10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number 001-39210

__________________________________

NexPoint Real Estate Finance, Inc.

(Exact Name of Registrant as Specified in Its Charter)

__________________________________

Maryland	84-2178264
(State or other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

300 Crescent Court, Suite 700, Dallas, Texas (Address of Principal Executive Offices) 75201 (Zip Code)

(214) 276-6300

(Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share 8.50% Series A Cumulative Redeemable Preferred Stock, par value 0.01 per share	NREF NREF-PRA	New York Stock Exchange New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	o	Accelerated Filer	o
Non-Accelerated Filer	x	Smaller reporting company	x
Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of May 10, 2024, the registrant had 17,718,817 shares of its common stock, par value $0.01 per share, outstanding.

NEXPOINT REAL ESTATE FINANCE, INC.

Form 10-Q

Quarter Ended March 31, 2024

INDEX

		Page
Cautionary Statement Regarding Forward-Looking Statements		ii
	PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023	2
	Consolidated Unaudited Statements of Operations for the Three Months Ended March 31, 2024 and 2023	4
	Consolidated Unaudited Statements of Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023	6
	Consolidated Unaudited Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023	7
	Notes to Consolidated Unaudited Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	62
Item 4.	Controls and Procedures	62
	PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	63
Item 1A.	Risk Factors	63
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities	63
Item 3.	Defaults Upon Senior Securities	63
Item 4.	Mine Safety Disclosures	63
Item 5.	Other Information	63
Item 6.	Exhibits	64
Signatures		65

i

Cautionary Statement Regarding Forward-Looking Statements

This quarterly report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. In particular, statements relating to our liquidity and capital resources, our performance and results of operations contain forward-looking statements. Furthermore, all of the statements regarding future financial performance (including market conditions and demographics) are forward-looking statements. We caution investors that any forward-looking statements presented in this quarterly report are based on management’s then-current beliefs and assumptions made by, and information currently available to, management. When used, the words “anticipate,” “believe,” "could," “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result,” the negative version of these words and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions.

Forward-looking statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements.

Some of the risks and uncertainties that may cause our actual results, performance, liquidity or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

•Our loans and investments expose us to risks similar to and associated with debt-oriented real estate investments generally;

•Commercial real estate-related investments that are secured, directly or indirectly, by real property are subject to delinquency, foreclosure and loss, which could result in losses to us;

•Fluctuations in interest rate and credit spreads could reduce our ability to generate income on our loans and other investments, which could lead to a significant decrease in our results of operations, cash flows and the market value of our investments;

•Risks associated with the ownership of real estate;

•Our loans and investments are concentrated in terms of type of interest, geography, asset types and sponsors and may continue to be so in the future;

•We have a substantial amount of indebtedness which may limit our financial and operating activities and may adversely affect our ability to incur additional debt to fund future needs;

•We have limited operating history as a standalone company and may not be able to operate our business successfully, find suitable investments, or generate sufficient revenue to make or sustain distributions to our stockholders;

•We may not replicate the historical results achieved by other entities managed or sponsored by affiliates of NexPoint Advisors, L.P. (our “Sponsor”), members of the management team of NexPoint Real Estate Advisors VII, L.P. (our “Manager”) or their affiliates;

•We are dependent upon our Manager and its affiliates to conduct our day-to-day operations; thus, adverse changes in their financial health or our relationship with them could cause our operations to suffer;

•Our Manager and its affiliates face conflicts of interest, including significant conflicts created by our Manager’s compensation arrangements with us, including compensation which may be required to be paid to our Manager if our management agreement is terminated, which could result in decisions that are not in the best interests of our stockholders;

•We pay substantial fees and expenses to our Manager and its affiliates, which payments increase the risk that you will not earn a profit on your investment;

•If we fail to qualify as a real estate investment trust (a “REIT”) for U.S. federal income tax purposes, cash available for distributions (“CAD”) to be paid to our stockholders could decrease materially, which would limit our ability to make distributions to our stockholders;

ii

•Risks associated with pandemics, including unpredictable variants and the future outbreak of other highly infectious or contagious diseases;

•Risks associated with the Highland Capital Management, L.P. bankruptcy, including related litigation and potential conflicts of interest; and

•Any other risks included under Part I, Item1A, "Risk Factors," of our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 22, 2024 (our "Annual Report").

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date of this quarterly report. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by law.

iii

PART I

Item 1. Financial Statements

1

NEXPOINT REAL ESTATE FINANCE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

	March 31, 2024		December 31, 2023
	(Unaudited)
ASSETS
Cash and cash equivalents	$	13,483	$	13,824
Restricted cash	5,804		2,825
Real estate investments, net	124,486		126,551
Loans, held-for-investment, net ($22,558 and $22,989 with related parties, respectively)	391,591		328,460
Common stock investments, at fair value ($33,764 and $33,129 with related parties, respectively)	60,658		61,529
Mortgage loans, held-for-investment, net	140,565		676,420
Preferred stock investments, at fair value	18,346		14,776
Accrued interest and dividends	25,271		22,033
Mortgage loans held in variable interest entities, at fair value	6,182,075		5,677,763
CMBS structured pass-through certificates, at fair value	39,334		41,212
MSCR Notes, at fair value	10,363		10,378
Mortgage backed securities, at fair value ($44,396 and $0 with related parties, respectively)	68,026		38,270
Accounts receivable and other assets	4,097		4,312
Due from brokers for securities sold, not yet settled	908		—
TOTAL ASSETS	$	7,085,007	$	7,018,353
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Secured financing agreements, net	$	182,598	$	649,558
Master repurchase agreements	341,740		303,514
Unsecured notes, net	219,849		219,483
Mortgages payable, net	95,608		95,657
Accounts payable and other accrued liabilities	10,270		6,428
Accrued interest payable	12,695		8,209
Bonds payable held in variable interest entities, at fair value	5,774,017		5,289,997
Total Liabilities	6,636,777		6,572,846
Redeemable Series B Preferred stock, $0.01 par value: 16,000,000 shares authorized; 1,657,700 and 427,218 shares issued and 1,657,700 and 427,218 shares outstanding, respectively	36,090		8,599
Redeemable noncontrolling interests in the OP	85,058		89,471
Stockholders' Equity:
Noncontrolling interest in CMBS variable interest entities	1,713		—
Noncontrolling interest in subsidiary	95		95
Series A Preferred stock, $0.01 par value: 100,000,000 shares authorized; 2,000,000 and 2,000,000 shares issued and 1,645,000 and 1,645,000 shares outstanding, respectively	16		16

2

Common stock, $0.01 par value: 500,000,000 shares authorized; 17,593,244 and 17,518,900 shares issued and 17,306,257 and 17,231,913 shares outstanding, respectively	173		172
Additional paid-in capital	397,165		395,737
Retained earnings (accumulated deficit)	(59,318)		(35,821)
Series A Preferred stock held in treasury at cost; 355,000 shares and 355,000, respectively	(8,567)		(8,567)
Common stock held in treasury at cost; 286,987 shares and 286,987 shares, respectively	(4,195)		(4,195)
Total Stockholders' Equity	327,082		347,437
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	7,085,007	$	7,018,353

See Notes to Consolidated Financial Statements

3

NEXPOINT REAL ESTATE FINANCE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

	For the Three Months Ended March 31,
	2024		2023
Net interest income (expense)
Interest income (expense) (1)	$	(1,574)	$	16,161
Interest expense	(11,240)		(12,212)
Total net interest income (expense)	(12,814)		3,949
Other income (loss)
Change in net assets related to consolidated CMBS variable interest entities	8,416		11,003
Change in unrealized gain (loss) on CMBS structured pass-through certificates	(40)		(752)
Change in unrealized gain (loss) on common stock investments	(871)		(1,267)
Change in unrealized gain (loss) on preferred stock investments	64		—
Change in unrealized gain (loss) on MSCR Notes	(15)		(298)
Change in unrealized gain (loss) on mortgage backed securities	440		(606)
Reversal of (provision for) credit losses	420		34
Dividend income	500		—
Other income	74		317
Gain on deconsolidation of variable interest entity	—		1,490
Equity in income (losses) of equity method investments	(2,000)		—
Revenues from consolidated real estate owned	2,211		1,028
Total other income	9,199		10,949
Operating expenses	—		—
General and administrative expenses	4,187		2,152
Loan servicing fees	567		1,043
Management fees	835		828
Expenses from consolidated real estate owned	5,437		1,497
Total operating expenses	11,026		5,520
Net income (loss)	(14,641)		9,378
Net (income) loss attributable to Series A preferred stockholders	(874)		(874)
Net (income) loss attributable to Series B preferred stockholders	(665)		—
Net (income) loss attributable to redeemable noncontrolling interests	1,894		(1,937)
Net income (loss) attributable to common stockholders	$	(14,286)	$	6,567
Weighted-average common shares outstanding - basic	17,264		17,118
Weighted-average common shares outstanding - diluted	24,862		22,678
Earnings (loss) per share outstanding - basic	$	(0.83)	$	0.38
Earnings (loss) per share outstanding - diluted (2)	$	(0.83)	$	0.37
Dividends declared per common share	$	0.5000	$	0.6850

(1)Includes $25.0 million related to accelerated amortization of the premium associated with the prepayment on a senior loan in the first quarter of 2024.

4

(2)Diluted earnings per share ("EPS") calculations were higher than basic EPS and thus anti-dilutive for the quarter ended March 31, 2024. As such, the Company is presenting diluted EPS as equal to basic EPS.

See Notes to Consolidated Financial Statements

5

NEXPOINT REAL ESTATE FINANCE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(dollars in thousands)

(Unaudited)

Three Months Ended March 31, 2024	Series A Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings Less Dividends		Common Stock Held in Treasury at Cost		Preferred Stock Held in Treasury at Cost		Noncontrolling interest in CMBS VIEs		Noncontrolling interest in Subsidiary		Total
	Number of Shares	Par Value		Number of Shares	Par Value
Balances, December 31, 2023	1,645,000	$	16	17,231,913	$	172	$	395,737	$	(35,821)	$	(4,195)	$	(8,567)	$	—	$	95	$	347,437
Vesting of stock-based compensation	—	—		74,344	1		1,428		—		—		—		—		—		1,429
Noncontrolling interest in CMBS variable interest entities	—	—		—	—		—		—		—		—		1,713		—		1,713
Net income attributable to Series A preferred stockholders	—	—		—	—		—		874		—		—		—		—		874
Net loss attributable to common stockholders	—	—		—	—		—		(14,286)		—		—		—		—		(14,286)
Series A preferred stock dividends declared ($0.5313 per share)	—	—		—	—		—		(874)		—		—		—		—		(874)
Common stock dividends declared ($0.5000 per share)	—	—		—	—		—		(9,211)		—		—		—		—		(9,211)
Balances, March 31, 2024	1,645,000	$	16	17,306,257	$	173	$	397,165	$	(59,318)	$	(4,195)	$	(8,567)	$	1,713	$	95	$	327,082

Three Months Ended March 31, 2023	Series A Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings (accumulated deficit) Less Dividends		Common Stock Held in Treasury at Cost		Preferred Stock Held in Treasury at Cost		Noncontrolling interest in Subsidiary		Total
	Number of Shares	Par Value		Number of Shares	Par Value
Balances, December 31, 2022	1,645,000	$	16	17,079,943	$	171	$	392,124	$	4,435	$	(4,195)	$	(8,567)	$	64,529	$	448,513
Vesting of stock-based compensation	—	—		104,288	1		316		—		—		—		—		317
Adjustment to noncontrolling interest in subsidiary on deconsolidation of real estate	—	—		—	—		—		—		—		—		(64,434)		(64,434)
Cumulative effect of adoption of ASU 2016-13 (See Note 2)	—	—		—	—		—		(1,624)		—		—		—		(1,624)
Net income attributable to Series A preferred stockholders	—	—		—	—		—		874		—		—		—		874
Net income attributable to common stockholders	—	—		—	—		—		6,567		—		—		—		6,567
Series A preferred stock dividends declared ($0.5313 per share)	—	—		—	—		—		(874)		—		—		—		(874)
Common stock dividends declared ($0.6850 per share)	—	—		—	—		—		(12,075)		—		—		—		(12,075)
Balances, March 31, 2023	1,645,000	$	16	17,184,231	$	172	$	392,440	$	(2,697)	$	(4,195)	$	(8,567)	$	95	$	377,264

See Notes to Consolidated Financial Statements

6

NEXPOINT REAL ESTATE FINANCE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

	For the Three Months Ended March 31,
	2024		2023
Cash flows from operating activities
Net income	$	(14,641)	$	9,378
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of premiums	27,874		3,531
Accretion of discounts	(3,880)		(3,500)
Depreciation and amortization of real estate investment	2,318		476
Amortization of deferred financing costs	12		11
Provision for (reversal of) credit losses	(420)		(34)
Net change in unrealized (gain) loss on investments held at fair value	1,351		2,564
Equity in (income) losses of unconsolidated equity method ventures	2,000		—
Gain on deconsolidation of variable interest entity	—		(1,490)
Stock-based compensation expense	1,798		847
Payment in kind income	(3,448)		(209)
Changes in operating assets and liabilities:
Accrued interest and dividends receivable	(3,238)		247
Accounts receivable and other assets	215		292
Accrued interest payable	4,486		3,290
Accounts payable, accrued expenses and other liabilities	3,284		(453)
Net cash provided by operating activities	17,711		14,950
Cash flows from investing activities
Proceeds from payments received on mortgage loans held in variable interest entities	157,014		70,071
Proceeds from payments received on mortgage loans held for investment	511,169		36,743
Proceeds from payments received on mortgage backed securities	—		517
Originations of loans, held-for-investment, net	(60,247)		(28,816)
Purchases of preferred stock	(3,507)		—
Purchases of equity method investments	(2,000)		(1,000)
Purchases of CMBS securitizations held in variable interest entities, at fair value	(26,438)		—
Purchases of mortgage backed securities, at fair value	(44,396)		(5,733)
Sale of mortgage backed securities, at fair value	14,069		—
Decrease in cash in connection with VIE deconsolidation	—		(4,992)
Additions to real estate investments	(253)		(58)
Net cash provided by investing activities	545,411		66,732
Cash flows from financing activities
Principal repayments on borrowings under secured financing agreements	(466,960)		(405)
Distributions to bondholders of variable interest entities	(146,100)		(64,480)
Borrowings under master repurchase agreements	57,425		26,801
Principal repayments on borrowings under master repurchase agreements	(19,199)		(7,422)
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs	27,491		—
Principal repayments on mortgages payable	(61)		—
Payments for taxes related to net share settlement of stock-based compensation	(369)		(530)
Dividends paid to common stockholders	(8,653)		(11,771)
Dividends paid to Series A preferred stockholders	(874)		(874)
Dividends paid to Series B preferred stockholders	(665)		—
Distributions to redeemable noncontrolling interests in the OP	(2,519)		(3,023)
Net cash used in financing activities	(560,484)		(61,704)
Net increase (decrease) in cash, cash equivalents, and restricted cash	2,638		19,978
Cash, cash equivalents and restricted cash, beginning of period	16,649		20,347
Cash, cash equivalents and restricted cash, end of period	$	19,287	$	40,325
Supplemental Disclosure of Cash Flow Information
Interest paid	6,755		9,793
Supplemental Disclosure of Noncash Investing and Financing Activities
Adjustment to loans, held for investment, net on deconsolidation of real estate	—		36,022
Adjustment to real estate investments, net on deconsolidation of real estate	—		(185,732)
Adjustment to accrued interest and dividends on deconsolidation of real estate	—		2,049
Adjustment to accounts receivable and other assets on deconsolidation of real estate	—		(799)
Adjustment to mortgages payable, net on deconsolidation of real estate	—		89,012
Adjustment to accounts payable and accrued liabilities on deconsolidation of real estate	—		705
Adjustment to accrued interest payable on deconsolidation of real estate	—		1,087
Adjustment to noncontrolling interest in subsidiary on deconsolidation of real estate	—		64,434
Adjustment to retained earnings on deconsolidation of real estate	—		1,490
Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate	—		(297)
Increase in dividends payable upon vesting of restricted stock units	558		304
Consolidation of mortgage loans and bonds payable held in variable interest entities	638,451		—
Consolidation of noncontrolling interest in CMBS variable interest entities	1,713		—
Due from brokers for securities sold, not yet settled	908		—

See Notes to Consolidated Financial Statements

7

NEXPOINT REAL ESTATE FINANCE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Description of Business

NexPoint Real Estate Finance, Inc. (the “Company”, “we”, “our”) is a commercial mortgage real estate investment trust (a "REIT") incorporated in Maryland on June 7, 2019. The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2020 and the Company believes the current organization and method of operation will enable it to maintain its status as a REIT. The Company is focused on originating, structuring and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties and common equity investments, as well as multifamily and single family rental ("SFR") commercial mortgage backed securities securitizations (“CMBS securitizations”), multifamily structured credit risk notes (“MSCR Notes”) and mortgage backed securities, or our target assets. We primarily focus on investments in real estate sectors where our senior management team has operating expertise, including in the multifamily, SFR, self-storage, life science and hospitality sectors predominantly in the top 50 metropolitan statistical areas ("MSAs"). Substantially all of the Company’s business is conducted through NexPoint Real Estate Finance Operating Partnership, L.P. (the “OP”), the Company’s operating partnership. As of March 31, 2024, the Company holds approximately 83.82% of the common limited partnership units in the OP (“OP Units”) which represents 100% of the Class A OP Units, and the OP owned all of the common limited partnership units (“SubOP Units”) of its subsidiary partnerships (collectively, the “Subsidiary OPs”) (see Note 13).

The OP also directly owns all of the membership interests of a limited liability company (the “Mezz LLC”) through which it owns a portfolio of mezzanine loans, as further discussed below. NexPoint Real Estate Finance OP GP, LLC (the “OP GP”) is the sole general partner of the OP.

The Company commenced operations on February 11, 2020 upon the closing of its initial public offering of shares of its common stock (the “IPO”). Prior to the closing of the IPO, the Company engaged in a series of transactions through which it acquired an initial portfolio consisting of senior pooled mortgage loans backed by SFR properties (the “SFR Loans”), the junior most bonds of multifamily CMBS securitizations (the “CMBS B-Pieces”), mezzanine loan and preferred equity investments in real estate companies and properties in other structured real estate investments within the multifamily, SFR and self-storage asset classes (the “Initial Portfolio”). The Initial Portfolio was acquired from affiliates (the “Contribution Group”) of NexPoint Advisors, L.P. (our “Sponsor”), pursuant to a contribution agreement with the Contribution Group through which the Contribution Group contributed their interest in the Initial Portfolio to special purpose entities (“SPEs”) owned by the Subsidiary OPs, in exchange for SubOP Units (the “Formation Transaction”). Subsequent to the Formation Transaction, the Company has continued to invest in asset types and real estate sectors within the Initial Portfolio and expanded to include additional asset types and real estate sectors.

The Company is externally managed by NexPoint Real Estate Advisors VII, L.P. (the “Manager”) through a management agreement dated February 6, 2020 and amended as of July 17, 2020 and November 3, 2021, that renewed on February 6, 2024 for a one-year term and is automatically renewed for successive one-year terms thereafter unless earlier terminated (as amended, the “Management Agreement”), by and between the Company and the Manager. The Manager conducts substantially all of the Company’s operations and provides asset management services for its real estate investments. The Company expects it will only have accounting employees while the Management Agreement is in effect. All of the Company’s investment decisions are made by the Manager, subject to general oversight by the Manager’s investment committee and the Company’s board of directors (the “Board”). The Manager is wholly owned by our Sponsor.

The Company’s primary investment objective is to generate attractive, risk-adjusted returns for stockholders over the long term. The Company intends to achieve this objective primarily by originating, structuring and investing in our target assets. The Company concentrates on investments in real estate sectors where our senior management team has operating expertise, including in the multifamily, SFR, self-storage, life science and hospitality sectors predominantly in the top 50 MSAs. In addition, the Company targets lending or investing in properties that are stabilized or have a “light transitional” business plan, meaning a property that requires limited deferred funding to support leasing or ramp-up of operations and for which most capital expenditures are for value-add improvements. Through active portfolio management the Company seeks to take advantage of market opportunities to achieve a superior portfolio risk-mix that delivers attractive total returns.

2. Summary of Significant Accounting Policies

Readers of this Quarterly Report on Form 10-Q (the "Quarterly Report") should refer to the audited financial statements and notes to consolidated financial statements of the Company for the year ended December 31, 2023, which are

8

included in our Annual Report on Form 10-K ("Annual Report"), filed with the United States Securities and Exchange Commission (the "SEC") and also available on our website (nref.nexpoint.com), since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Summary of Significant Accounting Policies, in the notes to consolidated financial statements in our Annual Report for further discussion of our significant accounting policies and estimates. Information contained on, or accessible through, our website is not incorporated by reference into and does not constitute a part of this Quarterly Report or any other report or documents we file or furnish with the SEC.

General

In accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as issued by the SEC, these Condensed Consolidated Financial Statements do not include all of the information and disclosures required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. Readers of this Quarterly Report should refer to the Company's audited Consolidated Financial Statements, which are included in the Company’s Annual Report. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows, and equity for the interim periods have been included. The results for the three months ended March 31, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024, and future fiscal years.

Basis of Accounting

The accompanying unaudited consolidated financial statements are presented in accordance with GAAP. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. There have been no significant changes to the Company’s significant accounting policies during the three months ended March 31, 2024.

The accompanying unaudited consolidated financial statements have been prepared according to the rules and regulations of the SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading.

Use of Estimates and Assumptions

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that these estimates could change in the near term. Estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.

Principles of Consolidation

The Company accounts for subsidiary partnerships in which it holds an ownership interest in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has power to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. As of March 31, 2024, the Company has determined it must consolidate the OP and the Subsidiary OPs under the VIE model as it was determined the Company both controls the direct activities of the OP and Subsidiary OPs and possesses the right to receive benefits that could potentially be significant to the OP and Subsidiary OPs. The consolidated financial statements include the accounts of the Company and its subsidiaries, including the OP and its subsidiaries. The Company’s sole significant asset is its investment in the OP, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the OP.

Variable Interest Entities

The Company evaluates all of its interests in VIEs for consolidation. When the Company’s interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary

9

beneficiary of a VIE is required to consolidate the VIE. FASB ASC Topic 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary, and it consolidates the VIE. Where either one of these factors is not present, the Company is not the primary beneficiary, and it does not consolidate the VIE (see Note 6).

CMBS Trusts

The Company consolidates the trusts that issue beneficial ownership interests in mortgage loans secured by commercial real estate (commonly known as CMBS) when the Company holds a variable interest in, and management considers the Company to be the primary beneficiary of, those trusts. Management believes the performance of the assets that underlie CMBS issuances most significantly impact the economic performance of the trust, and the primary beneficiary is generally the entity that conducts activities that most significantly impact the performance of the underlying assets. In particular, the most subordinate tranches of CMBS expose the holder to greater variability of economic performance when compared to more senior tranches since the subordinate tranches absorb a disproportionately higher amount of the credit risk related to the underlying assets. Generally, a trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint, remove and replace the special servicer for the trust. For the ten CMBS that the Company consolidates, the Company owns 100% of the most subordinate tranche of nine of the securities and 94% of the most subordinate tranche of one of the securities issued by the trusts. The subordinate tranche includes the controlling class, and has the ability to remove and replace the special servicer. The portion of the controlling class not owned by the Company is classified as noncontrolling interest in CMBS variable interest entities.

On the Consolidated Balance Sheets as of March 31, 2024, the Company consolidated each of the Freddie Mac K-Series securitization entities (the “CMBS Entities”) that were determined to be VIEs and for which the Company is the primary beneficiary. The CMBS Entities are independent of the Company, and the assets and liabilities of the CMBS Entities are not owned by and are not legal obligations of ours. Our exposure to the CMBS Entities is through the subordinated tranches. For financial reporting purposes, the underlying mortgage loans held by the trusts are recorded as a separate line item on the balance sheet under “Mortgage loans held in variable interest entities, at fair value.” The liabilities of the trusts consist solely of obligations to the CMBS holders of the consolidated trusts, excluding the CMBS B-Piece investments held by the Company. The liabilities are presented as “Bonds payable held in variable interest entities, at fair value” on the Consolidated Balance Sheets. The CMBS B-Pieces held by the Company, and the interest earned thereon are eliminated in consolidation. Management has elected the measurement alternative in ASC 810 to report the fair value of the assets and liabilities of the consolidated CMBS Entities in order to provide users of the financial statements with better information regarding the effects of credit risk and other market factors on the CMBS B-Pieces owned by the Company. Management has elected to show interest income and interest expense related to the CMBS Entities in aggregate with the change in fair value as “Change in net assets related to consolidated CMBS variable interest entities.” The residual difference between the fair value of the CMBS Entities’ assets and liabilities represents the Company’s investments in the CMBS B-Pieces at fair value.

Mortgage and Other Loans Held-For-Investment

Loans that are held-for-investment are carried at their aggregate outstanding face amount, net of applicable (i) unamortized origination or acquisition premium and discounts, (ii) unamortized deferred fees and other direct loan origination costs, (iii) valuation allowance for credit losses and (iv) write-downs of impaired loans. The effective interest method is used to amortize origination or acquisition premiums and discounts and deferred fees or other direct loan origination costs. In general, an increase in prepayment rates accelerates the amortization of purchase premiums, thereby reducing the interest income earned on the assets. Conversely, discounts on such assets are accreted into interest income. In general, an increase in prepayment rates accelerates the accretion of purchase discounts, thereby increasing the interest income earned on the assets.

Allowance for Credit Losses

We adopted ASU 2016-13 as of January 1, 2023. The implementation process included the utilization of loan loss forecasting models, updates to our loan credit loss policy documentation, changes to internal reporting processes and related internal controls, and overall operational readiness for our adoption of the new standard. We have implemented loan loss forecasting models for estimating expected life-time credit losses, at the individual loan level, for our loan portfolio.

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These models are also utilized for estimating expected life-time credit losses for unfunded loan commitments for which the Company has a present contractual obligation to extend the credit and the obligation is not unconditionally cancellable. The CECL forecasting methods used by the Company include (i) a probability of default and loss given default method using underlying third-party CMBS/Commercial Real Estate loan database with historical loan losses from 1998 to 2022, and (ii) probability weighted expected cash flow method, depending on the type of loan and the availability of relevant historical market loan loss data. We might use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data. Significant inputs to our forecasting methods include (i) key loan-specific inputs such as loan-to-value, vintage year, loan-term, underlying property type, occupancy, geographic location, performance against the underwritten business plan, and our internal loan risk rating, and (ii) a macro-economic environment forecast. The reasonable and supportable forecast period is determined based on the Company’s assessment of the most likely scenario of assumptions and plausible outcomes for the U.S. economy, current portfolio composition, level of historical loss forecast estimates, material changes in growth and credit strategy and other factors that may affect its loss experience. The Company regularly evaluates the reasonable and supportable forecast period to determine if a change is needed. The Company has determined that economic forecasts used in our CECL model can be reasonable and supportable over four quarters as it provides enough time to account for the expected changes of the economic conditions and the performance of the underlying assets. Beyond the Company’s reasonable and supportable forecast period, the Company immediately reverts to historical loss information. The Company considers an immediate reversion period appropriate in the CECL model because it provides a suitable balance between the stability of historical data and the flexibility to account for changing market conditions. The cumulative effect of adoption of ASU 2016-13 was a $1.6 million reduction in retained earnings. The beginning allowance for credit loss as of January 1, 2024 was $2.1 million. The reversal of credit losses of $0.4 million for the three months ended March 31, 2024 is included in reversal of (provision for) credit losses on the accompanying Consolidated Statements of Operations, resulting in an ending allowance for credit loss of $1.7 million as of March 31, 2024.

Significant judgment is required in determining impairment and in estimating the resulting loss allowance, and actual losses, if any, could materially differ from those estimates.

The Company performs a quarterly review of the portfolio. In conjunction with this review, the Company assesses the risk factors of each loan, including, without limitation, loan-to-value ratio, debt yield, property type, geographic and local market dynamics, physical condition, collateral, cash-flow volatility, leasing and tenant profile, loan structure, exit plan and project sponsorship. Based on a 5-point scale, our loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows:

1 – Outperform – Materially exceeds performance metrics (for example, technical milestones, occupancy, rents and net operating income) included in original or current credit underwriting and business plan;

2 – Exceeds Expectations – Collateral performance exceeds substantially all performance metrics included in original or current credit underwriting and business plan;

3 – Satisfactory – Collateral performance meets, or is on track to meet, underwriting; business plan is met or can reasonably be achieved;

4 – Underperformance – Collateral performance falls short of underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist or may soon occur absent material improvement; and

5 – Risk of Impairment/Default – Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable.

The Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral, as well as the financial and operating capability of the borrower. Specifically, the collateral’s operating results and any cash reserves are analyzed and used to assess (i) whether cash from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan and/or (iii) the collateral’s liquidation value. The Company also evaluates the financial condition of any loan guarantors, as well as any changes in the borrower’s competency in managing and operating the collateral. In addition, the Company considers the overall economic environment, real estate or industry sector and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as property operating statements, occupancy,

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tenant profile, rental rates, operating expenses, the borrower’s exit plan and capitalization and discount rates, (ii) site inspections and (iii) current credit spreads and discussions with market participants.

The Company considers loans to be past-due when a monthly payment is due and unpaid for 60 days or more. Loans will be placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when they become 120 days or more past-due unless the loan is both well secured and in the process of collection. Accrual of interest on individual loans is discontinued when management believes that, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. Our policy is to cease accruing interest when a loan’s delinquency exceeds 120 days. All interest accrued but not collected for loans that are placed on nonaccrual status or subsequently charged-off are reversed against interest income. Income is subsequently recognized on the cash basis until, in management’s judgment, the borrower’s ability to make periodic principal and interest payments returns and future payments are reasonably assured, in which case the loan is returned to accrual status.

A loan is written off when it is no longer realizable and/or it is legally discharged.

The Company also recognizes a liability for expected credit losses for off-balance sheet exposures if the Company has a present contractual obligation to extend the credit and the obligation is not unconditionally cancelable by the entity.

Recent Accounting Pronouncements

Section 107 of the Jumpstart Our Business Startups Act (“JOBS Act”) provides that an emerging growth company can take advantage of the extended transition period provided in Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for complying with new or revised accounting standards applicable to public companies. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of this extended transition period. As a result of this election, our consolidated financial statements may not be comparable to companies that comply with public company effective dates for such new or revised standards. The Company may elect to comply with public company effective dates at any time, and such election would be irrevocable pursuant to Section 107(b) of the JOBS Act.

In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06"), which simplifies an issuer’s accounting for convertible instruments and its application of the derivatives scope exception for contracts in its own equity. The amendment also requires entities to use the if-converted method for all convertible instruments in the diluted EPS calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. In addition, the amendment requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. We adopted ASU 2020-06 as of January 1, 2024 using a modified retrospective method. ASU 2020-06 had no material impact upon adoption.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting – Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires a public entity to disclose significant segment expenses and other segment items in interim and annual periods and expands the ASC 280 disclosure requirements for interim periods. The ASU also explicitly requires public entities with a single reportable segment to provide all segment disclosures under ASC 280, including the new disclosures under ASU 2023-07. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

3. Loans Held for Investment, Net

The Company’s investments in mortgage loans, mezzanine loans, preferred equity and promissory notes are accounted for as loans held for investment. The mortgage loans are presented as “Mortgage loans, held-for-investment, net” and the mezzanine loans, preferred equity and promissory notes are presented as “Loans, held-for-investment, net” on

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the Consolidated Balance Sheets. The following tables summarize our loans held-for-investment as of March 31, 2024 and December 31, 2023, respectively (dollars in thousands):

						Weighted Average
Loan Type	Outstanding Face Amount		Carrying Value (1)		Loan Count	Fixed Rate (2)		Coupon (3)		Life (years) (4)
March 31, 2024
Mortgage loans, held-for-investment	$	135,232	$	140,565	10	100.00	%	5.31	%	3.55
Mezzanine loans, held-for-investment	177,781		177,838		23	58.68	%	10.79	%	4.54
Preferred equity, held-for-investment	214,307		213,253		15	38.67	%	12.11	%	1.84
Promissory note, held-for-investment	500		500		1	12.50	%	12.50	%	0.99
	$	527,820	$	532,156	49	61.10	%	9.92	%	3.19

Loan Type	Outstanding Face Amount		Carrying Value (1)		Loan Count	Weighted Average
						Fixed Rate (2)		Coupon (3)		Life (years) (4)
December 31, 2023
Mortgage loans, held-for-investment	$	645,277	$	676,420	11	100.00	%	4.79	%	4.49
Mezzanine loans, held-for-investment	133,207		135,069		22	78.31	%	9.61	%	5.36
Preferred equity, held-for-investment	195,392		193,391		15	39.12	%	12.20	%	2.22
	$	973,876	$	1,004,880	48	84.82	%	6.94	%	4.15

(1)Carrying value includes the outstanding face amount plus unamortized purchase premiums/discounts and any allowance for loan losses.

(2)The weighted-average of loans paying a fixed rate is weighted on current principal balance.

(3)The weighted-average coupon is weighted on outstanding face amount.

(4)The weighted-average life is weighted on outstanding face amount and assumes no prepayments. The maturity date for preferred equity investments represents the maturity date of the senior mortgage, as the preferred equity investments require repayment upon the sale or refinancing of the asset.

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For the three months ended March 31, 2024 and 2023, the loan and preferred equity portfolio activity was as follows (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Balance at December 31,	$	1,004,880	$	982,678
Recognition of retained preferred equity investment upon deconsolidation of real estate (Note 14)	—		36,022
Cumulative effect of adoption of ASU 2016-13 (See Note 2)	—		(1,624)
Originations	60,247		28,816
Proceeds from principal repayments	(511,169)		(36,743)
PIK distribution reinvested in Preferred Units	3,448		209
Amortization of loan premium, net (1)	(25,670)		(1,501)
(Provision for) reversal of credit losses	420		34
Balance at March 31,	$	532,156	$	1,007,891

(1)Includes net amortization of loan purchase premiums.

As of March 31, 2024 and December 31, 2023, there were $7.3 million and $33.1 million of unamortized premiums on loans, held-for-investment, net, respectively, on the Consolidated Balance Sheets.

As discussed in Note 2, the Company evaluates loans classified as held-for-investment on a loan-by-loan basis every quarter. In conjunction with the review of the portfolio, the Company assesses the risk factors of each loan and assign a risk rating based on a variety of factors. Loans are rated “1” through “5,” from least risk to greatest risk, respectively. See Note 2 for a more detailed discussion of the risk factors and ratings. The following tables allocate the principal balance and net book value of the loan portfolio based on our internal risk ratings (dollars in thousands):

	March 31, 2024
Risk Rating	Number of Loans	Carrying Value		% of Loan Portfolio
1	—	$	—	—
2	—	—		—
3	48	519,680		97.66	%
4	1	12,476		2.34	%
5	—	—		—
	49	$	532,156	100.00	%

Risk Rating	December 31, 2023
	Number of Loans	Carrying Value		% of Loan Portfolio
1	—	$	—	—
2	—	—		—
3	46	992,751		98.79	%
4	2	12,129		1.21	%
5	—	—		—
	48	$	1,004,880	100.00	%

Our loan portfolio had a weighted-average risk rating of 3.0 as of March 31, 2024, and 3.0 as of December 31, 2023.

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The following tables present the carrying value of the loan portfolio by the Company's internal risk rating and year of origination as of March 31, 2024 and December 31, 2023 (dollars in thousands):

March 31, 2024
	Carrying Value by Year of Origination (1)
Risk Rating	Number of Loans	Outstanding Face Amount		2024		2023		2022		2021		2020		Prior		Total Carrying Value
1	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—	—		—		—		—		—		—		—		—
3	48	515,700		43,303		96,388		84,354		44,387		19,846		231,402		519,680
4	1	12,120		—		—		12,476		—		—		—		12,476
5	—	—		—		—		—		—		—		—		—
	49	$	527,820	$	43,303	$	96,388	$	96,830	$	44,387	$	19,846	$	231,402	$	532,156

December 31, 2023
	Carrying Value by Year of Origination (1)
Risk Rating	Number of Loans	Outstanding Face Amount		2023		2022		2021		2020		2019		Prior		Total Carrying Value
1	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—	—		—		—		—		—		—		—		—
3	46	961,756		82,879		69,958		40,981		19,158		759,828		19,947		992,751
4	2	12,120		—		12,129		—		—		—		—		12,129
5	—	—		—		—		—		—		—		—		—
	48	$	973,876	$	82,879	$	82,087	$	40,981	$	19,158	$	759,828	$	19,947	$	1,004,880

(1)Represents the date a loan was originated or acquired.

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The following tables present the geographies and property types of collateral underlying the Company’s loans held-for-investment as a percentage of the loans’ face amounts.

Geography	March 31, 2024		December 31, 2023
Texas	22.64	%	13.87	%
Georgia	10.30	%	30.50	%
Maryland	10.10	%	5.47	%
California	9.71	%	4.92	%
Massachusetts	8.45	%	*
Florida	6.21	%	18.40	%
Virginia	5.96	%	2.65	%
Minnesota	3.78	%	7.31	%
North Carolina	2.68	%	2.78	%
Arkansas	2.52	%	1.37	%
Nevada	2.49	%	1.46	%
Oklahoma	1.76	%	*
Arizona	1.65	%	*
Michigan	1.63	%	*
Washington	1.52	%	*
Pennsylvania	1.15	%	*
Tennessee	1.13	%	*
Iowa	1.09	%	*
Nebraska	1.07	%	*
Delaware	1.05	%	*
Alabama	*		3.51	%
Other (8 and 18 states each at <1%)	3.11	%	7.76	%
	100.00	%	100.00	%

*Included in "Other."

Collateral Property Type	March 31, 2024		December 31, 2023
Single Family Rental	33.54	%	69.94	%
Multifamily	41.60	%	21.99	%
Life Science	21.64	%	6.33	%
Self-Storage	3.22	%	1.75	%
	100.00	%	100.00	%

4. CMBS Trusts

As of March 31, 2024, the Company consolidated all of the CMBS Entities that it determined are VIEs and for which the Company is the primary beneficiary. The Company elected the fair-value measurement alternative in accordance with ASU 2014-13 for each of the trusts and carries the fair values of the trust’s assets and liabilities at fair value in its Consolidated Balance Sheets, recognizes changes in the trust’s net assets, including changes in fair-value adjustments and net interest earned, in its Consolidated Statements of Operations and records cash interest received from the trusts and cash interest paid to bondholders of the CMBS not beneficially owned by the Company as investing and financing cash flows, respectively.

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The following table presents the Company’s recognized Trust’s Assets and Liabilities (in thousands):

Trust's Assets	March 31, 2024		December 31, 2023
Mortgage loans held in variable interest entities, at fair value	$	6,182,075	$	5,677,763
Accrued interest receivable	4,344		3,902
Trust's Liabilities
Bonds payable held in variable interest entities, at fair value	(5,774,017)		(5,289,997)
Accrued interest payable	(3,655)		(3,220)

The following table presents “Change in net assets related to consolidated CMBS variable interest entities” (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Net interest earned	$	9,236	$	10,643
Unrealized gain (loss)	(820)		360
Change in net assets related to consolidated CMBS variable interest entities	$	8,416	$	11,003

The following tables present the geographies and property types of collateral underlying the CMBS trusts consolidated by the Company as a percentage of the collateral unpaid principal balance:

Geography	March 31, 2024		December 31, 2023
Texas	15.92	%	15.85	%
Florida	14.16	%	14.07	%
Arizona	4.07	%	4.05	%
California	8.59	%	8.69	%
Georgia	3.87	%	4.00	%
Washington	7.78	%	7.75	%
New Jersey	4.04	%	4.02	%
Nevada	2.50	%	2.49	%
Pennsylvania	1.28	%	1.27	%
Colorado	7.77	%	7.74	%
Connecticut	1.97	%	2.04	%
North Carolina	4.19	%	4.17	%
New York	3.39	%	3.37	%
Ohio	2.46	%	2.48	%
Virginia	2.05	%	2.03	%
Indiana	2.14	%	2.13	%
Illinois	1.65	%	1.65	%
Michigan	1.39	%	1.38	%
Maryland	1.19	%	1.18	%
Missouri	1.57	%	1.56	%
Other (21 states each at <1%)	8.02	%	8.08	%
	100.00	%	100.00	%

*Included in “Other.”

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Collateral Property Type	March 31, 2024		December 31, 2023
Multifamily	97.44	%	97.45	%
Manufactured Housing	2.56	%	2.55	%
	100.00	%	100.00	%

5. Common and Preferred Stock Investments

Common Stock Investments

The Company owns approximately 25.8% of the total outstanding shares of common stock of NexPoint Storage Partners, Inc. ("NSP") and thus can exercise significant influence over NSP. NSP is a VIE and the Company has determined that it is not the primary beneficiary of NSP. The investment qualifies to be accounted for using the equity method. However, the Company elected the fair-value option in accordance with ASC 825-10-10 for NSP.

The investment in NSP is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. The Company's valuation policy for common stock is to use readily available market prices on the relevant valuation date to the extent they are available. On a quarterly basis, the Company determines the value using widely accepted valuation techniques. A bottoms up approach was used by valuing the wholly-owned self-storage assets in aggregate and development loans individually. In this bottoms-up approach, the discounted cash flow methodology is applied to the self-storage assets owned by NSP. Additionally, the income approach is used to determine the fair value of the development loans owned by NSP whereby contractual cash flows are discounted at observable market discount rates. In addition, as a secondary check for reasonableness, a top down approach was applied whereby observable market terminal capitalization rates and discount rates are applied to the consolidated NSP cash flows. The valuation relies primarily on the bottoms-up approach, but uses the top down approach to corroborate the bottoms-up conclusion with a reasonable precision.

The Company owns approximately 6.36% of the total outstanding shares of common stock of a private ground lease REIT (the "Private REIT") as of March 31, 2024. The Company elected the fair-value option in accordance with ASC 825-10-10 for the Private REIT.

The investment in the Private REIT is a Level 3 asset in the fair value hierarchy and was initially measured using the convertible notes conversion share price of $17.50. On April 14, 2022, the two convertible notes converted into 1,394,213 shares or $25.0 million of common stock in the Private REIT, the parent company of the borrower under the convertible notes. As of March 31, 2024, the Company valued this investment based on the Private REIT's market approach price of $20.00 per share.

The Company owns approximately 98.0% of the total outstanding common equity of each of Resmark Forney Gateway Holdings, LLC ("RFGH") and Resmark The Brook Holdings, LLC ("RTB"). The investments in RFGH and RTB are equity method investments. These investments are held in entities that are considered VIEs as the power to direct activities is not proportional to ownership interests. The Company is not the primary beneficiary, but is deemed to have significant influence. As such, the Company accounts for them using the equity method.

The following table presents the common stock investments as of March 31, 2024 and December 31, 2023, respectively (in thousands, except share amounts):

			Shares		Fair Value
Investment	Investment Date	Property Type	March 31, 2024	December 31, 2023	March 31, 2024		December 31, 2023
Common Stock
NexPoint Storage Partners	11/6/2020	Self-storage	41,963	41,963	$	33,764	$	33,129
Private REIT	4/14/2022	Ground lease	1,394,213	1,394,213	26,894		28,400

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The following table presents “Change in unrealized (loss) on common stock investments” (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Change in unrealized gain on NexPoint Storage Partners	$	635	$	(235)
Change in unrealized gain (loss) on Private REIT	(1,506)		(1,032)
Change in unrealized gain on common stock investments	$	(871)	$	(1,267)

Preferred Stock Investments

On November 9, 2023, the Company invested in the Series D-1 preferred stock (“Series D-1”) of IQHQ, Inc. (“IQHQ”), a privately held life sciences real estate investment trust. The preferred stock dividend accumulates quarterly at a 10.5% dividend rate per annum. The Series D-1 are not deemed to be in-substance common stock and are accounted for as investments in equity securities measured at fair value. The securities do not have a readily determinable fair value, and the Company does not elect the measurement alternative. The Company owns approximately 9.5% of the total outstanding shares of preferred stock of the Series D-1 as of March 31, 2024.

The investment in the Series D-1 is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. As of March 31, 2024, the Company valued this investment using the discounted cash flow method based on the present value of the expected future cash flows of the underlying investment. The weighted average discount rate of 11.5% considered the implied yield of both the payment in kind and cash interest margins.

6. Unconsolidated Variable Interest Entities

Unconsolidated VIEs

The Company continually reassesses whether it remains the primary beneficiary for VIEs consolidated under the VIE model.

As of March 31, 2024, the Company has accounted for the following investments as unconsolidated VIEs:

Entities	Instrument	Asset Type	Accounting Treatment	Percentage Ownership as of March 31, 2024		Relationship as of March 31, 2024
Unconsolidated Entities:
NexPoint Storage Partners, Inc.	Common Stock	Self-storage	Fair Value	25.7	%	VIE
Resmark Forney Gateway Holdings, LLC	Common Equity	Multifamily	Equity Method	98.0	%	VIE
Resmark The Brook Holdings, LLC	Common Equity	Multifamily	Equity Method	98.0	%	VIE
Private REIT	Common Equity	Ground lease	Fair Value	6.4	%	VIE

The Company's maximum exposure to loss of value for the NSP investment is the fair value of the Company's $33.8 million NSP common stock investment. The Company's maximum exposure to loss of value for the RFGH and RTB common equity investments is the $1.0 million carrying value for each investment and may include an additional $2.8 million in unfunded commitments for each investment to the extent those commitments are funded. The Company's maximum exposure to loss of value for the Private REIT investment is the fair value of the Company's $26.9 million Private REIT common equity investment.

7. CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities

As of March 31, 2024, the Company held twelve CMBS interest only strips ("CMBS I/O Strips"), three MSCR Notes and seven mortgage backed securities at fair value. The CMBS I/O Strips consist of interest only tranches of Freddie Mac structured pass-through certificates with underlying portfolios of fixed-rate mortgage loans secured primarily by stabilized multifamily properties. The MSCR Notes are unguaranteed securities designed to transfer to investors a portion

19

of the credit risk associated with eligible multifamily mortgages linked to a reference pool. Mortgage backed securities receive principal and interest on floating-rate loans secured by SFR, multifamily and self-storage properties.

The following table presents the CMBS I/O Strips, MSCR Notes and mortgage backed securities as of March 31, 2024 (in thousands):

Investment	Investment Date		Carrying Value		Property Type	Interest Rate		Current Yield (1)		Maturity Date
CMBS I/O Strips
CMBS I/O Strip	5/18/2020		$	1,601	Multifamily	2.02	%	14.67	%	9/25/2046
CMBS I/O Strip	8/6/2020		15,623		Multifamily	2.98	%	18.60	%	6/25/2030
CMBS I/O Strip	4/28/2021	(2)	4,777		Multifamily	1.59	%	18.20	%	1/25/2030
CMBS I/O Strip	5/27/2021		3,338		Multifamily	3.39	%	18.42	%	5/25/2030
CMBS I/O Strip	6/7/2021		378		Multifamily	2.31	%	23.40	%	11/25/2028
CMBS I/O Strip	6/11/2021	(3)	2,427		Multifamily	1.48	%	18.03	%	5/25/2029
CMBS I/O Strip	6/21/2021		809		Multifamily	1.17	%	18.61	%	5/25/2030
CMBS I/O Strip	8/10/2021		2,183		Multifamily	1.89	%	18.63	%	4/25/2030
CMBS I/O Strip	8/11/2021		1,213		Multifamily	3.10	%	15.69	%	7/25/2031
CMBS I/O Strip	8/24/2021		220		Multifamily	2.61	%	16.66	%	1/25/2031
CMBS I/O Strip	9/1/2021		3,293		Multifamily	1.92	%	17.63	%	6/25/2030
CMBS I/O Strip	9/11/2021		3,472		Multifamily	2.95	%	15.57	%	9/25/2031
Total			$	39,334		2.52	%	17.94	%
MSCR Notes
MSCR Notes	5/25/2022		$	4,020	Multifamily	14.82	%	14.82	%	5/25/2052
MSCR Notes	5/25/2022		5,000		Multifamily	11.82	%	11.82	%	5/25/2052
MSCR Notes	9/23/2022		1,343		Multifamily	12.17	%	13.37	%	11/25/2051
Total			$	10,363		13.03	%	13.19	%
Mortgage Backed Securities
Mortgage Backed Securities	6/1/2022		$	9,898	Single-Family	8.63	%	8.87	%	4/17/2026
Mortgage Backed Securities	9/29/2022		7,964		Self Storage	11.10	%	11.12	%	9/15/2027
Mortgage Backed Securities	3/10/2023		5,768		Multifamily	13.95	%	13.97	%	2/25/2025
Mortgage Backed Securities	2/29/2024		28,421		Single-Family	4.50	%	4.75	%	3/19/2029
Mortgage Backed Securities	2/29/2024		9,429		Single-Family	4.50	%	5.24	%	3/19/2029
Mortgage Backed Securities	2/29/2024		6,546		Single-Family	4.50	%	5.63	%	3/19/2029
Total			$	68,026		6.67	%	7.03	%

(1)Current yield is the annualized income earned divided by the cost basis of the investment.

(2)The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively.

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(3)The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively.

The following table presents the CMBS I/O Strips, MSCR Notes and mortgage backed securities as of December 31, 2023 (in thousands):

Investment	Investment Date		Carrying Value		Property Type	Interest Rate		Current Yield (1)		Maturity Date
CMBS I/O Strips
CMBS I/O Strip	5/18/2020		$	1,622	Multifamily	2.02	%	14.64	%	9/25/2046
CMBS I/O Strip	8/6/2020		16,601		Multifamily	2.98	%	17.98	%	6/25/2030
CMBS I/O Strip	4/28/2021	(2)	5,022		Multifamily	1.59	%	17.68	%	1/25/2030
CMBS I/O Strip	5/27/2021		3,436		Multifamily	3.39	%	17.79	%	5/25/2030
CMBS I/O Strip	6/7/2021		395		Multifamily	2.31	%	22.31	%	11/25/2028
CMBS I/O Strip	6/11/2021	(3)	2,643		Multifamily	1.18	%	14.57	%	5/25/2029
CMBS I/O Strip	6/21/2021		833		Multifamily	1.17	%	18.07	%	5/25/2030
CMBS I/O Strip	8/10/2021		2,255		Multifamily	1.89	%	17.98	%	4/25/2030
CMBS I/O Strip	8/11/2021		1,241		Multifamily	3.10	%	15.24	%	7/25/2031
CMBS I/O Strip	8/24/2021		229		Multifamily	2.61	%	16.15	%	1/25/2031
CMBS I/O Strip	9/1/2021		3,390		Multifamily	1.92	%	17.01	%	6/25/2030
CMBS I/O Strip	9/11/2021		3,545		Multifamily	2.95	%	15.14	%	9/25/2031
Total			$	41,212		2.50	%	17.21	%
MSCR Notes
MSCR Notes	5/25/2022		$	4,020	Multifamily	14.83	%	14.83	%	5/25/2052
MSCR Notes	5/25/2022		5,000		Multifamily	11.83	%	11.83	%	5/25/2052
MSCR Notes	9/23/2022		1,358		Multifamily	12.18	%	13.38	%	11/25/2051
Total			$	10,378		13.04	%	13.20	%
Mortgage Backed Securities
Mortgage Backed Securities	6/1/2022		$	9,924	Single-Family	8.64	%	8.91	%	4/17/2026
Mortgage Backed Securities	6/1/2022		9,369		Single-Family	4.87	%	5.01	%	11/19/2025
Mortgage Backed Securities	7/28/2022		538		Single-Family	6.23	%	6.31	%	10/17/2027
Mortgage Backed Securities	7/28/2022		856		Single-Family	3.60	%	4.12	%	6/20/2028
Mortgage Backed Securities	9/12/2022		3,881		Multifamily	11.57	%	11.55	%	1/25/2031
Mortgage Backed Securities	9/29/2022		7,960		Self Storage	11.10	%	11.12	%	9/15/2027
Mortgage Backed Securities	3/10/2023		5,742		Multifamily	13.93	%	13.95	%	2/25/2025
Total			$	38,270		9.17	%	9.30	%

(1)Current yield is the annualized income earned divided by the cost basis of the investment

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(2)The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively.

(3)The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively.

The following table presents activity related to the Company’s CMBS I/O Strips, MSCR Notes and mortgage backed securities (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Net interest earned	$	664	$	717
Change in unrealized gain (loss) on CMBS structured pass-through certificates	(40)		(752)
Change in unrealized gain (loss) on MSCR Notes	(15)		(298)
Change in unrealized (loss) on mortgage backed securities	440		(606)
Total	$	1,049	$	(939)

8. Real Estate Investments, net

On December 31, 2021, the Company acquired a 204-unit multifamily property in Charlotte, North Carolina (Hudson Montford).

On February 1, 2022, the Company acquired a 368-unit multifamily property in Las Vegas, Nevada (Elysian at Hughes Center). The Company no longer maintains a common equity interest in this property and through a restructuring effective January 1, 2023, the investment was deconsolidated and presented solely as a preferred equity investment in 2024 and 2023.

On October 10, 2023, the Company exercised its right to terminate and replace the existing manager of SPG Alexander JV LLC, which owns a 280-unit multifamily property in Atlanta, Georgia. The Company, through its subsidiaries, holds both preferred and common equity investment in SPG Alexander JV LLC and also solely owns the replacement manager. As such, the Company is the primary beneficiary of SPG Alexander JV LLC and consolidates the property within our consolidated financial statements. The investment was considered an asset acquisition, and the fair value of the components of the investment as of October 10, 2023 totaled $68.8 million. The total value consisted of $7.9 million of land, $59.0 million of buildings and improvements, $0.6 million of furniture, fixtures, and equipment, and $1.3 million of intangible assets.

As of March 31, 2024, the components of the Company's investments in multifamily properties was as follows (in thousands):

Real Estate Investments, Net	Land		Buildings and Improvements		Intangible Lease Assets		Construction in Progress		Furniture, Fixtures and Equipment		Totals
Hudson Montford	$	10,996	$	49,934	$	—	$	197	$	923	$	62,050
Alexander at the District	7,806		59,170		—		4		909		67,889
Accumulated depreciation and amortization	—		(4,875)		—		—		(578)		(5,453)
Total Real Estate Investments, Net	$	18,802	$	104,229	$	—	$	201	$	1,254	$	124,486

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As of December 31, 2023, the components of the Company's investments in multifamily properties were as follows (in thousands):

Real Estate Investments, Net	Land		Buildings and Improvements		Intangible Lease Assets		Construction in Progress		Furniture, Fixtures and Equipment		Totals
Hudson Montford	$	10,996	$	49,912	$	—	$	401	$	691	$	62,000
Alexander at the District	7,806		59,162		1,271		—		716		68,955
Accumulated depreciation and amortization	—		(3,948)		—		—		(456)		(4,404)
Total Real Estate Investments, Net	$	18,802	$	105,126	$	1,271	$	401	$	951	$	126,551

The following table reflects the revenue and expenses for the three months ended March 31, 2024 and 2023 for our multifamily properties (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Revenues
Rental income	$	2,087	$	1,018
Other income	124		10
Total revenues	2,211		1,028
Expenses
Interest expense	2,088		581
Real estate taxes and insurance	452		172
Property operating expenses	176		185
Property general and administrative expenses	173		35
Property management fees	62		29
Depreciation and amortization	2,318		476
Rate cap (income) expense	169		194
Casualty (gain) loss	(1)		(175)
Total expenses	5,437		1,497
Net income (loss) from consolidated real estate owned	$	(3,226)	$	(469)

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9. Debt

The following table summarizes the Company’s financing arrangements in place as of March 31, 2024 (dollars in thousands):

	March 31, 2024
	Facility										Collateral
	Date issued	Outstanding face amount		Carrying value		Final stated maturity		Weighted average interest rate (1)		Weighted average life (years) (2)	Outstanding face amount		Amortized cost basis		Carrying value (3)		Weighted average life (years) (2)
Master Repurchase Agreements
CMBS
Mizuho(4)	4/15/2020	$	341,740	$	341,740	N/A	(5)	7.15	%	0.0	$	984,591	$	519,743	$	513,307	6.1
Asset Specific Financing
Single Family Rental loans
Freddie Mac	7/12/2019	123,346		123,346		7/12/2029		2.69	%	3.6	135,232		140,565		140,565		3.6
Mezzanine loans
Freddie Mac	10/20/2020	59,252		59,252		8/1/2031		0.30	%	6.0	96,817		98,248		98,248		6.0
Multifamily properties
CBRE	12/31/2021	32,480		32,108		6/1/2028	(6)	8.03	%	4.2	N/A		65,166		65,166		4.2
Various	10/10/2023	63,500		63,500		11/6/2024	(7)	8.84	%	0.6	N/A		59,320		59,320		0.6
Unsecured Financing
Various	10/15/2020	36,500		35,936		10/25/2025		7.50	%	1.6	N/A		N/A		N/A		N/A
Various	4/20/2021	180,000		177,413		5/1/2026		5.75	%	2.1	N/A		N/A		N/A		N/A
Various	10/18/2022	6,500		6,500		10/18/2027		7.50	%	3.6	N/A		N/A		N/A		N/A
Total/weighted average		$	843,318	$	839,795			5.90	%	1.7	$	1,216,640	$	883,042	$	876,606	5.8

(1)Weighted-average interest rate using unpaid principal balances.

(2)Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower.

(3)CMBS are shown at fair value on an unconsolidated basis. SFR Loans and mezzanine loans are shown at amortized cost.

(4)On April 15, 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho Securities ("Mizuho"). Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities.

(5)The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly.

(6)Debt was assumed upon acquisition of this property and recorded at the outstanding principal amount, net of debt issuance costs. The loan can be prepaid at a 1.0% prepayment premium on any unpaid principal. The loan is open to pre-payment in the last three months of the term.

(7)Debt was assumed upon consolidation of this property and recorded at the outstanding principal amount.

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The following table summarizes the Company’s financing arrangements in place as of December 31, 2023 (dollars in thousands):

	December 31, 2023
	Facility										Collateral
	Date issued	Outstanding face amount		Carrying value		Final stated maturity		Weighted average interest rate (1)		Weighted average life (years) (2)	Outstanding face amount		Amortized cost basis		Carrying value (3)		Weighted average life (years) (2)
Master Repurchase Agreements
CMBS
Mizuho(4)	4/15/2020	$	303,514	$	303,514	N/A	(5)	7.26	%	0.0	$	931,296	$	470,761	$	464,888	6.4
Asset Specific Financing
Single Family Rental loans
Freddie Mac	7/12/2019	590,306		590,306		7/12/2029		2.34	%	4.5	645,277		676,420		676,420		4.5
Mezzanine loans
Freddie Mac	10/20/2020	59,252		59,252		8/1/2031		0.30	%	6.3	96,817		98,839		98,839		6.3
Multifamily properties
CBRE	12/31/2021	32,366		32,157		6/1/2028	(6)	8.05	%	4.4	N/A		64,697		64,697		4.4
Various	10/10/2023	63,500		63,500		11/6/2024	(7)	8.84	%	0.9	N/A		61,854		61,854		0.9
Unsecured Financing
Various	10/15/2020	36,500		35,852		10/25/2025		7.50	%	1.8	N/A		N/A		N/A		N/A
Various	4/20/2021	180,000		177,131		5/1/2026		5.75	%	2.3	N/A		N/A		N/A		N/A
Various	10/18/2022	6,500		6,500		10/18/2027		7.50	%	3.8	N/A		N/A		N/A		N/A
Total/weighted average		$	1,271,938	$	1,268,212			4.55	%	2.9	$	676,420	$	1,372,571	$	1,366,698	5.6

(1)Weighted-average interest rate using unpaid principal balances.

(2)Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower.

(3)CMBS are shown at fair value on an unconsolidated basis. SFR Loans and mezzanine loans are shown at amortized cost.

(4)On April 15, 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho. Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities.

(5)The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly.

(6)Debt was assumed upon acquisition of this property and recorded at the outstanding principal amount, net of debt issuance costs. The loan can be prepaid at a 1.0% prepayment premium on any unpaid principal. The loan is open to pre-payment in the last three months of the term.

(7)Debt was assumed upon consolidation of this property and recorded at the outstanding principal amount.

Prior to the Formation Transaction, two of our subsidiaries entered into a loan and security agreement dated July 12, 2019 with Freddie Mac (the “Credit Facility”). Under the Credit Facility, these entities borrowed approximately $788.8 million in connection with their acquisition of senior pooled mortgage loans backed by SFR properties (the “Underlying Loans”). No additional borrowings can be made under the Credit Facility, and our obligations will be secured by the Underlying Loans. The Credit Facility is guaranteed by certain members of the Contribution Group and the OP. The guarantors are subject to minimum net worth and liquidity covenants. The Credit Facility continues to be guaranteed by members of the Contribution Group and the OP as of March 31, 2024. The Credit Facility was assumed by the Company as part of the Formation Transaction at carrying value which approximated fair value. As such, the remaining outstanding balance of $788.8 million was contributed to the Company on February 11, 2020. Our borrowings under the Credit Facility will mature on July 12, 2029. However, if an Underlying Loan matures or is paid off prior to July 12, 2029, the Company will be required to repay the portion of the Credit Facility that is allocated to that loan. As of March 31, 2024, the outstanding balance on the Credit Facility was $123.3 million.

We, through the Subsidiary OPs, have borrowed approximately $341.7 million under our repurchase agreements and posted $984.6 million par value of our CMBS B-Piece, CMBS I/O Strip, MSCR Notes and mortgage backed security investments as collateral as of March 31, 2024. The CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities held as collateral are illiquid and irreplaceable in nature. These assets are restricted solely to satisfy the interest and principal balances owed to the lender.

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On November 15, 2023, the Company issued an additional $15.0 million aggregate principal amount of its 5.75% Senior Unsecured Notes ("5.75% Notes") at a price equal to 92.0% par value, including accrued interest, for proceeds of approximately $13.6 million after original issue discount and underwriting fees.

As of March 31, 2024, the outstanding principal balances related to the levered SFR Loans and mezzanine loans consisted of the following (dollars in thousands):

Investment	Investment Date	Outstanding Principal Balance (1)		Location	Property Type	Interest Type	Interest Rate		Maturity Date
SFR Loans
Senior loan	2/11/2020	$	31,416	Various	Single-family	Fixed	2.14	%	10/1/2025
Senior loan	2/11/2020	33,565		Various	Single-family	Fixed	2.70	%	11/1/2028
Senior loan	2/11/2020	9,156		Various	Single-family	Fixed	2.79	%	9/1/2028
Senior loan	2/11/2020	9,284		Various	Single-family	Fixed	2.45	%	3/1/2026
Senior loan	2/11/2020	7,408		Various	Single-family	Fixed	3.51	%	2/1/2028
Senior loan	2/11/2020	8,720		Various	Single-family	Fixed	3.30	%	10/1/2028
Senior loan	2/11/2020	7,848		Various	Single-family	Fixed	3.14	%	1/1/2029
Senior loan	2/11/2020	5,823		Various	Single-family	Fixed	2.99	%	3/1/2029
Senior loan	2/11/2020	5,223		Various	Single-family	Fixed	3.14	%	12/1/2028
Senior loan	2/11/2020	4,903		Various	Single-family	Fixed	2.64	%	10/1/2028
Total		$	123,346				2.69	%
Mezzanine Loans
Senior loan	10/20/2020	$	8,723	Wilmington, DE	Multifamily	Fixed	0.30	%	6/1/2029
Senior loan	10/20/2020	7,344		White Marsh, MD	Multifamily	Fixed	0.30	%	4/1/2031
Senior loan	10/20/2020	6,353		Philadelphia, PA	Multifamily	Fixed	0.30	%	7/1/2031
Senior loan	10/20/2020	5,881		Daytona Beach, FL	Multifamily	Fixed	0.30	%	7/1/2031
Senior loan	10/20/2020	4,523		Laurel, MD	Multifamily	Fixed	0.30	%	7/1/2031
Senior loan	10/20/2020	4,179		Temple Hills, MD	Multifamily	Fixed	0.30	%	1/1/2029
Senior loan	10/20/2020	3,390		Temple Hills, MD	Multifamily	Fixed	0.30	%	5/1/2029
Senior loan	10/20/2020	3,348		Lakewood, NJ	Multifamily	Fixed	0.30	%	5/1/2029
Senior loan	10/20/2020	2,454		North Aurora, IL	Multifamily	Fixed	0.30	%	11/1/2028
Senior loan	10/20/2020	2,264		Rosedale, MD	Multifamily	Fixed	0.30	%	10/1/2028
Senior loan	10/20/2020	2,215		Cockeysville, MD	Multifamily	Fixed	0.30	%	7/1/2031
Senior loan	10/20/2020	2,026		Laurel, MD	Multifamily	Fixed	0.30	%	7/1/2029
Senior loan	10/20/2020	1,836		Vancouver, WA	Multifamily	Fixed	0.30	%	8/1/2031
Senior loan	10/20/2020	1,763		Tyler, TX	Multifamily	Fixed	0.30	%	11/1/2028
Senior loan	10/20/2020	1,307		Las Vegas, NV	Multifamily	Fixed	0.30	%	10/1/2028
Senior loan	10/20/2020	918		Atlanta, GA	Multifamily	Fixed	0.30	%	8/1/2031
Senior loan	10/20/2020	728		Des Moines, IA	Multifamily	Fixed	0.30	%	3/1/2029
Total		$	59,252				0.30	%

(1)Outstanding principal balance represents the total repurchase agreement balance outstanding as of March 31, 2024.

For the three months ended March 31, 2024 and 2023, the activity related to the carrying value of the master repurchase agreements, secured financing agreements and unsecured financing were as follows (in thousands):

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	For the Three Months Ended March 31,
	2024		2023
Balances as of December 31,	$	1,268,212	$	1,345,101
Adjustment to mortgages payable, net on deconsolidation of real estate	—		(89,012)
Principal borrowings	57,425		26,801
Principal repayments	(486,159)		(7,827)
Principal repayments on mortgages payable	(61)		—
Accretion of discounts	366		216
Amortization of deferred financing costs	12		11
Balances as of March 31,	$	839,795	$	1,275,290

Schedule of Debt Maturities

The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to March 31, 2024 are as follows (in thousands):

Year	Recourse		Non-recourse		Total
2024(1)	$	63,500	$	341,740	$	405,240
2025	36,500		31,416		67,916
2026	180,000		9,284		189,284
2027	6,500		—		6,500
2028	32,480		76,763		109,243
Thereafter	—		65,135		65,135
	$	318,980	$	524,338	$	843,318

(1)The transactions in place in the master repurchase agreement with Mizuho have a one-month to two-month tenor and are expected to roll accordingly.

10. Fair Value of Financial Instruments

Fair-value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering market-participant assumptions in fair-value measurements, ASC 820 establishes a fair-value hierarchy that distinguishes between market-participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market-participant assumptions (unobservable inputs classified within Level 3 of the hierarchy):

•Level 1 inputs are adjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

•Level 2 inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar instruments in active markets and inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves, that are observable at commonly quoted intervals.

•Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, related market activity for the asset or liability.

The Company’s assessment of the significance of a particular input to the fair-value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Derivative Financial Instruments and Hedging Activities

In the normal course of business, our operations are exposed to market risks, including the effect of changes in interest rates. We may enter into derivative financial instruments to offset this underlying market risk. There have been no

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significant changes in our policy and strategy from what was disclosed in the financial statements included in our Annual Report.

Financial Instruments Carried at Fair Value

See Note 2 and Notes 4 through 7 for additional information.

Financial Instruments Not Carried at Fair Value

The fair values of cash and cash equivalents, accrued interest and dividends, accounts payable and other accrued liabilities and accrued interest payable approximated their carrying values because of the short-term nature of these instruments. The estimated fair values of other financial instruments were determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts.

In calculating the fair value of its long-term indebtedness, the Company used interest rate and spread assumptions that reflect current creditworthiness and market conditions available for the issuance of long-term debt with similar terms and remaining maturities. These financial instruments utilize Level 2 inputs.

Amounts borrowed under master repurchase agreements are based on their contractual amounts that reasonably approximate their fair value given the short to moderate term and floating rate nature.

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The carrying values and fair values of the Company’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value as of March 31, 2024 (in thousands):

				Fair Value
	Carrying Value			Level 1			Level 2			Level 3			Total
Assets
Cash and cash equivalents	$	13,483		$	13,483		$	—		$	—		$	13,483
Restricted cash	5,804			5,804			—			—			5,804
Loans, held-for-investment, net	391,591			—			—			402,806			402,806
Preferred stock investments, at fair value	18,346			—			—			18,346			18,346
Common stock investments, at fair value	60,658			—			—			60,658			60,658
Mortgage loans, held-for-investment, net	140,565			—			—			135,628			135,628
Accrued interest	25,271			25,271			—			—			25,271
Mortgage loans held in variable interest entities, at fair value	6,182,075			—			6,182,075			—			6,182,075
CMBS structured pass-through certificates, at fair value	39,334			—			39,334			—			39,334
MSCR Notes, at fair value	10,363			—			10,363			—			10,363
Mortgage backed securities, at fair value	68,026			—			68,026			—			68,026
Accounts receivable and other assets	4,097			1,742			2,355			—			4,097
Due from brokers for securities sold, not yet settled	908			—			908			—			908
Total Assets	$	6,960,521	0	$	46,300	0	$	6,303,061	0	$	617,438	0	$	6,966,799
Liabilities
Secured financing agreements, net	$	182,598		$	—		$	—		$	188,107		$	188,107
Master repurchase agreements	341,740			—			—			341,740			341,740
Unsecured notes, net	219,849			—			200,654			—			200,654
Mortgages payable, net	95,608			—			—			91,071			91,071
Accounts payable and other accrued liabilities	10,270			10,270			—			—			10,270
Accrued interest payable	12,695			12,695			—			—			12,695
Bonds payable held in variable interest entities, at fair value	5,774,017			—			5,774,017			—			5,774,017
Total Liabilities	$	6,636,777		$	22,965		$	5,974,671		$	620,918		$	6,618,554

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The carrying values and fair values of the Company’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value as of December 31, 2023 (in thousands):

			Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents	$	13,824	$	13,824	$	—	$	—	$	13,824
Restricted cash	2,825		2,825		—		—		2,825
Loans, held-for-investment, net	328,460		—		—		337,110		337,110
Preferred stock investments, at fair value	14,776		—		—		14,776		14,776
Common stock investments, at fair value	61,529		—		—		61,529		61,529
Mortgage loans, held-for-investment, net	676,420		—		—		663,866		663,866
Accrued interest	22,033		22,033		—		—		22,033
Mortgage loans held in variable interest entities, at fair value	5,677,763		—		5,677,763		—		5,677,763
CMBS structured pass-through certificates, at fair value	41,212		—		41,212		—		41,212
MSCR Notes, at fair value	10,378		—		10,378		—		10,378
Mortgage backed securities, at fair value	38,270		—		38,270		—		38,270
Accounts receivable and other assets	4,312		1,560		2,752		—		4,312
Total Assets	$	6,891,802	$	40,242	$	5,770,375	$	1,077,281	$	6,887,898
Liabilities
Secured financing agreements, net	$	649,558	$	—	$	—	$	666,423	$	666,423
Master repurchase agreements	303,514		—		—		303,514		303,514
Unsecured notes, net	219,483		—		199,859		—		199,859
Mortgages payable, net	95,657		—		—		95,470		95,470
Accounts payable and other accrued liabilities	6,428		6,428		—		—		6,428
Accrued interest payable	8,209		8,209		—		—		8,209
Bonds payable held in variable interest entities, at fair value	5,289,997		—		5,289,997		—		5,289,997
Total Liabilities	$	6,572,846	$	14,637	$	5,489,856	$	1,065,407	$	6,569,900

The significant unobservable inputs used in the fair value measurement of the Company’s investment in NSP are the discount rate and terminal capitalization rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. The following is a summary of significant unobservable

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inputs used in the fair valuation of the Company's Level 3 assets carried at fair value on the Consolidated Balance Sheets as of March 31, 2024 (dollars in thousands):

	Carrying Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average (1)
NexPoint Storage Partners	$	33,764	Discounted cash flow	Terminal cap rate	5.00% - 5.50%	5.25	%
				Discount rate	7.75% - 9.75%	8.75	%
IQHQ, Inc.	$	18,346	Discounted cash flow	Discount rate	11.00% - 12.00%	11.50	%
Private REIT	$	26,894	Market approach	NAV per share multiple	1.00 - 1.10x	1.050x

(1)Averages are weighted based on the fair value of the related instrument

The table below reflects a summary of changes for the Company's Level 3 common and preferred stock assets carried at fair value on the Consolidated Balance Sheets for the three months ended March 31, 2024:

	Balance as of 12/31/23		Additions		Change in Unrealized Gains/(Losses)		Balance as of 3/31/24
NexPoint Storage Partners	$	33,129	$	—	$	635	$	33,764
Private REIT	$	28,400	$	—	$	(1,506)	$	26,894
IQHQ, Inc.	$	14,776	$	3,506	$	64	$	18,346

Other Financial Instruments Carried at Fair Value

Redeemable noncontrolling interests in the OP have a redemption feature and are marked to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests in the OP (see Note 13). The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the OP are classified as Level 2 if they are adjusted to their redemption value. At March 31, 2024, the redeemable noncontrolling interests in the OP are valued at their carrying value on the Consolidated Balance Sheets (see Note 13).

11. Stockholders’ Equity

Common Stock

During the three months March 31, 2024, the Company issued 74,344 shares of common stock, par value of $0.01 per share (the "common stock") pursuant to the Amended and Restated NexPoint Real Estate Finance, Inc. 2020 Long Term Incentive Plan (the "Amended and Restated LTIP").

As of March 31, 2024, the Company had 17,593,244 shares of common stock issued and 17,306,257 shares of common stock outstanding.

Preferred Stock

On July 24, 2020, the Company issued 2,000,000 shares of its 8.50% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) at a price to the public of $24.00 per share, for gross proceeds of $48.0 million before deducting underwriting discounts and commissions of approximately $1.2 million and other offering expenses of approximately $0.8 million. The Series A Preferred Stock has a $25.00 per share liquidation preference.

On November 2, 2023, the Company announced the launch of a continuous public offering (the “Series B Preferred Offering”) of up to 16,000,000 shares of its 9.00% Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”) at a price to the public of $25.00 per share. As of March 31, 2024, the Company has issued 1,657,700 shares of Series B Preferred Stock for gross proceeds of $40.9 million before deducting selling commissions and dealer manager fees of approximately $3.6 million. The Series B Preferred Stock has a $25.00 per share liquidation preference.

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The Company expects that the Series B Preferred Offering will terminate on the earlier of the date the Company sells all 16,000,000 shares of the Series B Preferred Stock in the Series B Preferred Offering or March 14, 2025 (which is the third anniversary of the effective date of the Company’s registration statement), which may be extended by the Board in its sole discretion. The Board may elect to terminate the Series B Preferred Offering at any time.

Share Repurchase Program

On March 9, 2020, the Board authorized a share repurchase program (the "Prior Share Repurchase Program") through which the Company could repurchase an indeterminate number of shares of our common stock at an aggregate market value of up to $10.0 million in shares of its common stock during a two-year period that expired on March 9, 2022. On September 28, 2020, the Board authorized the expansion of the Prior Share Repurchase Program to include the Company’s Series A Preferred Stock with the same period and repurchase limit. The Company was able to utilize various methods to affect the repurchases, and the timing and extent of the repurchases will depend upon several factors, including market and business conditions, regulatory requirements and other corporate considerations, including whether the Company’s common stock is trading at a significant discount to net asset value ("NAV") per share. From inception through expiration, the Company repurchased 327,422 shares of its common stock, par value $0.01 per share, at a total cost of approximately $4.8 million, or $14.61 per share. These repurchased shares of common stock are classified as treasury stock and reduce the number of shares of the Company’s common stock outstanding and, accordingly, are considered in the weighted-average number of shares outstanding during the period. On March 3, 2021, the Company cancelled 40,435 shares of common stock, reducing the total classified as treasury stock to 286,987.

On February 22, 2023, the Board authorized a share repurchase program (the “Share Repurchase Program”) through which the Company may repurchase an indeterminate number of shares of our common stock and Series A Preferred Stock at an aggregate market value of up to $20.0 million in shares of its common stock, during a two-year period set to expire on February 22, 2025. The Company may utilize various methods to affect the repurchases, and the timing and extent of the repurchases will depend upon several factors, including market and business conditions, regulatory requirements and other corporate considerations, including whether the Company’s common stock is trading at a significant discount to NAV per share. Repurchases under this program may be discontinued at any time. The Company has not made any purchases under the Share Repurchase Program as of March 31, 2024.

Long Term Incentive Plan

On January 31, 2020, the NexPoint Real Estate Finance, Inc. 2020 Long Term Incentive Plan (the “Original LTIP” as amended and restated by the Amended and Restated LTIP, the “LTIP”) was approved and on May 7, 2020, the Company filed a registration statement on Form S-8 registering 1,319,734 shares of common stock, which the Company may issue pursuant to the Original LTIP.

On January 26, 2024, the Amended and Restated LTIP was approved and on January 30, 2024, the Company filed a registration statement on Form S-8 registering an additional 2,308,000 shares of common stock, which the Company may issue pursuant to the Amended and Restated LTIP. The LTIP authorizes the compensation committee of the Board to provide equity-based compensation in the form of stock options, appreciation rights, restricted shares, restricted stock units, performance shares, performance units and certain other awards denominated or payable in, or otherwise based on, the Company’s common stock or factors that may influence the value of the Company’s common stock, plus cash incentive awards, for the purpose of providing the Company’s directors, officers and other key employees (and those of the Manager and the Company’s subsidiaries), the Company’s non-employee directors, and potentially certain non-employees who perform employee-type functions, incentives and rewards for performance.

Restricted Stock Units.

Under the LTIP, restricted stock units may be granted to the Company’s directors, officers and other key employees (and those of the Manager and the Company’s subsidiaries) and typically vest over a three to five-year period for officers, employees and certain key employees of the Manager and annually for directors. The most recent grant of restricted stock units to officers, employees and certain key employees of the Manager will vest over a four-year period. Beginning on the date of grant, restricted stock units earn dividends that are payable in cash on the vesting date. On May 8, 2020, pursuant to the LTIP, the Company granted 14,739 restricted stock units to its directors, on June 24, 2020, the Company granted 274,274 restricted stock units to its officers and other employees of the Manager, on November 2, 2020, the Company granted 1,838 restricted stock units to the sole member of the general partner of one of the Company's subsidiaries, on February 22, 2021, the Company granted 220,352 restricted stock units to its officers and other employees of the Manager and 11,832 restricted stock units to its directors, on November 8, 2021, the Company granted 1,201 restricted stock units to the sole member of the general partner of one of the Company’s subsidiaries, on February 21, 2022, the Company granted

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264,476 restricted stock units to its officers and other employees of the Manager and 12,464 restricted stock units to its directors, on April 4, 2023, the Company granted 418,685 restricted stock units to its officers and other employees of the Manager and 21,370 restricted stock units to its directors, and on March 13, 2024 the Company granted 442,666 restricted stock units to its officers and other employees of the Manager and 22,650 restricted stock units to its directors. Compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award. Forfeitures are recognized as they occur.

The following table includes the number of restricted stock units granted, vested, forfeited and outstanding as of March 31, 2024:

	2024
	Number of Units		Weighted Average Grant Date Fair Value
Outstanding December 31, 2023	771,671		$	16.70
Granted	465,316		14.66
Vested	(120,640)	(1)	19.89
Forfeited	—		—
Outstanding March 31, 2024	1,116,347		$	15.51

(1)Certain key employees of the Manager elected to net the taxes owed upon vesting against the shares issued resulting in 74,344 shares being issued as shown on the consolidated statements of stockholders' equity.

The vesting schedule for the restricted stock units as of March 31, 2024 is as follows:

	Shares Vesting
	February	March	April	May	Total
2024	—	—	126,042	68,564	194,606
2025	116,998	133,321	102,201	—	352,520
2026	54,893	110,667	91,166	—	256,726
2027	—	110,665	91,167	—	201,832
2028	—	110,663	—	—	110,663
Total	171,891	465,316	410,576	68,564	1,116,347

As of March 31, 2024, total unrecognized compensation expense on restricted stock unit awards was approximately $9.8 million, and the expense is expected to be recognized over a weighted average vesting period of 1.3 years.

At-The-Market-Offering

On March 15, 2022, the Company, the OP and the Manager entered into separate equity distribution agreements (the “2022 Equity Distribution Agreements”) with each of Raymond James, Keefe, Bruyette & Woods, Inc., Robert W. Baird & Co. Incorporated and Virtu Americas LLC (collectively, the “2022 Sales Agents”), pursuant to which the Company could issue and sell from time to time shares of the Company's common stock and Series A Preferred Stock having an aggregate sales price of up to $100.0 million (the “2022 ATM Program”). The 2022 Equity Distribution Agreements provided for the issuance and sale of common stock or Series A Preferred Stock by the Company through a sales agent acting as a sales agent or directly to the sales agent acting as principal for its own account at a price agreed upon at the time of sale.

Sales of shares of common stock or Series A Preferred Stock under the 2022 ATM Program, if any, may be made in transactions that are deemed to be “at the market” offerings, as defined in Rule 415 under the Securities Act of 1933 (the "Securities Act") including, without limitation, sales made by means of ordinary brokers' transactions on the New York Stock Exchange ("NYSE"), to or through a market maker at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices based on prevailing market prices.

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The following table contains summary information of the 2022 ATM Program for sales from inception through March 31, 2024:

Gross Proceeds	$	12,575,493
Shares of Common Stock Issued	531,728
Gross Average Sale Price per Share of Common Stock	$	23.65
Sales Commissions	$	188,655
Offering Costs	888,249
Net Proceeds	11,498,589
Average Price Per Share, net	$	21.62

Noncontrolling Interest in Subsidiary

On April 1, 2021, a subsidiary of one of the Subsidiary OPs (such subsidiary, the “REIT Sub”) closed its issuance of 125 preferred membership units of the REIT Sub (the “Preferred Membership Units”) at a price of $1,000 per unit, for gross proceeds of approximately $0.1 million, net of offering costs and initial administrative expenses. Holders of Preferred Membership Units are entitled to receive distributions semiannually from the REIT Sub at a per annum rate equal to 12.0% of the total of the purchase price of $1,000 per unit plus accumulated and unpaid distributions. The Preferred Membership Units are generally redeemable by the REIT Sub at any time for $1,000 per unit plus accumulated and unpaid distributions and an additional redemption premium if the Preferred Membership Units are redeemed on or before December 31, 2023. The issuance of the 125 Preferred Membership Units is presented as “Noncontrolling interest in subsidiary” on the Consolidated Balance Sheets and Consolidated Statements of Stockholders’ Equity.

OP Unit Redemption

At the 2021 annual meeting of the Company, the Company's stockholders approved the potential issuance of 13,758,906 shares of the Company's common stock to related parties in connection with the redemption of their OP Units or SubOP Units that may be redeemed for OP Units. As of March 31, 2024, the Company had issued 8,748,735 shares of the Company's common stock to redeeming unitholders.

12. Earnings Per Share

Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of the Company’s common stock outstanding and excludes any unvested restricted stock units issued pursuant to the LTIP.

Diluted earnings per share is computed by adjusting basic earnings per share for the dilutive effect of the assumed vesting of restricted stock units. Additionally, the Company includes the dilutive effect of the potential redemption of OP Units for common shares in accordance with the second amended and restated limited partnership agreement of the OP (as amended, the "OP LPA"). The Company also includes the assumed conversion of the Series B Preferred Stock using the if-converted method. During periods of net loss, the assumed vesting of restricted stock units is anti-dilutive and is not included in the calculation of earnings (loss) per share.

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The following table sets forth the computation of basic and diluted earnings per share for the periods presented (in thousands, except per share amounts):

	For the Three Months Ended March 31,
	2024		2023
Net income (loss) attributable to common stockholders	$	(14,286)	$	6,567
Earnings for basic computations
Net income (loss) attributable to redeemable noncontrolling interests	(1,894)		1,937
Net income for diluted computations	$	(16,180)	$	8,504
Weighted-average common shares outstanding
Average number of common shares outstanding - basic	17,264		17,118
Average number of common shares from assumed vesting of unvested restricted stock units	740		522
Average number of common shares from assumed conversion of OP Units	5,038		5,038
Average number of common shares from assumed conversion of Series B Preferred Stock	1,820		—
Average number of common shares outstanding - diluted	24,862		22,678
Earnings per weighted average common share:
Basic	$	(0.83)	$	0.38
Diluted (1)	$	(0.83)	$	0.37

(1)Diluted EPS calculations were higher than basic EPS and thus anti-dilutive for the three months ended March 31, 2024. As such, the Company is presenting diluted EPS as equal to basic EPS.

13. Noncontrolling Interests

Redeemable Noncontrolling Interests in the OP

The following table sets forth the redeemable noncontrolling interests in the OP (reflecting the OP’s consolidation of the Subsidiary OPs) for the three months ended March 31, 2024 and March 31, 2023 (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Redeemable noncontrolling interests in the OP, January 1,	$	89,471	$	96,501
Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate	—		297
Net loss attributable to redeemable noncontrolling interests in the OP	(1,894)		1,937
Redemption of redeemable noncontrolling interests in the OP	—		—
Distributions to redeemable noncontrolling interests in the OP	(2,519)		(3,023)
Redeemable noncontrolling interests in the OP, March 31,	$	85,058	$	95,712

The table below presents the common shares and OP Units outstanding held by the noncontrolling interests (“NCI”), as the OP Units and SubOP Units held by the Company are eliminated in consolidation:

Period End	Common Shares Outstanding	OP Units Held by NCI	Combined Outstanding
March 31, 2024	17,306,257	5,038,382	22,344,639

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14. Related Party Transactions

Management Fee

In accordance with the Management Agreement, the Company pays the Manager an annual management fee equal to 1.5% of Equity (as defined below), paid monthly, in cash or shares of Company common stock at the election of our Manager (the “Annual Fee”). The duties performed by the Company’s Manager under the terms of the Management Agreement include, but are not limited to: providing daily management for the Company, selecting and working with third-party service providers, formulating an investment strategy for the Company and selecting suitable investments, managing the Company’s outstanding debt and its interest rate exposure and determining when to sell assets.

“Equity” means (a) the sum of (1) total stockholders’ equity immediately prior to the closing of the IPO, plus (2) the net proceeds received by the Company from all issuances of the Company’s equity securities in and after the IPO, plus (3) the Company’s cumulative Earnings Available for Distribution (“EAD”) (as defined below) from and after the IPO to the end of the most recently completed calendar quarter, (b) less (1) any distributions to the holders of the Company’s common stock from and after the IPO to the end of the most recently completed calendar quarter and (2) all amounts that the Company or any of its subsidiaries has paid to repurchase for cash the shares of the Company’s equity securities from and after the IPO to the end of the most recently completed calendar quarter. In the Company’s calculation of Equity, the Company will adjust its calculation of EAD to remove the compensation expense relating to awards granted under one or more of its long-term incentive plans that is added back in the calculation of EAD. Additionally, for the avoidance of doubt, Equity does not include the assets contributed to the Company in the Formation Transaction.

“EAD” means the net income (loss) attributable to the common stockholders of the Company, computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), excluding any unrealized gains or losses or other similar non-cash items that are included in net income (loss) for the applicable reporting period, regardless of whether such items are included in other comprehensive income (loss), or in net income (loss) and adding back amortization of stock-based compensation. For the purpose of calculating EAD for the Annual Fee, net income (loss) attributable to common stockholders may also be adjusted for the effects of certain GAAP adjustments and transactions that may not be indicative of the Company’s current operations, in each case after discussions between the Manager and the independent directors of the Board and approved by a majority of the independent directors of the Board.

Pursuant to the terms of the Management Agreement, the Company is required to pay directly or reimburse the Manager for all documented Operating Expenses and Offering Expenses it incurs on behalf of the Company. “Operating Expenses” include legal, accounting, financial and due diligence services performed by the Manager that outside professionals or outside consultants would otherwise perform, the Company’s pro rata share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Manager required for the Company’s operations and compensation expenses under the LTIP. “Offering Expenses” include all expenses (other than underwriters’ discounts) in connection with an offering of securities, including, without limitation, legal, accounting, printing, mailing and filing fees and other documented offering expenses. For the three months ended March 31, 2024, there were no Offering Expenses that were paid on the Company's behalf for which the Company reimbursed the Manager.

Connections at Buffalo Pointe Contribution

On May 29, 2020, the OP entered into a contribution agreement (the “Buffalo Pointe Contribution Agreement”) with entities affiliated with executive officers of the Company and the Manager (the “BP Contributors”) whereby the BP Contributors contributed their respective preferred membership interests in NexPoint Buffalo Pointe Holdings, LLC (“Buffalo Pointe”), to the OP for total consideration of $10.0 million paid in OP Units. A total of 564,334 OP Units were issued to the BP Contributors, which was calculated by dividing the total consideration of $10.0 million by the combined book value of the Company’s common stock and the SubOP Units, on a per share or unit basis, as of March 31, 2023, or $17.72 per OP Unit. The Company additionally contributed an aggregate of approximately $2.4 million on January 9, 2023, March 6, 2023, March 28, 2023, May 25, 2023, August 16, 2023, and March 1, 2024. Buffalo Pointe owns a stabilized multifamily property located in Houston, Texas with 92.0% occupancy as of March 31, 2024. The preferred equity investment pays current interest at a rate of 6.5%, deferred interest at a rate of 4.5%, has a loan-to-value ratio of 82.9% and a maturity date of May 1, 2030.

Pursuant to the OP LPA and the Buffalo Pointe Contribution Agreement, the BP Contributors have the right to cause our OP to redeem their OP Units for cash or, at our election, shares of our common stock on a one-for-one basis, subject to adjustment, as provided and subject to the limitations in our OP LPA, provided the OP Units have been outstanding for at least one year and our stockholders have approved the issuance of shares of common stock to the BP Contributors. On May

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11, 2021, our stockholders approved the issuance of such shares upon the exercise of the BP Contributors' redemption rights.

RSU Issuance

On May 8, 2020, in accordance with the LTIP, the Company granted 14,739 restricted stock units to its directors, on June 24, 2020, the Company granted 274,274 restricted stock units to its officers and other employees of the Manager, on November 2, 2020, the Company granted 1,838 restricted stock units to the sole member of the general partner of one of the Company’s subsidiaries, on February 22, 2021, the Company granted 233,385 restricted stock units to its directors, officers employees and certain key employees of the Manager and its affiliates, the Company granted 1,201 restricted stock units to the sole member of the general partner of one of the Company's subsidiaries, on February 21, 2022, the Company granted 264,476 restricted stock units to its officers and other employees of the Manager and 12,464 restricted stock units to its directors, on April 4, 2023, the Company granted 418,685 restricted stock units to its officers and other employees of the Manager and 21,370 restricted stock units to its directors, and on March 13, 2024, the Company granted 442,666 restricted stock units to its officers and other employees of the Manager and 22,650 restricted stock units to its directors.

OP Unit Redemptions

At the 2021 annual meeting of the Company, the Company's stockholders approved the potential issuance of 13,758,906 shares of the Company's common stock to related parties in connection with the redemption of their OP Units or SubOP Units that may be redeemed for OP Units. As of March 31, 2024, the Company had issued 8,748,735 shares of the Company's common stock to redeeming unitholders.

Expense Cap

Pursuant to the terms of the Management Agreement, direct payment of operating expenses by the Company, which includes compensation expense relating to equity awards granted under the LTIP, together with reimbursement of operating expenses to the Manager, plus the Annual Fee, may not exceed 2.5% of equity book value (the “Expense Cap”) for any calendar year or portion thereof, provided, however, that this limitation will not apply to Offering Expenses, legal, accounting, financial, due diligence and other service fees incurred in connection with extraordinary litigation and mergers and acquisitions and other events outside the ordinary course of business or any out-of-pocket acquisition or due diligence expenses incurred in connection with the acquisition or disposition of certain real estate-related investments. For the three months ended March 31, 2024 and March 31, 2023, operating expenses did not exceed the Expense Cap.

For the three months ended March 31, 2024 and March 31, 2023, the Company incurred management fees of $0.8 million and $0.8 million, respectively.

NSP Guaranty

On December 8, 2022 and in connection with a restructuring of NSP, the Company, through REIT Sub, together with NexPoint Diversified Real Estate Trust, Highland Income Fund and NexPoint Real Estate Strategies Fund (collectively, the "Co-Guarantors"), as guarantors, entered into a sponsor guaranty agreement in favor of Extra Space Storage, LP ("Extra Space") pursuant to which REIT Sub and the Co-Guarantors guaranteed obligations of NSP with respect to accrued dividends on NSP’s newly created Series D preferred stock and two promissory notes in an aggregate principal amount of approximately $64.2 million issued to Extra Space. The guaranties by REIT Sub and the Co-Guarantors are capped at $97.6 million, and each of REIT Sub and the Co-Guarantors generally guaranteed the foregoing obligations of NSP up to the cap amount on a pro rata basis with respect to its percentage ownership of NSP’s common stock. On February 15, 2023, NSP paid down approximately $15.0 million of these promissory notes, resulting in an aggregate principal amount of approximately $49.2 million. On December 8, 2023, NSP paid down the remaining principal balance of $49.2 million. The NSP Series D preferred stock remains outstanding as of March 31, 2024. As of March 31, 2024, the outstanding NSP Series D Preferred Stock accrued dividends was $7.3 million, and the Company and NexPoint Diversified Real Estate Trust are jointly and severally liable for 85.90% of the guaranteed amount.

Convertible Promissory Note

On October 18, 2022, the Company, through a subsidiary, borrowed $6.5 million from NFRO REIT Sub, LLC (the "Holder") and issued $6.5 million aggregate amount of a 7.50% note to the Holder maturing on October 18, 2027. Beginning on January 1, 2023 through June 30, 2027, the Holder may elect to convert all or any part of the outstanding principal and accrued but unpaid interest due, and all other amounts due and payable to the Holder thereunder or in connection therewith, into equity interests of an affiliate of the borrower.

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Elysian at Hughes Center

On February 1, 2022, the Company, through a subsidiary (the “Trust”), purchased the Elysian at Hughes Center, a 368-unit multifamily property in Las Vegas, Nevada, for a total of $184.1 million. The Trust is managed by an affiliate of the Manager (the “Asset Manager”). Effective January 1, 2023, the Company restructured this investment such that it does not meet the requirements for consolidation under ASC 810 – Consolidation and has been deconsolidated herein as of January 1, 2023 and presented as a preferred equity investment. As of December 31, 2022, the Company owned a preferred equity investment and indirect common equity interests in Elysian at Hughes Center, which resulted in the consolidation at year end. However, the common equity interests have been transferred to the Asset Manager in exchange for $54,000 and a guarantee of payments due to the Company in respect of its preferred equity investment if the investment is not redeemed prior to the close of the ongoing private offering of Class I Beneficial Interests in the Trust, which will continue until the maximum offering amount of $115.3 million has been reached. The Company’s preferred investments were initially made from December 28, 2021 through July 26, 2022 and totaled $65.3 million. Following the transfer of the common equity interests, the Company no longer is the primary beneficiary of the Trust and as such does not consolidate it. The Company recognized a gain on deconsolidation of $1.5 million related to the residual effect of removing the consolidated assets and liabilities from the Consolidated Balance Sheets. The fair value of the preferred equity investment still approximates its par value so no portion of the gain on deconsolidation is related to a remeasurement of the fair value of the preferred equity investment. Management determined the fair value of the preferred equity investment using a market approach and performing a benchmarking analysis to comparable transactions. As of March 31, 2024, $54.0 million of the Company's preferred investment in Elysian at Hughes Center had been redeemed, resulting in a remaining principal balance of $10.3 million.

Series B Preferred Stock Offering

On November 2, 2023, the Company announced the launch of the Series B Preferred Offering. NexPoint Securities, Inc., an affiliate of the Manager, serves as the Company’s dealer manager (the "Dealer Manager") in connection with the Series B Preferred Offering. The Dealer Manager uses its reasonable best efforts to sell the shares of Series B Preferred Stock offered in the Series B Preferred Offering, and the Company pays the Dealer Manager, subject to the discounts and other special circumstances described or referenced therein, (i) selling commissions of 7.0% of the aggregate gross proceeds from sales of Series B Preferred Stock in the Series B Preferred Offering (“Selling Commissions”) and (ii) a dealer manager fee of 3.0% of the gross proceeds from sales of Series B Preferred Stock in the Series B Preferred Offering (the “Dealer Manager Fee”). The Dealer Manager, subject to federal and state securities laws, will reallow all or any portion of the Selling Commissions and may reallow a portion of the Dealer Manager Fee to other securities dealers that the Dealer Manager may retain who sold the shares of Series B Preferred Stock as is described more fully in the agreements between such dealers and the Dealer Manager. The Company expects that the offering will terminate on the earlier of the date the Company sells all 16,000,000 shares of the Series B Preferred Stock in the offering or March 14, 2025 (which is the third anniversary of the effective date of the Company’s registration statement), which may be extended by the Company’s Board in its sole discretion. The Board may elect to terminate this offering at any time. As of March 31, 2024, the Company has issued 1,657,700 shares of Series B Preferred Stock for gross proceeds of $40.9 million and paid the Dealer Manager $2.6 million Selling Commissions and $1.0 million Dealer Manager Fees.

Promissory Note

On March 28, 2024, the Company loaned $500,000 to NexPoint SFR Operating Partnership, L.P. (the “SFR OP”), the operating partnership of NexPoint Homes Trust, Inc., an entity that is advised by an affiliate of the Manager. In connection with the loan, SFR OP issued a $500,000 12.50% note (the “SFR OP Note”) to the Company on March 31, 2024. The SFR OP Note bears interest at 12.50%, which is payable in kind, is interest only during the term of the SFR OP Note and matures on March 31, 2025.

VineBrook Homes Mortgage Backed Securities

On February 29, 2024, the Company, through one of the Subsidiary OPs, purchased approximately $49.2 million aggregate principal amount of the Class A, E1, and E2 tranches of the VINEB 2024 SFR1 CMBS at a blended price equal to 90.2% of par value. The investment has a blended unlevered yield of 6.9%. On March 1, 2024, the Company, through one of the Subsidiary OPs, borrowed approximately $35.8 million through the existing repurchase agreement. The loans bear interest at a rate of 1.0%, 1.6%, and 1.6% over SOFR, respectively.

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15. Commitments and Contingencies

Except as otherwise disclosed below, the Company is not aware of any contractual obligations, legal proceedings, or any other contingent obligations incurred in the normal course of business that would have a material adverse effect on our consolidated financial statements.

On September 29, 2021, the Company, through one of the Subsidiary OPs, entered into an agreement to purchase up to $50.0 million in a new preferred equity investment (the “Preferred Units”) upon notice from the issuer. Subject to certain conditions, the Company may be required to purchase an additional $25.0 million of Preferred Units at the option of the issuer. The funds are expected to be used to capitalize special purpose limited liability companies (“PropCos”) to engage in sale-and-leaseback transactions and development transactions on life science real property. On September, 22, 2023, the issuer exercised its right to extend the final obligation date to purchase any additional Preferred Units to September 29, 2024. As of March 31, 2024, the Company may have the obligation to fund an additional $3.6 million by September 29, 2024, which the issuer may extend for up to one year at its option for an extension fee. The Preferred Units accrue distributions at a rate of 10.0% annually, compounded monthly. Distributions on the Preferred Units will be paid in cash with respect to stabilized PropCos and paid in kind with respect to unstabilized PropCos. The obligations of the issuer will be supported by a pledge of all equity units of the PropCos. All or a portion of the Preferred Units may be redeemed at any time for a redemption price equal to the purchase price of the Preferred Units to be redeemed plus any accrued and unpaid distributions thereon and a cash redemption fee. Upon the redemption of any Preferred Units and if the parties agree, the remaining amount to be funded by the Company may be increased by the aggregate purchase price of the redeemed Preferred Units. In addition, if the issuer experiences a change of control, the redemption price will also include a payment equal to the amount needed to achieve a multiple on invested capital ("MOIC") equal to 1.25x for unstabilized PropCos and 1.10x for stabilized PropCos. As of March 31, 2024, the Company has not recorded any contingencies on its Consolidated Balance Sheets as the obligation to fund additional Preferred Units other than under the existing commitment is considered remote.

On March 14, 2023, the Company, through one of the Subsidiary OPs, committed to fund $24.0 million of preferred equity with respect to a ground up construction horizontal single-family property located in Phoenix, Arizona, of which $16.9 million was unfunded as of March 31, 2024. The preferred equity investment provides a floating annual return that is the greater of prime rate plus 5.0% or 11.25%, compounded monthly with a MOIC of 1.30x and 1.0% placement fee. The Company was also issued a common interest at the time of its first funding of preferred equity on May 16, 2023. The common interest allows the Company to receive a 10% profit share once aggregate distributions exceed the 20% IRR hurdle as shown below. There was no value ascribed to the common interest as of March 31, 2024. Further, once the Company's preferred equity and accrued interest has been repaid, any additional cash flow and net sale proceeds shall be distributed as follows:

•0% to the Company and 100% to issuer up to a 20.0% internal rate of return ("IRR")

•10% to the Company and 90% to issuer thereafter

On February 10, 2023, the Company, through one of the Subsidiary OPs, through a unit purchase agreement, committed to purchase $30.3 million of the preferred units with respect to a multifamily property development located in Forney, Texas, which was fully funded as of March 31, 2024. Further, the Company committed to purchase $4.3 million of common equity with respect to the same property, of which $1.3 million was unfunded as of March 31, 2024.

On February 10, 2023, the Company, through one of the Subsidiary OPs, through a unit purchase agreement, committed to purchase $30.3 million of the preferred units with respect to a multifamily property development located in Richmond, Virginia, of which $6.1 million was unfunded as of March 31, 2024. Further, the Company committed to purchase $4.3 million of common equity with respect to the same property, of which $3.3 million was unfunded as of March 31, 2024.

On January 26, 2024, the Company, through one of its subsidiaries, along with related party The Ohio State Life Insurance Company (“OSL”) entered into a Mezzanine Loan and Security Agreement (the "Alewife Loan") whereby it made a loan in the maximum principal amount of up to $218 million to IQHQ-Alewife Holdings, LLC ("Alewife Holdings"), which is solely owned by IQHQ, LP. The Company has an ownership interest in the Series D-1 preferred stock in IQHQ, who is the limited partner in IQHQ, LP; however, the Company has no controlling financial interest nor significant influence in IQHQ, LP. The loan is secured by a first mortgage with a first lien position and other security

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interests. The Company’s portion of the total commitment is $208 million, of which $164.7 million was unfunded as of March 31, 2024. See Note 16.

The table below shows the Company's unfunded commitments by investment type as of March 31, 2024 and December 31, 2023 (in thousands):

Investment Type	March 31, 2024		December 31, 2023
	Unfunded Commitments		Unfunded Commitments
Mezzanine Loan	$	164,717	$	—
Preferred Equity	21,519		34,966
Common Equity	4,600		6,600
	$	190,836	$	41,566

16. Subsequent Events

Promissory Note

On April 19, 2024, NREF OP IV, L.P. (“OP IV”), a subsidiary of the Company, borrowed $6.5 million from NexPoint Diversified Real Estate Trust Operating Partnership, L.P. (“NXDT OP”), the operating partnership of NexPoint Diversified Real Estate Trust ("NXDT"), an entity that is advised by an affiliate of the Manager. In connection with the loan, OP IV issued a $6.5 million note (the “NREF Note”) to NXDT OP on April 19, 2024. The NREF Note bears interest at 7.535%, which is payable in kind, is interest only during the term of the NREF Note and matures on April 19, 2029.

Loan Commitments

On May 10, 2024, the Company, through OP IV; NXDT OP, the operating partnership of NXDT; and OSL, an entity that may be deemed an affiliate of the Adviser through common beneficial ownership, entered into an Assignment and Assumption and Co-Lender Agreement (the "Alewife Agreement"), pursuant to which OP IV assigned the right to fund up to 9% of the Alewife Loan to be made to Alewife Holdings to NXDT OP and allocated the right to fund up to 9% of the Alewife Loan to OSL. Upon receipt of a draw request, NXDT OP and OSL would have the right to elect to fund an amount equal or greater than zero and up to (i) 9% of the total amount of all advances previously made under the loan plus the amount of the then current borrowing, (ii) less the total amount of advances previously made by NXDT OP and OSL, respectively. OP IV would be required to fund any amounts not funded by OSL and NXDT OP. At any time that NXDT OP and OSL have funded less than their respective 9% of all advances made under the Alewife Loan, NXDT OP and OSL shall have the option upon notice to OP IV to pay to OP IV any amount of such unfunded amount. Upon such payment, NXDT OP or OSL would become entitled to all interest and fees accrued on the amount paid to OP IV on and after the date of such payment. The Company's expected maximum commitment under the Alewife Loan is $179 million as of the date hereof.    

CMBS Acquisition

On April 30, 2024, the Company, through three Subsidiary OPs, purchased approximately $31.9 million aggregate principal amount of the Class C tranche of the FREMF 2024-K520 CMBS at a price equal to 85.3% of par value, representing 95% of the Class C tranche. The investment pays a fixed coupon of 5.59% with an all-in unlevered yield of

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9.50%. On May 1, 2024, the Company through one of the Subsidiary OPs, entered into a repurchase agreement and borrowed approximately $17.7 million. The loan bears interest at a rate of 2.00% over SOFR.

CMBS Disposition

On May 8, 2024, the Company, through one of the Subsidiary OPs, sold its $30.0 million aggregate principal amount of the Class A tranche of the VINEB 2024 SFR1 CMBS at a price equal to 93.16% of par value.

Mortgage Backed Security Dispositions

On April 19, 2024, the Company, through one of the Subsidiary OPs, sold approximately $10.4 million aggregate principal amount of the Class G tranche of the STAR 2021-SFR1 G at a price equal to 97% of par value.

Alewife Holdings

On April 12, 2024, April 24, 2024, May 9, 2024, May 10, 2024, and May 13, 2024, the Company funded an additional $9.0 million, $10.3 million, $6.0 million, $3.0 million, and $1.5 million respectively, to Alewife Holdings.

Raymond James Term Loan

On April 30, 2024, the Company, through the OP, borrowed $20.0 million from Raymond James Bank which was used to effectuate the acquisition FREMF 2024-K520 CMBS. The term loan was fully repaid on May 1, 2024.

NexBank Loan

On April 29, 2024, the Company, through the OP, entered into a loan agreement with NexBank, as lender, providing for a loan in the aggregate principal amount of $10.0 million (the “NexBank Loan”).

The NexBank Loan bears interest at the rate which is the higher of (i) One Month Term Secured Overnight Financing Rate plus 4.2% per annum or (ii) 8.25% per annum, which is interest only during the term of the NexBank Loan and matures on April 28, 2025, with the OP having two 364-day extension options, which may be exercised at the OP’s sole discretion.

The NexBank Loan is secured by certain equity interests held by the OP and is guaranteed by the Company. The loan agreement contains customary events of default, including defaults in the payment of principal or interest, defaults in compliance with the covenants contained therein, defaults in payments under any other security instrument, and bankruptcy or other insolvency events.

Dividends

On April 18, 2024, our Board declared a Series B Preferred Stock dividend to Series B Preferred stockholders of $0.1875, which will be paid on June 5, 2024, to Series B Preferred stockholders of record as of May 24, 2024.

On April 29, 2024, our Board declared the second regular quarterly dividend of 2024 to common stockholders of $0.50, to be paid on June 28, 2024, to common stockholders of record as of June 14, 2024.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is a discussion and analysis of our financial condition and results of operations. The following should be read in conjunction with our financial statements and accompanying notes included herein and with our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 22, 2024. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those projected, forecasted, or expected in these forward-looking statements as a result of various factors, including, but not limited to, those discussed below and elsewhere in this quarterly report. See “Cautionary Statement Regarding Forward-Looking Statements” and “Risk Factors” in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023. Our management believes the assumptions underlying the Company's financial statements and accompanying notes are reasonable. However, the Company's financial statements and accompanying notes may not be an indication of our financial condition and results of operations in the future.

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Overview

We are a commercial mortgage REIT incorporated in Maryland on June 7, 2019. Our strategy is to originate, structure and invest in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties and common stock investments, as well as multifamily and SFR CMBS securitizations, MSCR Notes and mortgage backed securities, or our target assets. We primarily focus on investments in real estate sectors where our senior management team has operating expertise, including in the multifamily, SFR, self-storage, life science and hospitality sectors predominantly in the top 50 MSAs. In addition, we target lending or investing in properties that are stabilized or have a light-transitional business plan.

Our investment objective is to generate attractive, risk-adjusted returns for stockholders over the long term. We seek to employ a flexible and relative-value focused investment strategy and expect to re-allocate capital periodically among our target investment classes. We believe this flexibility will enable us to efficiently manage risk and deliver attractive risk-adjusted returns under a variety of market conditions and economic cycles.

We are externally managed by our Manager, a subsidiary of our Sponsor, an SEC-registered investment advisor, which has extensive real estate experience, having completed as of March 31, 2024 approximately $18.4 billion of gross real estate transactions since the beginning of 2012. In addition, our Sponsor, together with its affiliates and NexBank, is one of the most experienced global alternative credit managers managing approximately $19.8 billion of loans and debt or credit related investments as of March 31, 2024 and has managed credit investments for over 25 years. We believe our relationship with our Sponsor benefits us by providing access to resources including research capabilities, an extensive relationship network, other proprietary information, scalability, and a vast wealth of knowledge of information on real estate in our target assets and sectors.

We elected to be treated as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2020. We also intend to operate our business in a manner that will permit us to maintain one or more exclusions or exemptions from registration under the Investment Company Act.

On October 15, 2021, a lawsuit (the “Bankruptcy Trust Lawsuit”) was filed by a litigation subtrust formed in connection with Highland’s bankruptcy against various persons and entities, including our Sponsor and James Dondero. In addition, on February 8, 2023, a lawsuit (the “UBS Lawsuit”) was filed by UBS Securities LLC and its affiliate against Mr. Dondero and a number of other persons and entities. Neither the Bankruptcy Trust Lawsuit nor the UBS Lawsuit include claims related to our business or our assets or operations. Our Sponsor and Mr. Dondero have informed us they believe the Bankruptcy Trust Lawsuit has no merit, and Mr. Dondero has informed us he believes the UBS Lawsuit has no merit; we have been advised that the defendants named in each of the lawsuits intend to vigorously defend against the claims. We do not expect the Bankruptcy Trust Lawsuit or the UBS Lawsuit will have a material effect on our business, results of operations or financial condition.

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Purchases and Dispositions in the Quarter

Acquisitions and Originations

The Company acquired or originated the following investments through the Subsidiary OPs in the three months ended March 31, 2024. The amounts in the table below are as of the purchase or investment date:

Investment	Property Type	Investment Date	Outstanding Principal Amount			Cost (% of Par Value)		Coupon (1)		Current Yield (1)		Maturity Date	Interest Rate Type
Common Equity	Multifamily	9/8/2023	$	1,606,814	(2)	66.7	%	N/A		N/A		N/A	N/A
Mezzanine	Life Sciences	1/26/2024	43,283,523		(3)	100.0	%	14.32	%	14.32	%	2/9/2027	Floating Rate
Preferred Equity	Multifamily	5/29/2020	687,127			100.0	%	11.00	%	11.00	%	5/1/2030	Fixed Rate
Common Equity	Multifamily	2/10/2023	2,010,101			99.5	%	N/A		N/A		N/A	N/A
Preferred Equity	Life Science	1/14/2022	1,608,040			99.5	%	10.00	%	10.05	%	9/29/2024	Fixed Rate
Preferred Equity	Single-family	5/16/2023	1,530,000			99.0	%	13.50	%	13.64	%	4/28/2027	Floating Rate
Preferred Equity	Life Science	9/29/2021	4,321,608			99.5	%	10.00	%	10.05	%	9/29/2024	Fixed Rate
Preferred Equity	Multifamily	2/24/2023	5,000,000		(4)	99.0	%	11.00	%	11.11	%	2/10/2025	Floating Rate
Preferred Equity	Multifamily	2/10/2023	3,400,000		(4)	99.0	%	11.00	%	11.11	%	2/10/2025	Floating Rate
Preferred Stock	Life Science	11/9/2023	3,506,633			100.0	%	11.00	%	11.00	%	N/A	Fixed Rate
CMBS B-Piece	Multifamily	2/22/2024	30,869,000			85.6	%	5.90	%	6.89	%	1/25/2029	Fixed Rate
Mortgage Backed Security	Single-family	2/29/2024	5,000,000			94.7	%	4.50	%	4.75	%	3/19/2029	Fixed Rate
Mortgage Backed Security	Single-family	2/29/2024	11,000,000			85.7	%	4.50	%	5.25	%	3/19/2029	Fixed Rate
Mortgage Backed Security	Single-family	2/29/2024	8,213,000			79.7	%	4.50	%	5.65	%	3/19/2029	Fixed Rate
Promissory Note	Single-family	3/28/2024	500,000			100.0	%	12.50	%	12.50	%	3/28/2025	Fixed Rate
			$	122,535,847

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(1)Current yield and coupon as of March 31, 2024.

(2)Includes investments made on January 26, 2024, and March 1, 2024.

(3)Includes investments made on January 26, 2024, and February 9, 2024.

(4)Includes investments made on January 8, 2024, and February 2, 2024.

Redemptions and Sales

The following investments were redeemed or sold during the three months ended March 31, 2024:

Investment	Property Type	Investment Date	Disposition Date	Amortized Cost Basis		Redemption/Sales Proceeds		Prepayment Penalties		Net Gain (Loss) on Repayment
Senior loan	Single-family	2/11/2020	1/25/2024	$	533,717,586	$	508,700,000	$	8,936,484	$	(16,081,102)
Mortgage Backed Security	Single-family	6/1/2022	2/1/2024	9,789,293		9,608,078		—		(181,215)
Preferred Equity	Multifamily	12/28/2021	2/7/2024	1,123,818		1,123,818		—		—
Mortgage Backed Security	Multifamily	9/12/2022	3/25/2024	3,934,375		3,903,460		—		(30,915)
Mortgage Backed Security	Single-family	7/28/2022	3/28/2024	923,951		907,699		—		(16,252)
Mortgage Backed Security	Single-family	7/28/2022	3/28/2024	567,300		557,750		—		(9,550)
				$	550,056,322	$	524,800,805	$	8,936,484	$	(16,319,034)

Components of Our Revenues and Expenses

Net Interest Income

Interest income. Our earnings are primarily attributable to the interest income from mortgage loans, mezzanine loan and preferred equity investments. Loan premium/discount amortization and prepayment penalties are also included as components of interest income.

Interest expense. Interest expense represents interest accrued on our various financing obligations used to fund our investments and is shown as a deduction to arrive at net interest income.

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The following table presents the components of net interest income for the three months ended March 31, 2024 and 2023 (dollars in thousands):

	For the Three Months Ended March 31,
	2024						2023
	Interest income/ (expense)		Average Balance (1)		Yield (2)		Interest income/ (expense)		Average Balance (1)		Yield (2)		$ Change		% Change
Interest income
SFR Loans, held-for-investment	$	(13,369)	$	725,833	(1.84)	%	$	6,619	$	746,111	0.89	%	$	(19,988)	(301.98)	%
Mezzanine loans, held-for-investment	3,801		155,299		2.45	%	4,140		157,789		2.62	%	(339)		(8.2)	%
Preferred equity, held-for-investment	6,199		138,728		4.47	%	3,778		102,471		3.69	%	2,421		64.1	%
CMBS structured pass-through certificates, at fair value	543		46,020		1.18	%	539		66,442		0.81	%	4		0.7	%
MSCR Notes	342		10,214		3.35	%	311		4,385		7.09	%	31		10.0	%
Mortgage backed securities	910		33,888		2.69	%	774		11,025		7.02	%	136		17.6	%
Total interest income	$	(1,574)	$	1,109,981	(0.14)	%	$	16,161	$	1,088,223	1.49	%	$	(17,735)	(109.74)	%
Interest expense
Master repurchase agreements, net	$	(5,724)	$	(331,400)	1.73	%	$	(5,083)	$	(147,850)	3.44	%	$	(641)	12.6	%
Long-term seller financing, net	(1,756)		(687,629)		0.26	%	(3,735)		(822,820)		0.45	%	1,979		(53.0)	%
Unsecured notes, net	(3,760)		(205,068)		1.83	%	(3,394)		(201,697)		1.68	%	(366)		10.8	%
Total interest expense	$	(11,240)	$	(1,224,097)	0.92	%	$	(12,212)	$	(1,172,367)	1.04	%	$	972	(8.0)	%
Net interest income (3)	$	(12,814)					$	3,949					$	(16,763)	(424.5)	%

(1)Average balances for the SFR Loans, the mezzanine loan and preferred equity are calculated based upon carrying values.

(2)Yield calculated on an annualized basis.

(3)Net interest income is calculated as the difference between total interest income and total interest expense.

Other Income (Loss)

Change in net assets related to consolidated CMBS variable interest entities. Includes unrealized gain (loss) based on changes in the fair value of the assets and liabilities of the CMBS trusts and net interest earned on the consolidated CMBS trusts. See Note 4 to our consolidated financial statements for additional information.

Change in unrealized gain (loss) on CMBS structured pass-through certificates. Includes unrealized gain (loss) based on changes in the fair value of the CMBS I/O Strips. See Note 7 to our consolidated financial statements for additional information.

Change in unrealized gain on common stock investments. Includes unrealized gain (loss) based on changes in the fair value of our common stock investments in NSP and the Private REIT. See Note 5 to our consolidated financial statements for additional information.

Change in unrealized gain (loss) on MSCR Notes. Includes unrealized gain (loss) based on changes in the fair value of our MSCR Notes. See Note 7 to our consolidated financial statements for additional information.

Change in unrealized gain on mortgage backed securities. Includes unrealized gain (loss) based on changes in the fair value of our mortgage backed securities. See Note 7 to our consolidated financial statements for additional information.

Provision for (reversal of) credit losses, net. Provision for (reversal of) credit losses, net represents the change in our allowance for loan losses. See Note 2 to our consolidated financial statements for additional information.

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Realized losses. Realized losses include the excess, or deficiency, of net proceeds received, less the carrying value of such investments, as realized losses. The Company reverses cumulative unrealized gains or losses previously reported in its Consolidated Statements of Operations with respect to the investment sold at the time of the sale.

Revenues from consolidated real estate owned (Note 8). Reflects the total revenues for our multifamily properties. Revenues include rental income and other income of the multifamily properties.

Equity in Income (Losses) of Equity Method Investments. Equity in earnings (losses) of unconsolidated ventures represents the change in our basis in equity method investments resulting from our share of the investments’ income and expenses. Profit and loss from equity method investments for which we’ve elected the fair value option are classified in divided income, change in unrealized gains and realized gains as applicable.

Other income. Includes placement fees, exit fees and other miscellaneous income items.

Operating Expenses

G&A expenses. G&A expenses include, but are not limited to, audit fees, legal fees, listing fees, Board fees, equity-based and other compensation expenses, investor-relations costs and payments of reimbursements to our Manager. The Manager will be reimbursed for expenses it incurs on behalf of the Company. However, our Manager is responsible, and we will not reimburse our Manager or its affiliates, for the salaries or benefits to be paid to personnel of our Manager or its affiliates who serve as our officers, except that 50% of the salary of our VP of Finance is allocated to us and we may grant equity awards to our officers under the LTIP. Direct payment of operating expenses by us, which includes compensation expense relating to equity awards granted under the LTIP, together with reimbursement of operating expenses to our Manager, plus the Annual Fee, may not exceed 2.5% of equity book value determined in accordance with GAAP, for any calendar year or portion thereof, provided, however, that this limitation will not apply to Offering Expenses, legal, accounting, financial, due diligence and other service fees incurred in connection with extraordinary litigation and mergers and acquisitions and other events outside the ordinary course of our business or any out-of-pocket acquisition or due diligence expenses incurred in connection with the acquisition or disposition of certain real estate related investments. To the extent total corporate G&A expenses would otherwise exceed 2.5% of equity book value, our Manager will waive all or a portion of its Annual Fee to keep our total corporate G&A expenses at or below 2.5% of equity book value.

Loan servicing fees. We pay various service providers fees for loan servicing of our SFR Loans, mezzanine loans and consolidated CMBS trusts. We classify the expenses related to the administration of the SFR Loans and mezzanine loans as servicing fees while the fees associated with the CMBS trusts are included as a component of the change in net assets related to consolidated CMBS variable interest entities (“VIEs”).

Management fees. Management fees include fees paid to our Manager pursuant to the Management Agreement.

Expenses from consolidated real estate owned (Note 8). Reflects the total expenses for our multifamily properties. Expenses include interest, real estate taxes and insurance, operating, general and administrative, management fees, depreciation and amortization, rate cap (income) expense, and debt service bridge expenses of the multifamily properties.

Results of Operations for the Three Months Ended March 31, 2024, and 2023

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The following table sets forth a summary of our operating results for the three months ended March 31, 2024 and 2023 (in thousands):

	For the Three Months Ended March 31,
	2024		2023		$ Change		% Change
Net interest income (expense)	$	(12,814)	$	3,949	$	(16,763)	(424.5)	%
Other income	9,199		10,949		(1,750)		(16.0)	%
Operating expenses	(11,026)		(5,520)		(5,506)		99.7	%
Net income (loss)	(14,641)		9,378		(24,019)		(256.1)	%
Net (income) loss attributable to Series A preferred stockholders	(874)		(874)		—		NA
Net (income) loss attributable to Series B preferred stockholders	(665)		—		(665)		NA
Net (income) loss attributable to redeemable noncontrolling interests	1,894		(1,937)		3,831		(197.8)	%
Net income (loss) attributable to common stockholders	$	(14,286)	$	6,567	$	(20,853)	(317.5)	%

The change in our net income (loss) for the three months March 31, 2024 as compared to the net income (loss) for the three months ended March 31, 2023 primarily relates to accelerated amortization of the premium associated with the prepayment on a senior loan. Our net loss attributable to common stockholders for the three months ended March 31, 2024 was approximately $14.3 million. We had approximately $12.8 million in net interest losses, generated income of $9.2 million in other income, incurred operating expenses of $11.0 million, allocated $0.9 million of losses to Series A Preferred stockholders, allocated $0.7 million of losses to Series B Preferred stockholders, and allocated $1.9 million of losses to redeemable noncontrolling interests for the three months ended March 31, 2024.

Revenues

Net interest income (loss). Net interest loss was $12.8 million for the three months ended March 31, 2024 compared to net interest income of $3.9 million for the three months ended March 31, 2023 which was a decrease of approximately $16.7 million. The decrease between the periods is primarily due to accelerated amortization of the premium associated with the prepayment on a senior loan during the three months ended March 31, 2024. As of March 31, 2024 we own 88 discrete investments compared to 87 as of March 31, 2023.

Other income. Other income was $9.2 million for the three months ended March 31, 2024 compared to $10.9 million for the three months ended March 31, 2023 which was a decrease of approximately $1.8 million. This was primarily due to an increase in unrealized losses related to consolidated CMBS VIEs and a decrease in fair value marks between the periods.

Expenses

G&A expenses. G&A expenses were $4.2 million for the three months ended March 31, 2024 compared to $2.2 million for the three months ended March 31, 2023 which was an increase of approximately $2.0 million. The increase between the periods was primarily due to a $1.0 million increase in stock compensation expense and a $0.7 million increase in legal fees compared to the prior period.

Loan servicing fees. Loan servicing fees were $0.6 million for the three months ended March 31, 2024 compared to $1.0 million for the three months ended March 31, 2023 which was a decrease of approximately $0.4 million. The decrease between the periods was primarily due to a decrease in SFR Loans and mezzanine loans in the portfolio compared to the prior period.

Management fees. Management fees were $0.8 million for the three months ended March 31, 2024 compared to $0.8 million for the three months ended March 31, 2023.

Expenses from consolidated real estate owned. Expenses from consolidated real estate owned were $5.4 million for the three months ended March 31, 2024, compared to $1.5 million for the three months ended March 31, 2023. The increase is due to the consolidation of Alexander at the District.

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Key Financial Measures and Indicators

As a real estate finance company, we believe the key financial measures and indicators for our business are earnings per share, dividends declared, EAD, CAD and book value per share.

Earnings Per Share and Dividends Declared

The following table sets forth the calculation of basic and diluted net income per share and dividends declared per share (in thousands, except per share data):

	For the Three Months Ended March 31,
	2024		2023		% Change
Net income (loss) attributable to redeemable noncontrolling interests	$	4,969	$	1,937	156.5	%
Net income (loss) attributable to common stockholders	(14,286)		6,567		(317.5)	%
Weighted-average number of shares of common stock outstanding
Basic	17,264		17,118		0.9	%
Diluted	24,862		22,678		9.6	%
Net income per share, basic	$	(0.83)	$	0.38	(318.4)	%
Net income per share, diluted	$	(0.83)	$	0.37	(324.3)	%
Dividends declared per share	$	0.5000	$	0.6850	(27.0)	%

Earnings Available for Distribution and Cash Available for Distribution

EAD is a non-GAAP financial measure. We believe EAD serves as a useful indicator for investors in evaluating our performance and our long-term ability to pay distributions. EAD is defined as the net income (loss) attributable to our common stockholders computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), excluding any unrealized gains or losses or other similar non-cash items that are included in net income (loss) for the applicable reporting period, regardless of whether such items are included in other comprehensive income (loss), or in net income (loss) and adding back amortization of stock-based compensation. Net income (loss) attributable to common stockholders may also be adjusted for the effects of certain GAAP adjustments and transactions that may not be indicative of our current operations.

We use EAD to evaluate our performance which excludes the effects of certain GAAP adjustments and transactions that we believe are not indicative of our current operations and to assess our long-term ability to pay distributions. We believe providing EAD as a supplement to GAAP net income (loss) to our investors is helpful to their assessment of our performance and our long term ability to pay distributions. EAD does not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of our GAAP cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. Our computation of EAD may not be comparable to EAD reported by other REITs.

We also use EAD as a component of the management fee paid to our Manager. As consideration for the Manager’s services, we will pay our Manager an annual management fee of 1.5% of Equity, paid monthly, in cash or shares of our common stock at the election of our Manager. “Equity” means (a) the sum of (1) total stockholders’ equity immediately prior to the closing of our IPO, plus (2) the net proceeds received by us from all issuances of our equity securities in and after the IPO, plus (3) our cumulative EAD from and after the IPO to the end of the most recently completed calendar quarter, (b) less (1) any distributions to our holders of common stock from and after the IPO to the end of the most recently completed calendar quarter and (2) all amounts that we have paid to repurchase for cash the shares of our equity securities from and after the IPO to the end of the most recently completed calendar quarter. In our calculation of Equity, we will adjust our calculation of EAD to remove the compensation expense relating to awards granted under one or more of our long-term incentive plans that is added back in our calculation of EAD. Additionally, for the avoidance of doubt, Equity does not include the assets contributed to us in the Formation Transaction. For the purpose of calculating EAD for the management fee, net income (loss) attributable to common stockholders may be adjusted for the effects of certain GAAP adjustments and transactions that may not be indicative of our current operations, in each case after discussions between

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the Manager and the independent directors of our Board and approved by a majority of the independent directors of our Board.

CAD is a non-GAAP financial measure. We calculate CAD by adjusting EAD by adding back amortization of premiums, depreciation and amortization of real estate investment, amortization of deferred financing costs and by removing accretion of discounts and non-cash items, such as stock dividends. We use CAD to evaluate our performance and our current ability to pay distributions. We also believe that providing CAD as a supplement to GAAP net income (loss) to our investors is helpful to their assessment of our performance and our current ability to pay distributions. CAD does not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of our GAAP cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. Our computation of CAD may not be comparable to CAD reported by other REITs.

The following table provides a reconciliation of EAD and CAD to GAAP net income attributable to common stockholders for the three months ended March 31, 2024 and 2023 (in thousands, except per share amounts):

	For the Three Months Ended March 31,
	2024		2023		% Change
Net income attributable to common stockholders	$	(14,286)	$	6,567	(317.5)	%
Adjustments
Amortization of stock-based compensation	1,798		847		112.3	%
Provision for (reversal of) credit losses	(352)		(28)		N/A
Equity in (income) losses of equity method investments (1)	1,676		—		N/A
Unrealized (gains) or losses (2)	1,132		2,139		(47.1)	%
EAD attributable to common stockholders	$	(10,031)	$	9,525	(205.3)	%
EAD per Diluted Weighted-Average Share	$	(0.55)	$	0.54	(201.9)	%
EAD per Diluted Weighted-Average Share
Adjustments
Amortization of premiums	23,363		2,945		693.3	%
Accretion of discounts	(3,252)		(2,919)		11.4	%
Depreciation and amortization of real estate investments	1,943		397		389.4	%
Amortization of deferred financing costs	10		9		11.8	%
CAD attributable to common stockholders	$	12,033	$	9,957	20.8	%
CAD per Diluted Weighted-Average Share	$	0.67	$	0.56	19.6	%
Weighted-average common shares outstanding - basic	17,264		17,118		0.9	%
Weighted-average common shares outstanding - diluted (3)	18,082		17,640		2.5	%

(1)Starting in the third quarter of 2023, the Company has adjusted EAD to remove the (income) / loss from equity method investments as it does not represent distributable earnings. We will include income from equity method investments to the extent that we receive cash distributions and upon realizing gains and/or losses.

(2)Unrealized gains are the net change in unrealized loss on investments held at fair value applicable to common stockholders.

(3)Weighted-average diluted shares outstanding does not include dilutive effect of redeemable non-controlling interests.

The following table provides a reconciliation of EAD and CAD to GAAP net income including the dilutive effect of noncontrolling interests for the three months ended March 31, 2024 and 2023 (in thousands, except per share amounts):

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	For the Three Months Ended March 31,
	2024		2023		% Change
Net income (loss) attributable to common stockholders	$	(14,286)	$	6,567	(317.5)	%
Net income (loss) attributable to redeemable noncontrolling interests	(1,894)		1,937		(197.8)	%
Adjustments
Amortization of stock-based compensation	1,798		847		112.3	%
Provision for (reversal of) credit losses	(420)		(34)		N/A
Equity in (income) losses of equity method investments (1)	2,000		—		N/A
Unrealized (gains) or losses (2)	1,351		2,564		47.3	%
EAD	$	(11,451)	$	11,881	(196.4)	%
EAD per Diluted Weighted-Average Share	$	(0.46)	$	0.52	(188.5)	%
Adjustments
Amortization of premiums	$	27,874	$	3,531	689.4	%
Accretion of discounts	(3,880)		(3,500)		(10.9)	%
Depreciation and amortization of real estate investments	2,318		476		(387.0)	%
Amortization of deferred financing costs	12		11		(9.1)	%
CAD	$	14,873	$	12,399	20.0	%
CAD per Diluted Weighted-Average Share	$	0.60	$	0.55	9.1	%
Weighted-average common shares outstanding - basic	17,264		17,118		0.9	%
Weighted-average common shares outstanding - diluted	24,862		22,678		9.6	%

(1)Starting in the third quarter of 2023, the Company has adjusted EAD to remove the (income) / loss from equity method investments as it does not represent distributable earnings. We will include income from equity method investments to the extent that we receive cash distributions and upon realizing gains and/or losses.

(2)Unrealized gains are the net change in unrealized loss on investments held at fair value applicable to common stockholders.

Book Value per Share / Unit

The following table calculates our book value per share (in thousands, except per share data):

	March 31, 2024		December 31, 2023
Common stockholders' equity	$	287,764	$	309,832
Shares of common stock outstanding at period end	17,306		17,232
Book value per share of common stock	$	16.63	$	17.98

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Due to the large noncontrolling interest in the OP (see Note 13 to our consolidated financial statements for more information), we believe it is useful to also look at book value on a combined basis as shown in the table below (in thousands, except per share data):

	March 31, 2024		December 31, 2023
Common stockholders' equity	$	287,764	$	309,832
Redeemable noncontrolling interests in the OP	85,058		89,471
Total equity	$	372,822	$	399,303
Redeemable OP Units at period end	5,038		5,038
Shares of common stock outstanding at period end	17,306		17,232
Combined shares of common stock and redeemable OP Units	22,345		22,270
Combined book value per share / unit	$	16.69	$	17.93

Our Portfolio

Our portfolio consists of SFR Loans, CMBS B-Pieces, CMBS I/O Strips, mezzanine loans, preferred equity investments, common stock investments, multifamily properties, MSCR Notes and mortgage backed securities with a combined unpaid principal balance of $1.5 billion as of March 31, 2024 and assumes the CMBS Entities’ assets and liabilities are not consolidated. The following table sets forth additional information relating to our portfolio as of March 31, 2024 (dollars in thousands):

	Investment (1)	Investment Date		Current Principal Amount			Net Equity (2)		Location	Property Type	Coupon		Current Yield (3)		Remaining Term (4) (years)
	SFR Loans
1	Senior loan	2/11/2020		$	8,508		$	1,246	Various	Single-family	5.35	%	5.26	%	3.84
2	Senior loan	2/11/2020		9,982			1,288		Various	Single-family	5.30	%	5.07	%	4.42
3	Senior loan	2/11/2020		5,336			704		Various	Single-family	5.24	%	4.99	%	4.51
4	Senior loan	2/11/2020		34,967			4,228		Various	Single-family	4.74	%	4.65	%	1.50
5	Senior loan	2/11/2020		9,401			1,219		Various	Single-family	6.10	%	5.77	%	4.51
6	Senior loan	2/11/2020		35,840			4,592		Various	Single-family	5.55	%	5.21	%	4.59
7	Senior loan	2/11/2020		5,627			733		Various	Single-family	5.99	%	5.66	%	4.67
8	Senior loan	2/11/2020		8,605			1,175		Various	Single-family	5.88	%	5.61	%	4.76
9	Senior loan	2/11/2020		6,444			895		Various	Single-family	5.46	%	5.24	%	4.92
10	Senior loan	2/11/2020		10,522			1,409		Various	Single-family	4.72	%	4.64	%	1.92
	Total			135,232			17,489				5.31	%	5.09	%	3.55
	CMBS B-Pieces
1	CMBS B-Piece	2/11/2020		20,338		(5)	6,388		Various	Multifamily	9.61	%	9.61	%	1.91
2	CMBS B-Piece	2/11/2020		28,581		(5)	9,560		Various	Multifamily	10.60	%	10.59	%	2.65
3	CMBS B-Piece	4/23/2020		81,999		(5)	26,019		Various	Multifamily	3.51	%	5.06	%	5.91
4	CMBS B-Piece	7/30/2020		16,310		(5)	5,709		Various	Multifamily	14.45	%	14.45	%	3.24
5	CMBS B-Piece	8/6/2020		108,643		(5)	22,960		Various	Multifamily	—	%	9.03	%	6.24
6	CMBS B-Piece	4/20/2021		16,906		(5)	3,145		Various	Multifamily	11.58	%	11.58	%	6.91
7	CMBS B-Piece	6/30/2021		108,305		(5)	29,124		Various	Multifamily	—	%	10.50	%	2.75
8	CMBS B-Piece	5/2/2022		31,192		(5)	10,238		Various	Multifamily	4.43	%	4.75	%	14.66
9	CMBS B-Piece	7/28/2022		63,395		(5)	21,877		Various	Multifamily	10.58	%	10.58	%	5.32
10	CMBS B-Piece	2/22/2024		30,869		(5)	9,265		Various	Multifamily	5.90	%	6.87	%	4.82
	Total			506,538			144,285				4.36	%	8.87	%	5.31
	CMBS I/O Strips
1	CMBS I/O Strip	5/18/2020		17,590		(6)	512		Various	Multifamily	2.02	%	14.67	%	22.50
2	CMBS I/O Strip	8/6/2020		108,643		(6)	4,272		Various	Multifamily	2.98	%	18.60	%	6.24
3	CMBS I/O Strip	4/28/2021	(7)	63,953		(6)	1,141		Various	Multifamily	1.59	%	18.20	%	5.82

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4	CMBS I/O Strip	5/27/2021		20,000	(6)	1,123	Various	Multifamily	3.39	%	18.42	%	6.15
5	CMBS I/O Strip	6/7/2021		4,266	(6)	102	Various	Multifamily	2.31	%	23.40	%	4.66
6	CMBS I/O Strip	6/11/2021	(8)	97,876	(6)	1,124	Various	Multifamily	1.48	%	18.03	%	5.15
7	CMBS I/O Strip	6/24/2021		25,283	(6)	221	Various	Multifamily	1.17	%	18.61	%	6.15
8	CMBS I/O Strip	8/10/2021		25,000	(6)	563	Various	Multifamily	1.89	%	18.63	%	6.07
9	CMBS I/O Strip	8/11/2021		6,942	(6)	372	Various	Multifamily	3.10	%	15.69	%	7.32
10	CMBS I/O Strip	8/24/2021		1,625	(6)	66	Various	Multifamily	2.61	%	16.66	%	6.82
11	CMBS I/O Strip	9/1/2021		34,625	(6)	989	Various	Multifamily	1.92	%	17.63	%	6.24
12	CMBS I/O Strip	9/11/2021		20,902	(6)	1,107	Various	Multifamily	2.95	%	15.57	%	7.49
	Total			426,705		11,592			2.14	%	18.01	%	6.64
	Mezzanine Loans
1	Mezzanine	6/12/2020		7,500		7,500	Houston, TX	Multifamily	11.00	%	11.00	%	1.25
2	Mezzanine	10/20/2020		5,470		2,244	Wilmington, DE	Multifamily	7.50	%	7.34	%	5.09
3	Mezzanine	10/20/2020		10,380		4,288	White Marsh, MD	Multifamily	7.42	%	7.24	%	7.25
4	Mezzanine	10/20/2020		14,253		5,866	Philadelphia, PA	Multifamily	7.59	%	7.42	%	5.17
5	Mezzanine	10/20/2020		3,700		1,514	Daytona Beach, FL	Multifamily	7.83	%	7.67	%	4.51
6	Mezzanine	10/20/2020		12,000		4,955	Laurel, MD	Multifamily	7.71	%	7.52	%	7.01
7	Mezzanine	10/20/2020		3,000		1,239	Temple Hills, MD	Multifamily	7.32	%	7.14	%	7.34
8	Mezzanine	10/20/2020		1,500		620	Temple Hills, MD	Multifamily	7.22	%	7.04	%	7.34
9	Mezzanine	10/20/2020		5,540		2,272	Lakewood, NJ	Multifamily	7.33	%	7.17	%	5.09
10	Mezzanine	10/20/2020		6,829		2,797	Rosedale, MD	Multifamily	7.53	%	7.37	%	4.76
11	Mezzanine	10/20/2020		3,620		1,495	North Aurora, IL	Multifamily	7.42	%	7.24	%	7.25
12	Mezzanine	10/20/2020		9,610		3,970	Cockeysville, MD	Multifamily	7.42	%	7.24	%	7.25
13	Mezzanine	10/20/2020		7,390		3,053	Laurel, MD	Multifamily	7.42	%	7.24	%	7.25
14	Mezzanine	10/20/2020		2,135		874	Tyler, TX	Multifamily	7.74	%	7.58	%	4.51
15	Mezzanine	10/20/2020		1,190		488	Las Vegas, NV	Multifamily	7.71	%	7.54	%	4.92
16	Mezzanine	10/20/2020		3,310		1,358	Atlanta, GA	Multifamily	6.91	%	6.76	%	5.25
17	Mezzanine	10/20/2020		2,880		1,179	Des Moines, IA	Multifamily	7.89	%	7.72	%	4.59
18	Mezzanine	10/20/2020		4,010		1,642	Urbandale, IA	Multifamily	7.89	%	7.72	%	4.59
19	Mezzanine	11/18/2021		12,600		12,510	Irving, TX	Multifamily	16.29	%	16.41	%	4.67
20	Mezzanine	12/29/2021		7,760		7,749	Rogers, AR	Multifamily	16.29	%	16.31	%	0.78
21	Mezzanine	6/9/2022		4,500		4,481	Rogers, AR	Multifamily	16.02	%	16.09	%	1.19
22	Mezzanine	10/5/2022	(9)	4,030		4,000	Kirkland, WA	Multifamily	16.02	%	16.14	%	3.76
23	Mezzanine	1/26/2024		44,574		43,350	Cambridge, MA	Life Sciences	14.32	%	14.72	%	2.86
	Total			177,781		119,444			10.79	%	10.81	%	4.54
	Preferred Equity
1	Preferred Equity	5/29/2020	(10)	12,385		12,385	Houston, TX	Multifamily	11.00	%	11.00	%	6.09
2	Preferred Equity	9/29/2021		14,121		14,093	Holly Springs, NC	Life Science	10.00	%	10.02	%	0.50
3	Preferred Equity	12/28/2021	(11)	10,253		10,253	Las Vegas, NV	Multifamily	10.50	%	10.50	%	7.92
4	Preferred Equity	1/14/2022		26,207		26,199	Vacaville, CA	Life Science	10.00	%	10.00	%	0.50
5	Preferred Equity	4/7/2022	(12)	4,000		3,968	Beaumont, TX	Self-Storage	15.29	%	15.41	%	6.42
6	Preferred Equity	6/8/2022		4,000		3,968	Temple, TX	Self-Storage	14.57	%	14.69	%	6.42
7	Preferred Equity	7/1/2022	(13)	9,000		8,939	Medley, FL	Self-Storage	11.00	%	11.08	%	3.25
8	Preferred Equity	8/10/2022		8,500		8,457	Plano, TX	Multifamily	16.12	%	16.20	%	1.44
9	Preferred Equity	9/30/2022		9,000		8,950	Fort Worth, TX	Multifamily	15.02	%	15.10	%	1.50
10	Preferred Equity	10/19/2022		19,908		19,945	Woodbury, MN	Life Science	10.00	%	9.98	%	0.50
11	Preferred Equity	2/10/2023		32,955		32,853	Forney, TX	Multifamily	11.00	%	11.03	%	0.87
12	Preferred Equity	2/24/2023		26,104		26,003	Richmond, VA	Multifamily	11.00	%	11.04	%	0.87
13	Preferred Equity	4/6/2023		25,002		25,039	Temecula, CA	Life Science	17.50	%	17.47	%	0.50
14	Preferred Equity	5/16/2023	(14)	8,680		8,603	Phoenix, AZ	Single-family	13.50	%	13.62	%	3.08
15	Preferred Equity	5/17/2023	(15)	4,192		4,151	Houston, TX	Life Science	13.00	%	13.13	%	2.73
	Total			214,307		213,806			12.11	%	12.14	%	1.84
	Common Equity
1	Common Stock	11/6/2020		N/A		33,764	N/A	Self-Storage	N/A		N/A		N/A

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2	Common Stock	4/14/2022		N/A	26,894	N/A	Ground Lease	N/A		N/A		N/A
3	Common Equity	2/10/2023		N/A	—	Forney, TX	Multifamily	N/A		N/A		N/A
4	Common Equity	2/24/2023		N/A	—	Richmond, VA	Multifamily	N/A		N/A		N/A
5	Common Equity	9/8/2023		N/A	—	Atlanta, GA	Multifamily	N/A		N/A		N/A
					60,658
	Preferred Stock
1	Preferred Stock	11/9/2023		N/A	18,346	Various	Life Science	10.50	%	N/A		N/A
	Real Estate
1	Real Estate	12/31/2021	(16)	N/A	25,603	Charlotte, NC	Multifamily	N/A		N/A		N/A
2	Real Estate	10/10/2023	(17)	N/A	3,275	Atlanta, GA	Multifamily	N/A		N/A		N/A
	Total				28,878
	Promissory Note
1	Promissory Note	3/28/2024		500	500	Various	Single-family	12.50	%			0.99
	MSCR Notes
1	MSCR Note	5/25/2022		4,000	2,010	Various	Multifamily	14.82	%	14.82	%	28.17
2	MSCR Note	5/25/2022		5,000	2,236	Various	Multifamily	11.82	%	11.82	%	28.17
3	MSCR Note	9/23/2022		1,500	659	Various	Multifamily	12.17	%	13.37	%	27.67
	Total			10,500	4,905			13.01	%	13.18	%	28.10
	Mortgage Backed Securities
1	Mortgage Backed Security	6/1/2022		10,419	3,473	Various	Single-family	8.63	%	8.87	%	2.05
2	Mortgage Backed Security	9/29/2022		8,000	7,964	Various	Self-Storage	11.10	%	11.12	%	3.46
3	Mortgage Backed Security	3/10/2023		5,747	2,034	Various	Multifamily	13.95	%	13.97	%	0.91
4	Mortgage Backed Security	2/29/2024		30,000	4,264	Various	Single-family	4.50	%	4.75	%	4.97
5	Mortgage Backed Security	2/29/2024		11,000	2,357	Various	Single-family	4.50	%	5.24	%	4.97
6	Mortgage Backed Security	2/29/2024		8,213	1,964	Various	Single-family	4.50	%	5.63	%	4.97
	Total			73,379	22,056			6.55	%	6.92	%	4.07

(1)Our total portfolio represents the current principal amount of the consolidated SFR Loans, CMBS I/O Strips, mezzanine loans, preferred equity, multifamily properties, MSCR Notes and mortgage backed securities as well as the net equity of our CMBS B-Piece investments.

(2)Net equity represents the carrying value less borrowings collateralized by the investment.

(3)Current yield is the annualized income earned divided by the cost basis of the investment.

(4)The weighted-average life is weighted on current principal balance and assumes no prepayments. The maturity date for preferred equity investments represents the maturity date of the senior mortgage, as the preferred equity investments require repayment upon the sale or refinancing of the asset.

(5)The CMBS B-Pieces are shown on an unconsolidated basis reflecting the value of our investments.

(6)The number shown represents the notional value on which interest is calculated for the CMBS I/O Strips. CMBS I/O Strips receive no principal payments and the notional value decreases as the underlying loans are paid off.

(7)The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively.

(8)The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021 and September 29, 2021, February 3, 2022 and March 18, 2022, respectively.

(9)The Company reclassified this investment from preferred equity to a mezzanine loan effective January 1, 2023.

(10)The Company, through the Subsidiary OPs, invested $10.0 million on May 29, 2020, an aggregate of $1.2 million on January 9, 2023, March 6, 2023 and March 28, 2023, $0.2 million on May 25, 2023, $0.3 million on August 16, 2023 and $0.7 million on March 1, 2024 in this preferred equity investment.

(11)The Company, through the Subsidiary OPs, invested $5.0 million, $1.8 million, $40.1 million and $18.5 million in this real estate investment on December 28, 2021, January, 27, 2022, February 1, 2022 and July 26, 2022, respectively.

(12)The Company, through the Subsidiary OPs, invested $2.7 million and $1.3 million in this preferred equity investment on April 7, 2022 and May 3, 2022, respectively.

(13)The Company reclassified this investment from a mezzanine loan to preferred equity effective January 1, 2023.

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(14)The Company, through the Subsidiary OPs, invested $0.5 million and $0.7 million in this preferred equity investment on May 16, 2023 and June 12, 2023, respectively.

(15)The Company, through the Subsidiary OPs, invested $3.7 million and $0.3 million in this preferred equity investment on May 17, 2023 and June 24, 2023, respectively.

(16)Real Estate is a 204-unit multifamily property. As of March 31, 2024, the property was 98.0% occupied, with effective rent per occupied unit of $1,693 per month.

(17)Real Estate is a 280-unit multifamily property. As of March 31, 2024, the property was 68.6% occupied with effective rent per occupied unit of $1,633 per month.

The following table details overall statistics for our portfolio as of March 31, 2024 (dollars in thousands):

	Total Portfolio			Floating Rate Investments			Fixed Rate Investments			Common Equity Investments		Preferred Stock Investment		Real Estate Investments
Number of investments	89			26			55			5		1		2
Principal balance (1)	$	1,168,775		$	385,093		$	783,681		N/A		N/A		N/A
Carrying value	$	1,261,394		$	381,232		$	880,162		$	60,658	$	18,346	$	124,486
Weighted-average cash coupon	6.28		%	9.45		%	4.73		%	N/A		N/A		N/A
Weighted-average all-in yield	6.94		%	12.73		%	4.43		%	N/A		N/A		N/A

(1)Cost is used in lieu of principal balance for CMBS I/O Strips.

Liquidity and Capital Resources

Our short-term liquidity requirements consist primarily of funds necessary to pay for our ongoing commitments to repay borrowings, maintain our investments, make distributions to our stockholders and other general business needs. Our investments generate liquidity on an ongoing basis through principal and interest payments, prepayments and dividends. We believe that our available cash, expected operating cash flows, and potential debt or equity financings will provide sufficient funds for our operations, anticipated scheduled debt service payments, potential obligations to fulfill unfunded commitments and dividend requirements for the twelve-month period following March 31, 2024.

Our long-term liquidity requirements consist primarily of acquiring additional investments, scheduled debt payments and distributions. We expect to meet our long-term liquidity requirements through various sources of capital, which may include future debt or equity issuances, net cash provided by operations and other secured and unsecured borrowings. Our leverage is matched in term and structure to provide stable contractual spreads which will protect us from fluctuations in market interest rates over the long-term. However, there are a number of factors that may have a material adverse effect on our ability to access these capital sources, including the state of overall equity and credit markets, our degree of leverage, borrowing restrictions imposed by lenders, general market conditions for REITs and our operating performance and liquidity. We believe that our various sources of capital, which may include future debt or equity issuances, net cash provided by operations and other secured and unsecured borrowings, will provide sufficient funds for our operations, anticipated debt service payments, potential obligations to purchase investments under the Company's commitments noted in Note 15 to our consolidated financial statements and dividend requirements for the long-term.

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	Asset Metrics			Debt Metrics
Investment	Fixed/Floating Rate	Interest Rate	Maturity Date	Fixed/Floating Rate	Interest Rate	Maturity Date	Net Spread
SFR Loans
Senior loan	Fixed	5.35%	2/1/2028	Fixed	3.51%	2/1/2028	1.84%
Senior loan	Fixed	5.30%	9/1/2028	Fixed	2.79%	9/1/2028	2.51%
Senior loan	Fixed	5.24%	10/1/2028	Fixed	2.64%	10/1/2028	2.60%
Senior loan	Fixed	4.74%	10/1/2025	Fixed	2.14%	10/1/2025	2.60%
Senior loan	Fixed	6.10%	10/1/2028	Fixed	3.30%	10/1/2028	2.80%
Senior loan	Fixed	5.55%	11/1/2028	Fixed	2.70%	11/1/2028	2.85%
Senior loan	Fixed	5.99%	12/1/2028	Fixed	3.14%	12/1/2028	2.85%
Senior loan	Fixed	5.88%	1/1/2029	Fixed	3.14%	1/1/2029	2.74%
Senior loan	Fixed	5.46%	3/1/2029	Fixed	2.99%	3/1/2029	2.47%
Senior loan	Fixed	4.72%	3/1/2026	Fixed	2.45%	3/1/2026	2.27%
Mezzanine Loans
Mezzanine	Fixed	7.50%	5/1/2029	Fixed	0.30%	5/1/2029	7.20%
Mezzanine	Fixed	7.42%	7/1/2031	Fixed	0.30%	7/1/2031	7.12%
Mezzanine	Fixed	7.59%	6/1/2029	Fixed	0.30%	6/1/2029	7.29%
Mezzanine	Fixed	7.83%	10/1/2028	Fixed	0.30%	10/1/2028	7.53%
Mezzanine	Fixed	7.71%	4/1/2031	Fixed	0.30%	4/1/2031	7.41%
Mezzanine	Fixed	7.32%	8/1/2031	Fixed	0.30%	8/1/2031	7.02%
Mezzanine	Fixed	7.22%	8/1/2031	Fixed	0.30%	8/1/2031	6.92%
Mezzanine	Fixed	7.33%	5/1/2029	Fixed	0.30%	5/1/2029	7.03%
Mezzanine	Fixed	7.53%	7/1/2031	Fixed	0.30%	7/1/2031	7.23%
Mezzanine	Fixed	7.42%	1/1/2029	Fixed	0.30%	1/1/2029	7.12%
Mezzanine	Fixed	7.42%	7/1/2031	Fixed	0.30%	7/1/2031	7.12%
Mezzanine	Fixed	7.42%	4/1/2031	Fixed	0.30%	4/1/2031	7.12%
Mezzanine	Fixed	7.74%	10/1/2028	Fixed	0.30%	10/1/2028	7.44%
Mezzanine	Fixed	7.71%	3/1/2029	Fixed	0.30%	3/1/2029	7.41%
Mezzanine	Fixed	6.91%	7/1/2029	Fixed	0.30%	7/1/2029	6.61%
Mezzanine	Fixed	7.89%	11/1/2028	Fixed	0.30%	11/1/2028	7.59%
Mezzanine	Fixed	7.89%	11/1/2028	Fixed	0.30%	11/1/2028	7.59%

Our primary sources of liquidity and capital resources to date consist of cash generated from our operating results and the following:

Freddie Mac Credit Facilities

Prior to the Formation Transaction, two of our subsidiaries entered into a loan and security agreement, dated July 12, 2019, with Freddie Mac (the “Credit Facility”). Under the Credit Facility, these entities borrowed approximately $788.8 million in connection with their acquisition of senior pooled mortgage loans backed by SFR properties (the “Underlying Loans”). No additional borrowings can be made under the Credit Facility, and our obligations will be secured by the Underlying Loans. The Credit Facility was assumed by the Company as part of the Formation Transaction. As such, the remaining outstanding balance of $788.8 million was contributed to the Company on February 11, 2020. Our borrowings under the Credit Facility will mature on July 12, 2029; however, if an Underlying Loan matures prior to July 12, 2029, we will be required to repay the portion of the Credit Facility that is allocated to that loan. As of March 31, 2024, the outstanding balance on the Credit Facility was $123.3 million.

Repurchase Agreements

From time to time, we may enter into repurchase agreements to finance the acquisition of our target assets. Repurchase agreements will effectively allow us to borrow against loans and securities that we own in an amount equal to (1) the market value of such loans and/or securities multiplied by (2) the applicable advance rate. Under these agreements, we will sell our loans and securities to a counterparty and agree to repurchase the same loans and securities from the counterparty at a price equal to the original sales price plus an interest factor. During the term of a repurchase agreement,

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we will receive the principal and interest on the related loans and securities and pay interest to the lender under the repurchase agreement. At any point in time, the amounts and the cost of our repurchase borrowings will be based on the assets being financed. For example, higher risk assets will result in lower advance rates (i.e., levels of leverage) at higher borrowing costs. In addition, these facilities may include various financial covenants and limited recourse guarantees.

As discussed in Note 9 to our consolidated financial statements, we, through the OP and the Subsidiary OPs, have borrowed approximately $341.7 million under our repurchase agreements and posted approximately $984.6 million par value of our CMBS B-Piece, CMBS I/O Strip, MSCR Notes and mortgage backed security investments as collateral. The CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities held as collateral are illiquid and irreplaceable in nature. These assets are restricted solely to satisfy the interest and principal balances owed to the lender as described in our Annual Report.

The table below provides additional details regarding recent borrowings under the master repurchase agreements (dollars in thousands):

March 31, 2024

Facility

Collateral

Date issued

Outstanding face amount

Carrying value

Final stated maturity

Weighted average interest rate (1)

Weighted average life (years) (2)

Outstanding face amount

Amortized cost basis

Carrying value (3)

Weighted average life (years) (2)

Master Repurchase Agreements

CMBS

Mizuho(4)

4/15/2020

341,740

341,740

N/A

(5)

7.15

%

0.00

984,591

519,743

513,307

6.06

(1)Weighted-average interest rate using unpaid principal balances.

(2)Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower.

(3)CMBS are shown at fair value on an unconsolidated basis.

(4)On April 15, 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho. Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities.

(5)The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly.

At-The-Market Offering

On March 15, 2022, the Company, the OP and the Manager separately entered into the 2022 Equity Distribution Agreements with the 2022 Sales Agents, pursuant to which the Company may issue and sell from time to time shares of the Company’s common stock and Series A Preferred Stock having an aggregate sales price of up to $100.0 million in the 2022 ATM Program. The 2022 Equity Distribution Agreements provide for the issuance and sale of common stock or Series A Preferred Stock by the Company through a sales agent acting as a sales agent or directly to the sales agent acting as principal for its own account at a price agreed upon at the time of sale. As of March 31, 2024, pursuant to the 2022 Equity Distribution Agreements, the Company had sold 531,728 shares of its common stock and zero shares of Series A Preferred Stock for total gross sales of $12.6 million. For additional information about the 2022 ATM Program, see Note 11 to our consolidated financial statements.

Series B Preferred Stock Offering

On November 2, 2023, the Company announced the launch of a continuous public offering of up to 16,000,000 shares of its Series B Preferred Stock at a price to the public of $25.00 per share, for gross proceeds of $400 million. Beginning on the first day of the calendar month following the date of original issuance, the Series B Preferred Stock are redeemable at the option of the holder at a redemption price per share equal to the liquidation preference of $25.00 per share, plus all accrued but unpaid cash dividends and less certain redemption fees. After the first day of the calendar month following the second anniversary of the original issue date, the Company also has the option to redeem, in whole or in part, subject to certain restrictions in the Company's charter and the articles supplementary setting forth the terms of the Series B Preferred Stock, at a redemption price per share equal to the liquidation preference of $25.00 per share, plus any accrued but unpaid cash dividends. In all optional redemptions, the Company has the right, in its sole discretion, to pay the redemption in cash or in equal value of shares of the Company’s common stock for so long as the common stock is listed

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or admitted to trading on the NYSE or another national securities exchange or automated quotation system. The Dealer Manager serves as the Company’s dealer manager in connection with the offering. The Dealer Manager uses its reasonable best efforts to sell the shares of Series B Preferred Stock offered in the offering, and the Company pays the Dealer Manager, subject to the discounts and other special circumstances described or referenced therein, (i) Selling Commissions of 7.0% of the aggregate gross proceeds from sales of Series B Preferred Stock in the offering and (ii) a Dealer Manager Fee of 3.0% of the gross proceeds from sales of Series B Preferred Stock in the offering. The Dealer Manager, subject to federal and state securities laws, will reallow all or any portion of the Selling Commissions and may reallow a portion of the Dealer Manager Fee to other securities dealers that the Dealer Manager may retain who sold the shares of Series B Preferred Stock as is described more fully in the agreements between such dealers and the Dealer Manager. The Company expects that the offering will terminate on the earlier of the date the Company sells all 16,000,000 shares of the Series B Preferred Stock in the offering or March 14, 2025 (which is the third anniversary of the effective date of the Company’s registration statement), which may be extended by the Board in its sole discretion. The Board may elect to terminate this offering at any time. As of March 31, 2024, the Company has sold 1,657,700 shares of Series B Preferred Stock for total gross proceeds of $40.9 million.

Company Notes Offering

In 2022 and 2023, the Company issued a total of $35 million and $15 million in aggregate principal amount, respectively, of its 5.75% Notes for proceeds of approximately $34.6 million and $13.6 million, respectively, after original issue discount and underwriting fees.

In 2022, the Company purchased a total of $5 million aggregate principal amount of its 5.75% Notes for approximately $4.9 million. The purchased 5.75% Notes were cancelled upon settlement.

Other Potential Sources of Financing

We may seek additional sources of liquidity from further repurchase facilities, other borrowings and future offerings of common and preferred equity and debt securities and contributions from existing holders of the OP or Subsidiary OPs. In addition, we may apply our existing cash and cash equivalents and cash flows from operations to any liquidity needs. As of March 31, 2024, our cash and cash equivalents were $19.3 million.

Cash Flows

The following table presents selected data from our Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and March 31, 2023 (in thousands):

	For the Three Months Ended March 31, 2024
	2024		2023
Net cash provided by operating activities	$	17,711	$	14,950
Net cash provided by investing activities	545,411		66,732
Net cash (used in) financing activities	(560,484)		(61,704)
Net increase (decrease) in cash, cash equivalents, and restricted cash	2,638		19,978
Cash, cash equivalents and restricted cash, beginning of period	16,649		20,347
Cash, cash equivalents and restricted cash, end of period	$	19,287	$	40,325

Cash flows from operating activities. During the three months ended March 31, 2024, net cash provided by operating activities was $17.7 million compared to net cash provided by operating activities of $15.0 million for the three months ended March 31, 2023. This increase primarily relates to accelerated amortization of the premium associated with the prepayment on a senior loan.

Cash flows from investing activities. During the three months ended March 31, 2024, net cash provided by investing activities was $545.4 million compared to net cash provided by investing activities of $66.7 million for the three months ended March 31, 2023. This increase was primarily due to the principal prepayment on a senior loan.

Cash flows from financing activities. During the three months ended March 31, 2024, net cash used in financing activities was $560.5 million compared to net cash used in financing activities of $61.7 million for the three months ended

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March 31, 2023. The increase primarily relates to principal repayments on borrowings under secured financing agreements associated with the prepayment on a senior loan.

Emerging Growth Company and Smaller Reporting Company Status

Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 13(a) of the Exchange Act, for complying with new or revised accounting standards applicable to public companies. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of this extended transition period. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates for such new or revised standards. We may elect to comply with public company effective dates at any time, and such election would be irrevocable pursuant to Section 107(b) of the JOBS Act.

We are also a “smaller reporting company” as defined in Regulation S-K under the Securities Act, and may elect to take advantage of certain of the scaled disclosures available to smaller reporting companies. We may be a smaller reporting company even after we are no longer an “emerging growth company.”

Dividends

We intend to make regular quarterly dividend payments to holders of our common stock. We also intend to make the accrued dividend payments on the Series A Preferred Stock, which are payable quarterly in arrears as provided in the articles supplementary setting forth the terms of the Series A Preferred Stock and the Series B Preferred Stock, which are payable monthly as provided in the articles supplementary setting forth the terms of the Series B Preferred Stock. U.S. federal income tax law generally requires that a REIT distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains. As a REIT, we will be subject to federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years. We intend to make regular quarterly dividend payments of all or substantially all of our taxable income, which is not used to pay a dividend on the Series A Preferred Stock and Series B Preferred Stock, to holders of our common stock out of assets legally available for this purpose, if and to the extent authorized by our Board. Before we make any dividend payments, whether for U.S. federal income tax purposes or otherwise, we must first meet both our operating requirements and debt service on our debt payable. If our cash available for distribution is less than our taxable income, we could be required to sell assets, borrow funds or raise additional capital to make cash dividends or we may make a portion of the required dividend in the form of a taxable distribution of stock or debt securities.

We will make dividend payments to holders of our common stock based on our estimate of taxable earnings per share of common stock, but not earnings calculated pursuant to GAAP. Our dividends and taxable income and GAAP earnings will typically differ due to items such as depreciation and amortization, fair-value adjustments, differences in premium amortization and discount accretion and non-deductible G&A expenses. Our quarterly dividends per share of our common stock may be substantially different than our quarterly taxable earnings and GAAP earnings per share. Our Board declared the first regular quarterly dividend to common stockholders of $0.50 per share on February 26, 2024, which was paid on March 28, 2024, to stockholders of record as of March 15, 2024. Our Board declared a Series A Preferred Stock dividend to Series A Preferred stockholders of $0.53125 per share, which was paid on April 25, 2024, to Series A Preferred stockholders of record as of April 15, 2024. On January 2, 2024, our Board declared a Series B Preferred Stock dividend to Series B Preferred stockholders of $0.1875 which was paid on February 5, 2024 to Series B Preferred Stockholders of record as of January 25, 2024. On January 18, 2024, our Board declared a Series B Preferred Stock dividend to Series B Preferred stockholders of $0.1875, which was paid March 5, 2024, to Series B Preferred Stockholders of record as of February 23, 2024. On February 21, 2024, our Board declared a Series B Preferred Stock dividend to Series B Preferred stockholders of $0.1875, which was paid on April 5, 2024, to stockholders of record as of March 25, 2024. On March 22, 2024, our Board declared a Series B Preferred Stock dividend to Series B Preferred stockholders of $0.1875, which will be paid on May 6, 2024, to stockholders of record as of April 25, 2024.

Off-Balance Sheet Arrangements

As of March 31, 2024, we had one off balance sheet arrangement that has or is reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

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On December 8, 2022 and in connection with a restructuring of NSP, the Company, through REIT Sub, together with NexPoint Diversified Real Estate Trust, Highland Income Fund and NexPoint Real Estate Strategies Fund (collectively, the "Co-Guarantors"), as guarantors, entered into a sponsor guaranty agreement (the "NSP Sponsor Guaranty Agreement") in favor of Extra Space Storage, LP ("Extra Space") pursuant to which REIT Sub and the Co-Guarantors guaranteed obligations of NSP with respect to accrued dividends on NSP’s newly created Series D preferred stock and two promissory notes in an aggregate principal amount of approximately $64.2 million issued to Extra Space. The guaranties by REIT Sub and the Co-Guarantors are capped at $97.6 million, and each of REIT Sub and the Co-Guarantors generally guaranteed the foregoing obligations of NSP up to the cap amount on a pro rata basis with respect to its percentage ownership of NSP’s common stock. On February 15, 2023, NSP paid down approximately $15.0 million of these promissory notes, resulting in an aggregate principal amount of approximately $49.2 million. On December 8, 2023, NSP paid down the remaining principal balance of $49.2 million. The NSP Series D preferred stock remains outstanding as of March 31, 2024. As of March 31, 2024, the outstanding NSP Series D Preferred Stock accrued dividends was $7.3 million, and the Company and NexPoint Diversified Real Estate Trust are jointly and severally liable for 85.90% of the guaranteed amount.

Commitments and Contingencies

Except as otherwise disclosed below, the Company is not aware of any contractual obligations, legal proceedings or any other contingent obligations incurred in the normal course of business that would have a material adverse effect on our consolidated financial statements.

On September 29, 2021, the Company, through one of the Subsidiary OPs, entered into an agreement to purchase up to $50.0 million in a new preferred equity investment (the “Preferred Units”) upon notice from the issuer. Subject to certain conditions, the Company may be required to purchase an additional $25.0 million of Preferred Units at the option of the issuer. The funds are expected to be used to capitalize special purpose limited liability companies (“PropCos”) to engage in sale-and-leaseback transactions and development transactions on life science real property. On September, 22, 2023, the issuer exercised its right to extend the final obligation date to purchase any additional Preferred Units to September 29, 2024. As of March 31, 2024, the Company may have the obligation to fund an additional $3.6 million by September 29, 2024, which the issuer may extend for up to one year at its option for an extension fee. The Preferred Units accrue distributions at a rate of 10.0% annually, compounded monthly. Distributions on the Preferred Units will be paid in cash with respect to stabilized PropCos and paid in kind with respect to unstabilized PropCos. The obligations of the issuer will be supported by a pledge of all equity units of the PropCos. All or a portion of the Preferred Units may be redeemed at any time for a redemption price equal to the purchase price of the Preferred Units to be redeemed plus any accrued and unpaid distributions thereon and a cash redemption fee. Upon the redemption of any Preferred Units and if the parties agree, the remaining amount to be funded by the Company may be increased by the aggregate purchase price of the redeemed Preferred Units. In addition, if the issuer experiences a change of control, the redemption price will also include a payment equal to the amount needed to achieve a multiple on invested capital ("MOIC") equal to 1.25x for unstabilized PropCos and 1.10x for stabilized PropCos. As of March 31, 2024, the Company has not recorded any contingencies on its Consolidated Balance Sheets as the obligation to fund additional Preferred Units other than under the existing commitment is considered remote for the three months ended March 31, 2024.

The Company provides certain guarantees in connection with the NSP Sponsor Guaranty Agreement. See Off-Balance Sheet Arrangements above for further details.

On March 14, 2023, the Company, through one of the Subsidiary OPs, committed to fund $24.0 million of preferred equity with respect to a ground up construction horizontal single-family property located in Phoenix, Arizona, of which $16.9 million was unfunded as of March 31, 2024. The preferred equity investment provides a floating annual return that is the greater of prime rate plus 5.0% or 11.25%, compounded monthly with a MOIC of 1.30x and 1.0% placement fee. The Company was also issued a common interest at the time of its first funding of preferred equity on May 16, 2023. The common interest allows the Company to receive a 10% profit share once aggregate distributions exceed the 20% internal rate of return ("IRR") hurdle as shown below. There was no value ascribed to the common interest as of March 31, 2024. Further, once the Company's preferred equity and accrued interest has been repaid, any additional cash flow and net sale proceeds shall be distributed as follows:

•0% to the Company and 100% to issuer up to a 20.0% IRR

•10% to the Company and 90% to issuer thereafter

On February 10, 2023, the Company, through one of the Subsidiary OPs, through a unit purchase agreement, committed to purchase $30.3 million of the preferred units with respect to a multifamily property development located in

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Forney, Texas, which was fully funded as of March 31, 2024. Further, the Company committed to purchase $4.3 million of common equity with respect to the same property, of which $1.3 million was unfunded as of March 31, 2024.

On February 10, 2023, the Company, through one of the Subsidiary OPs, through a unit purchase agreement, committed to purchase $30.3 million of the preferred units with respect to a multifamily property development located in Richmond, Virginia, of which $6.1 million was unfunded as of March 31, 2024. Further, the Company committed to purchase $4.3 million of common equity with respect to the same property, of which $3.3 million was unfunded as of March 31, 2024.

On January 26, 2024, the Company, along with related party OSL, entered into the Alewife Loan whereby it made a loan in the maximum principal amount of up to $218 million to Alewife Holdings, which is solely owned by IQHQ, LP. The Company has an ownership interest in the Series D-1 preferred stock in IQHQ, Inc., who is the limited partner in IQHQ, LP; however, the Company has no controlling financial interest nor significant influence in IQHQ, LP. The loan is secured by a first mortgage with a first lien position and other security interests. The Company’s portion of the total commitment is $208 million, of which $164.7 million was unfunded as of March 31, 2024. Subsequent to March 31, 2024, the Company entered into the Alewife Agreement and the Company's expected maximum commitment is $179 million as of the date hereof. See Note 16.

The table below shows the Company's unfunded commitments by investment type as of March 31, 2024 and December 31, 2023 (in thousands):

Investment Type	March 31, 2024		December 31, 2023
	Unfunded Commitments		Unfunded Commitments
Mezzanine Loan	$	164,717	$	—
Preferred Equity	21,519		34,966
Common Equity	4,600		6,600
	$	190,836	$	41,566

Critical Accounting Policies and Estimates

Management’s discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires our management to make judgments, assumptions and estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate these judgments, assumptions and estimates for changes that would affect the reported amounts. These estimates are based on management’s historical industry experience and on various other judgments and assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these judgments, assumptions and estimates. Below is a discussion of the accounting policies and estimates that involve significant estimation uncertainty that have or are reasonably likely to have a material impact on our financial condition or results of operations. A discussion of recent accounting pronouncements and our significant accounting policies, including further discussion of the accounting policies described below, can be found in Note 2 to our consolidated financial statements.

Allowance for Credit Losses

We adopted ASU 2016-13 as of January 1, 2023. The implementation process included the utilization of loan loss forecasting models, updates to our loan credit loss policy documentation, changes to internal reporting processes and related internal controls, and overall operational readiness for our adoption of the new standard. We have implemented loan loss forecasting models for estimating expected life-time credit losses, at the individual loan level, for our loan portfolio. These models are also utilized for estimating expected life-time credit losses for unfunded loan commitments for which the Company has a present contractual obligation to extend the credit and the obligation is not unconditionally cancellable. The CECL forecasting methods used by the Company include (i) a probability of default and loss given default method using underlying third-party CMBS/Commercial Real Estate loan database with historical loan losses from 1998 to 2022, and (ii) probability weighted expected cash flow method, depending on the type of loan and the availability of relevant historical market loan loss data. We might use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data. Significant inputs to our forecasting methods include (i) key loan-specific inputs such as loan-to-value, vintage year, loan-term, underlying property type, occupancy, geographic location, performance against the underwritten business plan, and our internal loan risk rating, and (ii) a macro-economic environment forecast. The cumulative effect of adoption of ASU

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2016-13 is a $1.6 million reduction in retained earnings. The beginning allowance for credit loss as of January 1, 2024 was $2.1 million. The reversal of credit losses of $0.4 million for the three months ended March 31, 2024 is included in other income on the accompanying Consolidated Statements of Operations, resulting in a March 31, 2024 ending allowance for credit loss of $1.7 million.

Significant judgment is required in determining impairment and in estimating the resulting loss allowance, and actual losses, if any, could materially differ from those estimates.

Valuation of Common Equity and Preferred Stock

As of March 31, 2024, the Company owns approximately 25.7% of the total outstanding shares of NSP and thus can exercise significant influence over NSP. The Company elected the fair-value option in accordance with ASC 825-10-10. On a quarterly basis, the Company, with the assistance of an independent third-party valuation firm, determines the fair value for subsequent measurement absent a readily available market price. The valuation is determined using widely accepted valuation techniques consistent with the principles of ASC 820. Specifically, these techniques include the discounted cash flow methodology whereby observable market terminal capitalization rates and discount rates are applied to projected cash flows generated by self-storage assets owned by NSP. The necessary inputs for the valuation include projected cash flows of NSP, terminal capitalization rates and discount rates. These inputs are reflective of public company comparables, but are assumptions and estimates. As a result, the determination of fair value involves significant estimation uncertainty because it involves subjective judgments and estimates that are based on unobservable inputs. For the three months ended March 31, 2024, the unrealized gain related to the change in fair value estimate is $0.6 million. See Notes 5 and 10 to our consolidated financial statements for additional disclosures regarding the valuation of NSP.

As of March 31, 2024, the Company owns approximately 6.36% of the total outstanding common equity of the Private REIT. The Company records the Private REIT at fair value in accordance with ASC 321. The valuation is determined using a market approach. The necessary input for the valuation includes the yield of the Private REIT. As a result, the determination of fair value is uncertain because it involves subjective judgments and estimates that are unobservable. For the three months ended March 31, 2024, the unrealized loss related to the change in fair value estimate is $1.5 million. See Notes 5 and 10 to our consolidated financial statements for additional disclosures regarding the valuation of the Private REIT.

As of March 31, 2024, the Company owns approximately 98.0% of the total outstanding common equity of each of RFGH and RTB. The Company holds RFGH and RTB based on the Company's proportionate share of income (losses) for the three months ended March 31, 2024. See Notes 5 and 6 to our consolidated financial statements for additional disclosures regarding the equity method investments RFGH and RTB.

As of March 31, 2024, the Company owns 9.5% of the total outstanding shares of the Series D-1 preferred stock in IQHQ, Inc. See Notes 5 and 10 to our consolidated financial statements for additional disclosures regarding the equity security investment in IQHQ, Inc.

Considerations Related to Tightening Monetary Policy

The macroeconomic environment remains challenging as central banks have held interest rates high to combat inflation. The high rate environment, coupled with large bank failures in early 2023 and ongoing economic uncertainty, has limited credit availability to commercial real estate. Less available and more expensive debt capital has had pronounced effects on the capital markets, making investments harder to finance. Similar factors also impact the timing of and proceeds generated from asset sales and our ability to obtain debt capital.

REIT Tax Election

We elected to be treated as a REIT under Sections 856 through 860 of the Code. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our “REIT taxable income,” as defined by the Code, to our stockholders. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. We had no significant taxes associated with our TRS for the three months ended March 31, 2024 and March 31, 2023. We believe that our organization and current and proposed method of operation will allow us to qualify for taxation as a REIT, but no assurance can be given that we will operate in a manner so as to qualify as a REIT.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not required for smaller reporting companies.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(b) and Rule 15d-15(b) under the Exchange Act, our management, including our President and Chief Financial Officer, evaluated, as of March 31, 2024, the effectiveness of our disclosure controls and procedures as defined in Exchange Act Rule 13a-15(e) and Rule 15d-15(e). Based on that evaluation, our President and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2024, to provide reasonable assurance that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Exchange Act and is accumulated and communicated to management, including the President and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

We believe, however, that a controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls systems are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud or error, if any, within a company have been detected.

Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we are party to legal proceedings that arise in the ordinary course of our business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on our results of operations or financial condition, nor are we aware of any such legal proceedings contemplated by government agencies.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed under Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on March 22, 2024.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

On May 10, 2024, the Company, through OP IV; NexPoint Diversified Real Estate Trust Operating Partnership, L.P. (“NXDT OP”), the operating partnership of NXDT, an entity that is advised by an affiliate of the Manager; and OSL, an entity that may be deemed an affiliate of the Adviser through common beneficial ownership, entered into an Assignment and Assumption and Co-Lender Agreement, pursuant to which OP IV assigned the right to fund up to 9% of a loan (the “Alewife Loan”) to be made to IQHQ-Alewife Holdings, LLC (“Alewife Holdings”) to NXDT OP and allocated the right to fund up to 9% of the Alewife Loan to OSL. Upon receipt of a draw request, NXDT OP and OSL would have the right to elect to fund an amount equal or greater than zero and up to (i) 9% of the total amount of all advances previously made under the loan plus the amount of the then current borrowing, (ii) less the total amount of advances previously made by NXDT OP and OSL, respectively. OP IV would be required to fund any amounts not funded by OSL and NXDT OP. At any time that NXDT OP and OSL have funded less than their respective 9% of all advances made under the Alewife Loan, NXDT OP and OSL shall have the option upon notice to OP IV to pay to OP IV any amount of such unfunded amount. Upon such payment, NXDT OP or OSL would become entitled to all interest and fees accrued on the amount paid to OP IV on and after the date of such payment.

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Item 6. Exhibits

EXHIBIT INDEX

Exhibit Number	Description
3.1	Second Amended and Restated Bylaws of NexPoint Real Estate Finance, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K, filed by the Company on January 3, 2024).
10.1	Amended and Restated NexPoint Real Estate Finance, Inc. 2-2020 Long Term Incentive Plan (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed by the Company on January 29, 2024).
10.2*	Promissory Note, dated as of March 28, 2024, by and between NexPoint SFR Operating Partnership, L.P. and NexPoint Real Estate Finance, Inc.
31.1*	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1+	Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	Inline XBRL Instance Document (The instance document does not appear in the interactive date file because its XBRL tags are embedded within the inline XBRL document)
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

______________________

*    Filed herewith.

+    Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NEXPOINT REAL ESTATE FINANCE, INC.

Signature	Title	Date
/s/ Jim Dondero	Chairman of the Board and President (Principal Executive Officer)	May 13, 2024
Jim Dondero
/s/ Brian Mitts	Director, Chief Financial Officer, Executive VP-Finance, Secretary and Treasurer (Principal Financial Officer and Principal Accounting Officer)	May 13, 2024
Brian Mitts

65

EX-10.2

THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND LAWS.

PROMISSORY NOTE

U.S. $500,000.00    March 31, 2024

FOR VALUE RECEIVED, NexPoint SFR Operating Partnership, L.P., having an address at 300 Crescent Court, Suite 700, Dallas, Texas 75201 (the “Maker”), hereby promises to pay to the order of NexPoint Real Estate Finance, Inc. (“Holder”), at its address at 300 Crescent Court, Suite 700, Dallas, Texas 75201 or such other address as it may designate, the principal sum of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00), and interest from the Effective Date on the balance of principal from time to time outstanding as such amount will be increased pursuant to Section 1 hereof, in United States currency, at the rates and at the times hereinafter described.

1.Interest. The principal amount hereof outstanding from time to time shall bear interest until paid in full at the Note Rate. Interest at the Note Rate shall be (i) paid on the last day of each fiscal quarter until such principal amount outstanding is paid in full, (ii) calculated for the actual number of days elapsed on the basis of a 360-day year, including the first date of the applicable period to the last day of such fiscal quarter and (iii) payable in kind, with such interest amount added to, and made part of, the principal amount hereof outstanding.

2.Maximum Lawful Rate. It is the intent of Maker and Holder to conform to and contract in strict compliance with applicable usury law from time to time in effect. In no way, nor in any event or contingency (including but not limited to prepayment, default, demand for payment, or acceleration of the maturity of any obligation), shall the rate of interest taken, reserved, contracted for, charged or received under this Note exceed the highest lawful interest rate permitted under applicable law. If Holder shall ever receive anything of value which is characterized as interest under applicable law and which would apart from this provision be in excess of the highest lawful interest rate permitted under applicable law, an amount equal to the amount which would have been excessive interest shall, without penalty, be applied to the reduction of the principal amount owing on the Note in the inverse order of its maturity and not to the payment of interest, or refunded to the Maker or the other payor thereof if and to the extent such amount which would have been excessive exceeds such unpaid principal. All interest paid or agreed to be paid to the Holder hereof shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full stated term (including any renewal or extension) of the Note so that the amount of interest on account of such obligation does not exceed the maximum permitted by applicable law. As used in this Section, the term "applicable law" shall mean the laws of the State of Texas or the federal laws of the United States, whichever laws allow the greater interest, as such laws now exist or may be changed or amended or come into effect in the future.

3.Definitions.

(a)“Effective Date” means March 28, 2024.

(b)“Note” means this Promissory Note dated March 31, 2024.

(c)“Note Rate” means a rate per annum equal to 12.50%.

4.Payments. Maker shall make a payment in full of principal and accrued and unpaid interest on the Maturity Date.

5.Maturity Date. The indebtedness evidenced hereby shall mature on March 31, 2025 (the “Maturity Date”). On the Maturity Date, the entire outstanding principal balance hereof, together with accrued and unpaid interest and all other sums evidenced by this Note, shall, if not sooner paid, become due and payable.

6.General Provisions.

(a)Maker agrees that the obligation evidenced by this Note is an exempt transaction under the Truth-in-Lending Act, 15 U.S.C. § 1601, et seq.

(b)This Note and all provisions hereof shall be binding upon Maker and all persons claiming under or through Maker, and shall inure to the benefit of Holder, together with its successors and assigns, including each owner and holder from time to time of this Note.

(c)Time is of the essence as to all dates set forth herein.

(d)To the fullest extent permitted by applicable law, Maker agrees that its liability shall not be in any manner affected by any indulgence, extension of time, renewal, waiver, or modification granted or consented to by Holder; and Maker consents to any indulgences and all extensions of time, renewals, waivers, or modifications that may be granted by Holder with respect to the payment or other provisions of this Note, and agrees to the addition or release of any makers, endorsers, guarantors, or sureties, all whether primarily or secondarily liable, without notice to Maker and without affecting its liability hereunder.

(e)To the fullest extent permitted by applicable law, Maker hereby waives and renounces for itself, its successors and assigns, all rights to the benefits of any statute of limitations and any moratorium, reinstatement, marshalling, forbearance, valuation, stay, extension, redemption, appraisement, or exemption and homestead laws now provided, or which may hereafter be provided, by the laws of the United States and of any state thereof against the enforcement and collection of the obligations evidenced by this Note.

(f)If this Note is placed in the hands of attorneys for collection or is collected through any legal proceedings, Maker promises and agrees to pay, in addition to the principal, interest and other sums due and payable hereon, all costs of collecting or attempting to collect this Note, including all reasonable attorneys’ fees and disbursements.

(g)To the fullest extent permitted by applicable law, all parties now or hereafter liable with respect to this Note, whether Maker, principal, surety, guarantor, endorsee or otherwise hereby severally waive presentment for payment, demand, notice of nonpayment or dishonor, protest and notice of protest. No failure to accelerate the indebtedness evidenced hereby, acceptance of past due amounts following the expiration of any cure period provided by this Note, any documents now or in the future executed by Maker or

2

its subsidiaries in connection with any loan provided by any lender which is secured by a mortgage or deed of trust on any property or applicable law, or indulgences granted from time to time shall be construed (i) as a novation of this Note or as a reinstatement of the indebtedness evidenced hereby or as a waiver of such right of acceleration or of the right of Holder thereafter to insist upon strict compliance with the terms of this Note, or (ii) to prevent the exercise of such right of acceleration or any other right granted hereunder or under applicable law. Maker hereby expressly waives the benefit of any statute or rule of law or equity now provided, or which may hereafter be provided, which would produce a result contrary to or in conflict with the foregoing.

(h)Irrespective of the place of execution and/or delivery, this Note shall be governed by, and shall be construed in accordance with, the laws of the State of Texas.

[Signature page follows.]

3

Maker has delivered this Note as of the day and year first set forth above.

MAKER:

NEXPOINT SFR OPERATING PARTNERSHIP, L.P.

By:    /s/ Brian Mitts            

Name:    Brian Mitts

Title:    Chief Financial Officer, Treasurer and Assistant Secretary

[Promissory Note]

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jim Dondero, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of NexPoint Real Estate Finance, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 13, 2024
	/s/ Jim Dondero
	Jim Dondero President (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Brian Mitts, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of NexPoint Real Estate Finance, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 13, 2024
	/s/ Brian Mitts
	Brian Mitts Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of NexPoint Real Estate Finance, Inc. (the “Company”) for the period ending March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Jim Dondero, President of the Company, and Brian Mitts, Chief Financial Officer of the Company, each certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 13, 2024	/s/ Jim Dondero
	Jim Dondero President (Principal Executive Officer)
Dated: May 13, 2024	/s/ Brian Mitts
	Brian Mitts Chief Financial Officer (Principal Financial Officer)

XML

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 10, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-39210
Entity Registrant Name	NexPoint Real Estate Finance, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	84-2178264
Entity Address, Address Line One	300 Crescent Court, Suite 700
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75201
City Area Code	214
Local Phone Number	276-6300
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,718,817
Entity Central Index Key	0001786248
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	NREF
Security Exchange Name	NYSE
Series A Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	8.50% Series A Cumulative Redeemable Preferred Stock, par value 0.01 per share
Trading Symbol	NREF-PRA
Security Exchange Name	NYSE

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
ASSETS
Cash and cash equivalents	$ 13,483	$ 13,824
Restricted cash	5,804	2,825
Real estate investments, net	124,486	126,551
Common stock investments	60,658	61,529
Mortgage loans, held-for-investment, net	140,565	676,420
Preferred stock investments, at fair value	18,346	14,776
Accrued interest and dividends	25,271	22,033
Accounts receivable and other assets	4,097	4,312
Due from brokers for securities sold, not yet settled	908	0
TOTAL ASSETS	7,085,007	7,018,353
Liabilities:
Secured financing agreements, net	182,598	649,558
Master repurchase agreements	341,740	303,514
Unsecured notes, net	219,849	219,483
Mortgages payable, net	95,608	95,657
Accounts payable and other accrued liabilities	10,270	6,428
Accrued interest payable	12,695	8,209
Bonds payable held in variable interest entities, at fair value	5,774,017	5,289,997
Total Liabilities	6,636,777	6,572,846
Redeemable Series B Preferred stock	36,090	8,599
Redeemable noncontrolling interests in the OP	85,058	89,471
Stockholders' Equity:
Preferred Stock, Value, Outstanding	16	16
Common Stock, Value, Outstanding	173	172
Additional paid-in capital	397,165	395,737
Retained earnings (accumulated deficit)	(59,318)	(35,821)
Treasury Stock, Preferred, Value	(8,567)	(8,567)
Treasury Stock, Common, Value	(4,195)	(4,195)
Total Stockholders' Equity	327,082	347,437
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	7,085,007	7,018,353
CMBS Structured Pass Through Certificates
ASSETS
Debt securities, trading	39,334	41,212
MSCR Notes
ASSETS
Debt securities, trading	10,363	10,378
Collateralized Mortgage Backed Securities
ASSETS
Debt securities, trading	68,026	38,270
Consolidated Entity, Excluding Consolidated VIE
ASSETS
Loans and leases receivable, net amount	391,591	328,460
Variable Interest Entity, Primary Beneficiary
ASSETS
Loans and leases receivable, net amount	6,182,075	5,677,763
Stockholders' Equity:
Stockholders' equity attributable to noncontrolling interest	1,713	0
Subsidiaries
Stockholders' Equity:
Stockholders' equity attributable to noncontrolling interest	$ 95	$ 95

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Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Common stock investments	$ 60,658	$ 61,529
Redeemable Series B Preferred Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Redeemable Series B Preferred Stock, authorized (in shares)	16,000,000	16,000,000
Redeemable Series B Preferred Stock, outstanding (in shares)	1,657,700	427,218
Redeemable Series B Preferred Stock, issued (in shares)	1,657,700	427,218
Preferred stock, par value per share (in usd per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	100,000,000	100,000,000
Preferred stock, issued (in shares)	2,000,000	2,000,000
Preferred stock, outstanding (in shares)	1,645,000	1,645,000
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	500,000,000	500,000,000
Common stock, issued (in shares)	17,593,244	17,518,900
Common stock, outstanding (in shares)	17,306,257	17,231,913
Treasury stock, preferred (in shares)	355,000	355,000
Treasury stock, common (in shares)	286,987	286,987
Collateralized Mortgage Backed Securities
Debt securities, trading	$ 68,026	$ 38,270
Related Party
Loans and leases receivable, net amount	22,558	22,989
Common stock investments	33,764	33,129
Related Party | Collateralized Mortgage Backed Securities
Debt securities, trading	$ 44,396	$ 0

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Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Net interest income (expense)
Interest income (expense)	[1]	$ (1,574)	$ 16,161
Interest expense		(11,240)	(12,212)
Total net interest income (expense)		(12,814)	3,949
Other income (loss)
Reversal of (provision for) credit losses		420	34
Dividend income		500	0
Other income		74	317
Gain on deconsolidation of variable interest entity		0	1,490
Equity in income (losses) of equity method investments		(2,000)	0
Revenues from consolidated real estate owned		2,211	1,028
Total other income		9,199	10,949
Operating expenses
General and administrative expenses		4,187	2,152
Loan servicing fees		567	1,043
Management fees		835	828
Expenses from consolidated real estate owned		5,437	1,497
Total operating expenses		11,026	5,520
Net income (loss)		(14,641)	9,378
Net (income) loss attributable to redeemable noncontrolling interests		1,894	(1,937)
Net income (loss) attributable to common stockholders		$ (14,286)	$ 6,567
Weighted-average common shares outstanding - basic (in shares)		17,264	17,118
Weighted-average common shares outstanding - diluted (in shares)		24,862	22,678
Earnings (loss) per share outstanding - basic (in dollars per share)		$ (0.83)	$ 0.38
Earnings (loss) per share outstanding - diluted (in dollars per share)	[2]	(0.83)	0.37
Dividends declared per common share (in dollars per share)		$ 0.5000	$ 0.6850
Series A Preferred Stock
Operating expenses
Net (income) loss attributable to Series A preferred stockholders		$ (874)	$ (874)
Series B Preferred Stock
Operating expenses
Net (income) loss attributable to Series A preferred stockholders		(665)	0
CMBS Structured Pass Through Certificates
Other income (loss)
Unrealized gain (loss)		(40)	(752)
Common Stock
Other income (loss)
Change in unrealized gain (loss) on investments		(871)	(1,267)
Preferred Stock
Other income (loss)
Change in unrealized gain (loss) on investments		64	0
MSCR Notes
Other income (loss)
Unrealized gain (loss)		(15)	(298)
Collateralized Mortgage Backed Securities
Other income (loss)
Unrealized gain (loss)		440	(606)
Variable Interest Entity, Primary Beneficiary
Other income (loss)
Change in net assets related to consolidated CMBS variable interest entities		8,416	11,003
Unrealized gain (loss)		(820)	360
Redeemable Noncontrolling Interests
Operating expenses
Net (income) loss attributable to redeemable noncontrolling interests		$ 1,894	$ (1,937)

[1] Includes $25.0 million related to accelerated amortization of the premium associated with the prepayment on a senior loan in the first quarter of 2024.

[2] Diluted earnings per share ("EPS") calculations were higher than basic EPS and thus anti-dilutive for the quarter ended March 31, 2024. As such, the Company is presenting diluted EPS as equal to basic EPS.

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Consolidated Statements of Operations (Parenthetical) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Income Statement [Abstract]
Accelerated amortization of premium	$ 25.0

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Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings Less Dividends	Retained Earnings Less Dividends Cumulative Effect, Period of Adoption, Adjustment	Common Stock Held in Treasury at Cost	Preferred Stock Held in Treasury at Cost	Noncontrolling interest Variable Interest Entity, Primary Beneficiary	Noncontrolling interest Subsidiaries
Preferred stock, beginning balance (in shares) at Dec. 31, 2022			1,645,000
Common stock, beginning balance (in shares) at Dec. 31, 2022				17,079,943
Beginning balance at Dec. 31, 2022	$ 448,513	$ (1,624)	$ 16	$ 171	$ 392,124	$ 4,435	$ (1,624)	$ (4,195)	$ (8,567)		$ 64,529
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Vesting of stock-based compensation (in shares)				104,288
Vesting of stock-based compensation	317			$ 1	316
Net income attributable to Series A preferred stockholders	874					874
Net loss attributable to common stockholders	6,567					6,567
Adjustment to noncontrolling interest in subsidiary on deconsolidation of real estate	(64,434)										(64,434)
Preferred stock dividends declared	(874)					(874)
Common stock dividends declared	(12,075)					(12,075)
Preferred stock, ending balance (in shares) at Mar. 31, 2023			1,645,000
Common stock, ending balance (in shares) at Mar. 31, 2023				17,184,231
Ending balance at Mar. 31, 2023	$ 377,264		$ 16	$ 172	392,440	(2,697)		(4,195)	(8,567)		95
Preferred stock, beginning balance (in shares) at Dec. 31, 2023	1,645,000		1,645,000
Common stock, beginning balance (in shares) at Dec. 31, 2023	17,231,913			17,231,913
Beginning balance at Dec. 31, 2023	$ 347,437		$ 16	$ 172	395,737	(35,821)		(4,195)	(8,567)	$ 0	95
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Vesting of stock-based compensation (in shares)				74,344
Vesting of stock-based compensation	1,429			$ 1	1,428
Noncontrolling interest in CMBS variable interest entities					1,713					1,713
Net income attributable to Series A preferred stockholders	874					874
Net loss attributable to common stockholders	(14,286)					(14,286)
Preferred stock dividends declared	(874)					(874)
Common stock dividends declared	$ (9,211)					(9,211)
Preferred stock, ending balance (in shares) at Mar. 31, 2024	1,645,000		1,645,000
Common stock, ending balance (in shares) at Mar. 31, 2024	17,306,257			17,306,257
Ending balance at Mar. 31, 2024	$ 327,082		$ 16	$ 173	$ 397,165	$ (59,318)		$ (4,195)	$ (8,567)	$ 1,713	$ 95

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Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Preferred stock dividends declared (in usd per share)	$ 0.5313	$ 0.5313
Common stock dividends declared (in usd per share)	$ 0.5000	$ 0.6850

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net income	$ (14,641)	$ 9,378
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of premiums	27,874	3,531
Accretion of discounts	(3,880)	(3,500)
Depreciation and amortization of real estate investment	2,318	476
Amortization of deferred financing costs	12	11
Provision for (reversal of) credit losses	(420)	(34)
Net change in unrealized (gain) loss on investments held at fair value	1,351	2,564
Equity in (income) losses of unconsolidated equity method ventures	2,000	0
Gain on deconsolidation of variable interest entity	0	(1,490)
Stock-based compensation expense	1,798	847
Payment in kind income	(3,448)	(209)
Changes in operating assets and liabilities:
Accrued interest and dividends receivable	(3,238)	247
Accounts receivable and other assets	215	292
Accrued interest payable	4,486	3,290
Accounts payable, accrued expenses and other liabilities	3,284	(453)
Net cash provided by operating activities	17,711	14,950
Cash flows from investing activities
Originations of loans, held-for-investment, net	(60,247)	(28,816)
Purchases of preferred stock	(3,507)	0
Purchases of equity method investments	(2,000)	(1,000)
Sale of mortgage backed securities, at fair value	14,069	0
Decrease in cash in connection with VIE deconsolidation	0	(4,992)
Additions to real estate investments	(253)	(58)
Net cash provided by investing activities	545,411	66,732
Cash flows from financing activities
Principal repayments on borrowings under secured financing agreements	(466,960)	(405)
Borrowings under master repurchase agreements	57,425	26,801
Principal repayments on borrowings under master repurchase agreements	(19,199)	(7,422)
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs	27,491	0
Principal repayments on mortgages payable	(61)	0
Payments for taxes related to net share settlement of stock-based compensation	(369)	(530)
Dividends paid to common stockholders	(8,653)	(11,771)
Distributions to redeemable noncontrolling interests in the OP	(2,519)	(3,023)
Net cash used in financing activities	(560,484)	(61,704)
Net increase (decrease) in cash, cash equivalents, and restricted cash	2,638	19,978
Cash, cash equivalents and restricted cash, beginning of period	16,649	20,347
Cash, cash equivalents and restricted cash, end of period	19,287	40,325
Supplemental Disclosure of Cash Flow Information
Interest paid	6,755	9,793
Supplemental Disclosure of Noncash Investing and Financing Activities
Adjustment to loans, held for investment, net on deconsolidation of real estate	0	36,022
Adjustment to real estate investments, net on deconsolidation of real estate	0	(185,732)
Adjustment to accrued interest and dividends on deconsolidation of real estate	0	2,049
Adjustment to accounts receivable and other assets on deconsolidation of real estate	0	(799)
Adjustment to mortgages payable, net on deconsolidation of real estate	0	89,012
Adjustment to accounts payable and accrued liabilities on deconsolidation of real estate	0	705
Adjustment to accrued interest payable on deconsolidation of real estate	0	1,087
Adjustment to noncontrolling interest in subsidiary on deconsolidation of real estate	0	64,434
Adjustment to retained earnings on deconsolidation of real estate	0	1,490
Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate	0	(297)
Increase in dividends payable upon vesting of restricted stock units	558	304
Consolidation of mortgage loans and bonds payable held in variable interest entities	638,451	0
Consolidation of noncontrolling interest in CMBS variable interest entities	1,713	0
Due from brokers for securities sold, not yet settled	908	0
Series A Preferred Stock
Cash flows from financing activities
Dividends paid to preferred stockholders	(874)	(874)
Series B Preferred Stock
Cash flows from financing activities
Dividends paid to preferred stockholders	(665)	0
Variable Interest Entity, Primary Beneficiary
Cash flows from investing activities
Proceeds from sale of loans held-for-investment	157,014	70,071
Cash flows from financing activities
Distributions to bondholders of variable interest entities	(146,100)	(64,480)
Variable Interest Entity, Primary Beneficiary | Collateralized Mortgage Backed Securities
Cash flows from investing activities
Purchases of debt securities, at fair value	(44,396)	(5,733)
Consolidated Entity, Excluding Consolidated VIE
Cash flows from investing activities
Proceeds from sale of loans held-for-investment	511,169	36,743
Consolidated Entity, Excluding Consolidated VIE | CMBS Structured Pass Through Certificates
Cash flows from investing activities
Purchases of debt securities, at fair value	(26,438)	0
Consolidated Entity, Excluding Consolidated VIE | Collateralized Mortgage Backed Securities
Cash flows from investing activities
Proceeds from sale of loans held-for-investment	$ 0	$ 517

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Organization and Description of Business

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

Organization and Description of Business

NexPoint Real Estate Finance, Inc. (the “Company”, “we”, “our”) is a commercial mortgage real estate investment trust (a "REIT") incorporated in Maryland on June 7, 2019. The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2020 and the Company believes the current organization and method of operation will enable it to maintain its status as a REIT. The Company is focused on originating, structuring and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties and common equity investments, as well as multifamily and single family rental ("SFR") commercial mortgage backed securities securitizations (“CMBS securitizations”), multifamily structured credit risk notes (“MSCR Notes”) and mortgage backed securities, or our target assets. We primarily focus on investments in real estate sectors where our senior management team has operating expertise, including in the multifamily, SFR, self-storage, life science and hospitality sectors predominantly in the top 50 metropolitan statistical areas ("MSAs"). Substantially all of the Company’s business is conducted through NexPoint Real Estate Finance Operating Partnership, L.P. (the “OP”), the Company’s operating partnership. As of March 31, 2024, the Company holds approximately 83.82% of the common limited partnership units in the OP (“OP Units”) which represents 100% of the Class A OP Units, and the OP owned all of the common limited partnership units (“SubOP Units”) of its subsidiary partnerships (collectively, the “Subsidiary OPs”) (see Note 13).

The OP also directly owns all of the membership interests of a limited liability company (the “Mezz LLC”) through which it owns a portfolio of mezzanine loans, as further discussed below. NexPoint Real Estate Finance OP GP, LLC (the “OP GP”) is the sole general partner of the OP.

The Company commenced operations on February 11, 2020 upon the closing of its initial public offering of shares of its common stock (the “IPO”). Prior to the closing of the IPO, the Company engaged in a series of transactions through which it acquired an initial portfolio consisting of senior pooled mortgage loans backed by SFR properties (the “SFR Loans”), the junior most bonds of multifamily CMBS securitizations (the “CMBS B-Pieces”), mezzanine loan and preferred equity investments in real estate companies and properties in other structured real estate investments within the multifamily, SFR and self-storage asset classes (the “Initial Portfolio”). The Initial Portfolio was acquired from affiliates (the “Contribution Group”) of NexPoint Advisors, L.P. (our “Sponsor”), pursuant to a contribution agreement with the Contribution Group through which the Contribution Group contributed their interest in the Initial Portfolio to special purpose entities (“SPEs”) owned by the Subsidiary OPs, in exchange for SubOP Units (the “Formation Transaction”). Subsequent to the Formation Transaction, the Company has continued to invest in asset types and real estate sectors within the Initial Portfolio and expanded to include additional asset types and real estate sectors.

The Company is externally managed by NexPoint Real Estate Advisors VII, L.P. (the “Manager”) through a management agreement dated February 6, 2020 and amended as of July 17, 2020 and November 3, 2021, that renewed on February 6, 2024 for a one-year term and is automatically renewed for successive one-year terms thereafter unless earlier terminated (as amended, the “Management Agreement”), by and between the Company and the Manager. The Manager conducts substantially all of the Company’s operations and provides asset management services for its real estate investments. The Company expects it will only have accounting employees while the Management Agreement is in effect. All of the Company’s investment decisions are made by the Manager, subject to general oversight by the Manager’s investment committee and the Company’s board of directors (the “Board”). The Manager is wholly owned by our Sponsor.

The Company’s primary investment objective is to generate attractive, risk-adjusted returns for stockholders over the long term. The Company intends to achieve this objective primarily by originating, structuring and investing in our target assets. The Company concentrates on investments in real estate sectors where our senior management team has operating expertise, including in the multifamily, SFR, self-storage, life science and hospitality sectors predominantly in the top 50 MSAs. In addition, the Company targets lending or investing in properties that are stabilized or have a “light transitional” business plan, meaning a property that requires limited deferred funding to support leasing or ramp-up of operations and for which most capital expenditures are for value-add improvements. Through active portfolio management the Company seeks to take advantage of market opportunities to achieve a superior portfolio risk-mix that delivers attractive total returns.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Readers of this Quarterly Report on Form 10-Q (the "Quarterly Report") should refer to the audited financial statements and notes to consolidated financial statements of the Company for the year ended December 31, 2023, which are

included in our Annual Report on Form 10-K ("Annual Report"), filed with the United States Securities and Exchange Commission (the "SEC") and also available on our website (nref.nexpoint.com), since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Summary of Significant Accounting Policies, in the notes to consolidated financial statements in our Annual Report for further discussion of our significant accounting policies and estimates. Information contained on, or accessible through, our website is not incorporated by reference into and does not constitute a part of this Quarterly Report or any other report or documents we file or furnish with the SEC.

General

In accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as issued by the SEC, these Condensed Consolidated Financial Statements do not include all of the information and disclosures required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. Readers of this Quarterly Report should refer to the Company's audited Consolidated Financial Statements, which are included in the Company’s Annual Report. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows, and equity for the interim periods have been included. The results for the three months ended March 31, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024, and future fiscal years.

Basis of Accounting

The accompanying unaudited consolidated financial statements are presented in accordance with GAAP. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. There have been no significant changes to the Company’s significant accounting policies during the three months ended March 31, 2024.

The accompanying unaudited consolidated financial statements have been prepared according to the rules and regulations of the SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading.

Use of Estimates and Assumptions

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that these estimates could change in the near term. Estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.

Principles of Consolidation

The Company accounts for subsidiary partnerships in which it holds an ownership interest in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has power to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. As of March 31, 2024, the Company has determined it must consolidate the OP and the Subsidiary OPs under the VIE model as it was determined the Company both controls the direct activities of the OP and Subsidiary OPs and possesses the right to receive benefits that could potentially be significant to the OP and Subsidiary OPs. The consolidated financial statements include the accounts of the Company and its subsidiaries, including the OP and its subsidiaries. The Company’s sole significant asset is its investment in the OP, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the OP.

Variable Interest Entities

The Company evaluates all of its interests in VIEs for consolidation. When the Company’s interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary

beneficiary of a VIE is required to consolidate the VIE. FASB ASC Topic 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary, and it consolidates the VIE. Where either one of these factors is not present, the Company is not the primary beneficiary, and it does not consolidate the VIE (see Note 6).

CMBS Trusts

The Company consolidates the trusts that issue beneficial ownership interests in mortgage loans secured by commercial real estate (commonly known as CMBS) when the Company holds a variable interest in, and management considers the Company to be the primary beneficiary of, those trusts. Management believes the performance of the assets that underlie CMBS issuances most significantly impact the economic performance of the trust, and the primary beneficiary is generally the entity that conducts activities that most significantly impact the performance of the underlying assets. In particular, the most subordinate tranches of CMBS expose the holder to greater variability of economic performance when compared to more senior tranches since the subordinate tranches absorb a disproportionately higher amount of the credit risk related to the underlying assets. Generally, a trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint, remove and replace the special servicer for the trust. For the ten CMBS that the Company consolidates, the Company owns 100% of the most subordinate tranche of nine of the securities and 94% of the most subordinate tranche of one of the securities issued by the trusts. The subordinate tranche includes the controlling class, and has the ability to remove and replace the special servicer. The portion of the controlling class not owned by the Company is classified as noncontrolling interest in CMBS variable interest entities.

On the Consolidated Balance Sheets as of March 31, 2024, the Company consolidated each of the Freddie Mac K-Series securitization entities (the “CMBS Entities”) that were determined to be VIEs and for which the Company is the primary beneficiary. The CMBS Entities are independent of the Company, and the assets and liabilities of the CMBS Entities are not owned by and are not legal obligations of ours. Our exposure to the CMBS Entities is through the subordinated tranches. For financial reporting purposes, the underlying mortgage loans held by the trusts are recorded as a separate line item on the balance sheet under “Mortgage loans held in variable interest entities, at fair value.” The liabilities of the trusts consist solely of obligations to the CMBS holders of the consolidated trusts, excluding the CMBS B-Piece investments held by the Company. The liabilities are presented as “Bonds payable held in variable interest entities, at fair value” on the Consolidated Balance Sheets. The CMBS B-Pieces held by the Company, and the interest earned thereon are eliminated in consolidation. Management has elected the measurement alternative in ASC 810 to report the fair value of the assets and liabilities of the consolidated CMBS Entities in order to provide users of the financial statements with better information regarding the effects of credit risk and other market factors on the CMBS B-Pieces owned by the Company. Management has elected to show interest income and interest expense related to the CMBS Entities in aggregate with the change in fair value as “Change in net assets related to consolidated CMBS variable interest entities.” The residual difference between the fair value of the CMBS Entities’ assets and liabilities represents the Company’s investments in the CMBS B-Pieces at fair value.

Mortgage and Other Loans Held-For-Investment

Loans that are held-for-investment are carried at their aggregate outstanding face amount, net of applicable (i) unamortized origination or acquisition premium and discounts, (ii) unamortized deferred fees and other direct loan origination costs, (iii) valuation allowance for credit losses and (iv) write-downs of impaired loans. The effective interest method is used to amortize origination or acquisition premiums and discounts and deferred fees or other direct loan origination costs. In general, an increase in prepayment rates accelerates the amortization of purchase premiums, thereby reducing the interest income earned on the assets. Conversely, discounts on such assets are accreted into interest income. In general, an increase in prepayment rates accelerates the accretion of purchase discounts, thereby increasing the interest income earned on the assets.

Allowance for Credit Losses

We adopted ASU 2016-13 as of January 1, 2023. The implementation process included the utilization of loan loss forecasting models, updates to our loan credit loss policy documentation, changes to internal reporting processes and related internal controls, and overall operational readiness for our adoption of the new standard. We have implemented loan loss forecasting models for estimating expected life-time credit losses, at the individual loan level, for our loan portfolio.

These models are also utilized for estimating expected life-time credit losses for unfunded loan commitments for which the Company has a present contractual obligation to extend the credit and the obligation is not unconditionally cancellable. The CECL forecasting methods used by the Company include (i) a probability of default and loss given default method using underlying third-party CMBS/Commercial Real Estate loan database with historical loan losses from 1998 to 2022, and (ii) probability weighted expected cash flow method, depending on the type of loan and the availability of relevant historical market loan loss data. We might use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data. Significant inputs to our forecasting methods include (i) key loan-specific inputs such as loan-to-value, vintage year, loan-term, underlying property type, occupancy, geographic location, performance against the underwritten business plan, and our internal loan risk rating, and (ii) a macro-economic environment forecast. The reasonable and supportable forecast period is determined based on the Company’s assessment of the most likely scenario of assumptions and plausible outcomes for the U.S. economy, current portfolio composition, level of historical loss forecast estimates, material changes in growth and credit strategy and other factors that may affect its loss experience. The Company regularly evaluates the reasonable and supportable forecast period to determine if a change is needed. The Company has determined that economic forecasts used in our CECL model can be reasonable and supportable over four quarters as it provides enough time to account for the expected changes of the economic conditions and the performance of the underlying assets. Beyond the Company’s reasonable and supportable forecast period, the Company immediately reverts to historical loss information. The Company considers an immediate reversion period appropriate in the CECL model because it provides a suitable balance between the stability of historical data and the flexibility to account for changing market conditions. The cumulative effect of adoption of ASU 2016-13 was a $1.6 million reduction in retained earnings. The beginning allowance for credit loss as of January 1, 2024 was $2.1 million. The reversal of credit losses of $0.4 million for the three months ended March 31, 2024 is included in reversal of (provision for) credit losses on the accompanying Consolidated Statements of Operations, resulting in an ending allowance for credit loss of $1.7 million as of March 31, 2024.

Significant judgment is required in determining impairment and in estimating the resulting loss allowance, and actual losses, if any, could materially differ from those estimates.

The Company performs a quarterly review of the portfolio. In conjunction with this review, the Company assesses the risk factors of each loan, including, without limitation, loan-to-value ratio, debt yield, property type, geographic and local market dynamics, physical condition, collateral, cash-flow volatility, leasing and tenant profile, loan structure, exit plan and project sponsorship. Based on a 5-point scale, our loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows:

1 – Outperform – Materially exceeds performance metrics (for example, technical milestones, occupancy, rents and net operating income) included in original or current credit underwriting and business plan;

2 – Exceeds Expectations – Collateral performance exceeds substantially all performance metrics included in original or current credit underwriting and business plan;

3 – Satisfactory – Collateral performance meets, or is on track to meet, underwriting; business plan is met or can reasonably be achieved;

4 – Underperformance – Collateral performance falls short of underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist or may soon occur absent material improvement; and

5 – Risk of Impairment/Default – Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable.

The Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral, as well as the financial and operating capability of the borrower. Specifically, the collateral’s operating results and any cash reserves are analyzed and used to assess (i) whether cash from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan and/or (iii) the collateral’s liquidation value. The Company also evaluates the financial condition of any loan guarantors, as well as any changes in the borrower’s competency in managing and operating the collateral. In addition, the Company considers the overall economic environment, real estate or industry sector and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as property operating statements, occupancy,

tenant profile, rental rates, operating expenses, the borrower’s exit plan and capitalization and discount rates, (ii) site inspections and (iii) current credit spreads and discussions with market participants.

The Company considers loans to be past-due when a monthly payment is due and unpaid for 60 days or more. Loans will be placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when they become 120 days or more past-due unless the loan is both well secured and in the process of collection. Accrual of interest on individual loans is discontinued when management believes that, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. Our policy is to cease accruing interest when a loan’s delinquency exceeds 120 days. All interest accrued but not collected for loans that are placed on nonaccrual status or subsequently charged-off are reversed against interest income. Income is subsequently recognized on the cash basis until, in management’s judgment, the borrower’s ability to make periodic principal and interest payments returns and future payments are reasonably assured, in which case the loan is returned to accrual status.

A loan is written off when it is no longer realizable and/or it is legally discharged.

The Company also recognizes a liability for expected credit losses for off-balance sheet exposures if the Company has a present contractual obligation to extend the credit and the obligation is not unconditionally cancelable by the entity.

Recent Accounting Pronouncements

Section 107 of the Jumpstart Our Business Startups Act (“JOBS Act”) provides that an emerging growth company can take advantage of the extended transition period provided in Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for complying with new or revised accounting standards applicable to public companies. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of this extended transition period. As a result of this election, our consolidated financial statements may not be comparable to companies that comply with public company effective dates for such new or revised standards. The Company may elect to comply with public company effective dates at any time, and such election would be irrevocable pursuant to Section 107(b) of the JOBS Act.

In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06"), which simplifies an issuer’s accounting for convertible instruments and its application of the derivatives scope exception for contracts in its own equity. The amendment also requires entities to use the if-converted method for all convertible instruments in the diluted EPS calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. In addition, the amendment requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. We adopted ASU 2020-06 as of January 1, 2024 using a modified retrospective method. ASU 2020-06 had no material impact upon adoption.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting – Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires a public entity to disclose significant segment expenses and other segment items in interim and annual periods and expands the ASC 280 disclosure requirements for interim periods. The ASU also explicitly requires public entities with a single reportable segment to provide all segment disclosures under ASC 280, including the new disclosures under ASU 2023-07. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

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Loans Held for Investment, Net

3 Months Ended

Mar. 31, 2024

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loans Held for Investment, Net

Loans Held for Investment, Net

The Company’s investments in mortgage loans, mezzanine loans, preferred equity and promissory notes are accounted for as loans held for investment. The mortgage loans are presented as “Mortgage loans, held-for-investment, net” and the mezzanine loans, preferred equity and promissory notes are presented as “Loans, held-for-investment, net” on

the Consolidated Balance Sheets. The following tables summarize our loans held-for-investment as of March 31, 2024 and December 31, 2023, respectively (dollars in thousands):

						Weighted Average
Loan Type	Outstanding Face Amount		Carrying Value (1)		Loan Count	Fixed Rate (2)		Coupon (3)		Life (years) (4)
March 31, 2024
Mortgage loans, held-for-investment	$	135,232	$	140,565	10	100.00	%	5.31	%	3.55
Mezzanine loans, held-for-investment	177,781		177,838		23	58.68	%	10.79	%	4.54
Preferred equity, held-for-investment	214,307		213,253		15	38.67	%	12.11	%	1.84
Promissory note, held-for-investment	500		500		1	12.50	%	12.50	%	0.99
	$	527,820	$	532,156	49	61.10	%	9.92	%	3.19

Loan Type	Outstanding Face Amount		Carrying Value (1)		Loan Count	Weighted Average
						Fixed Rate (2)		Coupon (3)		Life (years) (4)
December 31, 2023
Mortgage loans, held-for-investment	$	645,277	$	676,420	11	100.00	%	4.79	%	4.49
Mezzanine loans, held-for-investment	133,207		135,069		22	78.31	%	9.61	%	5.36
Preferred equity, held-for-investment	195,392		193,391		15	39.12	%	12.20	%	2.22
	$	973,876	$	1,004,880	48	84.82	%	6.94	%	4.15

(1)Carrying value includes the outstanding face amount plus unamortized purchase premiums/discounts and any allowance for loan losses.

(2)The weighted-average of loans paying a fixed rate is weighted on current principal balance.

(3)The weighted-average coupon is weighted on outstanding face amount.

(4)The weighted-average life is weighted on outstanding face amount and assumes no prepayments. The maturity date for preferred equity investments represents the maturity date of the senior mortgage, as the preferred equity investments require repayment upon the sale or refinancing of the asset.

For the three months ended March 31, 2024 and 2023, the loan and preferred equity portfolio activity was as follows (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Balance at December 31,	$	1,004,880	$	982,678
Recognition of retained preferred equity investment upon deconsolidation of real estate (Note 14)	—		36,022
Cumulative effect of adoption of ASU 2016-13 (See Note 2)	—		(1,624)
Originations	60,247		28,816
Proceeds from principal repayments	(511,169)		(36,743)
PIK distribution reinvested in Preferred Units	3,448		209
Amortization of loan premium, net (1)	(25,670)		(1,501)
(Provision for) reversal of credit losses	420		34
Balance at March 31,	$	532,156	$	1,007,891

(1)Includes net amortization of loan purchase premiums.

As of March 31, 2024 and December 31, 2023, there were $7.3 million and $33.1 million of unamortized premiums on loans, held-for-investment, net, respectively, on the Consolidated Balance Sheets.

As discussed in Note 2, the Company evaluates loans classified as held-for-investment on a loan-by-loan basis every quarter. In conjunction with the review of the portfolio, the Company assesses the risk factors of each loan and assign a risk rating based on a variety of factors. Loans are rated “1” through “5,” from least risk to greatest risk, respectively. See Note 2 for a more detailed discussion of the risk factors and ratings. The following tables allocate the principal balance and net book value of the loan portfolio based on our internal risk ratings (dollars in thousands):

	March 31, 2024
Risk Rating	Number of Loans	Carrying Value		% of Loan Portfolio
1	—	$	—	—
2	—	—		—
3	48	519,680		97.66	%
4	1	12,476		2.34	%
5	—	—		—
	49	$	532,156	100.00	%

Risk Rating	December 31, 2023
	Number of Loans	Carrying Value		% of Loan Portfolio
1	—	$	—	—
2	—	—		—
3	46	992,751		98.79	%
4	2	12,129		1.21	%
5	—	—		—
	48	$	1,004,880	100.00	%

Our loan portfolio had a weighted-average risk rating of 3.0 as of March 31, 2024, and 3.0 as of December 31, 2023.

The following tables present the carrying value of the loan portfolio by the Company's internal risk rating and year of origination as of March 31, 2024 and December 31, 2023 (dollars in thousands):

March 31, 2024
	Carrying Value by Year of Origination (1)
Risk Rating	Number of Loans	Outstanding Face Amount		2024		2023		2022		2021		2020		Prior		Total Carrying Value
1	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—	—		—		—		—		—		—		—		—
3	48	515,700		43,303		96,388		84,354		44,387		19,846		231,402		519,680
4	1	12,120		—		—		12,476		—		—		—		12,476
5	—	—		—		—		—		—		—		—		—
	49	$	527,820	$	43,303	$	96,388	$	96,830	$	44,387	$	19,846	$	231,402	$	532,156

December 31, 2023
	Carrying Value by Year of Origination (1)
Risk Rating	Number of Loans	Outstanding Face Amount		2023		2022		2021		2020		2019		Prior		Total Carrying Value
1	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—	—		—		—		—		—		—		—		—
3	46	961,756		82,879		69,958		40,981		19,158		759,828		19,947		992,751
4	2	12,120		—		12,129		—		—		—		—		12,129
5	—	—		—		—		—		—		—		—		—
	48	$	973,876	$	82,879	$	82,087	$	40,981	$	19,158	$	759,828	$	19,947	$	1,004,880

(1)Represents the date a loan was originated or acquired.

The following tables present the geographies and property types of collateral underlying the Company’s loans held-for-investment as a percentage of the loans’ face amounts.

Geography	March 31, 2024		December 31, 2023
Texas	22.64	%	13.87	%
Georgia	10.30	%	30.50	%
Maryland	10.10	%	5.47	%
California	9.71	%	4.92	%
Massachusetts	8.45	%	*
Florida	6.21	%	18.40	%
Virginia	5.96	%	2.65	%
Minnesota	3.78	%	7.31	%
North Carolina	2.68	%	2.78	%
Arkansas	2.52	%	1.37	%
Nevada	2.49	%	1.46	%
Oklahoma	1.76	%	*
Arizona	1.65	%	*
Michigan	1.63	%	*
Washington	1.52	%	*
Pennsylvania	1.15	%	*
Tennessee	1.13	%	*
Iowa	1.09	%	*
Nebraska	1.07	%	*
Delaware	1.05	%	*
Alabama	*		3.51	%
Other (8 and 18 states each at <1%)	3.11	%	7.76	%
	100.00	%	100.00	%

*Included in "Other."

Collateral Property Type	March 31, 2024		December 31, 2023
Single Family Rental	33.54	%	69.94	%
Multifamily	41.60	%	21.99	%
Life Science	21.64	%	6.33	%
Self-Storage	3.22	%	1.75	%
	100.00	%	100.00	%

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CMBS Trusts

3 Months Ended

Mar. 31, 2024

Mortgage Banking [Abstract]

CMBS Trusts

CMBS Trusts

As of March 31, 2024, the Company consolidated all of the CMBS Entities that it determined are VIEs and for which the Company is the primary beneficiary. The Company elected the fair-value measurement alternative in accordance with ASU 2014-13 for each of the trusts and carries the fair values of the trust’s assets and liabilities at fair value in its Consolidated Balance Sheets, recognizes changes in the trust’s net assets, including changes in fair-value adjustments and net interest earned, in its Consolidated Statements of Operations and records cash interest received from the trusts and cash interest paid to bondholders of the CMBS not beneficially owned by the Company as investing and financing cash flows, respectively.

The following table presents the Company’s recognized Trust’s Assets and Liabilities (in thousands):

Trust's Assets	March 31, 2024		December 31, 2023
Mortgage loans held in variable interest entities, at fair value	$	6,182,075	$	5,677,763
Accrued interest receivable	4,344		3,902
Trust's Liabilities
Bonds payable held in variable interest entities, at fair value	(5,774,017)		(5,289,997)
Accrued interest payable	(3,655)		(3,220)

The following table presents “Change in net assets related to consolidated CMBS variable interest entities” (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Net interest earned	$	9,236	$	10,643
Unrealized gain (loss)	(820)		360
Change in net assets related to consolidated CMBS variable interest entities	$	8,416	$	11,003

The following tables present the geographies and property types of collateral underlying the CMBS trusts consolidated by the Company as a percentage of the collateral unpaid principal balance:

Geography	March 31, 2024		December 31, 2023
Texas	15.92	%	15.85	%
Florida	14.16	%	14.07	%
Arizona	4.07	%	4.05	%
California	8.59	%	8.69	%
Georgia	3.87	%	4.00	%
Washington	7.78	%	7.75	%
New Jersey	4.04	%	4.02	%
Nevada	2.50	%	2.49	%
Pennsylvania	1.28	%	1.27	%
Colorado	7.77	%	7.74	%
Connecticut	1.97	%	2.04	%
North Carolina	4.19	%	4.17	%
New York	3.39	%	3.37	%
Ohio	2.46	%	2.48	%
Virginia	2.05	%	2.03	%
Indiana	2.14	%	2.13	%
Illinois	1.65	%	1.65	%
Michigan	1.39	%	1.38	%
Maryland	1.19	%	1.18	%
Missouri	1.57	%	1.56	%
Other (21 states each at <1%)	8.02	%	8.08	%
	100.00	%	100.00	%

*Included in “Other.”

Collateral Property Type	March 31, 2024		December 31, 2023
Multifamily	97.44	%	97.45	%
Manufactured Housing	2.56	%	2.55	%
	100.00	%	100.00	%

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Common and Preferred Stock Investments

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Common and Preferred Stock Investments

Common and Preferred Stock Investments

Common Stock Investments

The Company owns approximately 25.8% of the total outstanding shares of common stock of NexPoint Storage Partners, Inc. ("NSP") and thus can exercise significant influence over NSP. NSP is a VIE and the Company has determined that it is not the primary beneficiary of NSP. The investment qualifies to be accounted for using the equity method. However, the Company elected the fair-value option in accordance with ASC 825-10-10 for NSP.

The investment in NSP is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. The Company's valuation policy for common stock is to use readily available market prices on the relevant valuation date to the extent they are available. On a quarterly basis, the Company determines the value using widely accepted valuation techniques. A bottoms up approach was used by valuing the wholly-owned self-storage assets in aggregate and development loans individually. In this bottoms-up approach, the discounted cash flow methodology is applied to the self-storage assets owned by NSP. Additionally, the income approach is used to determine the fair value of the development loans owned by NSP whereby contractual cash flows are discounted at observable market discount rates. In addition, as a secondary check for reasonableness, a top down approach was applied whereby observable market terminal capitalization rates and discount rates are applied to the consolidated NSP cash flows. The valuation relies primarily on the bottoms-up approach, but uses the top down approach to corroborate the bottoms-up conclusion with a reasonable precision.

The Company owns approximately 6.36% of the total outstanding shares of common stock of a private ground lease REIT (the "Private REIT") as of March 31, 2024. The Company elected the fair-value option in accordance with ASC 825-10-10 for the Private REIT.

The investment in the Private REIT is a Level 3 asset in the fair value hierarchy and was initially measured using the convertible notes conversion share price of $17.50. On April 14, 2022, the two convertible notes converted into 1,394,213 shares or $25.0 million of common stock in the Private REIT, the parent company of the borrower under the convertible notes. As of March 31, 2024, the Company valued this investment based on the Private REIT's market approach price of $20.00 per share.

The Company owns approximately 98.0% of the total outstanding common equity of each of Resmark Forney Gateway Holdings, LLC ("RFGH") and Resmark The Brook Holdings, LLC ("RTB"). The investments in RFGH and RTB are equity method investments. These investments are held in entities that are considered VIEs as the power to direct activities is not proportional to ownership interests. The Company is not the primary beneficiary, but is deemed to have significant influence. As such, the Company accounts for them using the equity method.

The following table presents the common stock investments as of March 31, 2024 and December 31, 2023, respectively (in thousands, except share amounts):

			Shares		Fair Value
Investment	Investment Date	Property Type	March 31, 2024	December 31, 2023	March 31, 2024		December 31, 2023
Common Stock
NexPoint Storage Partners	11/6/2020	Self-storage	41,963	41,963	$	33,764	$	33,129
Private REIT	4/14/2022	Ground lease	1,394,213	1,394,213	26,894		28,400

The following table presents “Change in unrealized (loss) on common stock investments” (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Change in unrealized gain on NexPoint Storage Partners	$	635	$	(235)
Change in unrealized gain (loss) on Private REIT	(1,506)		(1,032)
Change in unrealized gain on common stock investments	$	(871)	$	(1,267)

Preferred Stock Investments

On November 9, 2023, the Company invested in the Series D-1 preferred stock (“Series D-1”) of IQHQ, Inc. (“IQHQ”), a privately held life sciences real estate investment trust. The preferred stock dividend accumulates quarterly at a 10.5% dividend rate per annum. The Series D-1 are not deemed to be in-substance common stock and are accounted for as investments in equity securities measured at fair value. The securities do not have a readily determinable fair value, and the Company does not elect the measurement alternative. The Company owns approximately 9.5% of the total outstanding shares of preferred stock of the Series D-1 as of March 31, 2024.

The investment in the Series D-1 is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. As of March 31, 2024, the Company valued this investment using the discounted cash flow method based on the present value of the expected future cash flows of the underlying investment. The weighted average discount rate of 11.5% considered the implied yield of both the payment in kind and cash interest margins.

CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities

As of March 31, 2024, the Company held twelve CMBS interest only strips ("CMBS I/O Strips"), three MSCR Notes and seven mortgage backed securities at fair value. The CMBS I/O Strips consist of interest only tranches of Freddie Mac structured pass-through certificates with underlying portfolios of fixed-rate mortgage loans secured primarily by stabilized multifamily properties. The MSCR Notes are unguaranteed securities designed to transfer to investors a portion

of the credit risk associated with eligible multifamily mortgages linked to a reference pool. Mortgage backed securities receive principal and interest on floating-rate loans secured by SFR, multifamily and self-storage properties.

The following table presents the CMBS I/O Strips, MSCR Notes and mortgage backed securities as of March 31, 2024 (in thousands):

Investment	Investment Date		Carrying Value		Property Type	Interest Rate		Current Yield (1)		Maturity Date
CMBS I/O Strips
CMBS I/O Strip	5/18/2020		$	1,601	Multifamily	2.02	%	14.67	%	9/25/2046
CMBS I/O Strip	8/6/2020		15,623		Multifamily	2.98	%	18.60	%	6/25/2030
CMBS I/O Strip	4/28/2021	(2)	4,777		Multifamily	1.59	%	18.20	%	1/25/2030
CMBS I/O Strip	5/27/2021		3,338		Multifamily	3.39	%	18.42	%	5/25/2030
CMBS I/O Strip	6/7/2021		378		Multifamily	2.31	%	23.40	%	11/25/2028
CMBS I/O Strip	6/11/2021	(3)	2,427		Multifamily	1.48	%	18.03	%	5/25/2029
CMBS I/O Strip	6/21/2021		809		Multifamily	1.17	%	18.61	%	5/25/2030
CMBS I/O Strip	8/10/2021		2,183		Multifamily	1.89	%	18.63	%	4/25/2030
CMBS I/O Strip	8/11/2021		1,213		Multifamily	3.10	%	15.69	%	7/25/2031
CMBS I/O Strip	8/24/2021		220		Multifamily	2.61	%	16.66	%	1/25/2031
CMBS I/O Strip	9/1/2021		3,293		Multifamily	1.92	%	17.63	%	6/25/2030
CMBS I/O Strip	9/11/2021		3,472		Multifamily	2.95	%	15.57	%	9/25/2031
Total			$	39,334		2.52	%	17.94	%
MSCR Notes
MSCR Notes	5/25/2022		$	4,020	Multifamily	14.82	%	14.82	%	5/25/2052
MSCR Notes	5/25/2022		5,000		Multifamily	11.82	%	11.82	%	5/25/2052
MSCR Notes	9/23/2022		1,343		Multifamily	12.17	%	13.37	%	11/25/2051
Total			$	10,363		13.03	%	13.19	%
Mortgage Backed Securities
Mortgage Backed Securities	6/1/2022		$	9,898	Single-Family	8.63	%	8.87	%	4/17/2026
Mortgage Backed Securities	9/29/2022		7,964		Self Storage	11.10	%	11.12	%	9/15/2027
Mortgage Backed Securities	3/10/2023		5,768		Multifamily	13.95	%	13.97	%	2/25/2025
Mortgage Backed Securities	2/29/2024		28,421		Single-Family	4.50	%	4.75	%	3/19/2029
Mortgage Backed Securities	2/29/2024		9,429		Single-Family	4.50	%	5.24	%	3/19/2029
Mortgage Backed Securities	2/29/2024		6,546		Single-Family	4.50	%	5.63	%	3/19/2029
Total			$	68,026		6.67	%	7.03	%

(1)Current yield is the annualized income earned divided by the cost basis of the investment.

(2)The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively.

(3)The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively.

The following table presents the CMBS I/O Strips, MSCR Notes and mortgage backed securities as of December 31, 2023 (in thousands):

Investment	Investment Date		Carrying Value		Property Type	Interest Rate		Current Yield (1)		Maturity Date
CMBS I/O Strips
CMBS I/O Strip	5/18/2020		$	1,622	Multifamily	2.02	%	14.64	%	9/25/2046
CMBS I/O Strip	8/6/2020		16,601		Multifamily	2.98	%	17.98	%	6/25/2030
CMBS I/O Strip	4/28/2021	(2)	5,022		Multifamily	1.59	%	17.68	%	1/25/2030
CMBS I/O Strip	5/27/2021		3,436		Multifamily	3.39	%	17.79	%	5/25/2030
CMBS I/O Strip	6/7/2021		395		Multifamily	2.31	%	22.31	%	11/25/2028
CMBS I/O Strip	6/11/2021	(3)	2,643		Multifamily	1.18	%	14.57	%	5/25/2029
CMBS I/O Strip	6/21/2021		833		Multifamily	1.17	%	18.07	%	5/25/2030
CMBS I/O Strip	8/10/2021		2,255		Multifamily	1.89	%	17.98	%	4/25/2030
CMBS I/O Strip	8/11/2021		1,241		Multifamily	3.10	%	15.24	%	7/25/2031
CMBS I/O Strip	8/24/2021		229		Multifamily	2.61	%	16.15	%	1/25/2031
CMBS I/O Strip	9/1/2021		3,390		Multifamily	1.92	%	17.01	%	6/25/2030
CMBS I/O Strip	9/11/2021		3,545		Multifamily	2.95	%	15.14	%	9/25/2031
Total			$	41,212		2.50	%	17.21	%
MSCR Notes
MSCR Notes	5/25/2022		$	4,020	Multifamily	14.83	%	14.83	%	5/25/2052
MSCR Notes	5/25/2022		5,000		Multifamily	11.83	%	11.83	%	5/25/2052
MSCR Notes	9/23/2022		1,358		Multifamily	12.18	%	13.38	%	11/25/2051
Total			$	10,378		13.04	%	13.20	%
Mortgage Backed Securities
Mortgage Backed Securities	6/1/2022		$	9,924	Single-Family	8.64	%	8.91	%	4/17/2026
Mortgage Backed Securities	6/1/2022		9,369		Single-Family	4.87	%	5.01	%	11/19/2025
Mortgage Backed Securities	7/28/2022		538		Single-Family	6.23	%	6.31	%	10/17/2027
Mortgage Backed Securities	7/28/2022		856		Single-Family	3.60	%	4.12	%	6/20/2028
Mortgage Backed Securities	9/12/2022		3,881		Multifamily	11.57	%	11.55	%	1/25/2031
Mortgage Backed Securities	9/29/2022		7,960		Self Storage	11.10	%	11.12	%	9/15/2027
Mortgage Backed Securities	3/10/2023		5,742		Multifamily	13.93	%	13.95	%	2/25/2025
Total			$	38,270		9.17	%	9.30	%

(1)Current yield is the annualized income earned divided by the cost basis of the investment

(2)The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively.

(3)The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively.

The following table presents activity related to the Company’s CMBS I/O Strips, MSCR Notes and mortgage backed securities (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Net interest earned	$	664	$	717
Change in unrealized gain (loss) on CMBS structured pass-through certificates	(40)		(752)
Change in unrealized gain (loss) on MSCR Notes	(15)		(298)
Change in unrealized (loss) on mortgage backed securities	440		(606)
Total	$	1,049	$	(939)

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Unconsolidated Variable Interest Entities

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Unconsolidated Variable Interest Entities

Unconsolidated Variable Interest Entities

Unconsolidated VIEs

The Company continually reassesses whether it remains the primary beneficiary for VIEs consolidated under the VIE model.

As of March 31, 2024, the Company has accounted for the following investments as unconsolidated VIEs:

Entities	Instrument	Asset Type	Accounting Treatment	Percentage Ownership as of March 31, 2024		Relationship as of March 31, 2024
Unconsolidated Entities:
NexPoint Storage Partners, Inc.	Common Stock	Self-storage	Fair Value	25.7	%	VIE
Resmark Forney Gateway Holdings, LLC	Common Equity	Multifamily	Equity Method	98.0	%	VIE
Resmark The Brook Holdings, LLC	Common Equity	Multifamily	Equity Method	98.0	%	VIE
Private REIT	Common Equity	Ground lease	Fair Value	6.4	%	VIE

The Company's maximum exposure to loss of value for the NSP investment is the fair value of the Company's $33.8 million NSP common stock investment. The Company's maximum exposure to loss of value for the RFGH and RTB common equity investments is the $1.0 million carrying value for each investment and may include an additional $2.8 million in unfunded commitments for each investment to the extent those commitments are funded. The Company's maximum exposure to loss of value for the Private REIT investment is the fair value of the Company's $26.9 million Private REIT common equity investment.

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CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities

Common and Preferred Stock Investments

Common Stock Investments

The Company owns approximately 25.8% of the total outstanding shares of common stock of NexPoint Storage Partners, Inc. ("NSP") and thus can exercise significant influence over NSP. NSP is a VIE and the Company has determined that it is not the primary beneficiary of NSP. The investment qualifies to be accounted for using the equity method. However, the Company elected the fair-value option in accordance with ASC 825-10-10 for NSP.

The investment in NSP is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. The Company's valuation policy for common stock is to use readily available market prices on the relevant valuation date to the extent they are available. On a quarterly basis, the Company determines the value using widely accepted valuation techniques. A bottoms up approach was used by valuing the wholly-owned self-storage assets in aggregate and development loans individually. In this bottoms-up approach, the discounted cash flow methodology is applied to the self-storage assets owned by NSP. Additionally, the income approach is used to determine the fair value of the development loans owned by NSP whereby contractual cash flows are discounted at observable market discount rates. In addition, as a secondary check for reasonableness, a top down approach was applied whereby observable market terminal capitalization rates and discount rates are applied to the consolidated NSP cash flows. The valuation relies primarily on the bottoms-up approach, but uses the top down approach to corroborate the bottoms-up conclusion with a reasonable precision.

The Company owns approximately 6.36% of the total outstanding shares of common stock of a private ground lease REIT (the "Private REIT") as of March 31, 2024. The Company elected the fair-value option in accordance with ASC 825-10-10 for the Private REIT.

The investment in the Private REIT is a Level 3 asset in the fair value hierarchy and was initially measured using the convertible notes conversion share price of $17.50. On April 14, 2022, the two convertible notes converted into 1,394,213 shares or $25.0 million of common stock in the Private REIT, the parent company of the borrower under the convertible notes. As of March 31, 2024, the Company valued this investment based on the Private REIT's market approach price of $20.00 per share.

The Company owns approximately 98.0% of the total outstanding common equity of each of Resmark Forney Gateway Holdings, LLC ("RFGH") and Resmark The Brook Holdings, LLC ("RTB"). The investments in RFGH and RTB are equity method investments. These investments are held in entities that are considered VIEs as the power to direct activities is not proportional to ownership interests. The Company is not the primary beneficiary, but is deemed to have significant influence. As such, the Company accounts for them using the equity method.

The following table presents the common stock investments as of March 31, 2024 and December 31, 2023, respectively (in thousands, except share amounts):

			Shares		Fair Value
Investment	Investment Date	Property Type	March 31, 2024	December 31, 2023	March 31, 2024		December 31, 2023
Common Stock
NexPoint Storage Partners	11/6/2020	Self-storage	41,963	41,963	$	33,764	$	33,129
Private REIT	4/14/2022	Ground lease	1,394,213	1,394,213	26,894		28,400

The following table presents “Change in unrealized (loss) on common stock investments” (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Change in unrealized gain on NexPoint Storage Partners	$	635	$	(235)
Change in unrealized gain (loss) on Private REIT	(1,506)		(1,032)
Change in unrealized gain on common stock investments	$	(871)	$	(1,267)

Preferred Stock Investments

On November 9, 2023, the Company invested in the Series D-1 preferred stock (“Series D-1”) of IQHQ, Inc. (“IQHQ”), a privately held life sciences real estate investment trust. The preferred stock dividend accumulates quarterly at a 10.5% dividend rate per annum. The Series D-1 are not deemed to be in-substance common stock and are accounted for as investments in equity securities measured at fair value. The securities do not have a readily determinable fair value, and the Company does not elect the measurement alternative. The Company owns approximately 9.5% of the total outstanding shares of preferred stock of the Series D-1 as of March 31, 2024.

The investment in the Series D-1 is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. As of March 31, 2024, the Company valued this investment using the discounted cash flow method based on the present value of the expected future cash flows of the underlying investment. The weighted average discount rate of 11.5% considered the implied yield of both the payment in kind and cash interest margins.

CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities

As of March 31, 2024, the Company held twelve CMBS interest only strips ("CMBS I/O Strips"), three MSCR Notes and seven mortgage backed securities at fair value. The CMBS I/O Strips consist of interest only tranches of Freddie Mac structured pass-through certificates with underlying portfolios of fixed-rate mortgage loans secured primarily by stabilized multifamily properties. The MSCR Notes are unguaranteed securities designed to transfer to investors a portion

of the credit risk associated with eligible multifamily mortgages linked to a reference pool. Mortgage backed securities receive principal and interest on floating-rate loans secured by SFR, multifamily and self-storage properties.

The following table presents the CMBS I/O Strips, MSCR Notes and mortgage backed securities as of March 31, 2024 (in thousands):

Investment	Investment Date		Carrying Value		Property Type	Interest Rate		Current Yield (1)		Maturity Date
CMBS I/O Strips
CMBS I/O Strip	5/18/2020		$	1,601	Multifamily	2.02	%	14.67	%	9/25/2046
CMBS I/O Strip	8/6/2020		15,623		Multifamily	2.98	%	18.60	%	6/25/2030
CMBS I/O Strip	4/28/2021	(2)	4,777		Multifamily	1.59	%	18.20	%	1/25/2030
CMBS I/O Strip	5/27/2021		3,338		Multifamily	3.39	%	18.42	%	5/25/2030
CMBS I/O Strip	6/7/2021		378		Multifamily	2.31	%	23.40	%	11/25/2028
CMBS I/O Strip	6/11/2021	(3)	2,427		Multifamily	1.48	%	18.03	%	5/25/2029
CMBS I/O Strip	6/21/2021		809		Multifamily	1.17	%	18.61	%	5/25/2030
CMBS I/O Strip	8/10/2021		2,183		Multifamily	1.89	%	18.63	%	4/25/2030
CMBS I/O Strip	8/11/2021		1,213		Multifamily	3.10	%	15.69	%	7/25/2031
CMBS I/O Strip	8/24/2021		220		Multifamily	2.61	%	16.66	%	1/25/2031
CMBS I/O Strip	9/1/2021		3,293		Multifamily	1.92	%	17.63	%	6/25/2030
CMBS I/O Strip	9/11/2021		3,472		Multifamily	2.95	%	15.57	%	9/25/2031
Total			$	39,334		2.52	%	17.94	%
MSCR Notes
MSCR Notes	5/25/2022		$	4,020	Multifamily	14.82	%	14.82	%	5/25/2052
MSCR Notes	5/25/2022		5,000		Multifamily	11.82	%	11.82	%	5/25/2052
MSCR Notes	9/23/2022		1,343		Multifamily	12.17	%	13.37	%	11/25/2051
Total			$	10,363		13.03	%	13.19	%
Mortgage Backed Securities
Mortgage Backed Securities	6/1/2022		$	9,898	Single-Family	8.63	%	8.87	%	4/17/2026
Mortgage Backed Securities	9/29/2022		7,964		Self Storage	11.10	%	11.12	%	9/15/2027
Mortgage Backed Securities	3/10/2023		5,768		Multifamily	13.95	%	13.97	%	2/25/2025
Mortgage Backed Securities	2/29/2024		28,421		Single-Family	4.50	%	4.75	%	3/19/2029
Mortgage Backed Securities	2/29/2024		9,429		Single-Family	4.50	%	5.24	%	3/19/2029
Mortgage Backed Securities	2/29/2024		6,546		Single-Family	4.50	%	5.63	%	3/19/2029
Total			$	68,026		6.67	%	7.03	%

(1)Current yield is the annualized income earned divided by the cost basis of the investment.

(2)The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively.

(3)The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively.

The following table presents the CMBS I/O Strips, MSCR Notes and mortgage backed securities as of December 31, 2023 (in thousands):

Investment	Investment Date		Carrying Value		Property Type	Interest Rate		Current Yield (1)		Maturity Date
CMBS I/O Strips
CMBS I/O Strip	5/18/2020		$	1,622	Multifamily	2.02	%	14.64	%	9/25/2046
CMBS I/O Strip	8/6/2020		16,601		Multifamily	2.98	%	17.98	%	6/25/2030
CMBS I/O Strip	4/28/2021	(2)	5,022		Multifamily	1.59	%	17.68	%	1/25/2030
CMBS I/O Strip	5/27/2021		3,436		Multifamily	3.39	%	17.79	%	5/25/2030
CMBS I/O Strip	6/7/2021		395		Multifamily	2.31	%	22.31	%	11/25/2028
CMBS I/O Strip	6/11/2021	(3)	2,643		Multifamily	1.18	%	14.57	%	5/25/2029
CMBS I/O Strip	6/21/2021		833		Multifamily	1.17	%	18.07	%	5/25/2030
CMBS I/O Strip	8/10/2021		2,255		Multifamily	1.89	%	17.98	%	4/25/2030
CMBS I/O Strip	8/11/2021		1,241		Multifamily	3.10	%	15.24	%	7/25/2031
CMBS I/O Strip	8/24/2021		229		Multifamily	2.61	%	16.15	%	1/25/2031
CMBS I/O Strip	9/1/2021		3,390		Multifamily	1.92	%	17.01	%	6/25/2030
CMBS I/O Strip	9/11/2021		3,545		Multifamily	2.95	%	15.14	%	9/25/2031
Total			$	41,212		2.50	%	17.21	%
MSCR Notes
MSCR Notes	5/25/2022		$	4,020	Multifamily	14.83	%	14.83	%	5/25/2052
MSCR Notes	5/25/2022		5,000		Multifamily	11.83	%	11.83	%	5/25/2052
MSCR Notes	9/23/2022		1,358		Multifamily	12.18	%	13.38	%	11/25/2051
Total			$	10,378		13.04	%	13.20	%
Mortgage Backed Securities
Mortgage Backed Securities	6/1/2022		$	9,924	Single-Family	8.64	%	8.91	%	4/17/2026
Mortgage Backed Securities	6/1/2022		9,369		Single-Family	4.87	%	5.01	%	11/19/2025
Mortgage Backed Securities	7/28/2022		538		Single-Family	6.23	%	6.31	%	10/17/2027
Mortgage Backed Securities	7/28/2022		856		Single-Family	3.60	%	4.12	%	6/20/2028
Mortgage Backed Securities	9/12/2022		3,881		Multifamily	11.57	%	11.55	%	1/25/2031
Mortgage Backed Securities	9/29/2022		7,960		Self Storage	11.10	%	11.12	%	9/15/2027
Mortgage Backed Securities	3/10/2023		5,742		Multifamily	13.93	%	13.95	%	2/25/2025
Total			$	38,270		9.17	%	9.30	%

(1)Current yield is the annualized income earned divided by the cost basis of the investment

(2)The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively.

(3)The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively.

The following table presents activity related to the Company’s CMBS I/O Strips, MSCR Notes and mortgage backed securities (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Net interest earned	$	664	$	717
Change in unrealized gain (loss) on CMBS structured pass-through certificates	(40)		(752)
Change in unrealized gain (loss) on MSCR Notes	(15)		(298)
Change in unrealized (loss) on mortgage backed securities	440		(606)
Total	$	1,049	$	(939)

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Real Estate Investments, net

3 Months Ended

Mar. 31, 2024

Real Estate Investments, Net [Abstract]

Real Estate Investments, net

Real Estate Investments, net

On December 31, 2021, the Company acquired a 204-unit multifamily property in Charlotte, North Carolina (Hudson Montford).

On February 1, 2022, the Company acquired a 368-unit multifamily property in Las Vegas, Nevada (Elysian at Hughes Center). The Company no longer maintains a common equity interest in this property and through a restructuring effective January 1, 2023, the investment was deconsolidated and presented solely as a preferred equity investment in 2024 and 2023.

On October 10, 2023, the Company exercised its right to terminate and replace the existing manager of SPG Alexander JV LLC, which owns a 280-unit multifamily property in Atlanta, Georgia. The Company, through its subsidiaries, holds both preferred and common equity investment in SPG Alexander JV LLC and also solely owns the replacement manager. As such, the Company is the primary beneficiary of SPG Alexander JV LLC and consolidates the property within our consolidated financial statements. The investment was considered an asset acquisition, and the fair value of the components of the investment as of October 10, 2023 totaled $68.8 million. The total value consisted of $7.9 million of land, $59.0 million of buildings and improvements, $0.6 million of furniture, fixtures, and equipment, and $1.3 million of intangible assets.

As of March 31, 2024, the components of the Company's investments in multifamily properties was as follows (in thousands):

Real Estate Investments, Net	Land		Buildings and Improvements		Intangible Lease Assets		Construction in Progress		Furniture, Fixtures and Equipment		Totals
Hudson Montford	$	10,996	$	49,934	$	—	$	197	$	923	$	62,050
Alexander at the District	7,806		59,170		—		4		909		67,889
Accumulated depreciation and amortization	—		(4,875)		—		—		(578)		(5,453)
Total Real Estate Investments, Net	$	18,802	$	104,229	$	—	$	201	$	1,254	$	124,486

As of December 31, 2023, the components of the Company's investments in multifamily properties were as follows (in thousands):

Real Estate Investments, Net	Land		Buildings and Improvements		Intangible Lease Assets		Construction in Progress		Furniture, Fixtures and Equipment		Totals
Hudson Montford	$	10,996	$	49,912	$	—	$	401	$	691	$	62,000
Alexander at the District	7,806		59,162		1,271		—		716		68,955
Accumulated depreciation and amortization	—		(3,948)		—		—		(456)		(4,404)
Total Real Estate Investments, Net	$	18,802	$	105,126	$	1,271	$	401	$	951	$	126,551

The following table reflects the revenue and expenses for the three months ended March 31, 2024 and 2023 for our multifamily properties (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Revenues
Rental income	$	2,087	$	1,018
Other income	124		10
Total revenues	2,211		1,028
Expenses
Interest expense	2,088		581
Real estate taxes and insurance	452		172
Property operating expenses	176		185
Property general and administrative expenses	173		35
Property management fees	62		29
Depreciation and amortization	2,318		476
Rate cap (income) expense	169		194
Casualty (gain) loss	(1)		(175)
Total expenses	5,437		1,497
Net income (loss) from consolidated real estate owned	$	(3,226)	$	(469)

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Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt

Debt

The following table summarizes the Company’s financing arrangements in place as of March 31, 2024 (dollars in thousands):

	March 31, 2024
	Facility										Collateral
	Date issued	Outstanding face amount		Carrying value		Final stated maturity		Weighted average interest rate (1)		Weighted average life (years) (2)	Outstanding face amount		Amortized cost basis		Carrying value (3)		Weighted average life (years) (2)
Master Repurchase Agreements
CMBS
Mizuho(4)	4/15/2020	$	341,740	$	341,740	N/A	(5)	7.15	%	0.0	$	984,591	$	519,743	$	513,307	6.1
Asset Specific Financing
Single Family Rental loans
Freddie Mac	7/12/2019	123,346		123,346		7/12/2029		2.69	%	3.6	135,232		140,565		140,565		3.6
Mezzanine loans
Freddie Mac	10/20/2020	59,252		59,252		8/1/2031		0.30	%	6.0	96,817		98,248		98,248		6.0
Multifamily properties
CBRE	12/31/2021	32,480		32,108		6/1/2028	(6)	8.03	%	4.2	N/A		65,166		65,166		4.2
Various	10/10/2023	63,500		63,500		11/6/2024	(7)	8.84	%	0.6	N/A		59,320		59,320		0.6
Unsecured Financing
Various	10/15/2020	36,500		35,936		10/25/2025		7.50	%	1.6	N/A		N/A		N/A		N/A
Various	4/20/2021	180,000		177,413		5/1/2026		5.75	%	2.1	N/A		N/A		N/A		N/A
Various	10/18/2022	6,500		6,500		10/18/2027		7.50	%	3.6	N/A		N/A		N/A		N/A
Total/weighted average		$	843,318	$	839,795			5.90	%	1.7	$	1,216,640	$	883,042	$	876,606	5.8

(1)Weighted-average interest rate using unpaid principal balances.

(2)Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower.

(3)CMBS are shown at fair value on an unconsolidated basis. SFR Loans and mezzanine loans are shown at amortized cost.

(4)On April 15, 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho Securities ("Mizuho"). Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities.

(5)The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly.

(6)Debt was assumed upon acquisition of this property and recorded at the outstanding principal amount, net of debt issuance costs. The loan can be prepaid at a 1.0% prepayment premium on any unpaid principal. The loan is open to pre-payment in the last three months of the term.

(7)Debt was assumed upon consolidation of this property and recorded at the outstanding principal amount.

The following table summarizes the Company’s financing arrangements in place as of December 31, 2023 (dollars in thousands):

	December 31, 2023
	Facility										Collateral
	Date issued	Outstanding face amount		Carrying value		Final stated maturity		Weighted average interest rate (1)		Weighted average life (years) (2)	Outstanding face amount		Amortized cost basis		Carrying value (3)		Weighted average life (years) (2)
Master Repurchase Agreements
CMBS
Mizuho(4)	4/15/2020	$	303,514	$	303,514	N/A	(5)	7.26	%	0.0	$	931,296	$	470,761	$	464,888	6.4
Asset Specific Financing
Single Family Rental loans
Freddie Mac	7/12/2019	590,306		590,306		7/12/2029		2.34	%	4.5	645,277		676,420		676,420		4.5
Mezzanine loans
Freddie Mac	10/20/2020	59,252		59,252		8/1/2031		0.30	%	6.3	96,817		98,839		98,839		6.3
Multifamily properties
CBRE	12/31/2021	32,366		32,157		6/1/2028	(6)	8.05	%	4.4	N/A		64,697		64,697		4.4
Various	10/10/2023	63,500		63,500		11/6/2024	(7)	8.84	%	0.9	N/A		61,854		61,854		0.9
Unsecured Financing
Various	10/15/2020	36,500		35,852		10/25/2025		7.50	%	1.8	N/A		N/A		N/A		N/A
Various	4/20/2021	180,000		177,131		5/1/2026		5.75	%	2.3	N/A		N/A		N/A		N/A
Various	10/18/2022	6,500		6,500		10/18/2027		7.50	%	3.8	N/A		N/A		N/A		N/A
Total/weighted average		$	1,271,938	$	1,268,212			4.55	%	2.9	$	676,420	$	1,372,571	$	1,366,698	5.6

(1)Weighted-average interest rate using unpaid principal balances.

(2)Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower.

(3)CMBS are shown at fair value on an unconsolidated basis. SFR Loans and mezzanine loans are shown at amortized cost.

(4)On April 15, 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho. Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities.

(5)The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly.

(6)Debt was assumed upon acquisition of this property and recorded at the outstanding principal amount, net of debt issuance costs. The loan can be prepaid at a 1.0% prepayment premium on any unpaid principal. The loan is open to pre-payment in the last three months of the term.

(7)Debt was assumed upon consolidation of this property and recorded at the outstanding principal amount.

Prior to the Formation Transaction, two of our subsidiaries entered into a loan and security agreement dated July 12, 2019 with Freddie Mac (the “Credit Facility”). Under the Credit Facility, these entities borrowed approximately $788.8 million in connection with their acquisition of senior pooled mortgage loans backed by SFR properties (the “Underlying Loans”). No additional borrowings can be made under the Credit Facility, and our obligations will be secured by the Underlying Loans. The Credit Facility is guaranteed by certain members of the Contribution Group and the OP. The guarantors are subject to minimum net worth and liquidity covenants. The Credit Facility continues to be guaranteed by members of the Contribution Group and the OP as of March 31, 2024. The Credit Facility was assumed by the Company as part of the Formation Transaction at carrying value which approximated fair value. As such, the remaining outstanding balance of $788.8 million was contributed to the Company on February 11, 2020. Our borrowings under the Credit Facility will mature on July 12, 2029. However, if an Underlying Loan matures or is paid off prior to July 12, 2029, the Company will be required to repay the portion of the Credit Facility that is allocated to that loan. As of March 31, 2024, the outstanding balance on the Credit Facility was $123.3 million.

We, through the Subsidiary OPs, have borrowed approximately $341.7 million under our repurchase agreements and posted $984.6 million par value of our CMBS B-Piece, CMBS I/O Strip, MSCR Notes and mortgage backed security investments as collateral as of March 31, 2024. The CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities held as collateral are illiquid and irreplaceable in nature. These assets are restricted solely to satisfy the interest and principal balances owed to the lender.

On November 15, 2023, the Company issued an additional $15.0 million aggregate principal amount of its 5.75% Senior Unsecured Notes ("5.75% Notes") at a price equal to 92.0% par value, including accrued interest, for proceeds of approximately $13.6 million after original issue discount and underwriting fees.

As of March 31, 2024, the outstanding principal balances related to the levered SFR Loans and mezzanine loans consisted of the following (dollars in thousands):

Investment	Investment Date	Outstanding Principal Balance (1)		Location	Property Type	Interest Type	Interest Rate		Maturity Date
SFR Loans
Senior loan	2/11/2020	$	31,416	Various	Single-family	Fixed	2.14	%	10/1/2025
Senior loan	2/11/2020	33,565		Various	Single-family	Fixed	2.70	%	11/1/2028
Senior loan	2/11/2020	9,156		Various	Single-family	Fixed	2.79	%	9/1/2028
Senior loan	2/11/2020	9,284		Various	Single-family	Fixed	2.45	%	3/1/2026
Senior loan	2/11/2020	7,408		Various	Single-family	Fixed	3.51	%	2/1/2028
Senior loan	2/11/2020	8,720		Various	Single-family	Fixed	3.30	%	10/1/2028
Senior loan	2/11/2020	7,848		Various	Single-family	Fixed	3.14	%	1/1/2029
Senior loan	2/11/2020	5,823		Various	Single-family	Fixed	2.99	%	3/1/2029
Senior loan	2/11/2020	5,223		Various	Single-family	Fixed	3.14	%	12/1/2028
Senior loan	2/11/2020	4,903		Various	Single-family	Fixed	2.64	%	10/1/2028
Total		$	123,346				2.69	%
Mezzanine Loans
Senior loan	10/20/2020	$	8,723	Wilmington, DE	Multifamily	Fixed	0.30	%	6/1/2029
Senior loan	10/20/2020	7,344		White Marsh, MD	Multifamily	Fixed	0.30	%	4/1/2031
Senior loan	10/20/2020	6,353		Philadelphia, PA	Multifamily	Fixed	0.30	%	7/1/2031
Senior loan	10/20/2020	5,881		Daytona Beach, FL	Multifamily	Fixed	0.30	%	7/1/2031
Senior loan	10/20/2020	4,523		Laurel, MD	Multifamily	Fixed	0.30	%	7/1/2031
Senior loan	10/20/2020	4,179		Temple Hills, MD	Multifamily	Fixed	0.30	%	1/1/2029
Senior loan	10/20/2020	3,390		Temple Hills, MD	Multifamily	Fixed	0.30	%	5/1/2029
Senior loan	10/20/2020	3,348		Lakewood, NJ	Multifamily	Fixed	0.30	%	5/1/2029
Senior loan	10/20/2020	2,454		North Aurora, IL	Multifamily	Fixed	0.30	%	11/1/2028
Senior loan	10/20/2020	2,264		Rosedale, MD	Multifamily	Fixed	0.30	%	10/1/2028
Senior loan	10/20/2020	2,215		Cockeysville, MD	Multifamily	Fixed	0.30	%	7/1/2031
Senior loan	10/20/2020	2,026		Laurel, MD	Multifamily	Fixed	0.30	%	7/1/2029
Senior loan	10/20/2020	1,836		Vancouver, WA	Multifamily	Fixed	0.30	%	8/1/2031
Senior loan	10/20/2020	1,763		Tyler, TX	Multifamily	Fixed	0.30	%	11/1/2028
Senior loan	10/20/2020	1,307		Las Vegas, NV	Multifamily	Fixed	0.30	%	10/1/2028
Senior loan	10/20/2020	918		Atlanta, GA	Multifamily	Fixed	0.30	%	8/1/2031
Senior loan	10/20/2020	728		Des Moines, IA	Multifamily	Fixed	0.30	%	3/1/2029
Total		$	59,252				0.30	%

(1)Outstanding principal balance represents the total repurchase agreement balance outstanding as of March 31, 2024.

For the three months ended March 31, 2024 and 2023, the activity related to the carrying value of the master repurchase agreements, secured financing agreements and unsecured financing were as follows (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Balances as of December 31,	$	1,268,212	$	1,345,101
Adjustment to mortgages payable, net on deconsolidation of real estate	—		(89,012)
Principal borrowings	57,425		26,801
Principal repayments	(486,159)		(7,827)
Principal repayments on mortgages payable	(61)		—
Accretion of discounts	366		216
Amortization of deferred financing costs	12		11
Balances as of March 31,	$	839,795	$	1,275,290

Schedule of Debt Maturities

The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to March 31, 2024 are as follows (in thousands):

Year	Recourse		Non-recourse		Total
2024(1)	$	63,500	$	341,740	$	405,240
2025	36,500		31,416		67,916
2026	180,000		9,284		189,284
2027	6,500		—		6,500
2028	32,480		76,763		109,243
Thereafter	—		65,135		65,135
	$	318,980	$	524,338	$	843,318

(1)The transactions in place in the master repurchase agreement with Mizuho have a one-month to two-month tenor and are expected to roll accordingly.

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair-value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering market-participant assumptions in fair-value measurements, ASC 820 establishes a fair-value hierarchy that distinguishes between market-participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market-participant assumptions (unobservable inputs classified within Level 3 of the hierarchy):

•Level 1 inputs are adjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

•Level 2 inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar instruments in active markets and inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves, that are observable at commonly quoted intervals.

•Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, related market activity for the asset or liability.

The Company’s assessment of the significance of a particular input to the fair-value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Derivative Financial Instruments and Hedging Activities

In the normal course of business, our operations are exposed to market risks, including the effect of changes in interest rates. We may enter into derivative financial instruments to offset this underlying market risk. There have been no

significant changes in our policy and strategy from what was disclosed in the financial statements included in our Annual Report.

Financial Instruments Carried at Fair Value

See Note 2 and Notes 4 through 7 for additional information.

Financial Instruments Not Carried at Fair Value

The fair values of cash and cash equivalents, accrued interest and dividends, accounts payable and other accrued liabilities and accrued interest payable approximated their carrying values because of the short-term nature of these instruments. The estimated fair values of other financial instruments were determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts.

In calculating the fair value of its long-term indebtedness, the Company used interest rate and spread assumptions that reflect current creditworthiness and market conditions available for the issuance of long-term debt with similar terms and remaining maturities. These financial instruments utilize Level 2 inputs.

Amounts borrowed under master repurchase agreements are based on their contractual amounts that reasonably approximate their fair value given the short to moderate term and floating rate nature.

The carrying values and fair values of the Company’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value as of March 31, 2024 (in thousands):

				Fair Value
	Carrying Value			Level 1			Level 2			Level 3			Total
Assets
Cash and cash equivalents	$	13,483		$	13,483		$	—		$	—		$	13,483
Restricted cash	5,804			5,804			—			—			5,804
Loans, held-for-investment, net	391,591			—			—			402,806			402,806
Preferred stock investments, at fair value	18,346			—			—			18,346			18,346
Common stock investments, at fair value	60,658			—			—			60,658			60,658
Mortgage loans, held-for-investment, net	140,565			—			—			135,628			135,628
Accrued interest	25,271			25,271			—			—			25,271
Mortgage loans held in variable interest entities, at fair value	6,182,075			—			6,182,075			—			6,182,075
CMBS structured pass-through certificates, at fair value	39,334			—			39,334			—			39,334
MSCR Notes, at fair value	10,363			—			10,363			—			10,363
Mortgage backed securities, at fair value	68,026			—			68,026			—			68,026
Accounts receivable and other assets	4,097			1,742			2,355			—			4,097
Due from brokers for securities sold, not yet settled	908			—			908			—			908
Total Assets	$	6,960,521	0	$	46,300	0	$	6,303,061	0	$	617,438	0	$	6,966,799
Liabilities
Secured financing agreements, net	$	182,598		$	—		$	—		$	188,107		$	188,107
Master repurchase agreements	341,740			—			—			341,740			341,740
Unsecured notes, net	219,849			—			200,654			—			200,654
Mortgages payable, net	95,608			—			—			91,071			91,071
Accounts payable and other accrued liabilities	10,270			10,270			—			—			10,270
Accrued interest payable	12,695			12,695			—			—			12,695
Bonds payable held in variable interest entities, at fair value	5,774,017			—			5,774,017			—			5,774,017
Total Liabilities	$	6,636,777		$	22,965		$	5,974,671		$	620,918		$	6,618,554

The carrying values and fair values of the Company’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value as of December 31, 2023 (in thousands):

			Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents	$	13,824	$	13,824	$	—	$	—	$	13,824
Restricted cash	2,825		2,825		—		—		2,825
Loans, held-for-investment, net	328,460		—		—		337,110		337,110
Preferred stock investments, at fair value	14,776		—		—		14,776		14,776
Common stock investments, at fair value	61,529		—		—		61,529		61,529
Mortgage loans, held-for-investment, net	676,420		—		—		663,866		663,866
Accrued interest	22,033		22,033		—		—		22,033
Mortgage loans held in variable interest entities, at fair value	5,677,763		—		5,677,763		—		5,677,763
CMBS structured pass-through certificates, at fair value	41,212		—		41,212		—		41,212
MSCR Notes, at fair value	10,378		—		10,378		—		10,378
Mortgage backed securities, at fair value	38,270		—		38,270		—		38,270
Accounts receivable and other assets	4,312		1,560		2,752		—		4,312
Total Assets	$	6,891,802	$	40,242	$	5,770,375	$	1,077,281	$	6,887,898
Liabilities
Secured financing agreements, net	$	649,558	$	—	$	—	$	666,423	$	666,423
Master repurchase agreements	303,514		—		—		303,514		303,514
Unsecured notes, net	219,483		—		199,859		—		199,859
Mortgages payable, net	95,657		—		—		95,470		95,470
Accounts payable and other accrued liabilities	6,428		6,428		—		—		6,428
Accrued interest payable	8,209		8,209		—		—		8,209
Bonds payable held in variable interest entities, at fair value	5,289,997		—		5,289,997		—		5,289,997
Total Liabilities	$	6,572,846	$	14,637	$	5,489,856	$	1,065,407	$	6,569,900

The significant unobservable inputs used in the fair value measurement of the Company’s investment in NSP are the discount rate and terminal capitalization rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. The following is a summary of significant unobservable

inputs used in the fair valuation of the Company's Level 3 assets carried at fair value on the Consolidated Balance Sheets as of March 31, 2024 (dollars in thousands):

	Carrying Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average (1)
NexPoint Storage Partners	$	33,764	Discounted cash flow	Terminal cap rate	5.00% - 5.50%	5.25	%
				Discount rate	7.75% - 9.75%	8.75	%
IQHQ, Inc.	$	18,346	Discounted cash flow	Discount rate	11.00% - 12.00%	11.50	%
Private REIT	$	26,894	Market approach	NAV per share multiple	1.00 - 1.10x	1.050x

(1)Averages are weighted based on the fair value of the related instrument

The table below reflects a summary of changes for the Company's Level 3 common and preferred stock assets carried at fair value on the Consolidated Balance Sheets for the three months ended March 31, 2024:

	Balance as of 12/31/23		Additions		Change in Unrealized Gains/(Losses)		Balance as of 3/31/24
NexPoint Storage Partners	$	33,129	$	—	$	635	$	33,764
Private REIT	$	28,400	$	—	$	(1,506)	$	26,894
IQHQ, Inc.	$	14,776	$	3,506	$	64	$	18,346

Other Financial Instruments Carried at Fair Value

Redeemable noncontrolling interests in the OP have a redemption feature and are marked to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests in the OP (see Note 13). The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the OP are classified as Level 2 if they are adjusted to their redemption value. At March 31, 2024, the redeemable noncontrolling interests in the OP are valued at their carrying value on the Consolidated Balance Sheets (see Note 13).

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Stockholders' Equity

3 Months Ended

Mar. 31, 2024

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Common Stock

During the three months March 31, 2024, the Company issued 74,344 shares of common stock, par value of $0.01 per share (the "common stock") pursuant to the Amended and Restated NexPoint Real Estate Finance, Inc. 2020 Long Term Incentive Plan (the "Amended and Restated LTIP").

As of March 31, 2024, the Company had 17,593,244 shares of common stock issued and 17,306,257 shares of common stock outstanding.

Preferred Stock

On July 24, 2020, the Company issued 2,000,000 shares of its 8.50% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) at a price to the public of $24.00 per share, for gross proceeds of $48.0 million before deducting underwriting discounts and commissions of approximately $1.2 million and other offering expenses of approximately $0.8 million. The Series A Preferred Stock has a $25.00 per share liquidation preference.

On November 2, 2023, the Company announced the launch of a continuous public offering (the “Series B Preferred Offering”) of up to 16,000,000 shares of its 9.00% Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”) at a price to the public of $25.00 per share. As of March 31, 2024, the Company has issued 1,657,700 shares of Series B Preferred Stock for gross proceeds of $40.9 million before deducting selling commissions and dealer manager fees of approximately $3.6 million. The Series B Preferred Stock has a $25.00 per share liquidation preference.

The Company expects that the Series B Preferred Offering will terminate on the earlier of the date the Company sells all 16,000,000 shares of the Series B Preferred Stock in the Series B Preferred Offering or March 14, 2025 (which is the third anniversary of the effective date of the Company’s registration statement), which may be extended by the Board in its sole discretion. The Board may elect to terminate the Series B Preferred Offering at any time.

Share Repurchase Program

On March 9, 2020, the Board authorized a share repurchase program (the "Prior Share Repurchase Program") through which the Company could repurchase an indeterminate number of shares of our common stock at an aggregate market value of up to $10.0 million in shares of its common stock during a two-year period that expired on March 9, 2022. On September 28, 2020, the Board authorized the expansion of the Prior Share Repurchase Program to include the Company’s Series A Preferred Stock with the same period and repurchase limit. The Company was able to utilize various methods to affect the repurchases, and the timing and extent of the repurchases will depend upon several factors, including market and business conditions, regulatory requirements and other corporate considerations, including whether the Company’s common stock is trading at a significant discount to net asset value ("NAV") per share. From inception through expiration, the Company repurchased 327,422 shares of its common stock, par value $0.01 per share, at a total cost of approximately $4.8 million, or $14.61 per share. These repurchased shares of common stock are classified as treasury stock and reduce the number of shares of the Company’s common stock outstanding and, accordingly, are considered in the weighted-average number of shares outstanding during the period. On March 3, 2021, the Company cancelled 40,435 shares of common stock, reducing the total classified as treasury stock to 286,987.

On February 22, 2023, the Board authorized a share repurchase program (the “Share Repurchase Program”) through which the Company may repurchase an indeterminate number of shares of our common stock and Series A Preferred Stock at an aggregate market value of up to $20.0 million in shares of its common stock, during a two-year period set to expire on February 22, 2025. The Company may utilize various methods to affect the repurchases, and the timing and extent of the repurchases will depend upon several factors, including market and business conditions, regulatory requirements and other corporate considerations, including whether the Company’s common stock is trading at a significant discount to NAV per share. Repurchases under this program may be discontinued at any time. The Company has not made any purchases under the Share Repurchase Program as of March 31, 2024.

Long Term Incentive Plan

On January 31, 2020, the NexPoint Real Estate Finance, Inc. 2020 Long Term Incentive Plan (the “Original LTIP” as amended and restated by the Amended and Restated LTIP, the “LTIP”) was approved and on May 7, 2020, the Company filed a registration statement on Form S-8 registering 1,319,734 shares of common stock, which the Company may issue pursuant to the Original LTIP.

On January 26, 2024, the Amended and Restated LTIP was approved and on January 30, 2024, the Company filed a registration statement on Form S-8 registering an additional 2,308,000 shares of common stock, which the Company may issue pursuant to the Amended and Restated LTIP. The LTIP authorizes the compensation committee of the Board to provide equity-based compensation in the form of stock options, appreciation rights, restricted shares, restricted stock units, performance shares, performance units and certain other awards denominated or payable in, or otherwise based on, the Company’s common stock or factors that may influence the value of the Company’s common stock, plus cash incentive awards, for the purpose of providing the Company’s directors, officers and other key employees (and those of the Manager and the Company’s subsidiaries), the Company’s non-employee directors, and potentially certain non-employees who perform employee-type functions, incentives and rewards for performance.

Restricted Stock Units.

Under the LTIP, restricted stock units may be granted to the Company’s directors, officers and other key employees (and those of the Manager and the Company’s subsidiaries) and typically vest over a three to five-year period for officers, employees and certain key employees of the Manager and annually for directors. The most recent grant of restricted stock units to officers, employees and certain key employees of the Manager will vest over a four-year period. Beginning on the date of grant, restricted stock units earn dividends that are payable in cash on the vesting date. On May 8, 2020, pursuant to the LTIP, the Company granted 14,739 restricted stock units to its directors, on June 24, 2020, the Company granted 274,274 restricted stock units to its officers and other employees of the Manager, on November 2, 2020, the Company granted 1,838 restricted stock units to the sole member of the general partner of one of the Company's subsidiaries, on February 22, 2021, the Company granted 220,352 restricted stock units to its officers and other employees of the Manager and 11,832 restricted stock units to its directors, on November 8, 2021, the Company granted 1,201 restricted stock units to the sole member of the general partner of one of the Company’s subsidiaries, on February 21, 2022, the Company granted

264,476 restricted stock units to its officers and other employees of the Manager and 12,464 restricted stock units to its directors, on April 4, 2023, the Company granted 418,685 restricted stock units to its officers and other employees of the Manager and 21,370 restricted stock units to its directors, and on March 13, 2024 the Company granted 442,666 restricted stock units to its officers and other employees of the Manager and 22,650 restricted stock units to its directors. Compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award. Forfeitures are recognized as they occur.

The following table includes the number of restricted stock units granted, vested, forfeited and outstanding as of March 31, 2024:

	2024
	Number of Units		Weighted Average Grant Date Fair Value
Outstanding December 31, 2023	771,671		$	16.70
Granted	465,316		14.66
Vested	(120,640)	(1)	19.89
Forfeited	—		—
Outstanding March 31, 2024	1,116,347		$	15.51

(1)Certain key employees of the Manager elected to net the taxes owed upon vesting against the shares issued resulting in 74,344 shares being issued as shown on the consolidated statements of stockholders' equity.

The vesting schedule for the restricted stock units as of March 31, 2024 is as follows:

	Shares Vesting
	February	March	April	May	Total
2024	—	—	126,042	68,564	194,606
2025	116,998	133,321	102,201	—	352,520
2026	54,893	110,667	91,166	—	256,726
2027	—	110,665	91,167	—	201,832
2028	—	110,663	—	—	110,663
Total	171,891	465,316	410,576	68,564	1,116,347

As of March 31, 2024, total unrecognized compensation expense on restricted stock unit awards was approximately $9.8 million, and the expense is expected to be recognized over a weighted average vesting period of 1.3 years.

At-The-Market-Offering

On March 15, 2022, the Company, the OP and the Manager entered into separate equity distribution agreements (the “2022 Equity Distribution Agreements”) with each of Raymond James, Keefe, Bruyette & Woods, Inc., Robert W. Baird & Co. Incorporated and Virtu Americas LLC (collectively, the “2022 Sales Agents”), pursuant to which the Company could issue and sell from time to time shares of the Company's common stock and Series A Preferred Stock having an aggregate sales price of up to $100.0 million (the “2022 ATM Program”). The 2022 Equity Distribution Agreements provided for the issuance and sale of common stock or Series A Preferred Stock by the Company through a sales agent acting as a sales agent or directly to the sales agent acting as principal for its own account at a price agreed upon at the time of sale.

Sales of shares of common stock or Series A Preferred Stock under the 2022 ATM Program, if any, may be made in transactions that are deemed to be “at the market” offerings, as defined in Rule 415 under the Securities Act of 1933 (the "Securities Act") including, without limitation, sales made by means of ordinary brokers' transactions on the New York Stock Exchange ("NYSE"), to or through a market maker at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices based on prevailing market prices.

The following table contains summary information of the 2022 ATM Program for sales from inception through March 31, 2024:

Gross Proceeds	$	12,575,493
Shares of Common Stock Issued	531,728
Gross Average Sale Price per Share of Common Stock	$	23.65
Sales Commissions	$	188,655
Offering Costs	888,249
Net Proceeds	11,498,589
Average Price Per Share, net	$	21.62

Noncontrolling Interest in Subsidiary

On April 1, 2021, a subsidiary of one of the Subsidiary OPs (such subsidiary, the “REIT Sub”) closed its issuance of 125 preferred membership units of the REIT Sub (the “Preferred Membership Units”) at a price of $1,000 per unit, for gross proceeds of approximately $0.1 million, net of offering costs and initial administrative expenses. Holders of Preferred Membership Units are entitled to receive distributions semiannually from the REIT Sub at a per annum rate equal to 12.0% of the total of the purchase price of $1,000 per unit plus accumulated and unpaid distributions. The Preferred Membership Units are generally redeemable by the REIT Sub at any time for $1,000 per unit plus accumulated and unpaid distributions and an additional redemption premium if the Preferred Membership Units are redeemed on or before December 31, 2023. The issuance of the 125 Preferred Membership Units is presented as “Noncontrolling interest in subsidiary” on the Consolidated Balance Sheets and Consolidated Statements of Stockholders’ Equity.

OP Unit Redemption

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Earnings Per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of the Company’s common stock outstanding and excludes any unvested restricted stock units issued pursuant to the LTIP.

Diluted earnings per share is computed by adjusting basic earnings per share for the dilutive effect of the assumed vesting of restricted stock units. Additionally, the Company includes the dilutive effect of the potential redemption of OP Units for common shares in accordance with the second amended and restated limited partnership agreement of the OP (as amended, the "OP LPA"). The Company also includes the assumed conversion of the Series B Preferred Stock using the if-converted method. During periods of net loss, the assumed vesting of restricted stock units is anti-dilutive and is not included in the calculation of earnings (loss) per share.

The following table sets forth the computation of basic and diluted earnings per share for the periods presented (in thousands, except per share amounts):

	For the Three Months Ended March 31,
	2024		2023
Net income (loss) attributable to common stockholders	$	(14,286)	$	6,567
Earnings for basic computations
Net income (loss) attributable to redeemable noncontrolling interests	(1,894)		1,937
Net income for diluted computations	$	(16,180)	$	8,504
Weighted-average common shares outstanding
Average number of common shares outstanding - basic	17,264		17,118
Average number of common shares from assumed vesting of unvested restricted stock units	740		522
Average number of common shares from assumed conversion of OP Units	5,038		5,038
Average number of common shares from assumed conversion of Series B Preferred Stock	1,820		—
Average number of common shares outstanding - diluted	24,862		22,678
Earnings per weighted average common share:
Basic	$	(0.83)	$	0.38
Diluted (1)	$	(0.83)	$	0.37

Diluted EPS calculations were higher than basic EPS and thus anti-dilutive for the three months ended March 31, 2024. As such, the Company is presenting diluted EPS as equal to basic EPS.

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Noncontrolling Interests

3 Months Ended

Mar. 31, 2024

Noncontrolling Interest [Abstract]

Noncontrolling Interests

Noncontrolling Interests

Redeemable Noncontrolling Interests in the OP

The following table sets forth the redeemable noncontrolling interests in the OP (reflecting the OP’s consolidation of the Subsidiary OPs) for the three months ended March 31, 2024 and March 31, 2023 (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Redeemable noncontrolling interests in the OP, January 1,	$	89,471	$	96,501
Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate	—		297
Net loss attributable to redeemable noncontrolling interests in the OP	(1,894)		1,937
Redemption of redeemable noncontrolling interests in the OP	—		—
Distributions to redeemable noncontrolling interests in the OP	(2,519)		(3,023)
Redeemable noncontrolling interests in the OP, March 31,	$	85,058	$	95,712

The table below presents the common shares and OP Units outstanding held by the noncontrolling interests (“NCI”), as the OP Units and SubOP Units held by the Company are eliminated in consolidation:

Period End	Common Shares Outstanding	OP Units Held by NCI	Combined Outstanding
March 31, 2024	17,306,257	5,038,382	22,344,639

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Related Party Transactions

3 Months Ended

Mar. 31, 2024

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Management Fee

In accordance with the Management Agreement, the Company pays the Manager an annual management fee equal to 1.5% of Equity (as defined below), paid monthly, in cash or shares of Company common stock at the election of our Manager (the “Annual Fee”). The duties performed by the Company’s Manager under the terms of the Management Agreement include, but are not limited to: providing daily management for the Company, selecting and working with third-party service providers, formulating an investment strategy for the Company and selecting suitable investments, managing the Company’s outstanding debt and its interest rate exposure and determining when to sell assets.

“Equity” means (a) the sum of (1) total stockholders’ equity immediately prior to the closing of the IPO, plus (2) the net proceeds received by the Company from all issuances of the Company’s equity securities in and after the IPO, plus (3) the Company’s cumulative Earnings Available for Distribution (“EAD”) (as defined below) from and after the IPO to the end of the most recently completed calendar quarter, (b) less (1) any distributions to the holders of the Company’s common stock from and after the IPO to the end of the most recently completed calendar quarter and (2) all amounts that the Company or any of its subsidiaries has paid to repurchase for cash the shares of the Company’s equity securities from and after the IPO to the end of the most recently completed calendar quarter. In the Company’s calculation of Equity, the Company will adjust its calculation of EAD to remove the compensation expense relating to awards granted under one or more of its long-term incentive plans that is added back in the calculation of EAD. Additionally, for the avoidance of doubt, Equity does not include the assets contributed to the Company in the Formation Transaction.

“EAD” means the net income (loss) attributable to the common stockholders of the Company, computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), excluding any unrealized gains or losses or other similar non-cash items that are included in net income (loss) for the applicable reporting period, regardless of whether such items are included in other comprehensive income (loss), or in net income (loss) and adding back amortization of stock-based compensation. For the purpose of calculating EAD for the Annual Fee, net income (loss) attributable to common stockholders may also be adjusted for the effects of certain GAAP adjustments and transactions that may not be indicative of the Company’s current operations, in each case after discussions between the Manager and the independent directors of the Board and approved by a majority of the independent directors of the Board.

Pursuant to the terms of the Management Agreement, the Company is required to pay directly or reimburse the Manager for all documented Operating Expenses and Offering Expenses it incurs on behalf of the Company. “Operating Expenses” include legal, accounting, financial and due diligence services performed by the Manager that outside professionals or outside consultants would otherwise perform, the Company’s pro rata share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Manager required for the Company’s operations and compensation expenses under the LTIP. “Offering Expenses” include all expenses (other than underwriters’ discounts) in connection with an offering of securities, including, without limitation, legal, accounting, printing, mailing and filing fees and other documented offering expenses. For the three months ended March 31, 2024, there were no Offering Expenses that were paid on the Company's behalf for which the Company reimbursed the Manager.

Connections at Buffalo Pointe Contribution

On May 29, 2020, the OP entered into a contribution agreement (the “Buffalo Pointe Contribution Agreement”) with entities affiliated with executive officers of the Company and the Manager (the “BP Contributors”) whereby the BP Contributors contributed their respective preferred membership interests in NexPoint Buffalo Pointe Holdings, LLC (“Buffalo Pointe”), to the OP for total consideration of $10.0 million paid in OP Units. A total of 564,334 OP Units were issued to the BP Contributors, which was calculated by dividing the total consideration of $10.0 million by the combined book value of the Company’s common stock and the SubOP Units, on a per share or unit basis, as of March 31, 2023, or $17.72 per OP Unit. The Company additionally contributed an aggregate of approximately $2.4 million on January 9, 2023, March 6, 2023, March 28, 2023, May 25, 2023, August 16, 2023, and March 1, 2024. Buffalo Pointe owns a stabilized multifamily property located in Houston, Texas with 92.0% occupancy as of March 31, 2024. The preferred equity investment pays current interest at a rate of 6.5%, deferred interest at a rate of 4.5%, has a loan-to-value ratio of 82.9% and a maturity date of May 1, 2030.

Pursuant to the OP LPA and the Buffalo Pointe Contribution Agreement, the BP Contributors have the right to cause our OP to redeem their OP Units for cash or, at our election, shares of our common stock on a one-for-one basis, subject to adjustment, as provided and subject to the limitations in our OP LPA, provided the OP Units have been outstanding for at least one year and our stockholders have approved the issuance of shares of common stock to the BP Contributors. On May

11, 2021, our stockholders approved the issuance of such shares upon the exercise of the BP Contributors' redemption rights.

RSU Issuance

On May 8, 2020, in accordance with the LTIP, the Company granted 14,739 restricted stock units to its directors, on June 24, 2020, the Company granted 274,274 restricted stock units to its officers and other employees of the Manager, on November 2, 2020, the Company granted 1,838 restricted stock units to the sole member of the general partner of one of the Company’s subsidiaries, on February 22, 2021, the Company granted 233,385 restricted stock units to its directors, officers employees and certain key employees of the Manager and its affiliates, the Company granted 1,201 restricted stock units to the sole member of the general partner of one of the Company's subsidiaries, on February 21, 2022, the Company granted 264,476 restricted stock units to its officers and other employees of the Manager and 12,464 restricted stock units to its directors, on April 4, 2023, the Company granted 418,685 restricted stock units to its officers and other employees of the Manager and 21,370 restricted stock units to its directors, and on March 13, 2024, the Company granted 442,666 restricted stock units to its officers and other employees of the Manager and 22,650 restricted stock units to its directors.

OP Unit Redemptions

At the 2021 annual meeting of the Company, the Company's stockholders approved the potential issuance of 13,758,906 shares of the Company's common stock to related parties in connection with the redemption of their OP Units or SubOP Units that may be redeemed for OP Units. As of March 31, 2024, the Company had issued 8,748,735 shares of the Company's common stock to redeeming unitholders.

Expense Cap

Pursuant to the terms of the Management Agreement, direct payment of operating expenses by the Company, which includes compensation expense relating to equity awards granted under the LTIP, together with reimbursement of operating expenses to the Manager, plus the Annual Fee, may not exceed 2.5% of equity book value (the “Expense Cap”) for any calendar year or portion thereof, provided, however, that this limitation will not apply to Offering Expenses, legal, accounting, financial, due diligence and other service fees incurred in connection with extraordinary litigation and mergers and acquisitions and other events outside the ordinary course of business or any out-of-pocket acquisition or due diligence expenses incurred in connection with the acquisition or disposition of certain real estate-related investments. For the three months ended March 31, 2024 and March 31, 2023, operating expenses did not exceed the Expense Cap.

For the three months ended March 31, 2024 and March 31, 2023, the Company incurred management fees of $0.8 million and $0.8 million, respectively.

NSP Guaranty

On December 8, 2022 and in connection with a restructuring of NSP, the Company, through REIT Sub, together with NexPoint Diversified Real Estate Trust, Highland Income Fund and NexPoint Real Estate Strategies Fund (collectively, the "Co-Guarantors"), as guarantors, entered into a sponsor guaranty agreement in favor of Extra Space Storage, LP ("Extra Space") pursuant to which REIT Sub and the Co-Guarantors guaranteed obligations of NSP with respect to accrued dividends on NSP’s newly created Series D preferred stock and two promissory notes in an aggregate principal amount of approximately $64.2 million issued to Extra Space. The guaranties by REIT Sub and the Co-Guarantors are capped at $97.6 million, and each of REIT Sub and the Co-Guarantors generally guaranteed the foregoing obligations of NSP up to the cap amount on a pro rata basis with respect to its percentage ownership of NSP’s common stock. On February 15, 2023, NSP paid down approximately $15.0 million of these promissory notes, resulting in an aggregate principal amount of approximately $49.2 million. On December 8, 2023, NSP paid down the remaining principal balance of $49.2 million. The NSP Series D preferred stock remains outstanding as of March 31, 2024. As of March 31, 2024, the outstanding NSP Series D Preferred Stock accrued dividends was $7.3 million, and the Company and NexPoint Diversified Real Estate Trust are jointly and severally liable for 85.90% of the guaranteed amount.

Convertible Promissory Note

On October 18, 2022, the Company, through a subsidiary, borrowed $6.5 million from NFRO REIT Sub, LLC (the "Holder") and issued $6.5 million aggregate amount of a 7.50% note to the Holder maturing on October 18, 2027. Beginning on January 1, 2023 through June 30, 2027, the Holder may elect to convert all or any part of the outstanding principal and accrued but unpaid interest due, and all other amounts due and payable to the Holder thereunder or in connection therewith, into equity interests of an affiliate of the borrower.

Elysian at Hughes Center

On February 1, 2022, the Company, through a subsidiary (the “Trust”), purchased the Elysian at Hughes Center, a 368-unit multifamily property in Las Vegas, Nevada, for a total of $184.1 million. The Trust is managed by an affiliate of the Manager (the “Asset Manager”). Effective January 1, 2023, the Company restructured this investment such that it does not meet the requirements for consolidation under ASC 810 – Consolidation and has been deconsolidated herein as of January 1, 2023 and presented as a preferred equity investment. As of December 31, 2022, the Company owned a preferred equity investment and indirect common equity interests in Elysian at Hughes Center, which resulted in the consolidation at year end. However, the common equity interests have been transferred to the Asset Manager in exchange for $54,000 and a guarantee of payments due to the Company in respect of its preferred equity investment if the investment is not redeemed prior to the close of the ongoing private offering of Class I Beneficial Interests in the Trust, which will continue until the maximum offering amount of $115.3 million has been reached. The Company’s preferred investments were initially made from December 28, 2021 through July 26, 2022 and totaled $65.3 million. Following the transfer of the common equity interests, the Company no longer is the primary beneficiary of the Trust and as such does not consolidate it. The Company recognized a gain on deconsolidation of $1.5 million related to the residual effect of removing the consolidated assets and liabilities from the Consolidated Balance Sheets. The fair value of the preferred equity investment still approximates its par value so no portion of the gain on deconsolidation is related to a remeasurement of the fair value of the preferred equity investment. Management determined the fair value of the preferred equity investment using a market approach and performing a benchmarking analysis to comparable transactions. As of March 31, 2024, $54.0 million of the Company's preferred investment in Elysian at Hughes Center had been redeemed, resulting in a remaining principal balance of $10.3 million.

Series B Preferred Stock Offering

On November 2, 2023, the Company announced the launch of the Series B Preferred Offering. NexPoint Securities, Inc., an affiliate of the Manager, serves as the Company’s dealer manager (the "Dealer Manager") in connection with the Series B Preferred Offering. The Dealer Manager uses its reasonable best efforts to sell the shares of Series B Preferred Stock offered in the Series B Preferred Offering, and the Company pays the Dealer Manager, subject to the discounts and other special circumstances described or referenced therein, (i) selling commissions of 7.0% of the aggregate gross proceeds from sales of Series B Preferred Stock in the Series B Preferred Offering (“Selling Commissions”) and (ii) a dealer manager fee of 3.0% of the gross proceeds from sales of Series B Preferred Stock in the Series B Preferred Offering (the “Dealer Manager Fee”). The Dealer Manager, subject to federal and state securities laws, will reallow all or any portion of the Selling Commissions and may reallow a portion of the Dealer Manager Fee to other securities dealers that the Dealer Manager may retain who sold the shares of Series B Preferred Stock as is described more fully in the agreements between such dealers and the Dealer Manager. The Company expects that the offering will terminate on the earlier of the date the Company sells all 16,000,000 shares of the Series B Preferred Stock in the offering or March 14, 2025 (which is the third anniversary of the effective date of the Company’s registration statement), which may be extended by the Company’s Board in its sole discretion. The Board may elect to terminate this offering at any time. As of March 31, 2024, the Company has issued 1,657,700 shares of Series B Preferred Stock for gross proceeds of $40.9 million and paid the Dealer Manager $2.6 million Selling Commissions and $1.0 million Dealer Manager Fees.

Promissory Note

On March 28, 2024, the Company loaned $500,000 to NexPoint SFR Operating Partnership, L.P. (the “SFR OP”), the operating partnership of NexPoint Homes Trust, Inc., an entity that is advised by an affiliate of the Manager. In connection with the loan, SFR OP issued a $500,000 12.50% note (the “SFR OP Note”) to the Company on March 31, 2024. The SFR OP Note bears interest at 12.50%, which is payable in kind, is interest only during the term of the SFR OP Note and matures on March 31, 2025.

VineBrook Homes Mortgage Backed Securities

On February 29, 2024, the Company, through one of the Subsidiary OPs, purchased approximately $49.2 million aggregate principal amount of the Class A, E1, and E2 tranches of the VINEB 2024 SFR1 CMBS at a blended price equal to 90.2% of par value. The investment has a blended unlevered yield of 6.9%. On March 1, 2024, the Company, through one of the Subsidiary OPs, borrowed approximately $35.8 million through the existing repurchase agreement. The loans bear interest at a rate of 1.0%, 1.6%, and 1.6% over SOFR, respectively.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Except as otherwise disclosed below, the Company is not aware of any contractual obligations, legal proceedings, or any other contingent obligations incurred in the normal course of business that would have a material adverse effect on our consolidated financial statements.

On September 29, 2021, the Company, through one of the Subsidiary OPs, entered into an agreement to purchase up to $50.0 million in a new preferred equity investment (the “Preferred Units”) upon notice from the issuer. Subject to certain conditions, the Company may be required to purchase an additional $25.0 million of Preferred Units at the option of the issuer. The funds are expected to be used to capitalize special purpose limited liability companies (“PropCos”) to engage in sale-and-leaseback transactions and development transactions on life science real property. On September, 22, 2023, the issuer exercised its right to extend the final obligation date to purchase any additional Preferred Units to September 29, 2024. As of March 31, 2024, the Company may have the obligation to fund an additional $3.6 million by September 29, 2024, which the issuer may extend for up to one year at its option for an extension fee. The Preferred Units accrue distributions at a rate of 10.0% annually, compounded monthly. Distributions on the Preferred Units will be paid in cash with respect to stabilized PropCos and paid in kind with respect to unstabilized PropCos. The obligations of the issuer will be supported by a pledge of all equity units of the PropCos. All or a portion of the Preferred Units may be redeemed at any time for a redemption price equal to the purchase price of the Preferred Units to be redeemed plus any accrued and unpaid distributions thereon and a cash redemption fee. Upon the redemption of any Preferred Units and if the parties agree, the remaining amount to be funded by the Company may be increased by the aggregate purchase price of the redeemed Preferred Units. In addition, if the issuer experiences a change of control, the redemption price will also include a payment equal to the amount needed to achieve a multiple on invested capital ("MOIC") equal to 1.25x for unstabilized PropCos and 1.10x for stabilized PropCos. As of March 31, 2024, the Company has not recorded any contingencies on its Consolidated Balance Sheets as the obligation to fund additional Preferred Units other than under the existing commitment is considered remote.

On March 14, 2023, the Company, through one of the Subsidiary OPs, committed to fund $24.0 million of preferred equity with respect to a ground up construction horizontal single-family property located in Phoenix, Arizona, of which $16.9 million was unfunded as of March 31, 2024. The preferred equity investment provides a floating annual return that is the greater of prime rate plus 5.0% or 11.25%, compounded monthly with a MOIC of 1.30x and 1.0% placement fee. The Company was also issued a common interest at the time of its first funding of preferred equity on May 16, 2023. The common interest allows the Company to receive a 10% profit share once aggregate distributions exceed the 20% IRR hurdle as shown below. There was no value ascribed to the common interest as of March 31, 2024. Further, once the Company's preferred equity and accrued interest has been repaid, any additional cash flow and net sale proceeds shall be distributed as follows:

•0% to the Company and 100% to issuer up to a 20.0% internal rate of return ("IRR")

•10% to the Company and 90% to issuer thereafter

On February 10, 2023, the Company, through one of the Subsidiary OPs, through a unit purchase agreement, committed to purchase $30.3 million of the preferred units with respect to a multifamily property development located in Forney, Texas, which was fully funded as of March 31, 2024. Further, the Company committed to purchase $4.3 million of common equity with respect to the same property, of which $1.3 million was unfunded as of March 31, 2024.

On February 10, 2023, the Company, through one of the Subsidiary OPs, through a unit purchase agreement, committed to purchase $30.3 million of the preferred units with respect to a multifamily property development located in Richmond, Virginia, of which $6.1 million was unfunded as of March 31, 2024. Further, the Company committed to purchase $4.3 million of common equity with respect to the same property, of which $3.3 million was unfunded as of March 31, 2024.

On January 26, 2024, the Company, through one of its subsidiaries, along with related party The Ohio State Life Insurance Company (“OSL”) entered into a Mezzanine Loan and Security Agreement (the "Alewife Loan") whereby it made a loan in the maximum principal amount of up to $218 million to IQHQ-Alewife Holdings, LLC ("Alewife Holdings"), which is solely owned by IQHQ, LP. The Company has an ownership interest in the Series D-1 preferred stock in IQHQ, who is the limited partner in IQHQ, LP; however, the Company has no controlling financial interest nor significant influence in IQHQ, LP. The loan is secured by a first mortgage with a first lien position and other security

interests. The Company’s portion of the total commitment is $208 million, of which $164.7 million was unfunded as of March 31, 2024. See Note 16.

The table below shows the Company's unfunded commitments by investment type as of March 31, 2024 and December 31, 2023 (in thousands):

Investment Type	March 31, 2024		December 31, 2023
	Unfunded Commitments		Unfunded Commitments
Mezzanine Loan	$	164,717	$	—
Preferred Equity	21,519		34,966
Common Equity	4,600		6,600
	$	190,836	$	41,566

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Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Promissory Note

On April 19, 2024, NREF OP IV, L.P. (“OP IV”), a subsidiary of the Company, borrowed $6.5 million from NexPoint Diversified Real Estate Trust Operating Partnership, L.P. (“NXDT OP”), the operating partnership of NexPoint Diversified Real Estate Trust ("NXDT"), an entity that is advised by an affiliate of the Manager. In connection with the loan, OP IV issued a $6.5 million note (the “NREF Note”) to NXDT OP on April 19, 2024. The NREF Note bears interest at 7.535%, which is payable in kind, is interest only during the term of the NREF Note and matures on April 19, 2029.

Loan Commitments

On May 10, 2024, the Company, through OP IV; NXDT OP, the operating partnership of NXDT; and OSL, an entity that may be deemed an affiliate of the Adviser through common beneficial ownership, entered into an Assignment and Assumption and Co-Lender Agreement (the "Alewife Agreement"), pursuant to which OP IV assigned the right to fund up to 9% of the Alewife Loan to be made to Alewife Holdings to NXDT OP and allocated the right to fund up to 9% of the Alewife Loan to OSL. Upon receipt of a draw request, NXDT OP and OSL would have the right to elect to fund an amount equal or greater than zero and up to (i) 9% of the total amount of all advances previously made under the loan plus the amount of the then current borrowing, (ii) less the total amount of advances previously made by NXDT OP and OSL, respectively. OP IV would be required to fund any amounts not funded by OSL and NXDT OP. At any time that NXDT OP and OSL have funded less than their respective 9% of all advances made under the Alewife Loan, NXDT OP and OSL shall have the option upon notice to OP IV to pay to OP IV any amount of such unfunded amount. Upon such payment, NXDT OP or OSL would become entitled to all interest and fees accrued on the amount paid to OP IV on and after the date of such payment. The Company's expected maximum commitment under the Alewife Loan is $179 million as of the date hereof.    

CMBS Acquisition

On April 30, 2024, the Company, through three Subsidiary OPs, purchased approximately $31.9 million aggregate principal amount of the Class C tranche of the FREMF 2024-K520 CMBS at a price equal to 85.3% of par value, representing 95% of the Class C tranche. The investment pays a fixed coupon of 5.59% with an all-in unlevered yield of

9.50%. On May 1, 2024, the Company through one of the Subsidiary OPs, entered into a repurchase agreement and borrowed approximately $17.7 million. The loan bears interest at a rate of 2.00% over SOFR.

CMBS Disposition

On May 8, 2024, the Company, through one of the Subsidiary OPs, sold its $30.0 million aggregate principal amount of the Class A tranche of the VINEB 2024 SFR1 CMBS at a price equal to 93.16% of par value.

Mortgage Backed Security Dispositions

On April 19, 2024, the Company, through one of the Subsidiary OPs, sold approximately $10.4 million aggregate principal amount of the Class G tranche of the STAR 2021-SFR1 G at a price equal to 97% of par value.

Alewife Holdings

On April 12, 2024, April 24, 2024, May 9, 2024, May 10, 2024, and May 13, 2024, the Company funded an additional $9.0 million, $10.3 million, $6.0 million, $3.0 million, and $1.5 million respectively, to Alewife Holdings.

Raymond James Term Loan

On April 30, 2024, the Company, through the OP, borrowed $20.0 million from Raymond James Bank which was used to effectuate the acquisition FREMF 2024-K520 CMBS. The term loan was fully repaid on May 1, 2024.

NexBank Loan

On April 29, 2024, the Company, through the OP, entered into a loan agreement with NexBank, as lender, providing for a loan in the aggregate principal amount of $10.0 million (the “NexBank Loan”).

The NexBank Loan bears interest at the rate which is the higher of (i) One Month Term Secured Overnight Financing Rate plus 4.2% per annum or (ii) 8.25% per annum, which is interest only during the term of the NexBank Loan and matures on April 28, 2025, with the OP having two 364-day extension options, which may be exercised at the OP’s sole discretion.

The NexBank Loan is secured by certain equity interests held by the OP and is guaranteed by the Company. The loan agreement contains customary events of default, including defaults in the payment of principal or interest, defaults in compliance with the covenants contained therein, defaults in payments under any other security instrument, and bankruptcy or other insolvency events.

Dividends

On April 18, 2024, our Board declared a Series B Preferred Stock dividend to Series B Preferred stockholders of $0.1875, which will be paid on June 5, 2024, to Series B Preferred stockholders of record as of May 24, 2024.

On April 29, 2024, our Board declared the second regular quarterly dividend of 2024 to common stockholders of $0.50, to be paid on June 28, 2024, to common stockholders of record as of June 14, 2024.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Basis of Accounting

Basis of Accounting

The accompanying unaudited consolidated financial statements are presented in accordance with GAAP. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the unaudited consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. There have been no significant changes to the Company’s significant accounting policies during the three months ended March 31, 2024.

The accompanying unaudited consolidated financial statements have been prepared according to the rules and regulations of the SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading.

Use of Estimates and Assumptions

Use of Estimates and Assumptions

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that these estimates could change in the near term. Estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.

Principles of Consolidation

Principles of Consolidation

The Company accounts for subsidiary partnerships in which it holds an ownership interest in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has power to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. As of March 31, 2024, the Company has determined it must consolidate the OP and the Subsidiary OPs under the VIE model as it was determined the Company both controls the direct activities of the OP and Subsidiary OPs and possesses the right to receive benefits that could potentially be significant to the OP and Subsidiary OPs. The consolidated financial statements include the accounts of the Company and its subsidiaries, including the OP and its subsidiaries. The Company’s sole significant asset is its investment in the OP, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the OP.

Variable Interest Entities

Variable Interest Entities

The Company evaluates all of its interests in VIEs for consolidation. When the Company’s interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary

beneficiary of a VIE is required to consolidate the VIE. FASB ASC Topic 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary, and it consolidates the VIE. Where either one of these factors is not present, the Company is not the primary beneficiary, and it does not consolidate the VIE (see Note 6).

CMBS Trusts

CMBS Trusts

The Company consolidates the trusts that issue beneficial ownership interests in mortgage loans secured by commercial real estate (commonly known as CMBS) when the Company holds a variable interest in, and management considers the Company to be the primary beneficiary of, those trusts. Management believes the performance of the assets that underlie CMBS issuances most significantly impact the economic performance of the trust, and the primary beneficiary is generally the entity that conducts activities that most significantly impact the performance of the underlying assets. In particular, the most subordinate tranches of CMBS expose the holder to greater variability of economic performance when compared to more senior tranches since the subordinate tranches absorb a disproportionately higher amount of the credit risk related to the underlying assets. Generally, a trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint, remove and replace the special servicer for the trust. For the ten CMBS that the Company consolidates, the Company owns 100% of the most subordinate tranche of nine of the securities and 94% of the most subordinate tranche of one of the securities issued by the trusts. The subordinate tranche includes the controlling class, and has the ability to remove and replace the special servicer. The portion of the controlling class not owned by the Company is classified as noncontrolling interest in CMBS variable interest entities.

On the Consolidated Balance Sheets as of March 31, 2024, the Company consolidated each of the Freddie Mac K-Series securitization entities (the “CMBS Entities”) that were determined to be VIEs and for which the Company is the primary beneficiary. The CMBS Entities are independent of the Company, and the assets and liabilities of the CMBS Entities are not owned by and are not legal obligations of ours. Our exposure to the CMBS Entities is through the subordinated tranches. For financial reporting purposes, the underlying mortgage loans held by the trusts are recorded as a separate line item on the balance sheet under “Mortgage loans held in variable interest entities, at fair value.” The liabilities of the trusts consist solely of obligations to the CMBS holders of the consolidated trusts, excluding the CMBS B-Piece investments held by the Company. The liabilities are presented as “Bonds payable held in variable interest entities, at fair value” on the Consolidated Balance Sheets. The CMBS B-Pieces held by the Company, and the interest earned thereon are eliminated in consolidation. Management has elected the measurement alternative in ASC 810 to report the fair value of the assets and liabilities of the consolidated CMBS Entities in order to provide users of the financial statements with better information regarding the effects of credit risk and other market factors on the CMBS B-Pieces owned by the Company. Management has elected to show interest income and interest expense related to the CMBS Entities in aggregate with the change in fair value as “Change in net assets related to consolidated CMBS variable interest entities.” The residual difference between the fair value of the CMBS Entities’ assets and liabilities represents the Company’s investments in the CMBS B-Pieces at fair value.

Mortgage and Other Loans Held-For-Investment

Mortgage and Other Loans Held-For-Investment

Loans that are held-for-investment are carried at their aggregate outstanding face amount, net of applicable (i) unamortized origination or acquisition premium and discounts, (ii) unamortized deferred fees and other direct loan origination costs, (iii) valuation allowance for credit losses and (iv) write-downs of impaired loans. The effective interest method is used to amortize origination or acquisition premiums and discounts and deferred fees or other direct loan origination costs. In general, an increase in prepayment rates accelerates the amortization of purchase premiums, thereby reducing the interest income earned on the assets. Conversely, discounts on such assets are accreted into interest income. In general, an increase in prepayment rates accelerates the accretion of purchase discounts, thereby increasing the interest income earned on the assets.

Allowance for Credit Losses

Allowance for Credit Losses

We adopted ASU 2016-13 as of January 1, 2023. The implementation process included the utilization of loan loss forecasting models, updates to our loan credit loss policy documentation, changes to internal reporting processes and related internal controls, and overall operational readiness for our adoption of the new standard. We have implemented loan loss forecasting models for estimating expected life-time credit losses, at the individual loan level, for our loan portfolio.

These models are also utilized for estimating expected life-time credit losses for unfunded loan commitments for which the Company has a present contractual obligation to extend the credit and the obligation is not unconditionally cancellable. The CECL forecasting methods used by the Company include (i) a probability of default and loss given default method using underlying third-party CMBS/Commercial Real Estate loan database with historical loan losses from 1998 to 2022, and (ii) probability weighted expected cash flow method, depending on the type of loan and the availability of relevant historical market loan loss data. We might use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data. Significant inputs to our forecasting methods include (i) key loan-specific inputs such as loan-to-value, vintage year, loan-term, underlying property type, occupancy, geographic location, performance against the underwritten business plan, and our internal loan risk rating, and (ii) a macro-economic environment forecast. The reasonable and supportable forecast period is determined based on the Company’s assessment of the most likely scenario of assumptions and plausible outcomes for the U.S. economy, current portfolio composition, level of historical loss forecast estimates, material changes in growth and credit strategy and other factors that may affect its loss experience. The Company regularly evaluates the reasonable and supportable forecast period to determine if a change is needed. The Company has determined that economic forecasts used in our CECL model can be reasonable and supportable over four quarters as it provides enough time to account for the expected changes of the economic conditions and the performance of the underlying assets. Beyond the Company’s reasonable and supportable forecast period, the Company immediately reverts to historical loss information. The Company considers an immediate reversion period appropriate in the CECL model because it provides a suitable balance between the stability of historical data and the flexibility to account for changing market conditions. The cumulative effect of adoption of ASU 2016-13 was a $1.6 million reduction in retained earnings. The beginning allowance for credit loss as of January 1, 2024 was $2.1 million. The reversal of credit losses of $0.4 million for the three months ended March 31, 2024 is included in reversal of (provision for) credit losses on the accompanying Consolidated Statements of Operations, resulting in an ending allowance for credit loss of $1.7 million as of March 31, 2024.

Significant judgment is required in determining impairment and in estimating the resulting loss allowance, and actual losses, if any, could materially differ from those estimates.

The Company performs a quarterly review of the portfolio. In conjunction with this review, the Company assesses the risk factors of each loan, including, without limitation, loan-to-value ratio, debt yield, property type, geographic and local market dynamics, physical condition, collateral, cash-flow volatility, leasing and tenant profile, loan structure, exit plan and project sponsorship. Based on a 5-point scale, our loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows:

1 – Outperform – Materially exceeds performance metrics (for example, technical milestones, occupancy, rents and net operating income) included in original or current credit underwriting and business plan;

2 – Exceeds Expectations – Collateral performance exceeds substantially all performance metrics included in original or current credit underwriting and business plan;

3 – Satisfactory – Collateral performance meets, or is on track to meet, underwriting; business plan is met or can reasonably be achieved;

4 – Underperformance – Collateral performance falls short of underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist or may soon occur absent material improvement; and

5 – Risk of Impairment/Default – Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable.

The Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral, as well as the financial and operating capability of the borrower. Specifically, the collateral’s operating results and any cash reserves are analyzed and used to assess (i) whether cash from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan and/or (iii) the collateral’s liquidation value. The Company also evaluates the financial condition of any loan guarantors, as well as any changes in the borrower’s competency in managing and operating the collateral. In addition, the Company considers the overall economic environment, real estate or industry sector and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as property operating statements, occupancy,

tenant profile, rental rates, operating expenses, the borrower’s exit plan and capitalization and discount rates, (ii) site inspections and (iii) current credit spreads and discussions with market participants.

The Company considers loans to be past-due when a monthly payment is due and unpaid for 60 days or more. Loans will be placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when they become 120 days or more past-due unless the loan is both well secured and in the process of collection. Accrual of interest on individual loans is discontinued when management believes that, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. Our policy is to cease accruing interest when a loan’s delinquency exceeds 120 days. All interest accrued but not collected for loans that are placed on nonaccrual status or subsequently charged-off are reversed against interest income. Income is subsequently recognized on the cash basis until, in management’s judgment, the borrower’s ability to make periodic principal and interest payments returns and future payments are reasonably assured, in which case the loan is returned to accrual status.

A loan is written off when it is no longer realizable and/or it is legally discharged.

The Company also recognizes a liability for expected credit losses for off-balance sheet exposures if the Company has a present contractual obligation to extend the credit and the obligation is not unconditionally cancelable by the entity.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Section 107 of the Jumpstart Our Business Startups Act (“JOBS Act”) provides that an emerging growth company can take advantage of the extended transition period provided in Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for complying with new or revised accounting standards applicable to public companies. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of this extended transition period. As a result of this election, our consolidated financial statements may not be comparable to companies that comply with public company effective dates for such new or revised standards. The Company may elect to comply with public company effective dates at any time, and such election would be irrevocable pursuant to Section 107(b) of the JOBS Act.

In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06"), which simplifies an issuer’s accounting for convertible instruments and its application of the derivatives scope exception for contracts in its own equity. The amendment also requires entities to use the if-converted method for all convertible instruments in the diluted EPS calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. In addition, the amendment requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. We adopted ASU 2020-06 as of January 1, 2024 using a modified retrospective method. ASU 2020-06 had no material impact upon adoption.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting – Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires a public entity to disclose significant segment expenses and other segment items in interim and annual periods and expands the ASC 280 disclosure requirements for interim periods. The ASU also explicitly requires public entities with a single reportable segment to provide all segment disclosures under ASC 280, including the new disclosures under ASU 2023-07. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

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Loans Held for Investment, Net (Tables)

3 Months Ended

Mar. 31, 2024

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The following tables summarize our loans held-for-investment as of March 31, 2024 and December 31, 2023, respectively (dollars in thousands):

						Weighted Average
Loan Type	Outstanding Face Amount		Carrying Value (1)		Loan Count	Fixed Rate (2)		Coupon (3)		Life (years) (4)
March 31, 2024
Mortgage loans, held-for-investment	$	135,232	$	140,565	10	100.00	%	5.31	%	3.55
Mezzanine loans, held-for-investment	177,781		177,838		23	58.68	%	10.79	%	4.54
Preferred equity, held-for-investment	214,307		213,253		15	38.67	%	12.11	%	1.84
Promissory note, held-for-investment	500		500		1	12.50	%	12.50	%	0.99
	$	527,820	$	532,156	49	61.10	%	9.92	%	3.19

Loan Type	Outstanding Face Amount		Carrying Value (1)		Loan Count	Weighted Average
						Fixed Rate (2)		Coupon (3)		Life (years) (4)
December 31, 2023
Mortgage loans, held-for-investment	$	645,277	$	676,420	11	100.00	%	4.79	%	4.49
Mezzanine loans, held-for-investment	133,207		135,069		22	78.31	%	9.61	%	5.36
Preferred equity, held-for-investment	195,392		193,391		15	39.12	%	12.20	%	2.22
	$	973,876	$	1,004,880	48	84.82	%	6.94	%	4.15

(1)Carrying value includes the outstanding face amount plus unamortized purchase premiums/discounts and any allowance for loan losses.

(2)The weighted-average of loans paying a fixed rate is weighted on current principal balance.

(3)The weighted-average coupon is weighted on outstanding face amount.

(4)The weighted-average life is weighted on outstanding face amount and assumes no prepayments. The maturity date for preferred equity investments represents the maturity date of the senior mortgage, as the preferred equity investments require repayment upon the sale or refinancing of the asset.

Schedule of Loan and Preferred Equity Portfolio Activity

For the three months ended March 31, 2024 and 2023, the loan and preferred equity portfolio activity was as follows (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Balance at December 31,	$	1,004,880	$	982,678
Recognition of retained preferred equity investment upon deconsolidation of real estate (Note 14)	—		36,022
Cumulative effect of adoption of ASU 2016-13 (See Note 2)	—		(1,624)
Originations	60,247		28,816
Proceeds from principal repayments	(511,169)		(36,743)
PIK distribution reinvested in Preferred Units	3,448		209
Amortization of loan premium, net (1)	(25,670)		(1,501)
(Provision for) reversal of credit losses	420		34
Balance at March 31,	$	532,156	$	1,007,891

(1)Includes net amortization of loan purchase premiums.

Schedule of Financing Receivable Credit Quality Indicators

The following tables allocate the principal balance and net book value of the loan portfolio based on our internal risk ratings (dollars in thousands):

	March 31, 2024
Risk Rating	Number of Loans	Carrying Value		% of Loan Portfolio
1	—	$	—	—
2	—	—		—
3	48	519,680		97.66	%
4	1	12,476		2.34	%
5	—	—		—
	49	$	532,156	100.00	%

Risk Rating	December 31, 2023
	Number of Loans	Carrying Value		% of Loan Portfolio
1	—	$	—	—
2	—	—		—
3	46	992,751		98.79	%
4	2	12,129		1.21	%
5	—	—		—
	48	$	1,004,880	100.00	%

The following tables present the carrying value of the loan portfolio by the Company's internal risk rating and year of origination as of March 31, 2024 and December 31, 2023 (dollars in thousands):

March 31, 2024
	Carrying Value by Year of Origination (1)
Risk Rating	Number of Loans	Outstanding Face Amount		2024		2023		2022		2021		2020		Prior		Total Carrying Value
1	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—	—		—		—		—		—		—		—		—
3	48	515,700		43,303		96,388		84,354		44,387		19,846		231,402		519,680
4	1	12,120		—		—		12,476		—		—		—		12,476
5	—	—		—		—		—		—		—		—		—
	49	$	527,820	$	43,303	$	96,388	$	96,830	$	44,387	$	19,846	$	231,402	$	532,156

December 31, 2023
	Carrying Value by Year of Origination (1)
Risk Rating	Number of Loans	Outstanding Face Amount		2023		2022		2021		2020		2019		Prior		Total Carrying Value
1	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—	—		—		—		—		—		—		—		—
3	46	961,756		82,879		69,958		40,981		19,158		759,828		19,947		992,751
4	2	12,120		—		12,129		—		—		—		—		12,129
5	—	—		—		—		—		—		—		—		—
	48	$	973,876	$	82,879	$	82,087	$	40,981	$	19,158	$	759,828	$	19,947	$	1,004,880

(1)Represents the date a loan was originated or acquired.

Schedule of Loans Held for Investment as a Percentage of Face Amount by Geographic Areas

The following tables present the geographies and property types of collateral underlying the Company’s loans held-for-investment as a percentage of the loans’ face amounts.

Geography	March 31, 2024		December 31, 2023
Texas	22.64	%	13.87	%
Georgia	10.30	%	30.50	%
Maryland	10.10	%	5.47	%
California	9.71	%	4.92	%
Massachusetts	8.45	%	*
Florida	6.21	%	18.40	%
Virginia	5.96	%	2.65	%
Minnesota	3.78	%	7.31	%
North Carolina	2.68	%	2.78	%
Arkansas	2.52	%	1.37	%
Nevada	2.49	%	1.46	%
Oklahoma	1.76	%	*
Arizona	1.65	%	*
Michigan	1.63	%	*
Washington	1.52	%	*
Pennsylvania	1.15	%	*
Tennessee	1.13	%	*
Iowa	1.09	%	*
Nebraska	1.07	%	*
Delaware	1.05	%	*
Alabama	*		3.51	%
Other (8 and 18 states each at <1%)	3.11	%	7.76	%
	100.00	%	100.00	%

*Included in "Other."

Collateral Property Type	March 31, 2024		December 31, 2023
Single Family Rental	33.54	%	69.94	%
Multifamily	41.60	%	21.99	%
Life Science	21.64	%	6.33	%
Self-Storage	3.22	%	1.75	%
	100.00	%	100.00	%

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CMBS Trusts (Tables)

3 Months Ended

Mar. 31, 2024

Mortgage Banking [Abstract]

Schedule of Recognized Trusts Assets and Liabilities

The following table presents the Company’s recognized Trust’s Assets and Liabilities (in thousands):

Trust's Assets	March 31, 2024		December 31, 2023
Mortgage loans held in variable interest entities, at fair value	$	6,182,075	$	5,677,763
Accrued interest receivable	4,344		3,902
Trust's Liabilities
Bonds payable held in variable interest entities, at fair value	(5,774,017)		(5,289,997)
Accrued interest payable	(3,655)		(3,220)

Schedule of Change in Net Assets Related to Consolidated CMBS Variable Interest Entities

The following table presents “Change in net assets related to consolidated CMBS variable interest entities” (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Net interest earned	$	9,236	$	10,643
Unrealized gain (loss)	(820)		360
Change in net assets related to consolidated CMBS variable interest entities	$	8,416	$	11,003

Schedule Of Loan Collateral Unpaid Balance

The following tables present the geographies and property types of collateral underlying the CMBS trusts consolidated by the Company as a percentage of the collateral unpaid principal balance:

Geography	March 31, 2024		December 31, 2023
Texas	15.92	%	15.85	%
Florida	14.16	%	14.07	%
Arizona	4.07	%	4.05	%
California	8.59	%	8.69	%
Georgia	3.87	%	4.00	%
Washington	7.78	%	7.75	%
New Jersey	4.04	%	4.02	%
Nevada	2.50	%	2.49	%
Pennsylvania	1.28	%	1.27	%
Colorado	7.77	%	7.74	%
Connecticut	1.97	%	2.04	%
North Carolina	4.19	%	4.17	%
New York	3.39	%	3.37	%
Ohio	2.46	%	2.48	%
Virginia	2.05	%	2.03	%
Indiana	2.14	%	2.13	%
Illinois	1.65	%	1.65	%
Michigan	1.39	%	1.38	%
Maryland	1.19	%	1.18	%
Missouri	1.57	%	1.56	%
Other (21 states each at <1%)	8.02	%	8.08	%
	100.00	%	100.00	%

*Included in “Other.”

Collateral Property Type	March 31, 2024		December 31, 2023
Multifamily	97.44	%	97.45	%
Manufactured Housing	2.56	%	2.55	%
	100.00	%	100.00	%

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Common and Preferred Stock Investments (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Debt Securities, Trading, and Equity Securities, FV-NI

The following table presents the common stock investments as of March 31, 2024 and December 31, 2023, respectively (in thousands, except share amounts):

			Shares		Fair Value
Investment	Investment Date	Property Type	March 31, 2024	December 31, 2023	March 31, 2024		December 31, 2023
Common Stock
NexPoint Storage Partners	11/6/2020	Self-storage	41,963	41,963	$	33,764	$	33,129
Private REIT	4/14/2022	Ground lease	1,394,213	1,394,213	26,894		28,400

The following table presents the CMBS I/O Strips, MSCR Notes and mortgage backed securities as of March 31, 2024 (in thousands):

Investment	Investment Date		Carrying Value		Property Type	Interest Rate		Current Yield (1)		Maturity Date
CMBS I/O Strips
CMBS I/O Strip	5/18/2020		$	1,601	Multifamily	2.02	%	14.67	%	9/25/2046
CMBS I/O Strip	8/6/2020		15,623		Multifamily	2.98	%	18.60	%	6/25/2030
CMBS I/O Strip	4/28/2021	(2)	4,777		Multifamily	1.59	%	18.20	%	1/25/2030
CMBS I/O Strip	5/27/2021		3,338		Multifamily	3.39	%	18.42	%	5/25/2030
CMBS I/O Strip	6/7/2021		378		Multifamily	2.31	%	23.40	%	11/25/2028
CMBS I/O Strip	6/11/2021	(3)	2,427		Multifamily	1.48	%	18.03	%	5/25/2029
CMBS I/O Strip	6/21/2021		809		Multifamily	1.17	%	18.61	%	5/25/2030
CMBS I/O Strip	8/10/2021		2,183		Multifamily	1.89	%	18.63	%	4/25/2030
CMBS I/O Strip	8/11/2021		1,213		Multifamily	3.10	%	15.69	%	7/25/2031
CMBS I/O Strip	8/24/2021		220		Multifamily	2.61	%	16.66	%	1/25/2031
CMBS I/O Strip	9/1/2021		3,293		Multifamily	1.92	%	17.63	%	6/25/2030
CMBS I/O Strip	9/11/2021		3,472		Multifamily	2.95	%	15.57	%	9/25/2031
Total			$	39,334		2.52	%	17.94	%
MSCR Notes
MSCR Notes	5/25/2022		$	4,020	Multifamily	14.82	%	14.82	%	5/25/2052
MSCR Notes	5/25/2022		5,000		Multifamily	11.82	%	11.82	%	5/25/2052
MSCR Notes	9/23/2022		1,343		Multifamily	12.17	%	13.37	%	11/25/2051
Total			$	10,363		13.03	%	13.19	%
Mortgage Backed Securities
Mortgage Backed Securities	6/1/2022		$	9,898	Single-Family	8.63	%	8.87	%	4/17/2026
Mortgage Backed Securities	9/29/2022		7,964		Self Storage	11.10	%	11.12	%	9/15/2027
Mortgage Backed Securities	3/10/2023		5,768		Multifamily	13.95	%	13.97	%	2/25/2025
Mortgage Backed Securities	2/29/2024		28,421		Single-Family	4.50	%	4.75	%	3/19/2029
Mortgage Backed Securities	2/29/2024		9,429		Single-Family	4.50	%	5.24	%	3/19/2029
Mortgage Backed Securities	2/29/2024		6,546		Single-Family	4.50	%	5.63	%	3/19/2029
Total			$	68,026		6.67	%	7.03	%

(1)Current yield is the annualized income earned divided by the cost basis of the investment.

(2)The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively.

(3)The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively.

The following table presents the CMBS I/O Strips, MSCR Notes and mortgage backed securities as of December 31, 2023 (in thousands):

Investment	Investment Date		Carrying Value		Property Type	Interest Rate		Current Yield (1)		Maturity Date
CMBS I/O Strips
CMBS I/O Strip	5/18/2020		$	1,622	Multifamily	2.02	%	14.64	%	9/25/2046
CMBS I/O Strip	8/6/2020		16,601		Multifamily	2.98	%	17.98	%	6/25/2030
CMBS I/O Strip	4/28/2021	(2)	5,022		Multifamily	1.59	%	17.68	%	1/25/2030
CMBS I/O Strip	5/27/2021		3,436		Multifamily	3.39	%	17.79	%	5/25/2030
CMBS I/O Strip	6/7/2021		395		Multifamily	2.31	%	22.31	%	11/25/2028
CMBS I/O Strip	6/11/2021	(3)	2,643		Multifamily	1.18	%	14.57	%	5/25/2029
CMBS I/O Strip	6/21/2021		833		Multifamily	1.17	%	18.07	%	5/25/2030
CMBS I/O Strip	8/10/2021		2,255		Multifamily	1.89	%	17.98	%	4/25/2030
CMBS I/O Strip	8/11/2021		1,241		Multifamily	3.10	%	15.24	%	7/25/2031
CMBS I/O Strip	8/24/2021		229		Multifamily	2.61	%	16.15	%	1/25/2031
CMBS I/O Strip	9/1/2021		3,390		Multifamily	1.92	%	17.01	%	6/25/2030
CMBS I/O Strip	9/11/2021		3,545		Multifamily	2.95	%	15.14	%	9/25/2031
Total			$	41,212		2.50	%	17.21	%
MSCR Notes
MSCR Notes	5/25/2022		$	4,020	Multifamily	14.83	%	14.83	%	5/25/2052
MSCR Notes	5/25/2022		5,000		Multifamily	11.83	%	11.83	%	5/25/2052
MSCR Notes	9/23/2022		1,358		Multifamily	12.18	%	13.38	%	11/25/2051
Total			$	10,378		13.04	%	13.20	%
Mortgage Backed Securities
Mortgage Backed Securities	6/1/2022		$	9,924	Single-Family	8.64	%	8.91	%	4/17/2026
Mortgage Backed Securities	6/1/2022		9,369		Single-Family	4.87	%	5.01	%	11/19/2025
Mortgage Backed Securities	7/28/2022		538		Single-Family	6.23	%	6.31	%	10/17/2027
Mortgage Backed Securities	7/28/2022		856		Single-Family	3.60	%	4.12	%	6/20/2028
Mortgage Backed Securities	9/12/2022		3,881		Multifamily	11.57	%	11.55	%	1/25/2031
Mortgage Backed Securities	9/29/2022		7,960		Self Storage	11.10	%	11.12	%	9/15/2027
Mortgage Backed Securities	3/10/2023		5,742		Multifamily	13.93	%	13.95	%	2/25/2025
Total			$	38,270		9.17	%	9.30	%

(1)Current yield is the annualized income earned divided by the cost basis of the investment

(2)The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively.

(3)The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively.

Schedule of Investment

The following table presents “Change in unrealized (loss) on common stock investments” (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Change in unrealized gain on NexPoint Storage Partners	$	635	$	(235)
Change in unrealized gain (loss) on Private REIT	(1,506)		(1,032)
Change in unrealized gain on common stock investments	$	(871)	$	(1,267)

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Unconsolidated Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities

As of March 31, 2024, the Company has accounted for the following investments as unconsolidated VIEs:

Entities	Instrument	Asset Type	Accounting Treatment	Percentage Ownership as of March 31, 2024		Relationship as of March 31, 2024
Unconsolidated Entities:
NexPoint Storage Partners, Inc.	Common Stock	Self-storage	Fair Value	25.7	%	VIE
Resmark Forney Gateway Holdings, LLC	Common Equity	Multifamily	Equity Method	98.0	%	VIE
Resmark The Brook Holdings, LLC	Common Equity	Multifamily	Equity Method	98.0	%	VIE
Private REIT	Common Equity	Ground lease	Fair Value	6.4	%	VIE

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CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Debt Securities, Trading, and Equity Securities, FV-NI

The following table presents the common stock investments as of March 31, 2024 and December 31, 2023, respectively (in thousands, except share amounts):

			Shares		Fair Value
Investment	Investment Date	Property Type	March 31, 2024	December 31, 2023	March 31, 2024		December 31, 2023
Common Stock
NexPoint Storage Partners	11/6/2020	Self-storage	41,963	41,963	$	33,764	$	33,129
Private REIT	4/14/2022	Ground lease	1,394,213	1,394,213	26,894		28,400

The following table presents the CMBS I/O Strips, MSCR Notes and mortgage backed securities as of March 31, 2024 (in thousands):

Investment	Investment Date		Carrying Value		Property Type	Interest Rate		Current Yield (1)		Maturity Date
CMBS I/O Strips
CMBS I/O Strip	5/18/2020		$	1,601	Multifamily	2.02	%	14.67	%	9/25/2046
CMBS I/O Strip	8/6/2020		15,623		Multifamily	2.98	%	18.60	%	6/25/2030
CMBS I/O Strip	4/28/2021	(2)	4,777		Multifamily	1.59	%	18.20	%	1/25/2030
CMBS I/O Strip	5/27/2021		3,338		Multifamily	3.39	%	18.42	%	5/25/2030
CMBS I/O Strip	6/7/2021		378		Multifamily	2.31	%	23.40	%	11/25/2028
CMBS I/O Strip	6/11/2021	(3)	2,427		Multifamily	1.48	%	18.03	%	5/25/2029
CMBS I/O Strip	6/21/2021		809		Multifamily	1.17	%	18.61	%	5/25/2030
CMBS I/O Strip	8/10/2021		2,183		Multifamily	1.89	%	18.63	%	4/25/2030
CMBS I/O Strip	8/11/2021		1,213		Multifamily	3.10	%	15.69	%	7/25/2031
CMBS I/O Strip	8/24/2021		220		Multifamily	2.61	%	16.66	%	1/25/2031
CMBS I/O Strip	9/1/2021		3,293		Multifamily	1.92	%	17.63	%	6/25/2030
CMBS I/O Strip	9/11/2021		3,472		Multifamily	2.95	%	15.57	%	9/25/2031
Total			$	39,334		2.52	%	17.94	%
MSCR Notes
MSCR Notes	5/25/2022		$	4,020	Multifamily	14.82	%	14.82	%	5/25/2052
MSCR Notes	5/25/2022		5,000		Multifamily	11.82	%	11.82	%	5/25/2052
MSCR Notes	9/23/2022		1,343		Multifamily	12.17	%	13.37	%	11/25/2051
Total			$	10,363		13.03	%	13.19	%
Mortgage Backed Securities
Mortgage Backed Securities	6/1/2022		$	9,898	Single-Family	8.63	%	8.87	%	4/17/2026
Mortgage Backed Securities	9/29/2022		7,964		Self Storage	11.10	%	11.12	%	9/15/2027
Mortgage Backed Securities	3/10/2023		5,768		Multifamily	13.95	%	13.97	%	2/25/2025
Mortgage Backed Securities	2/29/2024		28,421		Single-Family	4.50	%	4.75	%	3/19/2029
Mortgage Backed Securities	2/29/2024		9,429		Single-Family	4.50	%	5.24	%	3/19/2029
Mortgage Backed Securities	2/29/2024		6,546		Single-Family	4.50	%	5.63	%	3/19/2029
Total			$	68,026		6.67	%	7.03	%

(1)Current yield is the annualized income earned divided by the cost basis of the investment.

(2)The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively.

(3)The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively.

The following table presents the CMBS I/O Strips, MSCR Notes and mortgage backed securities as of December 31, 2023 (in thousands):

Investment	Investment Date		Carrying Value		Property Type	Interest Rate		Current Yield (1)		Maturity Date
CMBS I/O Strips
CMBS I/O Strip	5/18/2020		$	1,622	Multifamily	2.02	%	14.64	%	9/25/2046
CMBS I/O Strip	8/6/2020		16,601		Multifamily	2.98	%	17.98	%	6/25/2030
CMBS I/O Strip	4/28/2021	(2)	5,022		Multifamily	1.59	%	17.68	%	1/25/2030
CMBS I/O Strip	5/27/2021		3,436		Multifamily	3.39	%	17.79	%	5/25/2030
CMBS I/O Strip	6/7/2021		395		Multifamily	2.31	%	22.31	%	11/25/2028
CMBS I/O Strip	6/11/2021	(3)	2,643		Multifamily	1.18	%	14.57	%	5/25/2029
CMBS I/O Strip	6/21/2021		833		Multifamily	1.17	%	18.07	%	5/25/2030
CMBS I/O Strip	8/10/2021		2,255		Multifamily	1.89	%	17.98	%	4/25/2030
CMBS I/O Strip	8/11/2021		1,241		Multifamily	3.10	%	15.24	%	7/25/2031
CMBS I/O Strip	8/24/2021		229		Multifamily	2.61	%	16.15	%	1/25/2031
CMBS I/O Strip	9/1/2021		3,390		Multifamily	1.92	%	17.01	%	6/25/2030
CMBS I/O Strip	9/11/2021		3,545		Multifamily	2.95	%	15.14	%	9/25/2031
Total			$	41,212		2.50	%	17.21	%
MSCR Notes
MSCR Notes	5/25/2022		$	4,020	Multifamily	14.83	%	14.83	%	5/25/2052
MSCR Notes	5/25/2022		5,000		Multifamily	11.83	%	11.83	%	5/25/2052
MSCR Notes	9/23/2022		1,358		Multifamily	12.18	%	13.38	%	11/25/2051
Total			$	10,378		13.04	%	13.20	%
Mortgage Backed Securities
Mortgage Backed Securities	6/1/2022		$	9,924	Single-Family	8.64	%	8.91	%	4/17/2026
Mortgage Backed Securities	6/1/2022		9,369		Single-Family	4.87	%	5.01	%	11/19/2025
Mortgage Backed Securities	7/28/2022		538		Single-Family	6.23	%	6.31	%	10/17/2027
Mortgage Backed Securities	7/28/2022		856		Single-Family	3.60	%	4.12	%	6/20/2028
Mortgage Backed Securities	9/12/2022		3,881		Multifamily	11.57	%	11.55	%	1/25/2031
Mortgage Backed Securities	9/29/2022		7,960		Self Storage	11.10	%	11.12	%	9/15/2027
Mortgage Backed Securities	3/10/2023		5,742		Multifamily	13.93	%	13.95	%	2/25/2025
Total			$	38,270		9.17	%	9.30	%

(1)Current yield is the annualized income earned divided by the cost basis of the investment

(2)The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively.

(3)The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively.

Schedule of Activity Related to Commercial Mortgage Backed Securities

The following table presents activity related to the Company’s CMBS I/O Strips, MSCR Notes and mortgage backed securities (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Net interest earned	$	664	$	717
Change in unrealized gain (loss) on CMBS structured pass-through certificates	(40)		(752)
Change in unrealized gain (loss) on MSCR Notes	(15)		(298)
Change in unrealized (loss) on mortgage backed securities	440		(606)
Total	$	1,049	$	(939)

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Real Estate Investments, net (Tables)

3 Months Ended

Mar. 31, 2024

Real Estate Investments, Net [Abstract]

Schedule of Real Estate Properties

As of March 31, 2024, the components of the Company's investments in multifamily properties was as follows (in thousands):

Real Estate Investments, Net	Land		Buildings and Improvements		Intangible Lease Assets		Construction in Progress		Furniture, Fixtures and Equipment		Totals
Hudson Montford	$	10,996	$	49,934	$	—	$	197	$	923	$	62,050
Alexander at the District	7,806		59,170		—		4		909		67,889
Accumulated depreciation and amortization	—		(4,875)		—		—		(578)		(5,453)
Total Real Estate Investments, Net	$	18,802	$	104,229	$	—	$	201	$	1,254	$	124,486

As of December 31, 2023, the components of the Company's investments in multifamily properties were as follows (in thousands):

Real Estate Investments, Net	Land		Buildings and Improvements		Intangible Lease Assets		Construction in Progress		Furniture, Fixtures and Equipment		Totals
Hudson Montford	$	10,996	$	49,912	$	—	$	401	$	691	$	62,000
Alexander at the District	7,806		59,162		1,271		—		716		68,955
Accumulated depreciation and amortization	—		(3,948)		—		—		(456)		(4,404)
Total Real Estate Investments, Net	$	18,802	$	105,126	$	1,271	$	401	$	951	$	126,551

Real Estate Investment Financial Statements, Disclosure

The following table reflects the revenue and expenses for the three months ended March 31, 2024 and 2023 for our multifamily properties (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Revenues
Rental income	$	2,087	$	1,018
Other income	124		10
Total revenues	2,211		1,028
Expenses
Interest expense	2,088		581
Real estate taxes and insurance	452		172
Property operating expenses	176		185
Property general and administrative expenses	173		35
Property management fees	62		29
Depreciation and amortization	2,318		476
Rate cap (income) expense	169		194
Casualty (gain) loss	(1)		(175)
Total expenses	5,437		1,497
Net income (loss) from consolidated real estate owned	$	(3,226)	$	(469)

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Debt (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The following table summarizes the Company’s financing arrangements in place as of March 31, 2024 (dollars in thousands):

	March 31, 2024
	Facility										Collateral
	Date issued	Outstanding face amount		Carrying value		Final stated maturity		Weighted average interest rate (1)		Weighted average life (years) (2)	Outstanding face amount		Amortized cost basis		Carrying value (3)		Weighted average life (years) (2)
Master Repurchase Agreements
CMBS
Mizuho(4)	4/15/2020	$	341,740	$	341,740	N/A	(5)	7.15	%	0.0	$	984,591	$	519,743	$	513,307	6.1
Asset Specific Financing
Single Family Rental loans
Freddie Mac	7/12/2019	123,346		123,346		7/12/2029		2.69	%	3.6	135,232		140,565		140,565		3.6
Mezzanine loans
Freddie Mac	10/20/2020	59,252		59,252		8/1/2031		0.30	%	6.0	96,817		98,248		98,248		6.0
Multifamily properties
CBRE	12/31/2021	32,480		32,108		6/1/2028	(6)	8.03	%	4.2	N/A		65,166		65,166		4.2
Various	10/10/2023	63,500		63,500		11/6/2024	(7)	8.84	%	0.6	N/A		59,320		59,320		0.6
Unsecured Financing
Various	10/15/2020	36,500		35,936		10/25/2025		7.50	%	1.6	N/A		N/A		N/A		N/A
Various	4/20/2021	180,000		177,413		5/1/2026		5.75	%	2.1	N/A		N/A		N/A		N/A
Various	10/18/2022	6,500		6,500		10/18/2027		7.50	%	3.6	N/A		N/A		N/A		N/A
Total/weighted average		$	843,318	$	839,795			5.90	%	1.7	$	1,216,640	$	883,042	$	876,606	5.8

(1)Weighted-average interest rate using unpaid principal balances.

(2)Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower.

(3)CMBS are shown at fair value on an unconsolidated basis. SFR Loans and mezzanine loans are shown at amortized cost.

(4)On April 15, 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho Securities ("Mizuho"). Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities.

(5)The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly.

(6)Debt was assumed upon acquisition of this property and recorded at the outstanding principal amount, net of debt issuance costs. The loan can be prepaid at a 1.0% prepayment premium on any unpaid principal. The loan is open to pre-payment in the last three months of the term.

(7)Debt was assumed upon consolidation of this property and recorded at the outstanding principal amount.

The following table summarizes the Company’s financing arrangements in place as of December 31, 2023 (dollars in thousands):

	December 31, 2023
	Facility										Collateral
	Date issued	Outstanding face amount		Carrying value		Final stated maturity		Weighted average interest rate (1)		Weighted average life (years) (2)	Outstanding face amount		Amortized cost basis		Carrying value (3)		Weighted average life (years) (2)
Master Repurchase Agreements
CMBS
Mizuho(4)	4/15/2020	$	303,514	$	303,514	N/A	(5)	7.26	%	0.0	$	931,296	$	470,761	$	464,888	6.4
Asset Specific Financing
Single Family Rental loans
Freddie Mac	7/12/2019	590,306		590,306		7/12/2029		2.34	%	4.5	645,277		676,420		676,420		4.5
Mezzanine loans
Freddie Mac	10/20/2020	59,252		59,252		8/1/2031		0.30	%	6.3	96,817		98,839		98,839		6.3
Multifamily properties
CBRE	12/31/2021	32,366		32,157		6/1/2028	(6)	8.05	%	4.4	N/A		64,697		64,697		4.4
Various	10/10/2023	63,500		63,500		11/6/2024	(7)	8.84	%	0.9	N/A		61,854		61,854		0.9
Unsecured Financing
Various	10/15/2020	36,500		35,852		10/25/2025		7.50	%	1.8	N/A		N/A		N/A		N/A
Various	4/20/2021	180,000		177,131		5/1/2026		5.75	%	2.3	N/A		N/A		N/A		N/A
Various	10/18/2022	6,500		6,500		10/18/2027		7.50	%	3.8	N/A		N/A		N/A		N/A
Total/weighted average		$	1,271,938	$	1,268,212			4.55	%	2.9	$	676,420	$	1,372,571	$	1,366,698	5.6

(1)Weighted-average interest rate using unpaid principal balances.

(2)Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower.

(3)CMBS are shown at fair value on an unconsolidated basis. SFR Loans and mezzanine loans are shown at amortized cost.

(4)On April 15, 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho. Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities.

(5)The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly.

(6)Debt was assumed upon acquisition of this property and recorded at the outstanding principal amount, net of debt issuance costs. The loan can be prepaid at a 1.0% prepayment premium on any unpaid principal. The loan is open to pre-payment in the last three months of the term.

(7)Debt was assumed upon consolidation of this property and recorded at the outstanding principal amount.

Schedule of Debt

As of March 31, 2024, the outstanding principal balances related to the levered SFR Loans and mezzanine loans consisted of the following (dollars in thousands):

Investment	Investment Date	Outstanding Principal Balance (1)		Location	Property Type	Interest Type	Interest Rate		Maturity Date
SFR Loans
Senior loan	2/11/2020	$	31,416	Various	Single-family	Fixed	2.14	%	10/1/2025
Senior loan	2/11/2020	33,565		Various	Single-family	Fixed	2.70	%	11/1/2028
Senior loan	2/11/2020	9,156		Various	Single-family	Fixed	2.79	%	9/1/2028
Senior loan	2/11/2020	9,284		Various	Single-family	Fixed	2.45	%	3/1/2026
Senior loan	2/11/2020	7,408		Various	Single-family	Fixed	3.51	%	2/1/2028
Senior loan	2/11/2020	8,720		Various	Single-family	Fixed	3.30	%	10/1/2028
Senior loan	2/11/2020	7,848		Various	Single-family	Fixed	3.14	%	1/1/2029
Senior loan	2/11/2020	5,823		Various	Single-family	Fixed	2.99	%	3/1/2029
Senior loan	2/11/2020	5,223		Various	Single-family	Fixed	3.14	%	12/1/2028
Senior loan	2/11/2020	4,903		Various	Single-family	Fixed	2.64	%	10/1/2028
Total		$	123,346				2.69	%
Mezzanine Loans
Senior loan	10/20/2020	$	8,723	Wilmington, DE	Multifamily	Fixed	0.30	%	6/1/2029
Senior loan	10/20/2020	7,344		White Marsh, MD	Multifamily	Fixed	0.30	%	4/1/2031
Senior loan	10/20/2020	6,353		Philadelphia, PA	Multifamily	Fixed	0.30	%	7/1/2031
Senior loan	10/20/2020	5,881		Daytona Beach, FL	Multifamily	Fixed	0.30	%	7/1/2031
Senior loan	10/20/2020	4,523		Laurel, MD	Multifamily	Fixed	0.30	%	7/1/2031
Senior loan	10/20/2020	4,179		Temple Hills, MD	Multifamily	Fixed	0.30	%	1/1/2029
Senior loan	10/20/2020	3,390		Temple Hills, MD	Multifamily	Fixed	0.30	%	5/1/2029
Senior loan	10/20/2020	3,348		Lakewood, NJ	Multifamily	Fixed	0.30	%	5/1/2029
Senior loan	10/20/2020	2,454		North Aurora, IL	Multifamily	Fixed	0.30	%	11/1/2028
Senior loan	10/20/2020	2,264		Rosedale, MD	Multifamily	Fixed	0.30	%	10/1/2028
Senior loan	10/20/2020	2,215		Cockeysville, MD	Multifamily	Fixed	0.30	%	7/1/2031
Senior loan	10/20/2020	2,026		Laurel, MD	Multifamily	Fixed	0.30	%	7/1/2029
Senior loan	10/20/2020	1,836		Vancouver, WA	Multifamily	Fixed	0.30	%	8/1/2031
Senior loan	10/20/2020	1,763		Tyler, TX	Multifamily	Fixed	0.30	%	11/1/2028
Senior loan	10/20/2020	1,307		Las Vegas, NV	Multifamily	Fixed	0.30	%	10/1/2028
Senior loan	10/20/2020	918		Atlanta, GA	Multifamily	Fixed	0.30	%	8/1/2031
Senior loan	10/20/2020	728		Des Moines, IA	Multifamily	Fixed	0.30	%	3/1/2029
Total		$	59,252				0.30	%

(1)Outstanding principal balance represents the total repurchase agreement balance outstanding as of March 31, 2024.

Schedule of Line of Credit Facilities

For the three months ended March 31, 2024 and 2023, the activity related to the carrying value of the master repurchase agreements, secured financing agreements and unsecured financing were as follows (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Balances as of December 31,	$	1,268,212	$	1,345,101
Adjustment to mortgages payable, net on deconsolidation of real estate	—		(89,012)
Principal borrowings	57,425		26,801
Principal repayments	(486,159)		(7,827)
Principal repayments on mortgages payable	(61)		—
Accretion of discounts	366		216
Amortization of deferred financing costs	12		11
Balances as of March 31,	$	839,795	$	1,275,290

Schedule of Maturities of Long-term Debt

The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to March 31, 2024 are as follows (in thousands):

Year	Recourse		Non-recourse		Total
2024(1)	$	63,500	$	341,740	$	405,240
2025	36,500		31,416		67,916
2026	180,000		9,284		189,284
2027	6,500		—		6,500
2028	32,480		76,763		109,243
Thereafter	—		65,135		65,135
	$	318,980	$	524,338	$	843,318

(1)The transactions in place in the master repurchase agreement with Mizuho have a one-month to two-month tenor and are expected to roll accordingly.

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The carrying values and fair values of the Company’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value as of March 31, 2024 (in thousands):

				Fair Value
	Carrying Value			Level 1			Level 2			Level 3			Total
Assets
Cash and cash equivalents	$	13,483		$	13,483		$	—		$	—		$	13,483
Restricted cash	5,804			5,804			—			—			5,804
Loans, held-for-investment, net	391,591			—			—			402,806			402,806
Preferred stock investments, at fair value	18,346			—			—			18,346			18,346
Common stock investments, at fair value	60,658			—			—			60,658			60,658
Mortgage loans, held-for-investment, net	140,565			—			—			135,628			135,628
Accrued interest	25,271			25,271			—			—			25,271
Mortgage loans held in variable interest entities, at fair value	6,182,075			—			6,182,075			—			6,182,075
CMBS structured pass-through certificates, at fair value	39,334			—			39,334			—			39,334
MSCR Notes, at fair value	10,363			—			10,363			—			10,363
Mortgage backed securities, at fair value	68,026			—			68,026			—			68,026
Accounts receivable and other assets	4,097			1,742			2,355			—			4,097
Due from brokers for securities sold, not yet settled	908			—			908			—			908
Total Assets	$	6,960,521	0	$	46,300	0	$	6,303,061	0	$	617,438	0	$	6,966,799
Liabilities
Secured financing agreements, net	$	182,598		$	—		$	—		$	188,107		$	188,107
Master repurchase agreements	341,740			—			—			341,740			341,740
Unsecured notes, net	219,849			—			200,654			—			200,654
Mortgages payable, net	95,608			—			—			91,071			91,071
Accounts payable and other accrued liabilities	10,270			10,270			—			—			10,270
Accrued interest payable	12,695			12,695			—			—			12,695
Bonds payable held in variable interest entities, at fair value	5,774,017			—			5,774,017			—			5,774,017
Total Liabilities	$	6,636,777		$	22,965		$	5,974,671		$	620,918		$	6,618,554

The carrying values and fair values of the Company’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value as of December 31, 2023 (in thousands):

			Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents	$	13,824	$	13,824	$	—	$	—	$	13,824
Restricted cash	2,825		2,825		—		—		2,825
Loans, held-for-investment, net	328,460		—		—		337,110		337,110
Preferred stock investments, at fair value	14,776		—		—		14,776		14,776
Common stock investments, at fair value	61,529		—		—		61,529		61,529
Mortgage loans, held-for-investment, net	676,420		—		—		663,866		663,866
Accrued interest	22,033		22,033		—		—		22,033
Mortgage loans held in variable interest entities, at fair value	5,677,763		—		5,677,763		—		5,677,763
CMBS structured pass-through certificates, at fair value	41,212		—		41,212		—		41,212
MSCR Notes, at fair value	10,378		—		10,378		—		10,378
Mortgage backed securities, at fair value	38,270		—		38,270		—		38,270
Accounts receivable and other assets	4,312		1,560		2,752		—		4,312
Total Assets	$	6,891,802	$	40,242	$	5,770,375	$	1,077,281	$	6,887,898
Liabilities
Secured financing agreements, net	$	649,558	$	—	$	—	$	666,423	$	666,423
Master repurchase agreements	303,514		—		—		303,514		303,514
Unsecured notes, net	219,483		—		199,859		—		199,859
Mortgages payable, net	95,657		—		—		95,470		95,470
Accounts payable and other accrued liabilities	6,428		6,428		—		—		6,428
Accrued interest payable	8,209		8,209		—		—		8,209
Bonds payable held in variable interest entities, at fair value	5,289,997		—		5,289,997		—		5,289,997
Total Liabilities	$	6,572,846	$	14,637	$	5,489,856	$	1,065,407	$	6,569,900

Fair Value Measurement Inputs and Valuation Techniques

The following is a summary of significant unobservable

inputs used in the fair valuation of the Company's Level 3 assets carried at fair value on the Consolidated Balance Sheets as of March 31, 2024 (dollars in thousands):

	Carrying Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average (1)
NexPoint Storage Partners	$	33,764	Discounted cash flow	Terminal cap rate	5.00% - 5.50%	5.25	%
				Discount rate	7.75% - 9.75%	8.75	%
IQHQ, Inc.	$	18,346	Discounted cash flow	Discount rate	11.00% - 12.00%	11.50	%
Private REIT	$	26,894	Market approach	NAV per share multiple	1.00 - 1.10x	1.050x

(1)Averages are weighted based on the fair value of the related instrument

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The table below reflects a summary of changes for the Company's Level 3 common and preferred stock assets carried at fair value on the Consolidated Balance Sheets for the three months ended March 31, 2024:

	Balance as of 12/31/23		Additions		Change in Unrealized Gains/(Losses)		Balance as of 3/31/24
NexPoint Storage Partners	$	33,129	$	—	$	635	$	33,764
Private REIT	$	28,400	$	—	$	(1,506)	$	26,894
IQHQ, Inc.	$	14,776	$	3,506	$	64	$	18,346

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2024

Stockholders' Equity Note [Abstract]

Share-based Payment Arrangement, Restricted Stock Unit, Activity

The following table includes the number of restricted stock units granted, vested, forfeited and outstanding as of March 31, 2024:

	2024
	Number of Units		Weighted Average Grant Date Fair Value
Outstanding December 31, 2023	771,671		$	16.70
Granted	465,316		14.66
Vested	(120,640)	(1)	19.89
Forfeited	—		—
Outstanding March 31, 2024	1,116,347		$	15.51

(1)Certain key employees of the Manager elected to net the taxes owed upon vesting against the shares issued resulting in 74,344 shares being issued as shown on the consolidated statements of stockholders' equity.

Share-based Compensation Arrangements by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest

The vesting schedule for the restricted stock units as of March 31, 2024 is as follows:

	Shares Vesting
	February	March	April	May	Total
2024	—	—	126,042	68,564	194,606
2025	116,998	133,321	102,201	—	352,520
2026	54,893	110,667	91,166	—	256,726
2027	—	110,665	91,167	—	201,832
2028	—	110,663	—	—	110,663
Total	171,891	465,316	410,576	68,564	1,116,347

Schedule of Sale of Stock

The following table contains summary information of the 2022 ATM Program for sales from inception through March 31, 2024:

Gross Proceeds	$	12,575,493
Shares of Common Stock Issued	531,728
Gross Average Sale Price per Share of Common Stock	$	23.65
Sales Commissions	$	188,655
Offering Costs	888,249
Net Proceeds	11,498,589
Average Price Per Share, net	$	21.62

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted earnings per share for the periods presented (in thousands, except per share amounts):

	For the Three Months Ended March 31,
	2024		2023
Net income (loss) attributable to common stockholders	$	(14,286)	$	6,567
Earnings for basic computations
Net income (loss) attributable to redeemable noncontrolling interests	(1,894)		1,937
Net income for diluted computations	$	(16,180)	$	8,504
Weighted-average common shares outstanding
Average number of common shares outstanding - basic	17,264		17,118
Average number of common shares from assumed vesting of unvested restricted stock units	740		522
Average number of common shares from assumed conversion of OP Units	5,038		5,038
Average number of common shares from assumed conversion of Series B Preferred Stock	1,820		—
Average number of common shares outstanding - diluted	24,862		22,678
Earnings per weighted average common share:
Basic	$	(0.83)	$	0.38
Diluted (1)	$	(0.83)	$	0.37

Diluted EPS calculations were higher than basic EPS and thus anti-dilutive for the three months ended March 31, 2024. As such, the Company is presenting diluted EPS as equal to basic EPS.

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Noncontrolling Interests (Tables)

3 Months Ended

Mar. 31, 2024

Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interest

The following table sets forth the redeemable noncontrolling interests in the OP (reflecting the OP’s consolidation of the Subsidiary OPs) for the three months ended March 31, 2024 and March 31, 2023 (in thousands):

	For the Three Months Ended March 31,
	2024		2023
Redeemable noncontrolling interests in the OP, January 1,	$	89,471	$	96,501
Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate	—		297
Net loss attributable to redeemable noncontrolling interests in the OP	(1,894)		1,937
Redemption of redeemable noncontrolling interests in the OP	—		—
Distributions to redeemable noncontrolling interests in the OP	(2,519)		(3,023)
Redeemable noncontrolling interests in the OP, March 31,	$	85,058	$	95,712

Consolidated Common Shares of Noncontrolling Interest

The table below presents the common shares and OP Units outstanding held by the noncontrolling interests (“NCI”), as the OP Units and SubOP Units held by the Company are eliminated in consolidation:

Period End	Common Shares Outstanding	OP Units Held by NCI	Combined Outstanding
March 31, 2024	17,306,257	5,038,382	22,344,639

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Commitment and Contingencies (Tables)

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Purchase Commitment, Excluding Long-Term Commitment

The table below shows the Company's unfunded commitments by investment type as of March 31, 2024 and December 31, 2023 (in thousands):

Investment Type	March 31, 2024		December 31, 2023
	Unfunded Commitments		Unfunded Commitments
Mezzanine Loan	$	164,717	$	—
Preferred Equity	21,519		34,966
Common Equity	4,600		6,600
	$	190,836	$	41,566

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Organization and Description of Business (Details)	3 Months Ended
	Mar. 31, 2024
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Management agreement term	1 year
NexPoint Real Estate Finance Operating Partnership, L.P.
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Limited partnership, ownership interest	83.82%
NexPoint Real Estate Finance Operating Partnership, L.P. | Class A OP Units
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Limited partnership, ownership interest	100.00%

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Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Jan. 01, 2024	Dec. 31, 2023	Dec. 31, 2022
Variable Interest Entity [Line Items]
Cumulative effect of adoption of ASU 2016-13	$ (327,082)	$ (377,264)		$ (347,437)	$ (448,513)
Change in unrealized gain (loss) on mortgage backed securities	420	34
Current expected credit loss reserve	1,700		$ 2,100
Retained Earnings Less Dividends
Variable Interest Entity [Line Items]
Cumulative effect of adoption of ASU 2016-13	$ 59,318	$ 2,697		$ 35,821	(4,435)
Cumulative Effect, Period of Adoption, Adjustment
Variable Interest Entity [Line Items]
Cumulative effect of adoption of ASU 2016-13					1,624
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings Less Dividends
Variable Interest Entity [Line Items]
Cumulative effect of adoption of ASU 2016-13					$ 1,624
Variable Interest Entity, Primary Beneficiary | Eight Security
Variable Interest Entity [Line Items]
Variable interest entity, qualitative or quantitative information, ownership percentage	100.00%
Variable Interest Entity, Primary Beneficiary | Subordinate Tranche One Securities
Variable Interest Entity [Line Items]
Variable interest entity, qualitative or quantitative information, ownership percentage	94.00%

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Loans Held for Investment, Net -Schedule of Loans Held for Investment (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Outstanding Face Amount	$ 527,820	$ 973,876
Carrying Value	$ 532,156	$ 1,004,880
Loan Count | loan	49	48
Fixed Rate	61.10%	84.82%
Coupon	9.92%	6.94%
Life (years)	3 years 2 months 8 days	4 years 1 month 24 days
Mortgage loans, held-for-investment
Financing Receivable, Troubled Debt Restructuring [Line Items]
Outstanding Face Amount	$ 135,232	$ 645,277
Carrying Value	$ 140,565	$ 676,420
Loan Count | loan	10	11
Fixed Rate	100.00%	100.00%
Coupon	5.31%	4.79%
Life (years)	3 years 6 months 18 days	4 years 5 months 26 days
Mezzanine loans, held-for-investment
Financing Receivable, Troubled Debt Restructuring [Line Items]
Outstanding Face Amount	$ 177,781	$ 133,207
Carrying Value	$ 177,838	$ 135,069
Loan Count | loan	23	22
Fixed Rate	58.68%	78.31%
Coupon	10.79%	9.61%
Life (years)	4 years 6 months 14 days	5 years 4 months 9 days
Preferred equity, held-for-investment
Financing Receivable, Troubled Debt Restructuring [Line Items]
Outstanding Face Amount	$ 214,307	$ 195,392
Carrying Value	$ 213,253	$ 193,391
Loan Count | loan	15	15
Fixed Rate	38.67%	39.12%
Coupon	12.11%	12.20%
Life (years)	1 year 10 months 2 days	2 years 2 months 19 days
Promissory note, held-for-investment
Financing Receivable, Troubled Debt Restructuring [Line Items]
Outstanding Face Amount	$ 500
Carrying Value	$ 500
Loan Count | loan	1
Fixed Rate	12.50%
Coupon	12.50%
Life (years)	11 months 26 days

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Loans Held for Investment, Net -Schedule of Loan and Preferred Equity Portfolio Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Roll Forward]
Beginning balance	$ 1,004,880
Recognition of retained preferred equity investment upon deconsolidation of real estate (Note 14)	60,247	$ 28,816
Ending balance	532,156
Loans Receivable, Held for Investment
Accounts, Notes, Loans and Financing Receivable [Roll Forward]
Beginning balance	1,004,880	982,678
Recognition of retained preferred equity investment upon deconsolidation of real estate (Note 14)	0	36,022
Cumulative effect of adoption of ASU 2016-13 (See Note 2)	0	(1,624)
Originations	60,247	28,816
Proceeds from principal repayments	(511,169)	(36,743)
PIK distribution reinvested in Preferred Units	3,448	209
Amortization of loan premium, net	(25,670)	(1,501)
(Provision for) reversal of credit losses	420	34
Ending balance	$ 532,156	$ 1,007,891

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Loans Held for Investment, Net - Additional Information (Details) $ in Millions	Mar. 31, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Financing Receivable, Nonaccrual [Line Items]
Financing receivable, unamortized purchase premium (discount) | $	$ 7.3	$ 33.1
Number of Loans	49	48
Weighted-average risk rating	3.0	3.0
Risk Rating 4
Financing Receivable, Nonaccrual [Line Items]
Number of Loans	1	2
Risk Rating 5
Financing Receivable, Nonaccrual [Line Items]
Number of Loans	0	0

XML

Loans Held for Investment, Net - Principal Balance and Net Book Value of the Loan Portfolio Based on Internal Risk Ratings (Details) $ in Thousands	Mar. 31, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Financing Receivable, Nonaccrual [Line Items]
Loan Count | loan	49	48
Carrying Value | $	$ 532,156	$ 1,004,880
% of Loan Portfolio	1.0000	1.0000
Risk Rating 1
Financing Receivable, Nonaccrual [Line Items]
Loan Count | loan	0	0
Carrying Value | $	$ 0	$ 0
% of Loan Portfolio	0	0
Risk Rating 2
Financing Receivable, Nonaccrual [Line Items]
Loan Count | loan	0	0
Carrying Value | $	$ 0	$ 0
% of Loan Portfolio	0	0
Risk Rating 3
Financing Receivable, Nonaccrual [Line Items]
Loan Count | loan	48	46
Carrying Value | $	$ 519,680	$ 992,751
% of Loan Portfolio	0.9766	0.9879
Risk Rating 4
Financing Receivable, Nonaccrual [Line Items]
Loan Count | loan	1	2
Carrying Value | $	$ 12,476	$ 12,129
% of Loan Portfolio	0.0234	0.0121
Risk Rating 5
Financing Receivable, Nonaccrual [Line Items]
Loan Count | loan	0	0
Carrying Value | $	$ 0	$ 0
% of Loan Portfolio	0	0

XML

Loans Held for Investment, Net - Schedule of Loans by Origination (Details) $ in Thousands	Mar. 31, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	49	48
Outstanding Face Amount	$ 527,820	$ 973,876
2024	43,303	82,879
2023	96,388	82,087
2022	96,830	40,981
2021	44,387	19,158
2020	19,846	759,828
Prior	231,402	19,947
Loans and leases receivable, gross	$ 532,156	$ 1,004,880
Risk Rating 1
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	0	0
Outstanding Face Amount	$ 0	$ 0
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	0
Loans and leases receivable, gross	$ 0	$ 0
Risk Rating 2
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	0	0
Outstanding Face Amount	$ 0	$ 0
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	0
Loans and leases receivable, gross	$ 0	$ 0
Risk Rating 3
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	48	46
Outstanding Face Amount	$ 515,700	$ 961,756
2024	43,303	82,879
2023	96,388	69,958
2022	84,354	40,981
2021	44,387	19,158
2020	19,846	759,828
Prior	231,402	19,947
Loans and leases receivable, gross	$ 519,680	$ 992,751
Risk Rating 4
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	1	2
Outstanding Face Amount	$ 12,120	$ 12,120
2024	0	0
2023	0	12,129
2022	12,476	0
2021	0	0
2020	0	0
Prior	0	0
Loans and leases receivable, gross	$ 12,476	$ 12,129
Risk Rating 5
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	0	0
Outstanding Face Amount	$ 0	$ 0
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	0
Loans and leases receivable, gross	$ 0	$ 0

XML

Loans Held for Investment, Net - Schedule of Loans Held for Investment as a Percentage of Face Amount by Geographic Areas Face Amounts (Details)	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	1.0000	1.0000
Single Family Rental
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.3354	0.6994
Multifamily
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.4160	0.2199
Life Science
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.2164	0.0633
Self-Storage
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0322	0.0175
Texas
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.2264	0.1387
Georgia
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.1030	0.3050
Maryland
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.1010	0.0547
California
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0971	0.0492
Massachusetts
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0845
Florida
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0621	0.1840
Virginia
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0596	0.0265
Minnesota
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0378	0.0731
North Carolina
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0268	0.0278
Arkansas
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0252	0.0137
Nevada
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0249	0.0146
Oklahoma
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0176
Arizona
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0165
Michigan
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0163
Washington
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0152
Pennsylvania
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0115
Tennessee
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0113
Iowa
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0109
Nebraska
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0107
Delaware
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0105
Alabama
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio		0.0351
Other
Financing Receivable, Nonaccrual [Line Items]
% of loan portfolio	0.0311	0.0776

XML

CMBS Trusts - Schedule of Recognized Trusts Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Loans and Leases Receivable Disclosure [Line Items]
Bonds payable held in variable interest entities, at fair value	$ (843,318)
Variable Interest Entity, Primary Beneficiary
Loans and Leases Receivable Disclosure [Line Items]
Mortgage loans held in variable interest entities, at fair value	6,182,075	$ 5,677,763
Accrued interest receivable	4,344	3,902
Bonds payable held in variable interest entities, at fair value	(5,774,017)	(5,289,997)
Accrued interest payable	$ (3,655)	$ (3,220)

XML

CMBS Trusts - Schedule of Change in Net Assets Related to Consolidated CMBS Variable Interest Entities (Details) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Securitization or Asset-Backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
Net interest earned	$ 9,236	$ 10,643
Unrealized gain (loss)	(820)	360
Change in net assets related to consolidated CMBS variable interest entities	$ 8,416	$ 11,003

XML

CMBS Trusts - Schedule of Geographies and Property Types of Collateral Underlying the CMBS Trusts as Percentage of Collateral Unpaid Principal Balance (Details) - Variable Interest Entity, Primary Beneficiary	Mar. 31, 2024	Dec. 31, 2023
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	100.00%	100.00%
Multifamily
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	97.44%	97.45%
Manufactured Housing
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	2.56%	2.55%
Texas
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	15.92%	15.85%
Florida
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	14.16%	14.07%
Arizona
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	4.07%	4.05%
California
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	8.59%	8.69%
Georgia
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	3.87%	4.00%
Washington
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	7.78%	7.75%
New Jersey
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	4.04%	4.02%
Nevada
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	2.50%	2.49%
Pennsylvania
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	1.28%	1.27%
Colorado
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	7.77%	7.74%
Connecticut
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	1.97%	2.04%
North Carolina
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	4.19%	4.17%
New York
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	3.39%	3.37%
Ohio
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	2.46%	2.48%
Virginia
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	2.05%	2.03%
Indiana
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	2.14%	2.13%
Illinois
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	1.65%	1.65%
Michigan
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	1.39%	1.38%
Maryland
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	1.19%	1.18%
Missouri
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	1.57%	1.56%
Other
Financial Instruments Owned and Pledged as Collateral [Line Items]
Percentage of collateral unpaid principal balance	8.02%	8.08%

XML

Common and Preferred Stock Investments - Additional Information (Details) $ / shares in Units, $ in Millions	Apr. 14, 2022 USD ($) convertible_note shares	Mar. 31, 2024 $ / shares
Private REIT
Schedule of Equity Method Investments [Line Items]
Ownership percentage by noncontrolling owners		6.36%
Private REIT | VIE
Schedule of Equity Method Investments [Line Items]
Effective ownership		6.40%
IQHQ Inc. | Variable Interest Entity, Primary Beneficiary
Schedule of Equity Method Investments [Line Items]
Effective ownership		9.50%
Resmark Forney Gateway Holdings, LLC | VIE
Schedule of Equity Method Investments [Line Items]
Effective ownership		98.00%
Private REIT
Schedule of Equity Method Investments [Line Items]
Private offering price per share (in usd per share)		$ 20.00
Convertible Note
Schedule of Equity Method Investments [Line Items]
Debt instrument, convertible, conversion price (in usd per share)		$ 17.50
Stock issued during period, conversion of convertible securities (in shares) | shares	1,394,213
Number of convertible notes | convertible_note	2
Originations | $	$ 25.0
NexPoint Storage Partners
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage		25.80%

XML

Common and Preferred Stock Investments - Schedule of Common Stock Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]
Common stock investments	$ 60,658	$ 61,529
NexPoint Storage Partners
Schedule of Equity Method Investments [Line Items]
Investment owned, balance (in shares)	41,963	41,963
Common stock investments	$ 33,764	$ 33,129
Private REIT
Schedule of Equity Method Investments [Line Items]
Investment owned, balance (in shares)	1,394,213	1,394,213
Common stock investments	$ 26,894	$ 28,400

XML

Common and Preferred Stock Investments - Schedule of Change in Unrealized Gain on Common Stock Investment (Details) - Common Stock - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule of Equity Method Investments [Line Items]
Change in unrealized gain (loss) on investments	$ (871)	$ (1,267)
NexPoint Storage Partners
Schedule of Equity Method Investments [Line Items]
Change in unrealized gain (loss) on investments	635	(235)
Private REIT
Schedule of Equity Method Investments [Line Items]
Change in unrealized gain (loss) on investments	$ (1,506)	$ (1,032)

XML

Unconsolidated Variable Interest Entities - Schedule of Variable Interest Entities (Details) - VIE	Mar. 31, 2024
NexPoint Storage Partners, Inc. (“NSP”)
Variable Interest Entity [Line Items]
Equity method investment, ownership percentage	25.70%
Resmark Forney Gateway Holdings, LLC
Variable Interest Entity [Line Items]
Effective ownership	98.00%
Resmark The Brook Holdings, LLC
Variable Interest Entity [Line Items]
Effective ownership	98.00%
Private REIT
Variable Interest Entity [Line Items]
Effective ownership	6.40%

XML

Unconsolidated Variable Interest Entities - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Variable Interest Entity [Line Items]
Common stock investments	$ 60,658	$ 61,529
NexPoint Storage Partners
Variable Interest Entity [Line Items]
Common stock investments	33,764	33,129
RFGH and RTB
Variable Interest Entity [Line Items]
Maximum loss exposure	1,000
Purchase of common equity, amount unfunded	2,800
Private REIT
Variable Interest Entity [Line Items]
Common stock investments	$ 26,894	$ 28,400

XML

CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities - Summary of CMBS I/O Strips (Details) $ in Thousands							3 Months Ended	12 Months Ended
	Mar. 08, 2022 USD ($)	Feb. 03, 2022 USD ($)	Sep. 29, 2021 USD ($)	Jun. 11, 2021 USD ($)	May 04, 2021 USD ($)	Apr. 28, 2021 USD ($)	Mar. 31, 2024 USD ($) security note strip	Dec. 31, 2023 USD ($)
Debt and Equity Securities, FV-NI [Line Items]
Number Of CMBS I/O Strips | strip							12
Number Of MSCR Notes | note							3
Number Of Mortgage Backed Securities | security							7
MSCR Notes
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 10,363	$ 10,378
Collateralized Mortgage Backed Securities
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 68,026	$ 38,270
Interest Rate							0.0667	0.0917
Current Yield							0.0703	0.0930
Multifamily | CMBS I/O Strip, One
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 1,601	$ 1,622
Interest Rate							0.0202	0.0202
Current Yield							0.1467	0.1464
Multifamily | CMBS I/O Strip, Two
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 15,623	$ 16,601
Interest Rate							0.0298	0.0298
Current Yield							0.1860	0.1798
Multifamily | CMBS I/O Strip, Three
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 4,777	$ 5,022
Interest Rate							0.0159	0.0159
Current Yield							0.1820	0.1768
Payments for purchase of securities					$ 15,000	$ 50,000
Multifamily | CMBS I/O Strip, Four
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 3,338	$ 3,436
Interest Rate							0.0339	0.0339
Current Yield							0.1842	0.1779
Multifamily | CMBS I/O Strip, Five
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 378	$ 395
Interest Rate							0.0231	0.0231
Current Yield							0.2340	0.2231
Multifamily | CMBS I/O Strip, Six
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 2,427	$ 2,643
Interest Rate							0.0148	0.0118
Current Yield							0.1803	0.1457
Payments for purchase of securities	$ 50,000	$ 40,000	$ 35,000	$ 80,000
Multifamily | CMBS IO Strip Seven
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 809	$ 833
Interest Rate							0.0117	0.0117
Current Yield							0.1861	0.1807
Multifamily | CMBS IO Strip Eight
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 2,183	$ 2,255
Interest Rate							0.0189	0.0189
Current Yield							0.1863	0.1798
Multifamily | CMBS I/O Strip, Nine
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 1,213	$ 1,241
Interest Rate							0.0310	0.0310
Current Yield							0.1569	0.1524
Multifamily | CMBS I/O Strip, Ten
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 220	$ 229
Interest Rate							0.0261	0.0261
Current Yield							0.1666	0.1615
Multifamily | CMBS I/O Strip, Eleven
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 3,293	$ 3,390
Interest Rate							0.0192	0.0192
Current Yield							0.1763	0.1701
Multifamily | CMBS I/O Strip, Twelve
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 3,472	$ 3,545
Interest Rate							0.0295	0.0295
Current Yield							0.1557	0.1514
Multifamily | CMBS I/O Strips
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 39,334	$ 41,212
Interest Rate							0.0252	0.0250
Current Yield							0.1794	0.1721
Multifamily | MSCR Notes One
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 4,020	$ 4,020
Interest Rate							0.1482	0.1483
Current Yield							0.1482	0.1483
Multifamily | MSCR Notes Two
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 5,000	$ 5,000
Interest Rate							0.1182	0.1183
Current Yield							0.1182	0.1183
Multifamily | MSCR Notes Three
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 1,343	$ 1,358
Interest Rate							0.1217	0.1218
Current Yield							0.1337	0.1338
Multifamily | MSCR Notes
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 10,363	$ 10,378
Interest Rate							0.1303	0.1304
Current Yield							0.1319	0.1320
Multifamily | Mortgage Backed Securities 3
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 5,768
Interest Rate							0.1395
Current Yield							0.1397
Multifamily | Mortgage Backed Securities 5
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value								$ 3,881
Interest Rate								0.1157
Current Yield								0.1155
Multifamily | Mortgage Backed Securities 7
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value								$ 5,742
Interest Rate								0.1393
Current Yield								0.1395
Single-Family | Mortgage Backed Securities 1
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 9,898	$ 9,924
Interest Rate							0.0863	0.0864
Current Yield							0.0887	0.0891
Single-Family | Mortgage Backed Securities 2
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value								$ 9,369
Interest Rate								0.0487
Current Yield								0.0501
Single-Family | Mortgage Backed Securities 3
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value								$ 538
Interest Rate								0.0623
Current Yield								0.0631
Single-Family | Mortgage Backed Securities 4
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 28,421	$ 856
Interest Rate							0.0450	0.0360
Current Yield							0.0475	0.0412
Single-Family | Mortgage Backed Securities 5
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 9,429
Interest Rate							0.0450
Current Yield							0.0524
Single-Family | Mortgage Backed Securities 6
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 6,546
Interest Rate							0.0450
Current Yield							0.0563
Self Storage | Mortgage Backed Securities 2
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value							$ 7,964
Interest Rate							0.1110
Current Yield							0.1112
Self Storage | Mortgage Backed Securities 6
Debt and Equity Securities, FV-NI [Line Items]
Carrying Value								$ 7,960
Interest Rate								0.1110
Current Yield								0.1112

XML

CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities - Schedule of Activity Related to CMBS I/O Strips (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Debt and Equity Securities, FV-NI [Line Items]
Total	$ 1,049	$ (939)
Commercial Mortgage-Backed Securities
Debt and Equity Securities, FV-NI [Line Items]
Net interest earned	664	717
Unrealized gain (loss)	(40)	(752)
MSCR Notes
Debt and Equity Securities, FV-NI [Line Items]
Unrealized gain (loss)	(15)	(298)
Collateralized Mortgage Backed Securities
Debt and Equity Securities, FV-NI [Line Items]
Unrealized gain (loss)	$ 440	$ (606)

XML

Real Estate Investments, net - Additional Information (Details) $ in Millions	Oct. 10, 2023 USD ($) unit	Feb. 01, 2022 unit	Dec. 31, 2021 unit
Real Estate Properties [Line Items]
Number of units in multifamily property | unit		368
SPG Alexander JV LLC
Real Estate Properties [Line Items]
Assets acquired	$ 68.8
Land	7.9
Building and improvements	59.0
Furniture, fixtures and equipment	0.6
Intangible assets	$ 1.3
Charlotte, NC
Real Estate Properties [Line Items]
Number of units in multifamily property | unit			204
Las Vegas, NV
Real Estate Properties [Line Items]
Number of units in multifamily property | unit		368
Atlanta, GA
Real Estate Properties [Line Items]
Number of units in multifamily property | unit	280

XML

Real Estate Investments, net - Investments in Properties (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Real Estate Properties [Line Items]
Accumulated depreciation and amortization	$ (5,453)	$ (4,404)
Real estate investment property, net	124,486	126,551
Land
Real Estate Properties [Line Items]
Accumulated depreciation and amortization	0	0
Real estate investment property, net	18,802	18,802
Buildings and Improvements
Real Estate Properties [Line Items]
Accumulated depreciation and amortization	(4,875)	(3,948)
Real estate investment property, net	104,229	105,126
Intangible Lease Assets
Real Estate Properties [Line Items]
Accumulated depreciation and amortization	0	0
Real estate investment property, net	0	1,271
Construction in Progress
Real Estate Properties [Line Items]
Accumulated depreciation and amortization	0	0
Real estate investment property, net	201	401
Furniture, Fixtures and Equipment
Real Estate Properties [Line Items]
Accumulated depreciation and amortization	(578)	(456)
Real estate investment property, net	1,254	951
Hudson Montford
Real Estate Properties [Line Items]
Real estate investment property, at cost	62,050	62,000
Hudson Montford | Land
Real Estate Properties [Line Items]
Real estate investment property, at cost	10,996	10,996
Hudson Montford | Buildings and Improvements
Real Estate Properties [Line Items]
Real estate investment property, at cost	49,934	49,912
Hudson Montford | Intangible Lease Assets
Real Estate Properties [Line Items]
Real estate investment property, at cost	0	0
Hudson Montford | Construction in Progress
Real Estate Properties [Line Items]
Real estate investment property, at cost	197	401
Hudson Montford | Furniture, Fixtures and Equipment
Real Estate Properties [Line Items]
Real estate investment property, at cost	923	691
Alexander at the District
Real Estate Properties [Line Items]
Real estate investment property, at cost	67,889	68,955
Alexander at the District | Land
Real Estate Properties [Line Items]
Real estate investment property, at cost	7,806	7,806
Alexander at the District | Buildings and Improvements
Real Estate Properties [Line Items]
Real estate investment property, at cost	59,170	59,162
Alexander at the District | Intangible Lease Assets
Real Estate Properties [Line Items]
Real estate investment property, at cost	0	1,271
Alexander at the District | Construction in Progress
Real Estate Properties [Line Items]
Real estate investment property, at cost	4	0
Alexander at the District | Furniture, Fixtures and Equipment
Real Estate Properties [Line Items]
Real estate investment property, at cost	$ 909	$ 716

XML

Real Estate Investments, net - Revenue and Expenses of Property (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Real Estate Properties [Line Items]
Interest expense	$ 11,240	$ 12,212
Property general and administrative expenses	4,187	2,152
Depreciation and amortization	2,318	476
Multifamily Property
Real Estate Properties [Line Items]
Other income	124	10
Total revenues	2,211	1,028
Interest expense	2,088	581
Real estate taxes and insurance	452	172
Property operating expenses	176	185
Property general and administrative expenses	173	35
Property management fees	62	29
Depreciation and amortization	2,318	476
Rate cap (income) expense	169	194
Casualty (gain) loss	(1)	(175)
Total expenses	5,437	1,497
Net income (loss) from consolidated real estate owned	(3,226)	(469)
Multifamily Property | Rental income
Real Estate Properties [Line Items]
Rental income	$ 2,087	$ 1,018

XML

Debt - Summary of Financing Arrangements (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Oct. 18, 2022 USD ($)	Apr. 15, 2020 subsidiary
Debt Instrument [Line Items]
Number Of Subsidiaries | subsidiary				3
Facility
Debt Instrument [Line Items]
Outstanding face amount	$ 843,318	$ 1,271,938
Carrying value	$ 839,795	$ 1,268,212
Weighted average interest rate	5.90%	4.55%
Weighted average life (years)	1 year 8 months 12 days	2 years 10 months 24 days
Collateral
Debt Instrument [Line Items]
Collateral outstanding face amount	$ 1,216,640	$ 676,420
Collateral amortized cost basis	883,042	1,372,571
Collateral carrying value	$ 876,606	$ 1,366,698
Collateral weighted average life (years)	5 years 9 months 18 days	5 years 7 months 6 days
Master Repurchase Agreements | Mizuho
Debt Instrument [Line Items]
Outstanding face amount	$ 341,700
Collateral outstanding face amount	984,600
Master Repurchase Agreements | Mizuho | Facility
Debt Instrument [Line Items]
Outstanding face amount	341,740	$ 303,514
Carrying value	$ 341,740	$ 303,514
Weighted average interest rate	7.15%	7.26%
Weighted average life (years)	0 years	0 years
Master Repurchase Agreements | Mizuho | Collateral
Debt Instrument [Line Items]
Collateral outstanding face amount	$ 984,591	$ 931,296
Collateral amortized cost basis	519,743	470,761
Collateral carrying value	$ 513,307	$ 464,888
Collateral weighted average life (years)	6 years 1 month 6 days	6 years 4 months 24 days
Asset Specific Financing | Freddie Mac | Facility
Debt Instrument [Line Items]
Outstanding face amount	$ 123,346	$ 590,306
Carrying value	$ 123,346	$ 590,306
Weighted average interest rate	2.69%	2.34%
Weighted average life (years)	3 years 7 months 6 days	4 years 6 months
Asset Specific Financing | Freddie Mac | Collateral
Debt Instrument [Line Items]
Collateral outstanding face amount	$ 135,232	$ 645,277
Collateral amortized cost basis	140,565	676,420
Collateral carrying value	$ 140,565	$ 676,420
Collateral weighted average life (years)	3 years 7 months 6 days	4 years 6 months
Mezzanine loans, held-for-investment | Freddie Mac | Facility
Debt Instrument [Line Items]
Outstanding face amount	$ 59,252	$ 59,252
Carrying value	$ 59,252	$ 59,252
Weighted average interest rate	0.30%	0.30%
Weighted average life (years)	6 years	6 years 3 months 18 days
Mezzanine loans, held-for-investment | Freddie Mac | Collateral
Debt Instrument [Line Items]
Collateral outstanding face amount	$ 96,817	$ 96,817
Collateral amortized cost basis	98,248	98,839
Collateral carrying value	$ 98,248	$ 98,839
Collateral weighted average life (years)	6 years	6 years 3 months 18 days
Multifamily Property Debt Due 2028
Debt Instrument [Line Items]
Debt instrument, repayment premium, percent		1.00%
Multifamily Property Debt Due 2028 | Facility
Debt Instrument [Line Items]
Outstanding face amount	$ 32,480	$ 32,366
Carrying value	$ 32,108	$ 32,157
Weighted average interest rate	8.03%	8.05%
Weighted average life (years)	4 years 2 months 12 days	4 years 4 months 24 days
Multifamily Property Debt Due 2028 | Collateral
Debt Instrument [Line Items]
Collateral amortized cost basis	$ 65,166	$ 64,697
Collateral carrying value	$ 65,166	$ 64,697
Collateral weighted average life (years)	4 years 2 months 12 days	4 years 4 months 24 days
Multifamily Property Debt Due 2032 | Facility
Debt Instrument [Line Items]
Outstanding face amount	$ 63,500	$ 63,500
Carrying value	$ 63,500	$ 63,500
Weighted average interest rate	8.84%	8.84%
Weighted average life (years)	7 months 6 days	10 months 24 days
Multifamily Property Debt Due 2032 | Collateral
Debt Instrument [Line Items]
Collateral amortized cost basis	$ 59,320	$ 61,854
Collateral carrying value	$ 59,320	$ 61,854
Collateral weighted average life (years)	7 months 6 days	10 months 24 days
The 7.50 Percent Senior Notes Due 2025 | Facility | Unsecured Financing
Debt Instrument [Line Items]
Outstanding face amount	$ 36,500	$ 36,500
Carrying value	$ 35,936	$ 35,852
Weighted average interest rate	7.50%	7.50%
Weighted average life (years)	1 year 7 months 6 days	1 year 9 months 18 days
The 5.75 Percent Senior Notes Due 2026 | Facility | Unsecured Financing
Debt Instrument [Line Items]
Outstanding face amount	$ 180,000	$ 180,000
Carrying value	$ 177,413	$ 177,131
Weighted average interest rate	5.75%	5.75%
Weighted average life (years)	2 years 1 month 6 days	2 years 3 months 18 days
The 7.50 Percent Senior Notes Due 2027 | Facility | Unsecured Financing
Debt Instrument [Line Items]
Outstanding face amount	$ 6,500	$ 6,500	$ 6,500
Carrying value	$ 6,500	$ 6,500
Weighted average interest rate	7.50%	7.50%	7.50%
Weighted average life (years)	3 years 7 months 6 days	3 years 9 months 18 days

XML

Debt - Additional Information (Details)	Feb. 29, 2024	Nov. 15, 2023 USD ($)	Jul. 12, 2019 USD ($)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Feb. 11, 2020 USD ($)
Debt Instrument [Line Items]
Secured financing agreements, net				$ 182,598,000	$ 649,558,000
Percentage of par value	0.902
Credit Facility | Freddie Mac
Debt Instrument [Line Items]
Proceeds from Long-Term Lines of Credit			$ 788,800,000
Credit facility, remaining borrowing capacity			$ 0
Secured financing agreements, net						$ 788,800,000
The Third 5.75 Percent Senior Notes
Debt Instrument [Line Items]
Interest rate, stated percentage		5.75%
Outstanding face amount		$ 15,000,000
Percentage of par value		0.920
Principal borrowings		$ 13,600,000

XML

Debt - Schedule of Outstanding Principal Balances Related to SFR Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 182,598	$ 649,558
Senior loan | Single Family Rental
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 123,346
Interest Rate	2.69%
Senior loan | Single Family Rental | Debt Instrument One
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 31,416
Interest Rate	2.14%
Senior loan | Single Family Rental | Debt Instrument Two
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 33,565
Interest Rate	2.70%
Senior loan | Single Family Rental | Debt Instrument Three
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 9,156
Interest Rate	2.79%
Senior loan | Single Family Rental | Debt Instrument Four
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 9,284
Interest Rate	2.45%
Senior loan | Single Family Rental | Debt Instrument Five
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 7,408
Interest Rate	3.51%
Senior loan | Single Family Rental | Debt Instrument Six
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 8,720
Interest Rate	3.30%
Senior loan | Single Family Rental | Debt Instrument Seven
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 7,848
Interest Rate	3.14%
Senior loan | Single Family Rental | Debt Instrument Eight
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 5,823
Interest Rate	2.99%
Senior loan | Single Family Rental | Debt Instrument Nine
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 5,223
Interest Rate	3.14%
Senior loan | Single Family Rental | Debt Instrument Ten
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 4,903
Interest Rate	2.64%
Senior loan | Multifamily | Mezzanine Loans
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 59,252
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument One | Mezzanine Loans | Wilmington, DE
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 8,723
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Two | Mezzanine Loans | White Marsh, MD
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 7,344
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Three | Mezzanine Loans | Philadelphia, PA
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 6,353
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Four | Mezzanine Loans | Daytona Beach, FL
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 5,881
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Five | Mezzanine Loans | Laurel, MD
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 4,523
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Six | Mezzanine Loans | Temple Hills, MD
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 4,179
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Seven | Mezzanine Loans | Temple Hills, MD
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 3,390
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Eight | Mezzanine Loans | Lakewood, NJ
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 3,348
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Nine | Mezzanine Loans | North Aurora, IL
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 2,454
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Ten | Mezzanine Loans | Rosedale, MD
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 2,264
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Eleven | Mezzanine Loans | Cockeysville, MD
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 2,215
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Twelve | Mezzanine Loans | Laurel, MD
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 2,026
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Thirteen | Mezzanine Loans | Vancouver, WA
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 1,836
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Fourteen | Mezzanine Loans | Tyler, TX
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 1,763
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Fifteen | Mezzanine Loans | Las Vegas, NV
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 1,307
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Sixteen | Mezzanine Loans | Atlanta, GA
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 918
Interest Rate	0.30%
Senior loan | Multifamily | Debt Instrument Seventeen | Mezzanine Loans | Des Moines, IA
Debt Instrument [Line Items]
Outstanding Principal Balance	$ 728
Interest Rate	0.30%

XML

Debt - Activity Related to Carrying Value of Secured Financing Agreements and Master Repurchase Agreements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Line Of Credit Facility [Roll Forward]
Amortization of deferred financing costs	$ 12	$ 11
Ending balance	843,318
Secured Financing Agreements and Master Repurchase Agreements
Line Of Credit Facility [Roll Forward]
Beginning balance	1,268,212	1,345,101
Principal borrowings	57,425	26,801
Principal repayments	(486,159)	(7,827)
Principal repayments on mortgages payable	(61)	0
Accretion of discounts	(366)	(216)
Amortization of deferred financing costs	12	11
Ending balance	839,795	1,275,290
Assumption of Debt	$ 0	$ (89,012)

XML

Debt - Summary of Aggregate Scheduled Maturities of Total Debt (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Debt Instrument [Line Items]
2024	$ 405,240
2025	67,916
2026	189,284
2027	6,500
2028	109,243
Thereafter	65,135
Long-Term Debt, Total	843,318
Recourse
Debt Instrument [Line Items]
2024	63,500
2025	36,500
2026	180,000
2027	6,500
2028	32,480
Thereafter	0
Long-Term Debt, Total	318,980
Non-recourse
Debt Instrument [Line Items]
2024	341,740
2025	31,416
2026	9,284
2027	0
2028	76,763
Thereafter	65,135
Long-Term Debt, Total	$ 524,338

XML

Fair Value of Financial Instruments - Schedule of Carrying Values and Fair Values of Financial Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Common stock investments	$ 60,658	$ 61,529
CMBS Structured Pass Through Certificates
Assets
Debt securities, trading	39,334	41,212
MSCR Notes
Assets
Debt securities, trading	10,363	10,378
Collateralized Mortgage Backed Securities
Assets
Debt securities, trading	68,026	38,270
Recurring
Assets
Cash and cash equivalents	13,483	13,824
Restricted cash	5,804	2,825
Loans receivable, fair value disclosure	402,806	337,110
Accrued interest	25,271	22,033
Accounts receivable and other assets	4,097	4,312
Due from brokers for securities sold, not yet settled	908
Assets, fair value disclosure	6,966,799	6,887,898
Liabilities
Secured financing agreements, net	188,107	666,423
Master repurchase agreements	341,740	303,514
Unsecured notes, net	200,654	199,859
Mortgages payable, net	91,071	95,470
Accounts payable and other accrued liabilities	10,270	6,428
Accrued interest payable	12,695	8,209
Financial and nonfinancial liabilities, fair value disclosure	6,618,554	6,569,900
Recurring | Preferred Stock
Assets
Common stock investments	18,346	14,776
Recurring | Common Stock
Assets
Common stock investments	60,658	61,529
Recurring | Mortgages
Assets
Loans receivable, fair value disclosure	135,628	663,866
Recurring | CMBS Structured Pass Through Certificates
Assets
Debt securities, trading	39,334	41,212
Recurring | MSCR Notes
Assets
Debt securities, trading	10,363	10,378
Recurring | Collateralized Mortgage Backed Securities
Assets
Debt securities, trading	68,026	38,270
Recurring | Variable Interest Entity, Primary Beneficiary
Liabilities
Bonds payable held in variable interest entities, at fair value	5,774,017	5,289,997
Recurring | Variable Interest Entity, Primary Beneficiary | Mortgages
Assets
Loans receivable, fair value disclosure	6,182,075	5,677,763
Recurring | Level 1
Assets
Cash and cash equivalents	13,483	13,824
Restricted cash	5,804	2,825
Loans receivable, fair value disclosure	0	0
Accrued interest	25,271	22,033
Accounts receivable and other assets	1,742	1,560
Due from brokers for securities sold, not yet settled	0
Assets, fair value disclosure	46,300	40,242
Liabilities
Secured financing agreements, net	0	0
Master repurchase agreements	0	0
Unsecured notes, net	0	0
Mortgages payable, net	0	0
Accounts payable and other accrued liabilities	10,270	6,428
Accrued interest payable	12,695	8,209
Financial and nonfinancial liabilities, fair value disclosure	22,965	14,637
Recurring | Level 1 | Preferred Stock
Assets
Common stock investments	0	0
Recurring | Level 1 | Common Stock
Assets
Common stock investments	0	0
Recurring | Level 1 | Mortgages
Assets
Loans receivable, fair value disclosure	0	0
Recurring | Level 1 | CMBS Structured Pass Through Certificates
Assets
Debt securities, trading	0	0
Recurring | Level 1 | MSCR Notes
Assets
Debt securities, trading	0	0
Recurring | Level 1 | Collateralized Mortgage Backed Securities
Assets
Debt securities, trading	0	0
Recurring | Level 1 | Variable Interest Entity, Primary Beneficiary
Liabilities
Bonds payable held in variable interest entities, at fair value	0	0
Recurring | Level 1 | Variable Interest Entity, Primary Beneficiary | Mortgages
Assets
Loans receivable, fair value disclosure	0	0
Recurring | Level 2
Assets
Cash and cash equivalents	0	0
Restricted cash	0	0
Loans receivable, fair value disclosure	0	0
Accrued interest	0	0
Accounts receivable and other assets	2,355	2,752
Due from brokers for securities sold, not yet settled	908
Assets, fair value disclosure	6,303,061	5,770,375
Liabilities
Secured financing agreements, net	0	0
Master repurchase agreements	0	0
Unsecured notes, net	200,654	199,859
Mortgages payable, net	0	0
Accounts payable and other accrued liabilities	0	0
Accrued interest payable	0	0
Financial and nonfinancial liabilities, fair value disclosure	5,974,671	5,489,856
Recurring | Level 2 | Preferred Stock
Assets
Common stock investments	0	0
Recurring | Level 2 | Common Stock
Assets
Common stock investments	0	0
Recurring | Level 2 | Mortgages
Assets
Loans receivable, fair value disclosure	0	0
Recurring | Level 2 | CMBS Structured Pass Through Certificates
Assets
Debt securities, trading	39,334	41,212
Recurring | Level 2 | MSCR Notes
Assets
Debt securities, trading	10,363	10,378
Recurring | Level 2 | Collateralized Mortgage Backed Securities
Assets
Debt securities, trading	68,026	38,270
Recurring | Level 2 | Variable Interest Entity, Primary Beneficiary
Liabilities
Bonds payable held in variable interest entities, at fair value	5,774,017	5,289,997
Recurring | Level 2 | Variable Interest Entity, Primary Beneficiary | Mortgages
Assets
Loans receivable, fair value disclosure	6,182,075	5,677,763
Recurring | Level 3
Assets
Cash and cash equivalents	0	0
Restricted cash	0	0
Loans receivable, fair value disclosure	402,806	337,110
Accrued interest	0	0
Accounts receivable and other assets	0	0
Due from brokers for securities sold, not yet settled	0
Assets, fair value disclosure	617,438	1,077,281
Liabilities
Secured financing agreements, net	188,107	666,423
Master repurchase agreements	341,740	303,514
Unsecured notes, net	0	0
Mortgages payable, net	91,071	95,470
Accounts payable and other accrued liabilities	0	0
Accrued interest payable	0	0
Financial and nonfinancial liabilities, fair value disclosure	620,918	1,065,407
Recurring | Level 3 | Preferred Stock
Assets
Common stock investments	18,346	14,776
Recurring | Level 3 | Common Stock
Assets
Common stock investments	60,658	61,529
Recurring | Level 3 | Mortgages
Assets
Loans receivable, fair value disclosure	135,628	663,866
Recurring | Level 3 | CMBS Structured Pass Through Certificates
Assets
Debt securities, trading	0	0
Recurring | Level 3 | MSCR Notes
Assets
Debt securities, trading	0	0
Recurring | Level 3 | Collateralized Mortgage Backed Securities
Assets
Debt securities, trading	0	0
Recurring | Level 3 | Variable Interest Entity, Primary Beneficiary
Liabilities
Bonds payable held in variable interest entities, at fair value	0	0
Recurring | Level 3 | Variable Interest Entity, Primary Beneficiary | Mortgages
Assets
Loans receivable, fair value disclosure	0	0
Carrying Value | Recurring
Assets
Cash and cash equivalents	13,483	13,824
Restricted cash	5,804	2,825
Loans receivable, fair value disclosure	391,591	328,460
Accrued interest	25,271	22,033
Accounts receivable and other assets	4,097	4,312
Due from brokers for securities sold, not yet settled	908
Assets, fair value disclosure	6,960,521	6,891,802
Liabilities
Secured financing agreements, net	182,598	649,558
Master repurchase agreements	341,740	303,514
Unsecured notes, net	219,849	219,483
Mortgages payable, net	95,608	95,657
Accounts payable and other accrued liabilities	10,270	6,428
Accrued interest payable	12,695	8,209
Financial and nonfinancial liabilities, fair value disclosure	6,636,777	6,572,846
Carrying Value | Recurring | Preferred Stock
Assets
Common stock investments	18,346	14,776
Carrying Value | Recurring | Common Stock
Assets
Common stock investments	60,658	61,529
Carrying Value | Recurring | Mortgages
Assets
Loans receivable, fair value disclosure	140,565	676,420
Carrying Value | Recurring | CMBS Structured Pass Through Certificates
Assets
Debt securities, trading	39,334	41,212
Carrying Value | Recurring | MSCR Notes
Assets
Debt securities, trading	10,363	10,378
Carrying Value | Recurring | Collateralized Mortgage Backed Securities
Assets
Debt securities, trading	68,026	38,270
Carrying Value | Recurring | Variable Interest Entity, Primary Beneficiary
Liabilities
Bonds payable held in variable interest entities, at fair value	5,774,017	5,289,997
Carrying Value | Recurring | Variable Interest Entity, Primary Beneficiary | Mortgages
Assets
Loans receivable, fair value disclosure	$ 6,182,075	$ 5,677,763

XML

Fair Value of Financial Instruments - Significant Unobservable Inputs of Level 3 Assets (Details) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	$ 60,658	$ 61,529
Discounted cash flow | Level 3 | NexPoint Storage Partners
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	33,764
Discounted cash flow | Level 3 | IQHQ Inc.
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	18,346
Market approach | Level 3 | Private REIT
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	$ 26,894
Terminal cap rate | Discounted cash flow | Level 3 | Minimum | NexPoint Storage Partners
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0500
Terminal cap rate | Discounted cash flow | Level 3 | Maximum | NexPoint Storage Partners
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0550
Terminal cap rate | Discounted cash flow | Level 3 | Weighted Average | NexPoint Storage Partners
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0525
Discount rate | Discounted cash flow | Level 3 | Minimum | NexPoint Storage Partners
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0775
Discount rate | Discounted cash flow | Level 3 | Minimum | IQHQ Inc.
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.1100
Discount rate | Discounted cash flow | Level 3 | Maximum | NexPoint Storage Partners
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0975
Discount rate | Discounted cash flow | Level 3 | Maximum | IQHQ Inc.
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.1200
Discount rate | Discounted cash flow | Level 3 | Weighted Average | NexPoint Storage Partners
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0875
Discount rate | Discounted cash flow | Level 3 | Weighted Average | IQHQ Inc.
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.1150
NAV per share multiple | Market approach | Level 3 | Minimum | Private REIT
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	1.00
NAV per share multiple | Market approach | Level 3 | Maximum | Private REIT
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	1.1
NAV per share multiple | Market approach | Level 3 | Weighted Average | Private REIT
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0105

XML

Fair Value of Financial Instruments - Changes in Level 3 Assets (Details) - Equity Securities $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
NexPoint Storage Partners
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 33,129
Additions	0
Change in Unrealized Gains/(Losses)	635
Ending balance	33,764
Private REIT
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	28,400
Additions	0
Change in Unrealized Gains/(Losses)	(1,506)
Ending balance	26,894
IQHQ Inc.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	14,776
Additions	3,506
Change in Unrealized Gains/(Losses)	64
Ending balance	$ 18,346

XML

Stockholders' Equity - Additional Information (Details)																			3 Months Ended		12 Months Ended	24 Months Ended	25 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares	Mar. 13, 2024 shares	Jan. 26, 2024 shares	Dec. 31, 2023 $ / shares shares	Nov. 09, 2023	Nov. 02, 2023 $ / shares shares	Apr. 04, 2023 shares	Feb. 21, 2022 shares	Nov. 08, 2021 shares	Apr. 01, 2021 USD ($) $ / shares shares	Mar. 03, 2021 shares	Feb. 22, 2021 shares	Nov. 02, 2020 shares	Jul. 24, 2020 USD ($) $ / shares shares	Jun. 24, 2020 shares	May 08, 2020 shares	Mar. 09, 2020 USD ($)	Jan. 31, 2020 shares	Mar. 31, 2024 USD ($) $ / shares shares	Mar. 31, 2023 USD ($) shares	Dec. 31, 2023 $ / shares shares	Mar. 09, 2022 USD ($) $ / shares shares	Mar. 31, 2024 USD ($) $ / shares shares	Feb. 22, 2023 USD ($)	Dec. 31, 2022 shares	Mar. 15, 2022 USD ($)	Sep. 08, 2021 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock, par value per share (in dollars per share) | $ / shares	$ 0.01			$ 0.01															$ 0.01		$ 0.01		$ 0.01
Common stock, issued (in shares)	17,593,244			17,518,900															17,593,244		17,518,900		17,593,244
Common stock, outstanding (in shares)	17,306,257			17,231,913															17,306,257		17,231,913		17,306,257
Preferred stock, dividend rate, percentage					10.50%
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs | $																			$ 27,491,000	$ 0
Stock repurchase program, authorized amount | $																	$ 10,000,000							$ 20,000,000
Stock repurchase program, period in force																	2 years
Treasury stock shares acquired (in shares)																						327,422
Repurchase of common stock | $																						$ 4,800,000
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares																						$ 14.61
Treasury stock, shares retired (in shares)											40,435
Stock issuance agreement, number of shares (in shares)																											13,758,906
Conversion of redeemable noncontrolling interests in the OP (in shares)	8,748,735			8,748,735															8,748,735
Treasury stock, common (in shares)	286,987			286,987							286,987								286,987		286,987		286,987
Dealer Manager | NexPoint Securities
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs | $																			$ 40,900,000
Payment of Commissions and Dealer Manager Fees | $																			$ 3,600,000
Common Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting of stock-based compensation (in shares)																			74,344	104,288
Common stock, outstanding (in shares)	17,306,257			17,231,913															17,306,257	17,184,231	17,231,913		17,306,257		17,079,943
NREF OP IV REIT
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Sale of stock, number of shares issued (in shares)										125
Sale of stock, consideration received on transaction | $										$ 100,000
Sale of stock, price per share (in dollars per share) | $ / shares										$ 1,000
Preferred units, distribution per year rate										0.120
Preferred units, purchase price (in dollars per share) | $ / shares										$ 1,000
Preferred units, redemption value per share (in dollars per share) | $ / shares										$ 1,000
At-the-market Offering
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Equity distribution agreements, maximum aggregate sales price | $																										$ 100,000,000
The 2022 At The Market Program (ATM)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issuance of common stock (in shares)																							531,728
Payments of stock issuance costs | $																							$ 888,249
Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)																			465,316
Restricted stock unit awards | $	$ 9,800,000																		$ 9,800,000				$ 9,800,000
Weighted average vesting period																			1 year 3 months 18 days
2020 LTIP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, shares issued in period (in shares)			2,308,000															1,319,734
2020 LTIP | Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period																			4 years
2020 LTIP | Restricted Stock Units (RSUs) | Director
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)		22,650					21,370	12,464				11,832				14,739
2020 LTIP | Restricted Stock Units (RSUs) | Officers and Other Employees
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)		442,666					418,685	264,476				220,352			274,274
2020 LTIP | Restricted Stock Units (RSUs) | General Partner of Subsidiary
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in shares)									1,201			1,201	1,838
2020 LTIP | Minimum | Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period																			3 years
2020 LTIP | Maximum | Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period																			5 years
Series A Preferred Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issuance of common stock (in shares)														2,000,000
Underwriting discount and commission expenses | $														$ 1,200,000
Payments of stock issuance costs | $														$ 800,000
Preferred stock, dividend rate, percentage														8.50%
Preferred stock, redemption price per share (in dollars per share) | $ / shares														$ 24.00
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs | $														$ 48,000,000
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares														$ 25.00
Series B Preferred Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issuance of common stock (in shares)						16,000,000
Preferred stock, dividend rate, percentage						9.00%
Preferred stock, redemption price per share (in dollars per share) | $ / shares						$ 25.00
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares						$ 25.00
Sale of stock, number of shares issued (in shares)																					16,000,000
Series B Preferred Stock | Dealer Manager
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issuance of common stock (in shares)																			1,657,700
Series B Preferred Stock | Dealer Manager | NexPoint Securities
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Sale of stock, number of shares issued (in shares)																					16,000,000

XML

Stockholders' Equity - Number of Restricted Stock Units Granted, Vested, Forfeited and Outstanding (Details) - Restricted Stock Units (RSUs)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Number of Units
Outstanding, beginning balance (in shares) | shares	771,671
Granted (in shares) | shares	465,316
Vested (in shares) | shares	(120,640)
Forfeited (in shares) | shares	0
Outstanding, ending balance (in shares) | shares	1,116,347
Weighted Average Grant Date Fair Value
Outstanding, Weighted Average Grant Date Fair Value, beginning balance (in dollars per share) | $ / shares	$ 16.70
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	14.66
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	19.89
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	0
Outstanding, Weighted Average Grant Date Fair Value, ending balance (in dollars per share) | $ / shares	$ 15.51

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Stockholders' Equity - Vesting Schedule (Details) - Restricted Stock Units (RSUs) - shares	Mar. 31, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Nonvested restricted stock units (in shares)	1,116,347	771,671
Share-Based Payment Arrangement, Vesting in February
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
2024 (in shares)	0
2025 (in shares)	116,998
2026 (in shares)	54,893
2027 (in shares)	0
2028 (in shares)	0
Nonvested restricted stock units (in shares)	171,891
Share-Based Payment Arrangement, Vesting in March
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
2024 (in shares)	0
2025 (in shares)	133,321
2026 (in shares)	110,667
2027 (in shares)	110,665
2028 (in shares)	110,663
Nonvested restricted stock units (in shares)	465,316
Share-Based Payment Arrangement, Vesting In April
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
2024 (in shares)	126,042
2025 (in shares)	102,201
2026 (in shares)	91,166
2027 (in shares)	91,167
2028 (in shares)	0
Nonvested restricted stock units (in shares)	410,576
Share-Based Payment Arrangement, Vesting in May
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
2024 (in shares)	68,564
2025 (in shares)	0
2026 (in shares)	0
2027 (in shares)	0
2028 (in shares)	0
Nonvested restricted stock units (in shares)	68,564
Share-Based Payment Arrangement, Vesting in February Through May
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
2024 (in shares)	194,606
2025 (in shares)	352,520
2026 (in shares)	256,726
2027 (in shares)	201,832
2028 (in shares)	110,663
Nonvested restricted stock units (in shares)	1,116,347

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Stockholders' Equity - Summary of ATM Program Sales (Details) - The 2022 At The Market Program (ATM)	25 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Gross Proceeds	$ 12,575,493
Shares of common stock issued (in shares) | shares	531,728
Gross Average Sale Price per Share of Common Stock (in usd per share) | $ / shares	$ 23.65
Sales Commissions	$ 188,655
Offering Costs	888,249
Net Proceeds	$ 11,498,589
Average Price Per Share, net (in usd per share) | $ / shares	$ 21.62

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net loss attributable to common stockholders		$ (14,286)	$ 6,567
Earnings for basic computations
Net income (loss) attributable to redeemable noncontrolling interests		(1,894)	1,937
Net income for diluted computations		$ (16,180)	$ 8,504
Weighted-average common shares outstanding
Average number of common shares outstanding - basic (in shares)		17,264	17,118
Average number of unvested restricted stock units (in shares)		740	522
Average number of OP Units and SubOP Units (in shares)		5,038	5,038
Average number of common shares from assumed conversion of Series B Preferred Stock (in shares)		1,820	0
Average number of common shares outstanding - diluted (in shares)		24,862	22,678
Earnings per weighted average common share:
Earnings (loss) per share outstanding - basic (in dollars per share)		$ (0.83)	$ 0.38
Earnings (loss) per share outstanding - diluted (in dollars per share)	[1]	$ (0.83)	$ 0.37

[1] Diluted earnings per share ("EPS") calculations were higher than basic EPS and thus anti-dilutive for the quarter ended March 31, 2024. As such, the Company is presenting diluted EPS as equal to basic EPS.

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Noncontrolling Interests - Redeemable Noncontrolling Interests in the OP (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Beginning balance	$ 89,471	$ 96,501
Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate	0	297
Net loss attributable to redeemable noncontrolling interests in the OP	(1,894)	1,937
Redemption of redeemable noncontrolling interests in the OP	0	0
Distributions to redeemable noncontrolling interests in the OP	(2,519)	(3,023)
Ending balance	$ 85,058	$ 95,712

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Noncontrolling Interests - Consolidated Common Shares (Details) - shares	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Noncontrolling Interest [Line Items]
Common stock, outstanding (in shares)	17,306,257	17,231,913
Combined outstanding (in shares)	22,344,639
Common Stock
Noncontrolling Interest [Line Items]
Common stock, outstanding (in shares)	17,306,257	17,231,913	17,184,231	17,079,943
OP Units | Noncontrolling interest
Noncontrolling Interest [Line Items]
Partners' capital account units (in shares)	5,038,382

XML

Related Party Transactions (Details)																		3 Months Ended		12 Months Ended	14 Months Ended
	Mar. 31, 2024 USD ($) shares	Mar. 13, 2024 shares	Mar. 01, 2024 USD ($)	Feb. 29, 2024 USD ($)	Dec. 31, 2023 USD ($) shares	Nov. 02, 2023 $ / shares shares	Apr. 04, 2023 shares	Jan. 01, 2023 USD ($)	Feb. 21, 2022 shares	Feb. 01, 2022 USD ($) unit	Nov. 08, 2021 shares	Feb. 22, 2021 shares	Nov. 02, 2020 shares	Jul. 24, 2020 USD ($) $ / shares shares	Jun. 24, 2020 shares	May 29, 2020 USD ($) $ / shares shares	May 08, 2020 shares	Mar. 31, 2024 USD ($) shares	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) shares	Mar. 01, 2024 USD ($)	Mar. 28, 2024 USD ($)	Dec. 08, 2023 USD ($)	Feb. 15, 2023 USD ($)	Dec. 08, 2022 USD ($)	Oct. 18, 2022 USD ($)	Jul. 26, 2022 USD ($)	Sep. 08, 2021 shares
Related Party Transaction [Line Items]
Payment for management fee																		$ 0
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs																		$ 27,491,000	$ 0
Percentage of par value				0.902
Stock issuance agreement, number of shares (in shares) | shares																												13,758,906
Conversion of redeemable noncontrolling interests in the OP (in shares) | shares	8,748,735				8,748,735													8,748,735
Management fees																		$ 835,000	828,000
Preferred equity method investments	$ 10,300,000																	10,300,000									$ 65,300,000
Payments to acquire real estate																		253,000	58,000
Number of units in multifamily property | unit										368
Common equity interests transferred								$ 54,000
Preferred equity method investment, guaranteed payment								$ 115,300,000
Gain on deconsolidation of variable interest entity																		0	$ 1,490,000	$ 1,500,000
Purchase of principal amount of tranche				$ 49,200,000
Investment pays a fixed coupon				6.90%
Secured debt, repurchase agreements			$ 35,800,000																		$ 35,800,000
Las Vegas, NV
Related Party Transaction [Line Items]
Number of units in multifamily property | unit										368
Elysian at Hughes Center
Related Party Transaction [Line Items]
Payments to acquire real estate										$ 184,100,000
Facility
Related Party Transaction [Line Items]
Outstanding face amount	$ 843,318,000				$ 1,271,938,000													$ 843,318,000		$ 1,271,938,000
Weighted average interest rate	5.90%				4.55%													5.90%		4.55%
Restricted Stock Units (RSUs)
Related Party Transaction [Line Items]
Granted (in shares) | shares																		465,316
Director | Restricted Stock Units (RSUs) | 2020 LTIP
Related Party Transaction [Line Items]
Granted (in shares) | shares		22,650					21,370		12,464			11,832					14,739
Officers and Other Employees | Restricted Stock Units (RSUs) | 2020 LTIP
Related Party Transaction [Line Items]
Granted (in shares) | shares		442,666					418,685		264,476			220,352			274,274
General Partner of Subsidiary | Restricted Stock Units (RSUs) | 2020 LTIP
Related Party Transaction [Line Items]
Granted (in shares) | shares											1,201	1,201	1,838
Directors, Officers and Certain Key Employees | Restricted Stock Units (RSUs) | 2020 LTIP
Related Party Transaction [Line Items]
Granted (in shares) | shares									12,464			233,385
The 5.75 Percent Senior Notes Due 2026 | Unsecured Financing | Facility
Related Party Transaction [Line Items]
Outstanding face amount	$ 180,000,000				$ 180,000,000													$ 180,000,000		$ 180,000,000
Weighted average interest rate	5.75%				5.75%													5.75%		5.75%
The 7.50 Percent Senior Notes Due 2027 | Unsecured Financing | Facility
Related Party Transaction [Line Items]
Outstanding face amount	$ 6,500,000				$ 6,500,000													$ 6,500,000		$ 6,500,000						$ 6,500,000
Weighted average interest rate	7.50%				7.50%													7.50%		7.50%						7.50%
Class A CMBS
Related Party Transaction [Line Items]
Average rate paid			1.00%
Class E1 CMBS
Related Party Transaction [Line Items]
Average rate paid			1.60%
Class E2 CMBS
Related Party Transaction [Line Items]
Average rate paid			1.60%
SFR OP Note
Related Party Transaction [Line Items]
Outstanding face amount																						$ 500,000
Interest rate, stated percentage																						12.50%
REIT Sub and the Co-Guarantors
Related Party Transaction [Line Items]
Guarantor obligations, current carrying value																								$ 49,200,000	$ 64,200,000
Guarantor obligations, maximum exposure																									$ 97,600,000
Paid down value																							$ 49,200,000	$ 15,000,000
Accrued dividends	$ 7,300,000																	$ 7,300,000
Severable liability percentage	85.90%																	85.90%
Series A Preferred Stock
Related Party Transaction [Line Items]
Issuance of common stock (in shares) | shares														2,000,000
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs														$ 48,000,000
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares														$ 25.00
Redeemable Preferred Stock
Related Party Transaction [Line Items]
Stock redeemed during the period																		$ 54,000,000
Series B Preferred Stock
Related Party Transaction [Line Items]
Issuance of common stock (in shares) | shares						16,000,000
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares						$ 25.00
Sale of stock, number of shares issued (in shares) | shares																				16,000,000
Series B Preferred Stock | NexPoint Securities
Related Party Transaction [Line Items]
Selling commissions (as a percent)						7.00%
Dealer manager fee (as a percent)						3.00%
NexPoint Real Estate Advisors VII, L.P.
Related Party Transaction [Line Items]
Percentage of annual advisory paid monthly																		0.015
NexPoint Real Estate Advisors VII, L.P. | Maximum
Related Party Transaction [Line Items]
Percentage of direct payment of operating expense																		0.025
Buffalo Pointe | Contribution Agreement
Related Party Transaction [Line Items]
Percentage of occupancy of multifamily property	0.920																	0.920
Percentage of preferred equity investment current interest rate																		0.065
Percentage of preferred equity investment deferred interest rate																		0.045
Percentage of loan to value																		0.829
Buffalo Pointe | NexPoint Real Estate Finance Operating Partnership, L.P. | Contribution Agreement
Related Party Transaction [Line Items]
Payments of distributions to affiliates																$ 10,000,000					$ 2,400,000
Partners' capital account, total sale of units (in shares) | shares																564,334
Book value of common stock per share (in dollars per share) | $ / shares																$ 17.72
Conversion ratio																1
Dealer Manager | NexPoint Securities
Related Party Transaction [Line Items]
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs																		$ 40,900,000
Payment to dealer manager																		2,600,000
Payment of selling commission																		$ 1,000,000
Dealer Manager | Series B Preferred Stock
Related Party Transaction [Line Items]
Issuance of common stock (in shares) | shares																		1,657,700
Dealer Manager | Series B Preferred Stock | NexPoint Securities
Related Party Transaction [Line Items]
Sale of stock, number of shares issued (in shares) | shares																				16,000,000

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Commitments and Contingencies - Additional Information (Details)			3 Months Ended	11 Months Ended
	Mar. 14, 2023 USD ($)	Sep. 29, 2021 USD ($)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jan. 26, 2024 USD ($)	Feb. 10, 2023 USD ($)	Jul. 26, 2022 USD ($)
Other Commitments [Line Items]
Purchase of preferred equity, purchase amount		$ 50,000,000
Purchase of preferred equity, purchase amount, option		$ 25,000,000	$ 3,600,000
Preferred units, extension term			1 year
Preferred units, distribution rate		0.100
Preferred equity method investments			$ 10,300,000				$ 65,300,000
Multiple on invested capital	1.30
Preferred equity investment, placement fee	0.010
Preferred Units
Other Commitments [Line Items]
Total other commitment			0
Phoenix, AZ
Other Commitments [Line Items]
Preferred equity method investments	$ 24,000,000
Preferred equity method investments, unfunded	$ 16,900,000
Multifamily Property | Forney, Texas
Other Commitments [Line Items]
Purchase of common equity, purchase amount						$ 4,300,000
Purchase of common equity, amount unfunded				$ 1,300,000
Multifamily Property | Richmond, Virginia
Other Commitments [Line Items]
Purchase of preferred equity, purchase amount						30,300,000
Purchase of preferred equity, amount unfunded				6,100,000
Purchase of common equity, purchase amount						$ 4,300,000
Purchase of common equity, amount unfunded				$ 3,300,000
Preferred Equity Investment, Return, Tranche One
Other Commitments [Line Items]
Internal rate of return	20.00%
Minimum | Prime Rate
Other Commitments [Line Items]
Preferred equity investment, basis spread on variable rate	0.050
Maximum | Prime Rate
Other Commitments [Line Items]
Preferred equity investment, basis spread on variable rate	0.1125
NexPoint Real Estate Finance, Inc. | Preferred Equity Investment, Return, Tranche One
Other Commitments [Line Items]
Preferred equity investment, return	0
NexPoint Real Estate Finance, Inc. | Preferred Equity Investment, Return, Tranche Two
Other Commitments [Line Items]
Preferred equity investment, return	0.10
Preferred Equity Issuer | Preferred Equity Investment, Return, Tranche One
Other Commitments [Line Items]
Preferred equity investment, return	1
Preferred Equity Issuer | Preferred Equity Investment, Return, Tranche Two
Other Commitments [Line Items]
Preferred equity investment, return	0.90
IQHQ-Alewife Holdings, LLC
Other Commitments [Line Items]
Guarantor obligations, maximum exposure					$ 218,000,000
Guarantor obligations, current carrying value			$ 164,700,000		$ 208,000,000
Unstabilized Special Purpose Limited Liability Company
Other Commitments [Line Items]
Preferred equity, invested capital ratio			1.25
Stabilized Special Purpose Limited Liability Company
Other Commitments [Line Items]
Preferred equity, invested capital ratio			1.10

XML

Commitments and Contingencies - Schedule of Purchase Commitments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Other Commitments [Line Items]
Purchase commitment, unfunded amount	$ 190,836	$ 41,566
Mezzanine Loan
Other Commitments [Line Items]
Purchase commitment, unfunded amount	164,717	0
Preferred Equity
Other Commitments [Line Items]
Purchase commitment, unfunded amount	21,519	34,966
Common Equity
Other Commitments [Line Items]
Purchase commitment, unfunded amount	$ 4,600	$ 6,600

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Subsequent Events (Details) $ / shares in Units, $ in Millions								3 Months Ended
	May 01, 2024 USD ($)	Apr. 30, 2024 USD ($)	Apr. 29, 2024 USD ($) extension $ / shares	Apr. 26, 2024 USD ($)	Apr. 19, 2024 USD ($)	Apr. 18, 2024 $ / shares	Feb. 29, 2024	Mar. 31, 2024 $ / shares	Mar. 31, 2023 $ / shares	May 13, 2024 USD ($)	May 10, 2024 USD ($)	May 09, 2024 USD ($)	Apr. 24, 2024 USD ($)	Apr. 12, 2024 USD ($)	Sep. 29, 2021 USD ($)
Subsequent Event [Line Items]
Purchase of preferred equity, purchase amount															$ 50.0
Percentage of par value							0.902
Preferred stock dividends declared (in usd per share) | $ / shares								$ 0.5313	$ 0.5313
Common stock dividends declared (in usd per share) | $ / shares								$ 0.5000	$ 0.6850
Subsequent Event
Subsequent Event [Line Items]
Preferred stock dividends declared (in usd per share) | $ / shares						$ 0.1875
Common stock dividends declared (in usd per share) | $ / shares			$ 0.50
Subsequent Event | FREMF 2024-K520 CMBS
Subsequent Event [Line Items]
Payments to acquire investments		$ 31.9
Investment, percentage of par		85.30%
Investment, percentage of total tranche		95.00%
Investment, fixed coupon rate (as a percent)		5.59%
Investment, all-In unlevered yield (as a percent)		9.50%
Subsequent Event | Promissory note, held-for-investment
Subsequent Event [Line Items]
Principal borrowings					$ 6.5
Outstanding face amount					$ 6.5
Interest rate, stated percentage					7.535%
Subsequent Event | Repurchase Agreement
Subsequent Event [Line Items]
Principal borrowings	$ 17.7
Subsequent Event | Repurchase Agreement | Secured Overnight Financing Rate (SOFR)
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate	2.00%
Subsequent Event | Class A tranche VINEB 2024 SFR1 CMBS
Subsequent Event [Line Items]
Principal borrowings					$ 30.0
Percentage of par value					0.9316
Subsequent Event | Class G tranche STAR 2021-SFR1 G
Subsequent Event [Line Items]
Principal borrowings					$ 10.4
Percentage of par value					0.97
Subsequent Event | Alewife Holdings Funding
Subsequent Event [Line Items]
Outstanding face amount										$ 1.5	$ 3.0	$ 6.0	$ 10.3	$ 9.0
Subsequent Event | Raymond James Term Loan
Subsequent Event [Line Items]
Proceeds from debt				$ 20.0
Subsequent Event | The NexBank Loan
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate			8.25%
Proceeds from debt			$ 10.0
Number of extension options | extension			2
Extension period			364 days
Subsequent Event | The NexBank Loan | Secured Overnight Financing Rate (SOFR)
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate			4.20%
Subsequent Event | Alewife Loan
Subsequent Event [Line Items]
Loan funding percentage											9.00%
Guarantor obligations, maximum exposure										$ 179.0

XML

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]