Terms

Series

8.50% Series A Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

8.5%

Rate Type

Fixed

Annual Dividend

$2.12

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

July 24, 2025

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness Of The Corporation, Any Capital Stock Expressly Designated As Senior To The Series A Preferred Stock; Pari Passu With: Any Parity Stock Expressly Designated As Ranking On Parity; Senior To: Common Stock, Any Junior Stock Expressly Designated As Ranking Junior

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

2,300,000

Prospectus Summary

NexPoint Real Estate Finance, Inc. (a Maryland REIT) has issued its 8.50% Series A Cumulative Redeemable Preferred Stock with a $25.00 liquidation preference per share, paying a fixed annual distribution of $2.125 per share ($0.53125 per quarter) on or about the 25th of January, April, July, and October. The stock is cumulative, meaning that any unpaid distributions accrue and must be paid in full before the issuer can make any distributions to common or junior stockholders — protecting investors from permanent loss of missed payments. The issuer may optionally redeem shares at $25.00 per share beginning July 24, 2025, with 30–60 days' notice. The Series A Preferred ranks senior to NexPoint Real Estate Finance's common stock and any designated junior stock, and on parity with any future parity preferred stock. It ranks junior to all existing and future indebtedness of the corporation. Because this is a holding company issue, the preferred is structurally subordinated to all debt at the operating/subsidiary level. There is no regulatory Tier 1 capital call provision; however, the issuer retains the right to redeem shares under its charter's REIT ownership limit provisions (Article VII) to preserve its REIT qualification, and may exercise a Special Optional Redemption at $25.00 within 120 days of a Change of Control. At the $25.00 offering price, the preferred yields exactly 8.50% annually. As a REIT, NexPoint Real Estate Finance's distributions generally do not qualify for the 15%/20% QDI preferential tax rate available on qualified corporate dividends, nor for the corporate dividends-received deduction; they are typically treated as ordinary income (with potential REIT pass-through components including capital gain allocations per Section 3(f)). Distributions are payable quarterly on the 25th of January, April, July, and October, with record dates set by the Board between 10 and 90 days before each payment date. If cumulative distributions fall into arrears for six quarterly periods, holders gain the right to elect two directors to the Board until arrearages are cured.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Series A Preferred cumulative distributions are not fully paid for all past periods, the issuer cannot pay dividends on or repurchase common stock or any parity/junior stock until the Series A arrearage is made whole.

Other Preferreds from Nexpoint Real Estate Finance Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 63 (Strong)