NexPoint Real Estate Finance, Inc.

Thank you for standing by. My name is Jordan and I'll be your conference operator today. At this time, I'd like to welcome everyone to the NextPoint Real Estate Finance Q4 2025 earnings 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 by the number one on your telephone keypad. And if you would like to withdraw your question, press star one again. Thank you. I'd now like to turn the call over to Kristen Griffith, Investor Relations. Please go ahead.

Thank you. Good day, everyone, and welcome to NetPoint Real Estate Finances conference call to review the company's results for the fourth quarter ended December 31st, 2025. On the call today are Paul Richards, 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 meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions, and beliefs. Listeners should not place a new 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 of today's date and accept as required by law, and REF 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.

Thanks, Kristen, and good morning, everyone. I'll walk through our quarterly results, cover the balance sheet, and provide guidance for Q1 before turning it over to Matt for a deeper dive on the portfolio and the macro lending environment. Fourth quarter results are as follows. We reported net income of 52 cents per diluted share compared to 43 cents in Q4-24. The increase was driven by unrealized gains on our preferred stock and stock warrant investments. Earnings available for distribution came in at 48 cents per diluted share compared to 83 cents in Q4-24. Cash available for distribution was 53 cents per diluted share, up from 47 cents in the prior quarter. We paid a regular dividend of 50 cents per share in the fourth quarter, which was 1.06 times covered by cash available for distribution. The Board has declared a dividend of 50 cents per share for the first quarter of 2026. Book value per share increased 1.4% from Q3 to $19.10 per diluted share, primarily driven by unrealized gains on preferred stock investments and stock warrants, turning to new investment activity during the quarter. We funded $5.7 million on a loan with a monthly coupon of SOFR plus 900 basis points with a 14% floor, along with $22.5 million on a loan pay and 11% monthly coupon. We also funded a combined $17.4 million across two marina loans at a 13% monthly coupon. On the capital market side, we raised $60.5 million in gross proceeds from our Series B preferred stock offering. For the full year, we reported net income of $2.09 per diluted share, more than double the $1.02 reported in 2024. The increase was primarily driven by higher net interest income. Interest income increased 17.4 million to 89.9 million for 2025, up from 72.5 million in the prior year, driven by higher rates on the portfolio. At the same time, interest expense declined from 44.4 million to 42.8 million. Earnings available for distribution was $1.84 per diluted share, up 3.4% from $1.78 in 2024. Cash available for distribution was $1.97 per diluted share, compared to $2.42 in the prior year, a decrease of 18.6%. Moving to the portfolio and balance sheet. Our portfolio consists of 92 investments with a total outstanding balance of $1.2 billion. By sector, we are allocated as follows. 47% multifamily, 30% life sciences, 70%, 17% single-family rental, and the balance across storage, marina, and industrial by investment type. 28% CMBSB piece, 23% preferred equity, 20% mezzanine loan, 14% revolving credit facilities, 10% senior loans, and the remainder in I.O. strips and promissory notes. Geographically, our collateral is concentrated in Massachusetts at 24%, Texas at 16%, and California at 7%. with the Massachusetts and California exposure heavily weighted towards life science. Florida, Georgia, and Maryland round out the top states, reflecting our continued preference for Sunbelt markets. The collateral on our portfolio is 82.5% stabilized with a 63.6 loan-to-value ratio and a weighted average debt service coverage ratio of 1.24 times. We have $771.2 million of debt outstanding at a weighted average cost of 5.3% and a weighted average maturity of roughly one year. Our secured debt is collateralized by $689.2 million of assets with a weighted average maturity of 3.6 years and a debt-to-equity ratio of 0.92 times. During the quarter, we refinanced $36.5 million unsecured notes with a new $45 million unsecured offering at 7.875%, a modest step up from the 7.5% notes we issued in October of 2020 when we were in a zero interest rate environment. The new notes carry a two-year term with prepayment flexibility, which positions us real well in the declining interest rate environment. We're pleased with this execution and look forward to terming out the remaining unsecured notes in the first half of 2026. On that note, we have $180 million of unsecured notes maturing in May, and we are actively reviewing several options to achieve the best execution and pricing on the refinancing. We also recently launched our Series C 8% preferred stock at $25 per share. Through the end of the year, we have sold approximately 80,000 shares for a total gross proceeds of $2 million and a total of $14.1 million through today. Lastly, subsequent to quarter end, we entered into a re-remix transaction on our front of 2017 K62DB piece with Mizuho. Under this structure, we are selling the B piece and purchasing the horizontal risk retention tranche, which represents roughly 5.8% of re-remix. This transaction reduces our mark-to-mark repo financing by $75.2 million, and our debt-to-equity ratio would decrease to 0.83 times, and the HRR tranche carries an expected yield of 18.5%. On a go-forward basis, the interest expense savings and reinvestment capacity are expected to be around $0.30 to $0.34 per share accreted to annual CAD. We view this as a compelling example of actively managing our VP's portfolio to unlock value and improve our capital efficiency. Moving to guidance for the first quarter, earnings available for distribution, $0.40 per diluted share at the midpoint with a range of $0.35 to $0.45. Cash available for distribution, $0.50 per diluted share at the midpoint with a range of $0.45 to $0.55. And with that, I'd like to turn over to Matt for a detailed discussion of the portfolio and the current market environment.