Real Estate Finance, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: NexPoint Real Estate Finance, Inc.
- Ticker: NREF
- Exchange: NYSE
- Founded: 2019
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Implied Market Cap: US$361.522m
- Market Cap: US$94.625m
- Shares outstanding: 18.81m
- Website: https://www.nexpointfinance.com
Number of Employees
Location
- NexPoint Real Estate Finance, Inc.
- 300 Crescent Court
- Suite 700
- Dallas
- Texas
- 75201
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NREF | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Feb 2020 |
| NREF.PRA | NYSE (New York Stock Exchange) | 8.50% RED PFD A | US | USD | Jul 2020 |
Biography
NexPoint Real Estate Finance, Inc. operates as a commercial real estate finance company in the United States. It focuses on originating, structuring, and investing in first mortgage loans, mezzanine loans,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/05 00:35 |
| End of Day Share Price | 2021/03/04 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.