ALL STATS AS OF 12/31/2023, INCEPTION JANUARY 1, 2012. INCLUSIVE OF AFFILIATES.
Addressing the Residential Affordability Crisis
2023 was a formative year for affordable living solutions. With so many Americans affected by the exponentially increasing cost of housing, both renters and homeowners are looking for a solution.
Real Estate Asset Mix
Multifamily
25,460
Units Owned by NexPoint1
$5 Billion
Multifamily Assets Under Management1
NexPoint Residential Trust (NYSE:NXRT): Multifamily Workforce Housing
238.76%
Total Cumulative Return Since Inception2
94.7%
Average Occupancy2
NexPoint Residential Trust’s (NYSE:NXRT) value-add programs seek to provide “lifestyle” amenities to “workforce” housing while maintaining a reasonable cost of living for our residents. Typical upgrades at each of our properties include interior improvements and improving community amenities.
Single-Family Rental
25,716
SFR Units1
$5.8 Billion
SFR Assets Under Management1
VineBrook Homes Trust: Affordably Priced Single-Family Rental Homes
211.64%
Total Cumulative Return Since Inception 3
95.1%
Stabilized Occupancy3
VineBrook Homes, an allocation in several funds managed by NexPoint, is focused on acquiring, developing, renovating, leasing and operating affordable SFR properties primarily located in the midwestern, heartland and southern United States markets. In addition to SFR, NexPoint invests in build-to-rent communities through several investment structures, including NexPoint Real Estate Finance, Inc. (NREF).
1 STATS AS OF 12/31/2023, INCEPTION JANUARY 1, 2012. INCLUSIVE OF AFFILIATES.
2 AS OF 12/31/2023. CUMULATIVE TOTAL RETURN, INCLUDING REINVESTMENT OF DIVIDENDS, SINCE INCEPTION ON MARCH 31, 2015.
3 AS OF 12/31/2023, BASED ON NAV, INCLUSIVE OF REINVESTED DISTRIBUTIONS WITH 3% DISCOUNT TO NAV AND ANY ACCURED BUT UNPAID DISTRIBUTIONS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. INCEPTION NOVEMBER 2018
Concentration of Residential Units throughout the United States
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Press Release
NexPoint Real Estate Finance, Inc. Launches $400 Million Continuous Offering of 9.0% Series B Cumulative Redeemable Preferred Stock
Press Release
VineBrook Unveils “Pathway to Homeownership” Initiative for Residents Wishing to Own Their Own Home
Press Release
VineBrook Provides Milwaukeeans with More Affordable Single-Family Housing Options
Important Real Estate Risks
Real Estate Risk. Real estate investments are subject to various risk factors. Generally, real estate investments could be adversely affected by a recession or general economic downturn where the properties are located. The full extent of the impact and effects of the recent outbreak of COVID-19 on the future financial performance of the Fund, and specifically, on its investments and tenants to properties held by its REIT subsidiaries, are uncertain at this time. The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown
Modernizing Self-Storage Solutions with GenV Real Estate
Generation V or "GenV" storage buildings consist of newly built, multi-story, climate-controlled, Class-A self-storage facilities located in dense and growing markets throughout the United States.
Real Estate Asset Mix
79,744
Self-Storage Units
$2 Billion+
Assets Under Management
4
Self-Storage Focused DSTs
$70.3 Million
DST Equity Offering in Self-Storage in 2023
According to the Self Storage Association, a not-for-profit trade association representing the self-storage industry, the self-storage sector has been the fastest-growing segment of the commercial real estate industry over the last 40 years. The demand for self-storage continues to strengthen as healthy job growth, rising wages and the formation of new households support the need for self-storage.
GenV Storage Criteria
> 100,000 People
High Population Areas
>$75,000 Average Income
Above-Average Household Incomes
>1% Population Growth
Strong Population Growth
>40% Population Growth
High Percentage of Multifamily Housing/Renters
<7 Sqft Per Capita
Low Self-Storage Supply Per Capita
ALL STATS AS OF 12/31/2023, INCEPTION JANUARY 1, 2012. INCLUSIVE OF AFFILIATES.
Related Investments
Read More
Insights
Self-Storage: From D to A Over 30 Years
A review of how a once-ridiculed asset class has evolved into a core piece of every portfolio manager’s commercial real estate allocation.
Press Release
NexPoint Launches Fourth Self-Storage DST Offering with Three Premium Assets
Press Release
Extra Space Storage Adds Ten Additional Stores to Third-Party Management Platform Through Ongoing Partnership with NexPoint Storage Partners
Important Self-Storage Risks
The risk of investing in the self-storage market. The success of self-storage depends, in part, on conditions in the self-storage market. The rental of self-storage space is highly competitive. Self-storage properties could be adversely affected by competitive properties in the real estate market, which could affect the operations and ultimate value. Self-storage operators must retain current tenants at favorable rates, attract quality tenants, and provide an attractive and convenient environment. There is significant competition among self-storage owners and operators and other self-storage alternatives which could have an effect on occupancy levels, rental rates, and other operating expenses.
Realizing Opportunities in a Changing Credit Landscape
As the Fed raised rates in 2022, market fluctuations prompted traditional lenders to step back. Amid this credit tightening, lenders' risk appetite dwindled, reducing capital flows and creating favorable conditions for new credit providers to explore opportunities in distressed debt, undervalued securities, and mispriced assets. Higher interest rates and the resulting increase in borrowing costs have also fueled returns in spread-related investments such as merger arbitrage.
NexPoint Real Estate Finance, Inc. (NYSE:NREF)
NexPoint Real Estate Finance, Inc. is a commercial mortgage real estate investment trust (REIT), that concentrates on investments in real estate sectors where senior management has operating expertise, including multifamily, single-family rental (”SFR”), self-storage, life science, and manufacturing sectors in the top 50 metropolitan statistical areas. The company’s primary focus is on lending to or investing in properties that are either stabilized or have a “light transitional” business plan, meaning properties that require minimal deferred funding to support leasing or operational ramp-up, with most capital expenditures dedicated to value-added enhancements.
NREF's Consistently Outperforms the Dow Jones' Mortgage Real Estate Investment Trust Index (MREIT)
31.29%
Cumulative Total Return since Inception5
89.9%
% OF PORTFOLIO STABILIZED1,3
5.2 Years
AVERAGE REMAINING TERM3
1.72X
WEIGHTED AVERAGE DEBT SERVICE COVERAGE RATIO3
11.7%
OWNED BY MANAGEMENT AND EMPLOYEES2
1. 89.9% of investments collateralized by stabilized property occupancy of 91.4% as of December 31, 2023. See “Stabilized Property” in the Risks and Disclosures section on page 22 and 23.
2. Includes non-controlling interests. Excludes ownership by funds advised or managed by affiliates or our adviser except to the extent of our management’s pecuniary interest therein as of the close of trading February 28, 2024.
3. As of December 31, 2023, and excluding common stock investments and the Hudson Montford and Alexander at the District Multifamily Properties. See “Weighted Average Debt Service” in the Risks and Disclosures section on page 22 and 23.
4. Assumes $400MM of Series B Preferred Stock is raised in the future.
5. As of 12/31/2023, inception 2/6/2020.
NexPoint Real Estate Finance, Inc. Preferred Shares Offering
9% Annual Dividend
Paid Monthly1
Senior Position
to Common Stock of NYSE:NREF
Immediately Redeemable2
Subject to Redemption Schedule Fees
$5,000 Minimum
Available to Non-Accredited Investors
DTC Eligible
Available for Purchase through Trading Desk
1. Payment of dividends is not guaranteed. Dividends may be paid from sources other than cash flow from operations. We may have to fund distributions from working capital, borrow to provide funds for such distributions, use proceeds of future offerings or sell assets to the extent distributions exceed earnings or cash flows from operations. Funding distributions from working capital would restrict our operations. If we are required to sell assets to fund dividends, such asset sales may occur at a time or in a manner that is not consistent with our disposition strategy. If we borrow to fund dividends, our leverage ratios and future interest costs would increase, thereby reducing our earnings and cash available for distribution from what they otherwise would have been. We may not be able to pay dividends in the future.
2. Holder redemptions may begin on the first day of the month following initial issuance. Redemption pricing starts on the first day of the month following the applicable hold period. The Stockholder Redemption feature is subject to certain limits on the amount that may be redeemed in a given period, the Company’s listing or trading on the NYSE or another national securities exchange, whether the Company has sufficient funds, possible restrictions under Maryland law or any agreements that the Company may enter into which would result in a default under the agreement and the number of the shares held by the investor after the redemption.
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PRESS RELEASE
NexPoint Real Estate Finance, Inc. Launches $400 Million Continuous Offering of 9.0% Series B Cumulative Redeemable Preferred Stock
NexPoint Real Estate Finance, Inc. (NYSE: NREF) (“NREF” or the “Company”) announced today the launch of a continuous public offering of up to 16,000,000 shares of its new designated 9.0% Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”) at a price to the public of $25.00 per share, for gross proceeds of $400 million.
Advancing Medicine: Investing in Life Sciences
The year 2023 marked a transformative phase for biomanufacturing and life sciences real estate, witnessing groundbreaking advancements, facility expansions, and a redefinition of the landscape driven by industry-wide changes.
Real Estate Asset Mix
Life Sciences Redevelopment
Texas Research Quarter
135 Acres
Life Sciences Development
3 Million SF
Lab, Office, R&D, cGMP Manufacturing Space
The Texas Research Quarter project aims to transform the former Electronic Data Systems headquarters in Plano, Texas into a holistic life sciences development. The project will further establish North Texas as one of the emerging life sciences clusters in the United States.
DST / 1031 EXCHANGE
Investing in CDMOs
$73 Million
DST Equity Offered with CDMO Tenants
$400 Million
Life Sciences Assets Under Management
In 2023, contract development and manufacturing organizations (CDMOs) spearheaded innovation in pharmaceuticals and biotechnology, fostering collaboration, leveraging technology, and adapting to regulatory changes for efficient drug development and manufacturing. NexPoint recently created two Delaware statutory trusts (DSTs) featuring CDMO companies as tenants, NexPoint Life Sciences II DST and NexPoint Life Sciences III DST.
ALL STATS AS OF 12/31/2023, INCEPTION JANUARY 1, 2012. INCLUSIVE OF AFFILIATES.
Related Investments
Read More
Press Release
NexPoint Expands Life Sciences Real Estate Footprint with Acquisition of Two Properties from Adare Pharma Solutions
Press Release
NexPoint Launches Life Sciences III DST Offering for CDMO Manufacturing Property in Minnesota
Important Life Science Risks
Life Science Risk. Factors impacting the Life Science market. The success of life science depends, in part, on conditions in the life science market. The life science market consists of the fields of pharmaceuticals, biotechnology, biomedical technologies, nutraceuticals, cosmeceuticals, and others. Investment strategies are premised on assumptions about occupancy levels, rental rates, interest rates and other factors, and if those assumptions prove to be inaccurate, cash flows and profitability will be reduced. Recent strengthening of the U.S. economy and job growth, coupled with government programs, and interest has been driven in part by the COVID-19 pandemic, as the sector exponentially grew due to activity around vaccine development. Lab science risks differ from typical office construction, as they have very specialized infrastructure requirements. This includes the need to have space for chemicals and chemical storage, clean room spaces, special ventilation and fireproofing systems, extra power and emergency generators, among other requirements.
DSTs are not suitable for all investors, and are speculative, illiquid, and involve a high degree of risk, including the possible complete loss of your investment.
A New Revolution, Rising Demand and Low Supply: Industrial and Manufacturing Real Estate
As American companies reduce reliance on foreign suppliers through onshoring, the industrial and manufacturing real estate sectors thrive due to e-commerce growth and supply chain transformation.
Real Estate Asset Mix
Small Bay Industrial
$59.5 Million
DST Equity Offered in Small Bay Industrial Properties
419,946
Total Square Feet in 13 Buildings
In 2023, the surge in demand for small bay industrial real estate became pronounced, driven by the rapid expansion of e-commerce, last-mile logistics, and small-scale manufacturing. Launching off these tailwinds, NexPoint brought to market its first small bay industrial DST, NexPoint Small Bay I DST.
Commentary from NexPoint Leadership
“We continue to witness increasing demand for prime industrial properties located in growing markets where companies and small businesses are looking for flexible space to better serve local customers. We believe there are significant tailwinds to support further growth, and we are committed to scaling our footprint in this notable sector.” – Taylor Colbert, Director of Real Estate for NexPoint Real Estate Advisors
Semiconductor Manufacturing
$136 Million
DST Equity Offered in Semiconductor Manufacturing Plant
450,000
Total Square Feet
In 2023, the global semiconductor industry experienced an unprecedented surge in demand, driving a heightened need for cutting-edge manufacturing facilities. NexPoint launched NexPoint Semiconductor Manufacturing DST, which includes a property that was designed and developed to meet the tenant’s needs.
Commentary from NexPoint Leadership
“The Trust provides a long-term investment opportunity in an increasingly in-demand industry. With applications in emerging technologies like artificial intelligence and a strong commitment by the U.S. to grow the semiconductor industry domestically, we believe the semiconductor manufacturing sector is primed for success.” – Matt McGraner, Chief Investment Officer
ALL STATS AS OF 12/31/2023, INCEPTION JANUARY 1, 2012. INCLUSIVE OF AFFILIATES.
Related Investments
Read More
Insights
Semiconductors: The Foundation of Modern Technology
Semiconductors are the tiny chips that power modern electronics and enable technological advancements in a variety of sectors.
Insights
Small Bay, Big Impact: Multi-Tenant Industrial Real Estate
Unveiling the Untapped Potential of Compact Industrial Real Estate
Press Release
NexPoint Launches NexPoint Semiconductor Manufacturing DST Offering
The current tenant of the Property, Skorpios Technologies Inc., is engaged in both the contract fabrication and next-generation fabrication of semiconductors.
Important Real Estate Risks
Real Estate Risk. Real estate investments are subject to various risk factors. Generally, real estate investments could be adversely affected by a recession or general economic downturn where the properties are located. The full extent of the impact and effects of the recent outbreak of COVID-19 on the future financial performance of the Fund, and specifically, on its investments and tenants to properties held by its REIT subsidiaries, are uncertain at this time. The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown
Life Science Risk. Factors impacting the Life Science market. The success of life science depends, in part, on conditions in the life science market. The life science market consists of the fields of pharmaceuticals, biotechnology, biomedical technologies, nutraceuticals, cosmeceuticals, and others. Investment strategies are premised on assumptions about occupancy levels, rental rates, interest rates and other factors, and if those assumptions prove to be inaccurate, cash flows and profitability will be reduced. Recent strengthening of the U.S. economy and job growth, coupled with government programs, and interest has been driven in part by the COVID-19 pandemic, as the sector exponentially grew due to activity around vaccine development. Lab science risks differ from typical office construction, as they have very specialized infrastructure requirements. This includes the need to have space for chemicals and chemical storage, clean room spaces, special ventilation and fireproofing systems, extra power and emergency generators, among other requirements.
DSTs are not suitable for all investors, and are speculative, illiquid, and involve a high degree of risk, including the possible complete loss of your investment.
Merger Arbitrage and Event Driven Investing
Our strategy leverages opportunities emerging from mergers and acquisitions and a diverse array of corporate events and corresponding investment methodologies.
Open End Fund
NexPoint Merger Arbitrage Fund (HMEAX)
NexPoint Merger Arbitrage Fund seeks to achieve positive absolute returns by investing in publicly announced mergers to capture the spread between the current price of a target company and the announced offer price for that company.
Cumulative Returns Since Inception2
Annualized Returns (%) As of 3/31/2024
The performance data quoted here represents past performance and is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please call 877-665-1287.
Before investing in the Fund, you should carefully consider the Fund’s investment objectives, risks, charges and expense. For a copy of a prospectus or summary prospectus, which contains this and other information, please visit our website at nexpoint.com or call 1-833-697-7253. Please read the fund prospectus carefully before investing.
1. Sharpe ratio calculation utilizes the S&P 0-3 Month U.S. Treasury Bill Index return for the risk-free rate.
2. All metrics and performance cited are as of March 31, 2024. Fund inception January 20, 2015.
3. Only eligible investors may purchase Class Z Shares. Please refer to the prospectus for information and conditions.
SALES CHARGES: Class A Max Sales Charge: 5.50%. Class C Contingent Deferred Sales Charge (“CDSC”) is 1% within the first year from each purchase.
Performance results reflect the contractual waivers and/or reimbursements of fund expenses by the Advisor. Absent this limitation, performance results would have been lower.
Open End Fund
NexPoint Event Driven Fund (HHCAX)
NexPoint Event Driven Fund seeks to achieve long-term capital appreciation by investing in event catalysts, including mergers, acquisitions, tender offers, restructuring, spin-offs, refinancings, recapitalization or economic events that can impact specific industries.
Catalyst Exposure2,3
Regional Exposure3
6.99%
Annualized Return Since Strategy Inception1
9.31%
Standard Deviation1
15.01%
S&P 500 Return1
-14.63%
Maximum Drawdown1
Annualized Returns (%) As of 3/31/2024
The performance data quoted here represents past performance and is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please call 877-665-1287.
Before investing in the Fund, you should carefully consider the Fund’s investment objectives, risks, charges and expense. For a copy of a prospectus or summary prospectus, which contains this and other information, please visit our website at nexpoint.com or call 1-877-665-1287. Please read the fund prospectus carefully before investing.
1. Strategy Inception: January 20, 2022; as of 3/31/24.
2. A hard catalyst is an event that has a defined outcome. A soft catalyst is an anticipated event.
3. As of March 31, 2024
4. Only eligible investors may purchase Class Z Shares. Please refer to the prospectus for information and conditions.
SALES CHARGES: Class A Max Sales Charge: 5.50%. Class C Contingent Deferred Sales Charge (“CDSC”) is 1% within the first year from each purchase.
Performance results reflect the contractual waivers and/or reimbursements of fund expenses by the Advisor. Absent this limitation, performance results would have been lower.
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Press Release
NexPoint Merger Arbitrage Fund Earns Spot of HFM U.S. Performance Awards Shortlist in Two Categories
NexPoint Philanthropies Granted over $4.5M to Nonprofit Organizations in 2023
$50+ Million
Committed to Nonprofits Across a Range of Causes
NexPoint Philanthropies is comprised of corporate giving, employee matches, and a group of charitable entities that operate as supporting organizations to community foundations. They work in the local community to effect change across a number of issue areas, including education and research, youth and family, affordable housing, veterans and law enforcement, and equity and inclusion.
Equity & Inclusion
Women’s Philanthropy Institute
Through NexPoint Philanthropies’ grant to the Women’s Philanthropy Institute grant pool, recipients were able to get more funds to put towards specified issue areas: foster care age-out, senior citizen care, community revitalization, and homelessness.
Education
Plano ISD Education Foundation
As Plano ISD works to maintain the highest standard of academic success, NexPoint Philanthropies joined alongside to provide funds targeting teacher retention and recruitment through a grant to the Plano ISD Education Foundation. Funds supported 7 key district programs, which focused on talent acquisition, support, and growth.
Civic & Cultural Institutions
Engage at the Bush Center
Through the lecture series, Engage at the Bush Center presented by NexPoint, newsmakers, thought leaders, and authors are brought together in a meaningful way to dive deeper into many of today’s most pressing policy areas and issues.
Science & Technology
The Science Behind Pixar
Through a grant from NexPoint Philanthropies, the Perot Museum of Nature and Science hosted an exhibition that gave a behind-the-scenes look at the process, science, and technology used by the artists and computer scientists who help bring Pixar’s award-winning films like “Toy Story,” “Finding Nemo,” and “Coco” to the big screen.
ALL STATS AS OF 12/31/2023, INCEPTION JANUARY 1, 2012
Empowered and Expanded for Innovation
In 2023, we expanded our team with a dynamic group of individuals that have bolstered our capabilities and expertise, fostering a collaborative environment as we pursue an array of opportunities and provide investors access to alternative investments.
Awarded 2023 Best Places to Work in Money Management
”NexPoint supports employees in a number of ways, from providing best-in-class benefits, to minimizing hierarchy and creating opportunities for growth and advancement. We have thoughtfully built a culture that promotes innovation and enables employees to do their best work for our clients and other stakeholders, and we are proud to be acknowledged for these efforts.
Lucy BannonNexPoint's Chief Communications Officer
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Press Release
NexPoint is Named a 2023 Best Places to Work in Money Management by Pensions & Investments
Press Release
Chris Perkin Joins NexPoint Securities as Managing Director of Institutional Products & Services
Press Release
Joe LoPresti Joins NexPoint Securities as Managing Director of Institutional Products & Services
Press
We look forward to another great year in 2024.
Get in touch to be the first to hear about upcoming offerings, events in your area, and news about our current initiatives.
Before investing in any of the NexPoint funds, you should carefully consider the fund’s investment objectives, risks, charges, and expenses. A copy of a fund’s prospectus, which contains this and other information, is available on the fund’s website or by calling the shareholder services at (844) 485-9167.
Please read the prospectus carefully before investing. This website is neither an offer to sell nor a solicitation of an offer to buy any of the securities described herein. An investment in any of the NexPoint offerings involves risk, and there can be no assurance that the investment objectives will be met. Past performance does not guarantee future results.
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