NexPoint Real Estate Finance
Market Cap
US$304.7m
Last Updated
2020/11/27 01:05 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
Rewards
Risk Analysis
Dividend of 9.93% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
High growth potential and slightly overvalued.
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 +/- 6% a week.
Volatility Over Time: NREF's weekly volatility has decreased from 13% to 6% over the past year.
Market Performance
7 Day Return
11.9%
NREF
5.4%
US Mortgage REITs
2.1%
US Market
1 Year Return
n/a
NREF
-27.2%
US Mortgage REITs
19.8%
US Market
Return vs Industry: Insufficient data to determine how NREF performed against the US Mortgage REITs industry.
Return vs Market: Insufficient data to determine how NREF performed against the US Market.
Shareholder returns
| NREF | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.9% | 5.4% | 2.1% |
| 30 Day | 19.3% | 20.5% | 8.1% |
| 90 Day | 7.5% | 15.6% | 6.0% |
| 1 Year | n/a | -19.2%-27.2% | 22.5%19.8% |
| 3 Year | n/a | -3.8%-29.9% | 46.5%36.8% |
| 5 Year | n/a | 41.8%-18.2% | 96.9%75.3% |
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
5 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?
47.45x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NREF ($16.12) is trading above our estimate of fair value ($6.82)
Significantly Below Fair Value: NREF is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NREF is poor value based on its PE Ratio (47.4x) compared to the US Mortgage REITs industry average (19x).
PE vs Market: NREF is poor value based on its PE Ratio (47.4x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: NREF is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: NREF is good value based on its PB Ratio (0.6x) 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 3 analysts?
74.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NREF's forecast earnings growth (74.1% per year) is above the savings rate (2.2%).
Earnings vs Market: NREF's earnings (74.1% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NREF's revenue (41.9% per year) is forecast to grow faster than the US market (10.2% per year).
High Growth Revenue: NREF's revenue (41.9% per year) is forecast to grow faster 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 (6.8%).
Next Steps
Past Performance
How has NexPoint Real Estate Finance performed over the past 5 years?
-63.2%
Last years earnings growth
Earnings and Revenue History
Quality Earnings: NREF has high quality earnings.
Growing Profit Margin: NREF's current net profit margins (8.2%) are lower than last year (14.3%).
Past Earnings Growth Analysis
Earnings Trend: Unable to establish if NREF's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.
Accelerating Growth: Unable to compare NREF's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.
Earnings vs Industry: NREF had negative earnings growth (-63.2%) over the past year, making it difficult to compare to the Mortgage REITs industry average (-16.6%).
Return on Equity
High ROE: NREF's Return on Equity (4.9%) 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 ($163.7M).
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 (1484%) 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: Insufficient data to determine if NREF's debt is well covered by operating cash flow.
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?
9.93%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: NREF's dividend (9.93%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: NREF's dividend (9.93%) is in the top 25% of dividend payers in the US market (4.05%)
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 high payout ratio (300.2%), NREF's dividend payments are not well 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 (106.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.8yrs
Average management tenure
CEO
Jim Dondero (57 yo)
no data
Tenure
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 | no data | 2.95% $ 9.0m | |
| EVP of Finance | 1.42yrs | no data | 0.65% $ 2.0m | |
| Executive VP & Chief Investment Officer | 0.75yr | no data | 0.58% $ 1.8m | |
| General Counsel | 0.58yr | no data | no data | |
| Senior Vice President of Investments & Asset Management | 0.75yr | no data | 0.71% $ 2.2m |
0.8yrs
Average Tenure
45yo
Average Age
Experienced Management: NREF's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | no data | no data | 2.95% $ 9.0m | |
| EVP of Finance | 1.42yrs | no data | 0.65% $ 2.0m | |
| Independent Director | 0.75yr | no data | 0.78% $ 2.4m | |
| Independent Director | 0.75yr | no data | no data | |
| Independent Director | 0.33yr | no data | no data | |
| Independent Director | 0.75yr | no data | 0.31% $ 938.4k |
0.8yrs
Average Tenure
59yo
Average Age
Experienced Board: NREF's board of directors are not considered experienced ( 0.8 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: NREF insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: NREF only recently listed within the past 12 months.
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$304.676m
- Market Cap: US$82.428m
- Shares outstanding: 18.90m
- Website: https://www.nexpointfinance.com
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 | 2020/11/27 01:05 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.