Keefe Bruyette Adjusts NexPoint Real Estate Finance (NREF) Target, Keeps Market Perform

NexPoint Real Estate Finance, Inc. (NYSE:NREF) is included among the 13 Dividend Stocks with Over 8% Yield.

On January 8, Keefe Bruyette trimmed its price target on NexPoint Real Estate Finance, Inc. (NYSE:NREF) to $14 from $14.50. The firm maintained a Market Perform rating on the stock.

In the company’s Q3 2025 earnings update, CFO and EVP of Finance Paul Richards said profitability improved sharply from the prior year. Net income rose to $1.12 per diluted share, up from $0.74 in the third quarter of 2024. Richards attributed most of the upside to stronger unrealized gains tied to preferred stock and warrant investments. Earnings available for distribution were $0.51 per diluted share, while cash available for distribution totaled $0.53 per share.

Richards also walked through several key balance sheet moves during the quarter. NexPoint put $42.5 million into a life sciences preferred investment and sold a multifamily property for $60 million, booking a $3.7 million gain on the sale. The company also raised $65.7 million through its Series B preferred stock offering.

Those actions fed through to book value, which climbed 8% from the prior quarter to $18.79 per diluted share. By quarter-end, the portfolio held 88 investments with $1.1 billion in outstanding balances. Multifamily made up the largest share at 47.3%, followed by life sciences at 33.9% and single-family rentals at 15.9%.

NexPoint Real Estate Finance, Inc. (NYSE:NREF) is a publicly traded commercial mortgage REIT that focuses on originating and investing in first-lien and mezzanine loans, preferred equity, and CMBS structures.

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