NYSE:NREF

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Executive Summary

NexPoint Real Estate Finance, Inc. operates as a commercial real estate finance company in the United States. More Details


Snowflake Analysis

High growth potential with imperfect balance sheet.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

NREF

1.5%

US Mortgage REITs

0.4%

US Market


1 Year Return

n/a

NREF

-36.5%

US Mortgage REITs

17.8%

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

NREFIndustryMarket
7 Day-1.4%1.5%0.4%
30 Day-5.7%2.9%6.1%
90 Day-10.3%4.2%8.9%
1 Yearn/a-29.5%-36.5%20.5%17.8%
3 Yearn/a-17.7%-40.7%42.3%32.9%
5 Yearn/a19.9%-30.9%84.2%63.4%

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

Valuation

Is NexPoint Real Estate Finance undervalued compared to its fair value and its price relative to the market?

0.85x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NREF ($13.91) is trading above our estimate of fair value ($6.23)

Significantly Below Fair Value: NREF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NREF is unprofitable, so we can't compare its PE Ratio to the US Mortgage REITs industry average.

PE vs Market: NREF is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NREF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NREF's PB Ratio (0.8x) is in line with the US Mortgage REITs industry average.


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?

77.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NREF is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: NREF is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NREF's is expected to become profitable in the next 3 years.

Revenue vs Market: NREF's revenue (41.9% per year) is forecast to grow faster than the US market (9.9% 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%).


Next Steps

Past Performance

How has NexPoint Real Estate Finance performed over the past 5 years?

-111.1%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: NREF is currently unprofitable.

Growing Profit Margin: NREF is currently unprofitable.


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 earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NREF is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (-36.7%).


Return on Equity

High ROE: NREF has a negative Return on Equity (4.41%), as it is currently unprofitable.


Next Steps

Financial Health

How is NexPoint Real Estate Finance's financial position?


Financial Position Analysis

Short Term Liabilities: NREF's short term assets ($3.8B) exceed its short term liabilities ($62.1M).

Long Term Liabilities: NREF's short term assets ($3.8B) exceed its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: NREF's debt to equity ratio (1042.3%) 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?

11.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NREF's dividend (11.5%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: NREF's dividend (11.5%) is in the top 25% of dividend payers in the US market (4.56%)


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: NREF is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NREF's dividends in 3 years are not forecast to be well covered by earnings (107.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

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

NamePositionTenureCompensationOwnership
James Dondero
Chairmanno datano data2.87%
$ 2.1m
Brian Mitts
EVP of Finance1.33yrsno data0.63%
$ 464.8k
Matthew McGraner
Executive VP & Chief Investment Officer0.67yrno data0.56%
$ 411.9k
Dennis Sauter
General Counsel0.50yrno datano data
Matthew Goetz
Senior Vice President of Investments & Asset Management0.67yrno data0.69%
$ 508.4k

0.7yrs

Average Tenure

45yo

Average Age

Experienced Management: NREF's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Dondero
Chairmanno datano data2.87%
$ 2.1m
Brian Mitts
EVP of Finance1.33yrsno data0.63%
$ 464.8k
Arthur Laffer
Independent Director0.67yrno data0.75%
$ 552.2k
Scott Farris Kavanaugh
Independent Director0.67yrno datano data
Catherine Wood
Independent Director0.25yrno datano data
Edward Constantino
Independent Director0.67yrno data0.30%
$ 219.1k

0.7yrs

Average Tenure

59yo

Average Age

Experienced Board: NREF's board of directors are not considered experienced ( 0.7 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
  • Market Cap: US$73.202m
  • Shares outstanding: 5.26m
  • Website: https://www.nexpointfinance.com

Location

  • NexPoint Real Estate Finance, Inc.
  • 300 Crescent Court
  • Suite 700
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NREFNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2020
NREF.PRANYSE (New York Stock Exchange)8.50% RED PFD AUSUSDJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 01:01
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.