NexPoint Real Estate Finance Inc (NREF) Reports Q3 2023 Loss, Provides Q4 Guidance
NexPoint Real Estate Finance Inc (NYSE:NREF) reported a net loss of $(15.4) million for Q3 2023.
The company reported cash available for distribution of $10.8 million for the same period.
NREF is offering up to 16,000,000 shares of its 9.00% Series B Cumulative Redeemable Preferred Stock.
The company estimates net income attributable to common stockholders in Q4 2023 to be between $6.4MM and $8.3MM.
On November 2, 2023, NexPoint Real Estate Finance Inc (NYSE:NREF) announced its financial results for the quarter ended September 30, 2023. The company reported a net loss of $(15.4) million, or $(0.82) per diluted share, for the three months ended September 30, 2023. Despite the loss, NREF reported cash available for distribution of $10.8 million, or $0.47 per diluted share, for the same period.
Company's Performance and Challenges
Despite a challenging commercial real estate environment, NREF's portfolio continues to provide stable and defensive yields. The company's Chief Investment Officer, Matthew McGraner, expressed optimism about the company's ability to capitalize on current market dislocation in multifamily, single-family rental, life sciences, and self-storage sectors. He stated,
We continue to believe NREF will be able to offensively capitalize on current market dislocation in multifamily, single-family rental, life sciences, and self-storage sectors, all of which are sectors in which we have robust operating platforms."
Financial Highlights and Future Guidance
NREF also provided guidance for the fourth quarter of 2023. The company estimates net income attributable to common stockholders to be between $6.4MM and $8.3MM. Earnings Available for Distribution (EAD) per Diluted Weighted Average Share are expected to be between $0.40 and $0.50, while Cash Available for Distribution (CAD) per Diluted Weighted Average Share is projected to be between $0.42 and $0.52.
Reconciliation of Non-GAAP Financial Measures
The company provided a detailed reconciliation of Earnings Available for Distribution (EAD) and Cash Available for Distribution (CAD) to GAAP net income attributable to common stockholders. For the three months ended September 30, 2023, EAD per Diluted Weighted-Average Share was $0.43, while CAD per Diluted Weighted-Average Share was $0.47.
For more detailed financial information and commentary, readers are encouraged to view NREFs earning supplement, which was posted on the Companys website.
Explore the complete 8-K earnings release (here) from NexPoint Real Estate Finance Inc for further details.
This article first appeared on GuruFocus.
