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NexPoint Real Estate Finance

NREF
50
REIT - Mortgage · Real Estate
Price
$17.08
-0.18 (-1.04%)
Market Cap
$321.9M
Exchange
New York Stock Exchange
Winston Score
50
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Mixed
Cash Flow
Weak
Stability
Weak
Valuation
Good
Dividends
Good

Share count rising — dilution

+146.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 20.4M (2021) → 50.1M (2025)

Winston Score History

The full picture

NexPoint Real Estate Finance, Inc. is a real estate finance company that lends money to owners of commercial properties across the United States. It focuses mainly on multifamily apartment buildings, single-family rental homes, and self-storage facilities. The company is managed externally by NexPoint Advisors, which is part of the broader NexPoint group of investment firms.

The company makes money by earning interest and fees on the loans and mortgage-backed securities it holds in its portfolio. It is structured as a real estate investment trust (REIT), which means it must pay out most of its income to shareholders as dividends. NexPoint Real Estate Finance operates entirely in the U.S. and is a relatively small company with a market cap around $300 million. Its main risk is rising interest rates, which can increase its borrowing costs and squeeze the spread between what it earns on loans and what it pays to fund them.

Score breakdown

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Quality

Profit per sale
Gross Margin
100.0%
Premium pricing power — 100.0% gross margin
Profit after running costs
Operating Margin
72.3%
Excellent — 72.3% operating margin
Return on the money invested
ROCE
2.9%
Weak — 2.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
-15.3%
Shrinking sales (-15.3% YoY)
Profit growth
EPS YoY
+11.2%
Earnings growing (+11.2% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
13%
Weak — only 13% of profit becomes cash
Spare cash per sale
FCF Margin
9.5%
Modest free cash flow (9.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
5.73
Heavy debt load (5.73)
Covers its interest
Interest Cover
3.82x
Tight — interest eats into profit (3.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
4.8x
Attractive valuation — P/E 4.8

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
-5.2
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
11.88%
Healthy income — 11.88% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record
Dividend Growth
+0.0%
Dividend flat

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