NexPoint Real Estate Finance, Inc.

Thank you for standing by. My name is Kate and I will be your conference operator today. At this time, I would like to welcome everyone to the next point, real estate finance Q2 2025 earning call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed with the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Kristen Griffith, Investor Relations. Please go ahead.

Thank you. Good day, everyone, and welcome to Next Point Real Estate Finance conference call to review the company's results for the second quarter ended June 30th, 2025. On the call today are Paul Ridgwick, Executive Vice President and Chief Financial Officer, and Matt McGrainer, Executive Vice President and Chief Investment Officer. As a reminder, This call is being webcast 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 means of the Private Securities Litigation Reform Act of 1995 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 more complete discussion of risks and other factors that could affect forward-looking statements. The statements made during this conference call speak only of today's date and, except as required by law, NREF 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 Paul Richards. Please go ahead, Paul.

Thank you, Kristen, and welcome everyone joining us this morning. I'm going to briefly discuss our quarterly results, move to our balance sheet, and lastly, provide guidance for the next quarter before turning it over to Matt for detailed commentary on the portfolio and the macro lending environment. Q2 results are as follows. For the second quarter, we reported a net income of 54 cents per diluted share compared to net income of 40 cents per diluted share for the second quarter of 2024. The increase in net income for the quarter was due to an increase in interest income between the second quarter of 2025 to the second quarter of 2024. Interest income increased by $4.6 million to $22.8 million in the second quarter of 2025 from $18.2 million in the second quarter of 2024. The increase was driven by an uptick in interest income driven by increased income from investments. Interest expense decreased $700,000 in the second quarter of 2025 compared to the same period in the prior year from the deleveraging that occurred in the second quarter of 24. Earnings available for distribution was 43 cents per diluted common share in Q2 compared to 68 cents per diluted common share in the same period of 2024. Cash available for distribution was 46 cents per diluted common share in Q2 compared to 64 cents per diluted common share in the same period of 2024. The increase in earnings available for distribution was driven by the increase in net income for the quarter. We paid a regular dividend of $0.50 per share in the second quarter, and the board has declared a dividend of $0.50 per share payable for the third quarter of 25. Our dividend in the second quarter was 0.92 times covered by cash available for distribution. Book value per share increased 1% from Q125 to $17.40 per diluted common share, with the increase being primarily due to unrealized gain on the preferred stock investments. During the quarter, we funded $39.5 million on life science preferred, and we purchased $15.3 million CNBS I.O. Strip with a bond equivalent yield of 7.24%. Moving to our balance sheet and portfolio. Our portfolio is comprised of 86 investments with a total outstanding balance of $1.1 billion. Our investments are allocated across the sector as follows. 49.5% multifamily, 32.7% life science, 15.5% single-time rental, 1.6% storage, 0.7% marina, and 0.1 specialty manufacturing. Our fixed income portfolio is allocated across investments as follows. 28.3 CNBSBPs, 24.9% MED loans, 18.7% preferred equity investments, 12.9% revolving credit facilities, 10.4% senior loans, 4.5% IO strips, and 0.1% promissory notes. The assets collateralizing our investments are allocated geographically as follows. 27% Massachusetts, 15% Texas, 6% California, 6% Georgia, 4% Maryland, 4% Florida, with the remainder across states with less than 4% exposure, reflecting our heavy presence and preference for Sunbelt markets with the Massachusetts and California exposure heavily weighted towards life science. The collateral on our portfolio is 74% stabilized with a 58.5% loan-to-value and a weighted average DSCR of 1.44 times, We have 815.6 million of debt outstanding with a weighted average cost of 5.9%. Our debt is collateralized by 865.4 million of collateral with a weighted average maturity of 3.8 years. Our debt to equity ratio is 1.14 times. Moving to our guidance for the third quarter, we are guiding to earnings available for distribution and cash available for distribution as follows. Earnings available for distribution of $0.42 per diluted common share at the midpoint with a range of $0.37 on the low end and $0.47 on the high end. Cash available for distribution of $0.50 per diluted common share at the midpoint with a range of $0.45 on the low end and $0.55 on the high end. Now I would like to turn it over to Matt for a detailed discussion of the portfolio and markets. Matt?