NexPoint Real Estate Finance, Inc.

Good day, and welcome to the NextPoint Real Estate Finance third quarter conference call. Today's call is being recorded. At this time, I'd like to turn the call over to Jackie Graham. Please go ahead.

Thank you. Good day, everyone, and welcome to NextPoint Real Estate Finance's conference call to review the company's results for the third quarter ended September 30th. On the call today are Brian Miss, Executive Vice President and Chief Financial Officer, Matt McGranor, Executive Vice President and Chief Investment Officer, Matt Guest, Senior Vice President, Investments and Asset Management, Paul Richards, Vice President, Originations and Investments, and David Wilmore, Vice President of Finance. As a reminder, this call is being web tasked through the company's website at nref.nextpoint.com. Before we begin, I would like to remind everyone that this conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are management's that are based on management's current expectations, assumptions, and beliefs. Listeners should not place undue reliance on any forward-looking statements and are encouraged to review the company's annual report on Form 10-K and the company's other filings with the SEC for a more complete discussion of risks and other factors that could affect the forward-looking statements. The statements made during this conference call speak only as of today's date and accept as required by law, and REF does not take... does not undertake any obligation to publicly update or revise any forward-looking statements. This conference call also includes an analysis of non-GAAP financial measures. For a more complete discussion of these non-GAAP financial measures, see the company's presentation that was filed earlier today. I would now like to turn the call over to Brian Mitz. Please go ahead, Brian.

Thank you, Jackie. I appreciate everyone joining us today. I'm going to jump right into our results for the quarter. And then I'll turn it over to the team to give some more detailed commentary on the portfolio and macro environment. Net income for the quarter was $1.17 per diluted share compared to net income of $0.52 per diluted share for the second quarter of 2020. Earnings available for distribution was $0.71 per diluted share in the third quarter compared to $0.42 per diluted share in the third quarter of 2020, or an increase of 69%. Cash available for distribution was $0.70 per diluted share in the third quarter compared to $0.42 per diluted share in the third quarter of 2020 for an increase of 55.6%. Book value per share increased 3.2% quarter over quarter to $21.04. We recognized a mark-to-market gain of $1.4 million on the company's investment in NextPoint Storage and $12.3 $8 million on the company's CMBS and I.O. Strip portfolio. During the quarter, we purchased six CMBS I.O. Strips with a notional value of $115.1 million for $13.1 million. During the quarter, two single-family rental loans were repaid, totaling 22.6 million in proceeds, plus yield maintenance penalties of $3.3 million. On September 17th, we originated a $32.8 million 4.58% bridge loan on a multifamily asset in Florida, the takeout to agency debt. The loan was repaid after a quarter end on November 1st. On September 29th, we originated a preferred equity investment for $3 million, yielding 10%. After quarter end, on October 26th, we originated a $9.75 million mezzanine loan, yielding 11%. We ended the quarter with 68 investments totaling approximately $1.6 billion. Across portfolio, our weighted average coupon is 5.99%. Our weighted average remaining term on investments is 6.9 years. Our weighted average loan-to-value is 66.8%. And our weighted average DSCR is two times. The value of the collateral used to calculate the 66.8% weighted average loan-to-value is outdated, as we know that the values for multifamily and single-family rental assets have moved pretty dramatically over the past few years and even the past few months. So Paul and Matt, during their comments, will talk about those revised numbers that we've calculated using estimates on the increases in that collateral value. Rich Kedzior, September 30 if our debt capital consisted of 745 million senior secured facilities on the single family rental loans 60 million senior secured facility on the mezzanine pool 223 million of repurchase agreements and 111.5 million of unsecured notes. Rich Kedzior, Our debt has a weighted average remaining term of 5.2 years in a way, the average rate of 2.59%. As of September 30th, 20 percent of our financing is subject to mark-to-market through the repurchase agreements. Our debt-to-equity ratio was 2.29 times at September 30th. On August 18th, we issued 2.1 million shares of common equity at 21 per share, raising gross proceeds of 43 million. We paid a dividend of 47.5 cents per share in the third quarter, and the Board has declared a dividend of 47.5 cents per share payable on December 30th. Our dividend is 1.49 times covered by earnings available for distribution and 1.47 times covered by CAD. Let me update our guidance here for the fourth quarter or give guidance for the fourth quarter and then I'll turn it over to the team. For the fourth quarter, we are issuing guidance for earnings available for distribution. as $0.50 on the low end, $0.60 on the high end, $0.55 at the midpoint. For cash available for distribution, we are issuing guidance of $0.46 on the low end, $0.56 on the high end, with $0.51 on the low end. So with that, let me turn it over to I think Matt Goetz. We'll start with Matt Goetz and then go to Paul Richards.