NEXPOINT REAL ESTATE FINANCE, INC., 10-K filed on 3/27/2025
Annual Report
v3.25.1
Cover Page - USD ($)
 12 Months Ended
Dec. 31, 2024
Mar. 21, 2025
Jun. 28, 2024
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-39210    
Entity Registrant Name NexPoint Real Estate Finance, Inc.    
Entity Incorporation, State or Country Code MD    
Entity Tax Identification Number 84-2178264    
Entity Address, Address Line One 300 Crescent Court    
Entity Address, Address Line Two Suite 700    
Entity Address, City or Town Dallas    
Entity Address, State or Province TX    
Entity Address, Postal Zip Code 75201    
City Area Code 214    
Local Phone Number 276-6300    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company true    
Entity Ex Transition Period false    
ICFR Auditor Attestation Flag false    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 153,877,972.7
Entity Common Stock, Shares Outstanding   17,643,526  
Documents Incorporated by Reference
Portions of the proxy statement for the registrant’s 2025 Annual Meeting of stockholders are incorporated by reference in Part III of this Form 10-K.
    
Amendment Flag false    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2024    
Entity Central Index Key 0001786248    
Common Stock      
Document Information [Line Items]      
Title of 12(b) Security Common Stock, par value $0.01 per share    
Trading Symbol NREF    
Security Exchange Name NYSE    
Series A Cumulative Redeemable Preferred Stock, 8.5%      
Document Information [Line Items]      
Title of 12(b) Security 8.50% Series A Cumulative Redeemable Preferred Stock, par value 0.01 per share    
Trading Symbol NREF-PRA    
Security Exchange Name NYSE    
v3.25.1
Audit Information
 12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Firm ID 185
Auditor Name KPMG, LLP
Auditor Location Dallas, Texas, United States
v3.25.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
ASSETS    
Cash and cash equivalents $ 3,877 $ 13,824
Restricted cash 3,176 2,825
Real estate investments, net 121,836 126,551
Preferred stock investments, at fair value 57,389 61,529
Equity method investments ($1,504 and $0 with related parties, respectively) 1,504 0
Mortgage loans, held-for-investment, net [1] 263,395 676,420
Preferred stock investments, at fair value 18,949 14,776
Accrued interest and dividends 41,208 22,033
Stock warrant investments 27,400 0
Accounts receivable and other assets 1,457 4,312
TOTAL ASSETS 5,416,073 7,018,353
Liabilities:    
Secured financing agreements, net 235,769 649,558
Master repurchase agreements 243,454 303,514
Unsecured notes, net 221,001 219,483
Mortgages payable, net 95,464 95,657
Accounts payable and other accrued liabilities 9,458 6,428
Accrued interest payable 10,020 8,209
Bonds payable held in variable interest entities, at fair value 4,029,214 5,289,997
Total Liabilities 4,844,380 6,572,846
Redeemable Series B Preferred stock 149,045 8,599
Redeemable noncontrolling interests in the OP 86,164 89,471
Stockholders' Equity:    
Preferred stock, value, outstanding 16 16
Common stock, value, outstanding 174 172
Additional paid-in capital 387,892 395,737
Retained earnings (accumulated deficit) (54,948) (35,821)
Series A Preferred stock held in treasury at cost 0 (8,567)
Common stock held in treasury at cost 0 (4,195)
Total Stockholders' Equity 336,484 347,437
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 5,416,073 7,018,353
CMBS Structured Pass Through Certificates    
ASSETS    
Debt securities, trading 34,979 41,212
Change in unrealized gain (loss) on MSCR Notes    
ASSETS    
Debt securities, trading 0 10,378
Change in unrealized gain (loss) on mortgage backed securities    
ASSETS    
Debt securities, trading 0 38,270
Consolidated Entity, Excluding Consolidated VIE    
ASSETS    
Loans, held-for-investment, net [2] 497,544 328,460
Variable Interest Entity, Primary Beneficiary    
ASSETS    
Loans, held-for-investment, net 4,343,359 5,677,763
Stockholders' Equity:    
Stockholders' equity attributable to noncontrolling interest 3,255 0
Subsidiaries    
Stockholders' Equity:    
Stockholders' equity attributable to noncontrolling interest $ 95 $ 95
[1] (2) Includes credit allowance of $0.6 million and $0.3 million in 2024 and 2023, respectively
[2] (1) Includes credit allowance of $0.8 million and $1.8 million in 2024 and 2023, respectively
v3.25.1
Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Preferred stock investments, at fair value $ 57,389 $ 61,529
Secured financing agreements, net 235,769 649,558
Unsecured notes $ 221,001 $ 219,483
Redeemable Series B Preferred Stock, par value (in dollars per share) $ 0.01 $ 0.01
Redeemable Series B Preferred Stock, authorized (in shares) 16,000,000 16,000,000
Redeemable Series B Preferred Stock, outstanding (in shares) 6,695,715 6,695,715
Redeemable Series B Preferred Stock, issued (in shares) 427,218 427,218
Preferred stock, par value per share (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 100,000,000 100,000,000
Preferred stock, issued (in shares) 1,645,000 2,000,000
Preferred stock, outstanding (in shares) 1,645,000 1,645,000
Common stock, par value per share (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized (in shares) 500,000,000 500,000,000
Common stock, issued (in shares) 17,461,129 17,518,900
Common stock, outstanding (in shares) 17,461,129 17,231,913
Treasury stock, preferred (in shares) 0 355,000
Treasury stock, common (in shares) 0 286,987
Mortgage loans, held-for-investment    
Allowance for credit losses $ 600 $ 300
Related Party    
Loans and leases receivable, net amount 28,036 22,989
Preferred stock investments, at fair value 30,467 33,129
Secured financing agreements, net 9,869 0
Unsecured notes 6,500 6,500
Allowance for credit losses $ 800 $ 1,800
v3.25.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net interest income      
Interest income [1] $ 72,507 $ 68,358 $ 77,988
Interest expense (44,371) (51,560) (40,255)
Total net interest income 28,136 16,798 37,733
Other income (loss)      
Reversal of (provision for) credit losses 723 (4,299) (169)
Dividend income 2,009 193 0
Other income 748 1,520 399
Realized gain 691 0 (1,084)
Loss on extinguishment of debt (488) 0 17
Gain on deconsolidation of variable interest entity 0 1,490 0
Equity in income (losses) of equity method investments (3,951) (2,564) 0
Revenues from consolidated real estate owned 8,864 5,144 12,402
Total other income (loss) 44,467 25,292 2,661
Operating expenses      
Property general and administrative expenses 12,812 9,204 7,243
Loan servicing fees 1,585 4,187 4,388
Management fees 3,867 3,281 3,151
Expenses from consolidated real estate owned 18,377 6,678 11,398
Total operating expenses 36,641 23,350 26,180
Net income 35,962 18,740 14,214
Net (income) loss attributable to redeemable noncontrolling interests (6,770) (4,765) (4,969)
Net income attributable to common stockholders $ 17,693 $ 10,399 $ 3,234
Weighted-average common shares outstanding - basic (in shares) [2] 17,402 17,199 14,686
Weighted-average common shares outstanding - diluted (in shares) 17,402 17,199 14,686
Earnings per share outstanding - basic (in dollars per share) $ 1.02 $ 0.60 $ 0.22
Earnings per share outstanding - diluted (in dollars per share) 1.02 0.60 0.22
Dividends declared per common share (in dollars per share) $ 2.0000 $ 2.7400 $ 2.0000
Series A Preferred Stock      
Operating expenses      
Net (income) loss attributable to Series preferred stockholders $ (3,496) $ (3,496) $ (3,512)
Series B Preferred Stock      
Operating expenses      
Net (income) loss attributable to Series preferred stockholders (8,003) (80) 0
CMBS Structured Pass Through Certificates      
Other income (loss)      
Unrealized loss 1,925 1,533 (12,664)
Common Stock      
Other income (loss)      
Change in unrealized gain (loss) (4,140) (16,736) (5,196)
Series A Preferred Stock      
Other income (loss)      
Change in unrealized gain (loss) 667 266 0
Change in unrealized gain (loss) on MSCR Notes      
Other income (loss)      
Unrealized loss (13) 65 (53)
Change in unrealized gain (loss) on mortgage backed securities      
Other income (loss)      
Unrealized loss 763 467 (1,230)
Variable Interest Entity, Primary Beneficiary      
Other income (loss)      
Change in net assets related to consolidated CMBS variable interest entities 36,669 38,213 10,239
Unrealized loss (7,206) (2,414) (25,627)
Redeemable Noncontrolling Interests      
Operating expenses      
Net (income) loss attributable to redeemable noncontrolling interests (6,770) (4,765) (4,969)
Redeemable Noncontrolling Interests in Subsidiaries      
Operating expenses      
Net (income) loss attributable to redeemable noncontrolling interests $ 0 $ 0 $ (2,499)
[1] Includes $25.0 million related to accelerated amortization of the premium associated with the prepayment on a senior loan in the first quarter of 2024.
[2] Diluted EPS calculations were higher than basic EPS and thus anti-dilutive for the years ended December 31, 2024, 2023, and 2022, respectively. As such, the Company is presenting diluted EPS as equal to basic EPS for the years ended December 31, 2024, 2023, and 2022, respectively
v3.25.1
Consolidated Statements of Operations (Parentheticals)
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
Income Statement [Abstract]  
Accelerated amortization of premium $ 25.0
v3.25.1
Consolidated Statement of Stockholders' Equity - USD ($)
Total
Cumulative Effect, Period of Adoption, Adjustment
Series A Preferred Stock
Series A Preferred Stock
Common Stock
Additional Paid-in Capital
Retained Earnings Less Dividends
Retained Earnings Less Dividends
Cumulative Effect, Period of Adoption, Adjustment
Common Stock Held in Treasury at Cost
Series A Preferred Stock Held in Treasury at Cost
Noncontrolling Interest
Variable Interest Entity, Primary Beneficiary
Noncontrolling Interest
Subsidiaries
Preferred stock, beginning balance (in shares) at Dec. 31, 2021     1,645,000                
Beginning balance at Dec. 31, 2021 $ 245,283,000   $ 16 $ 92,000 $ 222,300,000 $ 28,367,000   $ (4,195,000) $ (8,567,000) $ 7,175,000 $ 95,000
Common stock, beginning balance (in shares) at Dec. 31, 2021       9,163,934              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Vesting of stock-based compensation (in shares)       114,678              
Vesting of stock-based compensation 2,790,000     $ 1,000 2,789,000            
Proceeds from DST syndication fundraising 64,434,000                   64,434,000
Issuance of common stock through at-the-market offering, net (in shares)       531,728              
Issuance of common stock through at-the-market offering, net 11,499,000     $ 5,000 11,494,000            
Conversion of redeemable noncontrolling interests in the OP (in shares)       7,269,603              
Conversion of redeemable noncontrolling interests in the OP 155,614,000     $ 73,000 155,541,000            
Noncontrolling interest in CMBS VIEs (7,175,000)                 (7,175,000)  
Adjustment to retained earning on consolidation of real estate 1,174,000         1,174,000          
Net income attributable NCI in subsidiaries 2,499,000         2,499,000          
Net income attributable to preferred stockholders 3,512,000         3,512,000          
Net income attributable to common stockholders 3,234,000         3,234,000          
Preferred stock dividends declared (3,512,000)         (3,512,000)          
Common stock dividends declared (30,839,000)         (30,839,000)          
Preferred stock, ending balance (in shares) at Dec. 31, 2022     1,645,000                
Ending balance at Dec. 31, 2022 448,513,000   $ 16 $ 171,000 392,124,000 4,435,000   (4,195,000) (8,567,000) 0 64,529,000
Common stock, ending balance (in shares) at Dec. 31, 2022       17,079,943              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Vesting of stock-based compensation (in shares)       151,970              
Vesting of stock-based compensation 3,614,000     $ 1,000 3,613,000            
Adjustment to retained earning on consolidation of real estate (64,434,000)                   (64,434,000)
Net income attributable to preferred stockholders 3,496,000         3,496,000          
Net income attributable to common stockholders 10,399,000         10,399,000          
Preferred stock dividends declared (3,496,000)         (3,496,000)          
Common stock dividends declared $ (49,031,000)         (49,031,000)          
Preferred stock, ending balance (in shares) at Dec. 31, 2023 1,645,000   1,645,000,000                
Ending balance at Dec. 31, 2023 $ 347,437,000 $ (1,624,000) $ 16,000 $ 172,000 395,737,000 (35,821,000) $ (1,624,000) (4,195,000) (8,567,000) 0 95,000
Common stock, ending balance (in shares) at Dec. 31, 2023 17,231,913     17,231,913,000              
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Vesting of stock-based compensation (in shares)       229,216,000              
Vesting of stock-based compensation $ 4,919,000     $ 2,000 4,917,000            
Conversion of redeemable noncontrolling interests in the OP (in shares) 8,748,735                    
Noncontrolling interest in CMBS variable interest entities $ 3,255,000                 3,255,000  
Cancellation of common stock held in treasury 0       (12,762,000)     4,195,000 8,567,000    
Net income attributable to preferred stockholders 3,496,000         3,496,000          
Net income attributable to common stockholders 17,693,000         17,693,000          
Preferred stock dividends declared (3,496,000)         (3,496,000)          
Common stock dividends declared $ (36,820,000)         (36,820,000)          
Preferred stock, ending balance (in shares) at Dec. 31, 2024 1,645,000   1,645,000,000                
Ending balance at Dec. 31, 2024 $ 336,484,000   $ 16,000 $ 174,000 $ 387,892,000 $ (54,948,000)   $ 0 $ 0 $ 3,255,000 $ 95,000
Common stock, ending balance (in shares) at Dec. 31, 2024 17,461,129     17,461,129,000              
v3.25.1
Consolidated Statement of Stockholders' Equity (Parentheticals)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
Statement of Stockholders' Equity [Abstract]  
Accounting Standards Update [Extensible Enumeration] Accounting Standards Update 2016-13 [Member]
Preferred stock dividends declared (in usd per share) $ 2.1250
Common stock dividends declared (in usd per share) $ 2.0000
Beginning balance | $ $ 448,513
v3.25.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities      
Net income $ 35,962 $ 18,740 $ 14,214
Adjustments to reconcile net income to net cash provided by operating activities:      
Amortization of premiums 36,452 15,301 20,840
Accretion of discounts (27,197) (13,877) (13,312)
Depreciation and amortization of real estate investment 5,613 2,465 2,895
Amortization of deferred financing costs 47 (45) 48
Change in fair value on interest rate caps included in other assets (2,479) (1,675) 0
Net cash received (paid) on interest rate caps 605 (440) 0
Provision for (reversal of) credit losses (723) 4,299 169
Net change in unrealized (gain) loss on investments held at fair value 7,889 16,820 44,765
Net realized (gain) loss (11,230) 0 1,084
Equity in (income) losses of unconsolidated equity method ventures 3,951 2,564 0
Gain on deconsolidation of variable interest entity 0 (1,490) 0
Stock-based compensation expense 6,073 4,411 3,286
Payment in kind income (14,486) (8,990) (715)
Loss (gain) on extinguishment of debt 488 0 (17)
Changes in operating assets and liabilities:      
Accrued interest and dividends receivable (19,184) (4,319) (10,247)
Accounts receivable and other assets 4,636 (354) (433)
Accrued interest payable 1,811 338 2,914
Accounts payable, accrued expenses and other liabilities 1,056 (2,192) 310
Net cash provided by operating activities 29,284 31,556 65,801
Cash flows from investing activities      
Proceeds from payments received on bridge loan 0 0 13,500
Originations of bridge loan 0 0 (13,434)
Originations of loans, held-for-investment, net (167,987) (92,701) 0
Purchases of preferred stock (3,506) (14,510) 0
Purchases of equity method investments (10,892) (2,564)
Proceeds from sale of equity method investments 5,437 0 0
Purchases of stock warrant investments (27,400) 0 (4,542)
Sales of CMBS securitizations held in variable interest entities, at fair value 124,167 44,783
Sale of CMBS structured pass-through certificates, at fair value 0 0 6,962
Sale of MSCR notes, at fair value 11,060 0 0
Increase in cash in connection with VIE consolidation 0 1,814 0
Decrease in cash in connection with VIE deconsolidation 0 (4,992) 0
Acquisitions of real estate investments 0 0 (184,552)
Additions to real estate investments (902) (526) (117)
Net cash provided by investing activities 956,537 741,342 950,578
Cash flows from financing activities      
Borrowings under secured financing agreements 120,012 0 0
Principal repayments on borrowings under secured financing agreements (534,189) (38,327) (98,341)
Borrowings under master repurchase agreements 101,194 55,239 130,629
Principal repayments on borrowings under master repurchase agreements (161,254) (82,745) (85,933)
Proceeds received on borrowings under secured financing agreements 0 0 89,634
Proceeds received from unsecured notes offering 0 13,557 40,674
Proceeds received from unsecured promissory note 6,500 0 0
Principal repayment on unsecured promissory note (6,500) 0 0
Principal repayment on unsecured promissory note 0 0 (4,829)
Borrowings under bridge facility 19,900 0 55,000
Bridge facility repayments (20,000) 0 (55,000)
Net Proceeds 0 0 156,491
Proceeds received from mortgages payable 0 416
Principal repayments on mortgages payable (240) (22) 0
Payments for taxes related to net share settlement of stock-based compensation (1,154) (797) (495)
Dividends paid to common stockholders (34,845) (47,950) (29,652)
Distributions to redeemable noncontrolling interests in the OP (10,077) (12,092) (14,277)
Contributions from noncontrolling interests 0 0 67,255
Net cash used in financing activities (995,417) (776,596) (1,029,264)
Net increase (decrease) in cash, cash equivalents, and restricted cash (9,596) (3,698) (12,885)
Cash, cash equivalents and restricted cash, beginning of year 16,649 20,347 33,232
Cash, cash equivalents and restricted cash, end of year 7,053 16,649 20,347
Supplemental Disclosure of Cash Flow Information      
Interest paid 42,560 51,337 35,416
Supplemental Disclosure of Noncash Investing and Financing Activities      
Adjustment to loans, held for investment, net on deconsolidation of real estate 0 36,022 0
Adjustment to real estate investments, net on deconsolidation of real estate 0 (185,732) 0
Adjustment to accrued interest and dividends on deconsolidation of real estate 0 2,049 0
Adjustment to accounts receivable and other assets on deconsolidation of real estate 0 (799) 0
Adjustment to mortgages payable, net on deconsolidation of real estate 0 89,012 0
Adjustment to accounts payable and accrued liabilities on deconsolidation of real estate 0 705 0
Adjustment to accrued interest payable on deconsolidation of real estate 0 1,087 0
Adjustment to noncontrolling interest in subsidiary on deconsolidation of real estate 0 64,434 0
Adjustment to retained earnings on deconsolidation of real estate 0 1,490 0
Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate 0 (297) 0
Increase in dividends payable upon vesting of restricted stock units 1,975 1,081 1,187
Consolidation of mortgage loans and bonds payable held in variable interest entities 1,276,923 0 1,244,826
Consolidation of noncontrolling interest in CMBS variable interest entities 3,255 0 0
Deconsolidation of mortgage loans and bonds payable held in variable interest entities (2,327,220) (448,396) 0
Conversion of convertible notes to common stock 0 0 25,000
Adjustment to loans, held for investment, net on consolidation of real estate 0 (9,685) 0
Adjustment to real estate investments, net on consolidation of real estate 0 69,000 0
Adjustment to accounts receivable and other assets on consolidation of real estate 0 445 0
Adjustment to mortgages payable, net on consolidation of real estate 0 (63,084) 0
Adjustment to accrued interest payable on consolidation of real estate 0 (972) 0
Adjustment to accounts payable and accrued liabilities on consolidation of real estate 0 (2,436) 0
Conversion of paid-in-kind interest into Series E Preferred Stock 10,013 0 0
Series A Preferred Stock      
Cash flows from financing activities      
Dividends paid to preferred stockholders (3,496) (3,496) (3,512)
Series B Preferred Stock      
Cash flows from financing activities      
Dividends paid to preferred stockholders (8,003) (80) 0
Public Offering      
Cash flows from financing activities      
Net Proceeds 0 0 11,499
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs 140,446 8,599 0
At-the-market Offering      
Cash flows from financing activities      
Net Proceeds 0 0 (156,491)
Variable Interest Entity, Primary Beneficiary      
Cash flows from investing activities      
Proceeds from sale of loans held-for-investment 625,063 717,966 1,223,322
Cash flows from financing activities      
Distributions to bondholders of variable interest entities (603,711) (668,898) (1,131,916)
Variable Interest Entity, Primary Beneficiary | Change in unrealized gain (loss) on mortgage backed securities      
Cash flows from investing activities      
Originations of loans, held-for-investment, net (138,993) 0 (110,502)
Consolidated Entity, Excluding Consolidated VIE      
Cash flows from investing activities      
Proceeds from sale of loans held-for-investment 555,485 97,259 178,990
Consolidated Entity, Excluding Consolidated VIE | Change in unrealized gain (loss) on mortgage backed securities      
Cash flows from investing activities      
Proceeds from payments received on mortgage backed securities 82,977 546 518
Purchases of CMBS securitizations held in variable interest entities, at fair value (44,396) (5,733) (33,926)
Consolidated Entity, Excluding Consolidated VIE | CMBS Structured Pass Through Certificates      
Cash flows from investing activities      
Purchases of CMBS securitizations held in variable interest entities, at fair value (53,576) 0 (115,276)
Consolidated Entity, Excluding Consolidated VIE | Change in unrealized gain (loss) on MSCR Notes      
Cash flows from investing activities      
Purchases of CMBS securitizations held in variable interest entities, at fair value $ 0 $ 0 $ (10,365)
v3.25.1
Organization and Description of Business
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Description of Business Organization and Description of Business
NexPoint Real Estate Finance, Inc. (the “Company”, “we”, “our”, "NREF") is a commercial mortgage real estate investment trust (a "REIT") incorporated in Maryland on June 7, 2019. The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2020 and the Company believes the current organization and method of operation will enable it to maintain its status as a REIT. The Company is focused on originating, structuring and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties and common equity investments, as well as multifamily and single-family rental ("SFR") commercial mortgage backed securities securitizations (“CMBS securitizations”), promissory notes, revolving credit facilities and stock warrants, or our target assets. We primarily focus on investments in real estate sectors where our senior management team has operating expertise, including in the multifamily, SFR, self-storage and life science sectors predominantly in the top 50 metropolitan statistical areas ("MSAs"). Substantially all of the Company’s business is conducted through NexPoint Real Estate Finance Operating Partnership, L.P. (the “OP”), the Company’s operating partnership. As of December 31, 2024, the Company holds approximately 83.82% of the common limited partnership units in the OP (“OP Units”) which represents 100.00% of the Class A OP Units, and the OP owned all of the common limited partnership units (“SubOP Units”) of its subsidiary partnerships (collectively, the “Subsidiary OPs”) (see Note 13).
The OP also directly owns all of the membership interests of a limited liability company (the “Mezz LLC”) through which it owns a portfolio of mezzanine loans, as further discussed below. NexPoint Real Estate Finance OP GP, LLC (the “OP GP”) is the sole general partner of the OP.
The Company commenced operations on February 11, 2020 upon the closing of its initial public offering of shares of its common stock (the “IPO”). Prior to the closing of the IPO, the Company engaged in a series of transactions through which it acquired an initial portfolio consisting of senior pooled mortgage loans backed by SFR properties (the “SFR Loans”), the junior most bonds of multifamily CMBS securitizations (the “CMBS B-Pieces”), mezzanine loan and preferred equity investments in real estate companies and properties in other structured real estate investments within the multifamily, SFR and self-storage asset classes (the “Initial Portfolio”). The Initial Portfolio was acquired from affiliates (the “Contribution Group”) of NexPoint Advisors, L.P. (our “Sponsor”), pursuant to a contribution agreement with the Contribution Group through which the Contribution Group contributed their interest in the Initial Portfolio to special purpose entities (“SPEs”) owned by the Subsidiary OPs, in exchange for SubOP Units (the “Formation Transaction”). Subsequent to the Formation Transaction, the Company has continued to invest in asset types and real estate sectors within the Initial Portfolio and expanded to include additional asset types and real estate sectors.
The Company is externally managed by NexPoint Real Estate Advisors VII, L.P. (the “Manager”) through a management agreement dated February 6, 2020 and amended as of July 17, 2020 and November 3, 2021, that renewed on February 6, 2025 for a one-year term and is automatically renewed for successive one-year terms thereafter unless earlier terminated (as amended, the “Management Agreement”), by and between the Company and the Manager. The Manager conducts substantially all of the Company’s operations and provides asset management services for its real estate investments. The Company expects it will only have accounting employees while the Management Agreement is in effect. All of the Company’s investment decisions are made by the Manager, subject to general oversight by the Manager’s investment committee and the Company’s board of directors (the “Board”). The Manager is wholly owned by our Sponsor.
The Company’s primary investment objective is to generate attractive, risk-adjusted returns for stockholders over the long term. The Company intends to achieve this objective primarily by originating, structuring and investing in our target assets. The Company concentrates on investments in real estate sectors where our senior management team has operating expertise, including in the multifamily, SFR, self-storage and life science sectors predominantly in the top 50 MSAs. In addition, the Company targets lending or investing in properties that are stabilized or have a “light transitional” business plan, meaning a property that requires limited deferred funding to support leasing or ramp-up of operations and for which most capital expenditures are for value-add improvements. Through active portfolio management the Company seeks to take advantage of market opportunities to achieve a superior portfolio risk-mix that delivers attractive total returns.
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Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Accounting
The accompanying consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. Other than described below pertaining to the adoption of the new accounting pronouncement, there have been no significant changes to the Company’s significant accounting policies during the year ended December 31, 2024.
The accompanying consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading.
Use of Estimates and Assumptions
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that these estimates could change in the near term. Estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.
Principles of Consolidation
The Company accounts for subsidiary partnerships in which it holds an ownership interest in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has power to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. As of December 31, 2024, the Company has determined it must consolidate the OP and the Subsidiary OPs under the VIE model as it was determined the Company both controls the direct activities of the OP and Subsidiary OPs and possesses the right to receive benefits that could potentially be significant to the OP and Subsidiary OPs. The consolidated financial statements include the accounts of the Company and its subsidiaries, including the OP and its subsidiaries. The Company’s sole significant asset is its investment in the OP, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the OP.
Variable Interest Entities
The Company evaluates all of its interests in VIEs for consolidation. When the Company’s interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. FASB ASC Topic 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary, and it consolidates the VIE. Where either one of these factors is not present, the Company is not the primary beneficiary, and it does not consolidate the VIE (see Note 6).
CMBS Trusts
The Company consolidates the trusts that issue beneficial ownership interests in mortgage loans secured by commercial real estate (commonly known as CMBS) when the Company holds a variable interest in, and management considers the Company to be the primary beneficiary of, those trusts. Management believes the performance of the assets that underlie CMBS issuances most significantly impact the economic performance of the trust, and the primary beneficiary is generally the entity that conducts activities that most significantly impact the performance of the underlying
assets. In particular, the most subordinate tranches of CMBS expose the holder to greater variability of economic performance when compared to more senior tranches since the subordinate tranches absorb a disproportionately higher amount of the credit risk related to the underlying assets. Generally, a trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint, remove and replace the special servicer for the trust. For the nine CMBS that the Company consolidates, the Company owns 100% of the most subordinate tranche of seven of the securities and 93.9% and 95.0%, respectively, of the most subordinate tranche of two of the securities issued by the trusts. The subordinate tranche includes the controlling class, and has the ability to remove and replace the special servicer. The portion of the controlling class not owned by the Company is classified as noncontrolling interest in CMBS variable interest entities.
On the Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023, the Company consolidated each of the Freddie Mac K-Series securitization entities (the “CMBS Entities”) that were determined to be VIEs and for which the Company is the primary beneficiary. The CMBS Entities are independent of the Company, and the assets and liabilities of the CMBS Entities are not owned by and are not legal obligations of ours. Our exposure to the CMBS Entities is through the subordinated tranches. For financial reporting purposes, the underlying mortgage loans held by the trusts are recorded as a separate line item on the balance sheet under “Mortgage loans held in variable interest entities, at fair value.” The liabilities of the trusts consist solely of obligations to the CMBS holders of the consolidated trusts, excluding the CMBS B-Piece investments held by the Company. The liabilities are presented as “Bonds payable held in variable interest entities, at fair value” on the Consolidated Balance Sheets. The CMBS B-Pieces held by the Company, and the interest earned thereon are eliminated in consolidation. Management has elected the measurement alternative in ASC 810 to report the fair value of the assets and liabilities of the consolidated CMBS Entities in order to provide users of the financial statements with better information regarding the effects of credit risk and other market factors on the CMBS B-Pieces owned by the Company. Management has elected to show interest income and interest expense related to the CMBS Entities in aggregate with the change in fair value as “Change in net assets related to consolidated CMBS variable interest entities.” The residual difference between the fair value of the CMBS Entities’ assets and liabilities represents the Company’s investments in the CMBS B-Pieces at fair value.
Investment in Subsidiaries
The Company conducts its operations through the OP, which directly or through a subsidiary, acts as the general partner of the Subsidiary OPs. The Subsidiary OPs own investments through limited liability companies that are SPEs which own investments directly. The OP is the sole member of the Mezz LLC, which owns investments directly. The OP has three classes of OP Units: Class A, Class B and Class C. Class A OP Units and Class B OP Units each have 50.0% of the voting power of the OP Units and Class C OP Units have no voting power. Each Class A OP Unit, Class B OP Unit and Class C OP Unit otherwise represents substantially the same economic interest in the OP. The Company is the majority limited partner of the OP in terms of economic interests, holding approximately 83.82% of the OP Units in the OP as of December 31, 2024 which represent 100.00% of the Class A OP Units, and the OP GP must generally receive approval of the Board to take any actions. As such, the Company consolidates the OP. The Company consolidates the SPEs in which it has a controlling financial interest, as well as any VIEs where it is the primary beneficiary. All of the investments the SPEs own are consolidated in the consolidated financial statements. Generally, the assets of each entity can only be used to settle obligations of that particular entity, and the creditors of each entity have no recourse to the assets of other entities or the Company notwithstanding equity pledges various lenders may have in certain entities or guarantees provided by certain entities. As of December 31, 2024, there are no outstanding redeemable noncontrolling interests issued by the Subsidiary OPs.
Redeemable Noncontrolling Interests
Noncontrolling interests represent the ownership interests in consolidated subsidiaries held by entities other than the Company. Those noncontrolling interests that the holder is allowed to redeem before liquidation or termination of the entity that issued those interests are considered redeemable noncontrolling interests.
The OP and the Subsidiary OPs have issued redeemable noncontrolling interests classified on the Consolidated Balance Sheets as temporary equity in accordance with ASC 480. This is presented as “Redeemable noncontrolling interests in the OP” on the Consolidated Balance Sheets and their share of “Net Income (Loss)” as “Net Income (Loss) attributable to redeemable noncontrolling interests” in the accompanying Consolidated Statements of Operations.
The redeemable noncontrolling interests were initially measured at the fair value of the contributed assets in accordance with ASC 805-50. The redeemable noncontrolling interests will be adjusted to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests. Capital contributions, distributions and profits
and losses are allocated to the redeemable noncontrolling interests in accordance with the terms of the partnership agreements of the Subsidiary OPs and the OP.
Cash, Cash Equivalents and Restricted Cash
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value. Substantially all amounts on deposit with major financial institutions exceed insured limits.
From time to time, the Company may have to post cash collateral to satisfy margin calls due to changes in fair value of the underlying collateral subject to master repurchase agreements. This cash is listed as restricted cash on the Consolidated Balance Sheets. Restricted cash is also stated at cost, which approximates fair value.
Mortgage and Other Loans Held-For-Investment, net
Loans that are held-for-investment are carried at their aggregate outstanding face amount, net of applicable (i) unamortized origination or acquisition premium and discounts, (ii) unamortized deferred fees and other direct loan origination costs, (iii) valuation allowance for credit losses and (iv) write-downs of impaired loans. The effective interest method is used to amortize origination or acquisition premiums and discounts and deferred fees or other direct loan origination costs. In general, an increase in prepayment rates accelerates the amortization of purchase premiums, thereby reducing the interest income earned on the assets. Conversely, discounts on such assets are accreted into interest income. In general, an increase in prepayment rates accelerates the accretion of purchase discounts, thereby increasing the interest income earned on the assets.
Purchase Price Allocation
The Company considers the acquisition of real estate investments as asset acquisitions. Upon acquisition of a property, the purchase price and related acquisition costs (“total consideration”) are allocated to land, buildings, improvements, furniture, fixtures, and equipment, and intangible lease assets in accordance with FASB ASC 805, Business Combinations. Acquisition costs are capitalized in accordance with FASB ASC 805.
The allocation of total consideration, which is determined using inputs that are classified within Level 3 of the fair value hierarchy established by FASB ASC 820, Fair Value Measurement and Disclosures (“ASC 820”) (see Note 10), is based on management’s estimate of the property’s “as-if” vacant fair value and is calculated by using all available information such as the replacement cost of such asset, appraisals, property condition reports, market data and other related information. The allocation of the total consideration to intangible lease assets represents the value associated with the in-place leases, which may include lost rent, leasing commissions, legal and other related costs, which the Company, as buyer of the property, did not have to incur to obtain the residents. If any debt is assumed in an acquisition, the difference between the fair value, which is estimated using inputs that are classified within Level 2 of the fair value hierarchy, and the face value of debt is recorded as a premium or discount and amortized as interest expense over the life of the debt assumed.
Operating Real Estate Investments
Real estate assets, including land, buildings, improvements, furniture, fixtures and equipment, and intangible lease assets are stated at historical cost less accumulated depreciation and amortization. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. Expenditures for improvements, renovations, and replacements are capitalized at cost. Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as described in the following table:

LandNot depreciated
Buildings (in years)30
Improvements (in years)15
Furniture, fixtures, and equipment (in years)3
Intangible lease assets (in months)6

Post-acquisition, construction in progress includes the cost of renovation projects being performed at the various properties. Once a project is complete, the historical cost of the renovation is placed into service in one of the categories
above depending on the type of renovation project and is depreciated over the estimated useful lives as described in the table above.
Secured Financing and Master Repurchase Agreements
The Company's borrowings under secured financing agreements and master repurchase agreements are treated as collateralized financing arrangements carried at their contractual amounts, net of unamortized debt issuance costs, if any.
Income Recognition
Interest Income - Loans and mortgage loans held-for-investment, CMBS structured pass-through certificates, mortgage loans held in variable interest entities, bridge loans, MSCR Notes and mortgage backed securities where the Company expects to collect the contractual interest and principal payments are considered to be performing loans. The Company recognizes income on performing loans in accordance with the terms of the loan on an accrual basis. Interest income also includes amortization of loan premiums or discounts and loan origination costs and prepayment penalties.
Realized Gain (Loss) on Investments - The Company recognizes the excess, or deficiency, of net proceeds received, less the carrying value of such investments, as realized gains or losses, respectively. The Company reverses cumulative, unrealized gains or losses previously reported in its Consolidated Statements of Operations with respect to the investment sold at the time of the sale.
Revenue Recognition
The Company owns two multifamily properties whereby its primary operations consist of rental income earned from its residents under lease agreements typically with terms of one year or less. See Note 8 for additional information regarding these multifamily properties. Rental income is recognized when earned. This policy effectively results in income recognition on the straight-line method over the related terms of the leases. The Company records an allowance to reflect revenue that may not be collectable. This is recorded through a provision for bad debts, which is included in revenues from consolidated real estate owned in the accompanying Consolidated Statements of Operations. Resident reimbursements and other income consist of charges billed to residents for utilities, carport and garage rental, pets and administrative, application and other fees and are recognized when earned.
In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements (“ASU 2018-11”), which provides entities with relief from the costs of implementing certain aspects of ASU 2016-02. ASU 2018-11 provides a practical expedient that allows lessors to not separate lease and non-lease components in a contract and allocate the consideration in the contract to the separate components if both (i) the timing and pattern of revenue recognition for the non-lease component and the related lease component are the same and (ii) the combined single lease component would be classified as an operating lease. The Company elected the practical expedient to account for lease and non-lease components as a single component in lease contracts where the Company is the lessor. The Company implemented the provisions of ASU 2018-11 and 2016-02, collectively Topic 842 Leases (“ASC 842”), effective January 1, 2022. The Company presents the disclosure of leases in the consolidated statements of operations and began presenting all rentals and reimbursements from tenants within revenues and expenses from consolidated real estate owned on the Consolidated Statements of Operations (Note 8).
Expense Recognition
Interest expense, in accordance with the Company’s financing agreements, is recorded on the accrual basis. General and administrative expenses are expensed as incurred.
Allowance for Credit Losses
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses on Financial Instruments (“ASU 2016-13”), which establishes credit losses on certain types of financial instruments. The new approach changes the impairment model for most financial assets and requires the use of a current expected credit loss ("CECL") model for financial instruments measured at amortized cost and certain other instruments. This model applies to trade and other receivables, loans, debt securities, net investments in leases and off-balance sheet credit exposures (such as loan commitments, standby letters of credit and financial guarantees not accounted for as insurance) and requires entities to estimate the lifetime expected credit loss on such instruments and record an allowance that represents the portion of the amortized cost basis that the entity does not expect to collect.
We adopted ASU 2016-13 as of January 1, 2023. The implementation process included the utilization of loan loss forecasting models, updates to our loan credit loss policy documentation, changes to internal reporting processes and related internal controls, and overall operational readiness for our adoption of the new standard. We have implemented loan loss forecasting models for estimating expected life-time credit losses, at the individual loan level, for our loan portfolio. These models are also utilized for estimating expected life-time credit losses for unfunded loan commitments for which the Company has a present contractual obligation to extend the credit and the obligation is not unconditionally cancellable. The CECL forecasting methods used by the Company include (i) a probability of default and loss given default method using underlying third-party CMBS/Commercial Real Estate loan database with historical loan losses from 1998 to 2024, and (ii) probability weighted expected cash flow method, depending on the type of loan and the availability of relevant historical market loan loss data. We might use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data. Significant inputs to our forecasting methods include (i) key loan-specific inputs such as loan-to-value, vintage year, loan-term, underlying property type, occupancy, geographic location, performance against the underwritten business plan, and our internal loan risk rating, and (ii) a macro-economic environment forecast. The reasonable and supportable forecast period is determined based on the Company’s assessment of the most likely scenario of assumptions and plausible outcomes for the U.S. economy, current portfolio composition, level of historical loss forecast estimates, material changes in growth and credit strategy and other factors that may affect its loss experience. The Company regularly evaluates the reasonable and supportable forecast period to determine if a change is needed. The Company has determined that economic forecasts used in our CECL model can be reasonable and supportable over four quarters as it provides enough time to account for the expected changes of the economic conditions and the performance of the underlying assets. Beyond the Company’s reasonable and supportable forecast period, the Company immediately reverts to historical loss information. The Company considers an immediate reversion period appropriate in the CECL model because it provides a suitable balance between the stability of historical data and the flexibility to account for changing market conditions. The cumulative effect of adoption of ASU 2016-13 as of January 1, 2023 was a $1.6 million reduction in retained earnings. In 2023, charge offs related to the Alexander at the District consolidation were $5.8 million. The beginning allowance for credit loss as of January 1, 2024 was $2.1 million. The reversal of credit losses of $0.7 million for the year ended December 31, 2024 is included in reversal of (provision for) credit losses on the accompanying Consolidated Statements of Operations, resulting in an ending allowance for credit loss of $1.4 million as of December 31, 2024.
Significant judgment is required in determining impairment and in estimating the resulting loss allowance, and actual losses, if any, could materially differ from those estimates.
The Company performs a quarterly review of the portfolio. In conjunction with this review, the Company assesses the risk factors of each loan, including, without limitation, loan-to-value ratio, debt yield, property type, geographic and local market dynamics, physical condition, collateral, cash-flow volatility, leasing and tenant profile, loan structure, exit plan and project sponsorship. Based on a 5-point scale, our loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows:
1 – Outperform – Materially exceeds performance metrics (for example, technical milestones, occupancy, rents and net operating income) included in original or current credit underwriting and business plan;
2 – Exceeds Expectations – Collateral performance exceeds substantially all performance metrics included in original or current credit underwriting and business plan;
3 – Satisfactory – Collateral performance meets, or is on track to meet, underwriting; business plan is met or can reasonably be achieved;
4 – Underperformance – Collateral performance falls short of underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist or may soon occur absent material improvement; and
5 – Risk of Impairment/Default – Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable.
The Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral, as well as the financial and operating capability of the borrower. Specifically, the collateral’s operating results and any cash reserves are analyzed and used to assess (i) whether cash from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan and/or (iii) the collateral’s liquidation value. The Company also evaluates the financial condition of any loan
guarantors, as well as any changes in the borrower’s competency in managing and operating the collateral. In addition, the Company considers the overall economic environment, real estate or industry sector and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as property operating statements, occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan and capitalization and discount rates, (ii) site inspections and (iii) current credit spreads and discussions with market participants.
The Company considers loans to be past-due when a monthly payment is due and unpaid for 60 days or more. Loans will be placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when they become 120 days or more past-due unless the loan is both well secured and in the process of collection. Accrual of interest on individual loans is discontinued when management believes that, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. Our policy is to cease accruing interest when a loan’s delinquency exceeds 120 days. All interest accrued but not collected for loans that are placed on nonaccrual status or subsequently charged-off are reversed against interest income. Income is subsequently recognized on the cash basis until, in management’s judgment, the borrower’s ability to make periodic principal and interest payments returns and future payments are reasonably assured, in which case the loan is returned to accrual status.
A loan is written off when it is no longer realizable and/or it is legally discharged.
The Company also recognizes a liability for expected credit losses for off-balance sheet exposures if the Company has a present contractual obligation to extend the credit and the obligation is not unconditionally cancellable by the Company.
Fair Value
GAAP requires the categorization of the fair value of financial instruments into three broad levels that form a hierarchy based on the transparency of inputs to the valuation.

Level 1 – Inputs are adjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 – Inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar instruments in active markets, and inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 – Inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, related market activity for the asset or liability.

The Company follows this hierarchy for our financial instruments. Classifications will be based on the lowest level of input that is significant to the fair value measurement. The Company reviews the valuation of Level 3 financial instruments as part of our quarterly process.
Valuation of Consolidated VIEs
The Company reports the financial assets and liabilities of each consolidated CMBS trust at fair value using the measurement alternative included in ASU No. 2014-13, Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). Pursuant to ASU 2014-13, both the financial assets and financial liabilities of the consolidated CMBS trusts are measured using the fair value of the financial liabilities (which are considered more observable than the fair value of the financial assets) and the equity of the CMBS trusts beneficially owned by the Company. As a result, the CMBS issued by the consolidated trusts, but not beneficially owned by us, are presented as financial liabilities in our consolidated financial statements, measured at their estimated fair value; the Company measured the financial assets as the total estimated fair value of the CMBS issued by the consolidated trust, regardless of whether such CMBS represent interests beneficially owned by the Company. Under the measurement alternative prescribed by ASU 2014-13, “Net income (loss)” reflects the economic interests in the consolidated CMBS beneficially owned by the Company, presented as “Change in net assets related to consolidated CMBS variable interest entities” in the Consolidated Statements of Operations, which includes applicable (1) changes in the fair value of CMBS beneficially owned by the Company, (2) interest income, interest expense and servicing fees earned from the CMBS trusts and (3) other residual returns or losses of the CMBS trusts, if any.
Valuation Methodologies
CMBS Trusts - The financial liabilities and equity of the consolidated CMBS trusts were valued using broker quotes. Broker quotes represent the price that an investment could be sold for in a market transaction and represent fair market value. Loans and bonds with quotes that are based on actual trades with a sufficient level of activity on or near the valuation date are classified as Level 2 assets. Loans and bonds that are priced using quotes derived from implied values, bid/ask prices for trades that were never consummated, or a limited amount of actual trades are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable.
CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities - CMBS structured pass-through certificates (“CMBS I/O Strips”), MSCR Notes and mortgage backed securities are categorized as Level 2 assets in the fair value hierarchy. CMBS I/O Strips, MSCR notes and mortgage backed securities are valued using broker quotes. Broker quotes represent the price that an investment could be sold for in a market transaction and represent fair market value. Loans and bonds with quotes that are based on actual trades with a sufficient level of activity on or near the valuation date are classified as Level 2 assets.

Senior Loans, Preferred Equity Investments, Mezzanine Loans, Revolving Credit Facilities and Convertible Notes - Senior loans, which include the SFR Loans, preferred equity, mezzanine loans, revolving credit facilities and convertible debt investments are categorized as Level 3 assets in the fair value hierarchy. Senior loans, which include the SFR Loans, preferred equity, mezzanine loans, revolving credit facilities and convertible debt investments are valued using a discounted cash flow model using discount rates derived from observable market data applied to the internal rate of return implied by the expected contractual cash flows. The valuation is done for disclosure purposes only as these investments are not carried at fair value on the consolidated balance sheet.

Common Stock Investments - The common stock investment in NexPoint Storage Partners, Inc. ("NSP") is categorized as a Level 3 asset in the fair value hierarchy. Despite our ability to exercise significant influence, the Company chose to value the NSP investment using the fair value option in accordance with ASC 825-10. The common stock investment in a private ground lease REIT (the "Private REIT") is presented at fair value using the fair value option in accordance with ASC 825-10. The investment is categorized as a Level 3 asset in the fair value hierarchy. See Note 5 for additional disclosures regarding the fair value of these investments.

Repurchase Agreements - The repurchase agreements are categorized as Level 3 liabilities in the fair value hierarchy as such liabilities represent borrowings on collateral with terms specific to each borrower. Given the short to moderate term of the floating-rate facilities, the Company expects the fair value of repurchase agreements to approximate their outstanding principal balances.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis - Certain assets not measured at fair value on an ongoing basis but that are subject to fair-value adjustments only in certain circumstances, such as when there is evidence of impairment, will be measured at fair value on a nonrecurring basis. For first mortgage loans, mezzanine loans and preferred equity investments, the Company applies the amortized cost method of accounting.

Overall, our determination of fair value is based upon the best information available for a given circumstance and may incorporate assumptions that are our best estimates after consideration of a variety of internal and external factors. When an independent valuation firm expresses an opinion on the fair value of a financial instrument in the form of a range, the Company selects a value within the range provided by the independent valuation firm, generally the midpoint, to assess the reasonableness of our estimated fair value for that financial instrument.
Income Taxes
The Company has elected to be taxed as a REIT. As a result of the Company’s REIT qualification, the Company does not expect to pay U.S. federal corporate level taxes. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement to distribute annually at least 90% of its “REIT taxable income,” as defined by the Code, to its stockholders. If the Company fails to meet these requirements, it could be subject to federal income tax on all of the Company’s taxable income at regular corporate rates for that year. The Company would not be able to deduct distributions paid to stockholders in any year in which it fails to qualify as a REIT. Additionally, the Company will also be disqualified from electing to be taxed as a REIT for the four taxable years following the year during which qualification was lost unless the Company is entitled to relief under specific statutory provisions. Taxable income from certain non-REIT activities is managed through a taxable REIT subsidiary (“TRS”), which is subject to U.S. federal and applicable state and local corporate income taxes. As of December 31, 2024, the Company believes it is in compliance with all applicable REIT requirements and had no significant taxes associated with its TRS.
The Company evaluates the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” (greater than 50 percent probability) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Our management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. There are no examinations in progress and none are expected at this time.
The Company recognizes its tax positions and evaluates them using a two-step process. First, the Company determines whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. The Company had no material unrecognized tax benefit or expense, accrued interest or penalties as of December 31, 2024.
Segment Reporting
We adopted ASU 2023-07, Segment Reporting – Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires a public entity to disclose significant segment expenses and other segment items in interim and annual periods and expands the GAAP disclosure requirements for interim periods. The ASU 2023-07 also explicitly requires public entities with a single reportable segment to provide all segment disclosures under GAAP. The Company identifies and discloses its reporting segment(s) in accordance with ASC 280, Segment Reporting. In applying this guidance, the Company first identifies its operating segment(s) from the component(s) where: (1) it engages in business activities from which it may recognize revenue and incur expenses, (2) its operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and (3) its discrete financial information is available. Reportable segments are generally those operating segments that meet certain quantitative thresholds. The Company has determined it has one reportable segment: NREF.
Recent Accounting Pronouncements
Section 107 of the Jumpstart Our Business Startups Act (“JOBS Act”) provides that an emerging growth company can take advantage of the extended transition period provided in Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for complying with new or revised accounting standards applicable to public companies. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of this extended transition period. As a result of this election, our consolidated financial statements may not be comparable to companies that comply with public company effective dates for such new or revised standards. The Company may elect to comply with public company effective dates at any time, and such election would be irrevocable pursuant to Section 107(b) of the JOBS Act.
In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06"), which simplifies an issuer’s accounting for convertible instruments and its application of the derivatives scope exception for contracts in its own equity. The amendment also requires entities to use the if-converted method for all convertible instruments in the diluted EPS calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. In addition, the amendment requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. We adopted ASU 2020-06 as of January 1, 2024 using a modified retrospective method. ASU 2020-06 had no material impact upon adoption.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (“ASU 2024-03”). ASU 2024-03 requires disclosures of disaggregated information about certain income statement expense line items on an annual and interim basis. The amendments are effective for fiscal years beginning after December 15, 2026, with early adoption permitted, and should be applied prospectively, with the option to apply retrospectively. The Company is currently evaluating the impact of adopting the amendments on its disclosures.
v3.25.1
Loans Held for Investment, Net
 12 Months Ended
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Loans Held for Investment, Net Loans Held for Investment, Net
The Company’s investments in mortgage loans, mezzanine loans, preferred equity, promissory notes and revolving credit facilities are accounted for as loans held for investment. The mortgage loans are presented as “Mortgage loans, held-
for-investment, net” and the mezzanine loans, preferred equity, promissory notes and revolving credit facilities are presented as “Loans, held-for-investment, net” on the Consolidated Balance Sheets. The following tables summarize our loans held-for-investment as of December 31, 2024 and December 31, 2023, respectively (dollars in thousands):
Loan TypeOutstanding Face AmountCarrying Value (1)Loan CountWeighted Average
 Fixed Rate (2) Coupon (3)Life (years) (4)
December 31, 2024
Mortgage loans, held-for-investment$260,901 $263,395 1046.23 %9.99 %2.41
Mezzanine loans, held-for-investment133,207 134,870 2278.31 %9.41 %4.35
Preferred equity, held-for-investment224,423 223,653 1642.43 %11.92 %2.27
Promissory notes, held-for-investment4,000 3,992 2100.00 %14.69 %0.49
Revolving credit facility, held-for-investment148,600 135,029 1100.00 %13.50 %3.00
$771,131 $760,939 5161.31 %11.15 %2.81
Loan TypeOutstanding Face AmountCarrying Value (1)Loan Count Weighted Average
 Fixed Rate (2)Coupon (3)Life (years) (4)
December 31, 2023
Mortgage loans, held-for-investment$645,277 $676,420 11100.00 %4.79 %4.49
Mezzanine loans, held-for-investment133,207 135,069 2278.31 %9.61 %5.36
Preferred equity, held-for-investment195,392 193,391 1539.12 %12.20 %2.22
$973,876 $1,004,880 4884.82 %6.94 %4.15
(1)Carrying value includes the outstanding face amount plus unamortized purchase premiums/discounts and any allowance for loan losses.
(2)The weighted-average of loans paying a fixed rate is weighted on current principal balance.
(3)The weighted-average coupon is weighted on outstanding face amount.
(4)The weighted-average life is weighted on outstanding face amount and assumes no prepayments. The maturity date for preferred equity investments represents the maturity date of the senior mortgage, as the preferred equity investments require repayment upon the sale or refinancing of the asset.
For the years ended December 31, 2024 and 2023, the loans held for investment, net and preferred equity portfolio activity was as follows (in thousands):
For the Year Ended December 31,
20242023
Balances, January 1,$1,004,880 $982,678 
Recognition of retained preferred equity investment upon deconsolidation of real estate (Note 14)— 36,022 
Cumulative effect of adoption of ASU 2016-13 (See Note 2)— (1,624)
Originations306,980 92,701 
Proceeds from principal repayments(555,485)(97,259)
Decrease in loans, held for investment, net on consolidation of real estate— (9,685)
PIK distribution reinvested in Preferred Units14,486 8,990 
Amortization of loan premium, net (1)(10,645)(7,146)
(Provision for) reversal of credit losses723 (4,299)
Reversal of specific reserve of credit losses— 4,502 
Balance as of December 31,$760,939 $1,004,880 
(1)Includes net amortization of loan purchase premiums.
As of December 31, 2024, and 2023, there were $8.8 million and $33.1 million of unamortized premiums on loans, held-for-investment, net, respectively, on the Consolidated Balance Sheets.
As discussed in Note 2, the Company evaluates loans classified as held-for-investment on a loan-by-loan basis every quarter. In conjunction with the review of the portfolio, the Company assesses the risk factors of each loan and assign a risk rating based on a variety of factors. Loans are rated “1” through “5,” from least risk to greatest risk, respectively. See Note 2 for a more detailed discussion of the risk factors and ratings. The following tables allocate the principal balance and net book value of the loan portfolio based on our internal risk ratings (dollars in thousands):
Risk RatingDecember 31, 2024
Number of LoansCarrying Value% of Loan Portfolio
1—$— — 
2—— — 
349739,960 97.24 %
4220,979 2.76 %
5—— — %
51$760,939 100.00 %
Risk RatingDecember 31, 2023
Number of
Loans		Carrying
Value		% of Loan
Portfolio
1—$— — 
2—— — 
346992,751 98.79 %
4212,129 1.21 %
5—— — 
48$1,004,880 100.00 %
Our loan portfolio had a weighted-average risk rating of 3.0 as of December 31, 2024, and 3.0 as of December 31, 2023.
The following tables present the carrying value of the loan portfolio by the Company's internal risk rating and year of origination as of December 31, 2024 and 2023 (dollars in thousands):
December 31, 2024
Carrying Value by Year of Origination (1)
Risk RatingNumber of
Loans		Outstanding Face Amount20242023202220212020PriorTotal Carrying Value
1—$— $— $— $— $— $— $— $— 
2—— — — — — — — — 
349750,031 284,958 94,446 74,658 38,067 19,812 228,019 739,960 
4221,100 — — 8,479 12,500 — — 20,979 
5—— — — — — — — — 
51$771,131 $284,958 $94,446 $83,137 $50,567 $19,812 $228,019 $760,939 
December 31, 2023
Carrying Value by Year of Origination (1)
Risk RatingNumber of
Loans		Outstanding Face Amount20232022202120202019PriorTotal Carrying Value
1—$— $— $— $— $— $— $— $— 
2—— — — — — — — — 
346961,756 82,879 69,958 40,981 19,158 759,828 19,947 992,751 
4212,120 — 12,129 — — — — 12,129 
5—— — — — — — — — 
48$973,876 $82,879 $82,087 $40,981 $19,158 $759,828 $19,947 $1,004,880 
(1)Represents the date a loan was originated or acquired.
The following tables present the geographies and property types of collateral underlying the Company’s loans held-for-investment as a percentage of the loans’ face amounts.
GeographyDecember 31, 2024December 31, 2023
Massachusetts22.68 %*
Texas16.39 %13.87 %
Georgia8.68 %30.50 %
Maryland8.61 %5.47 %
California8.55 %4.92 %
Virginia5.15 %*
Florida5.15 %18.40 %
Minnesota*7.31 %
Other (21 and 23 states each at <4%)24.79 %19.53 %
100.00 %100.00 %
*Included in “Other.”
Collateral Property TypeDecember 31, 2024December 31, 2023
Life Science34.98 %6.33 %
Multifamily34.57 %21.99 %
Single Family Rental26.57 %69.93 %
Self-Storage2.73 %1.75 %
Marina1.15 %— %
100.00 %100.00 %
v3.25.1
CMBS Trusts
 12 Months Ended
Dec. 31, 2024
Mortgage Banking [Abstract]  
CMBS Trusts CMBS Trusts
As of December 31, 2024, the Company consolidated all of the CMBS Entities that it determined are VIEs and for which the Company is the primary beneficiary. The Company elected the fair-value measurement alternative in accordance with ASU 2014-13 for each of the trusts and carries the fair values of the trust’s assets and liabilities at fair value in its Consolidated Balance Sheets, recognizes changes in the trust’s net assets, including changes in fair-value adjustments and net interest earned, in its Consolidated Statements of Operations and records cash interest received from the trusts and cash interest paid to bondholders of the CMBS not beneficially owned by the Company as investing and financing cash flows, respectively.
The following table presents the Company’s recognized Trust’s Assets and Liabilities (in thousands):
Trust's AssetsDecember 31, 2024December 31, 2023
Mortgage loans held in variable interest entities, at fair value$4,343,359 $5,677,763 
Accrued interest receivable3,877 3,902 
Trust's Liabilities
Bonds payable held in variable interest entities, at fair value(4,029,214)(5,289,997)
Accrued interest payable(3,212)(3,220)
The following table presents “Change in net assets related to consolidated CMBS variable interest entities” (in thousands):
For the Year Ended December 31,
202420232022
Net interest earned$33,327 $27,035 $35,523 
Realized gain10,548 13,592 344 
Unrealized loss(7,206)(2,414)(25,627)
Change in net assets related to consolidated CMBS variable interest entities$36,669 $38,213 $10,240 
The following tables present the geographies and property types of collateral underlying the CMBS trusts consolidated by the Company as a percentage of the collateral unpaid principal balance:
GeographyDecember 31, 2024December 31, 2023
Texas16.54 %15.85 %
Colorado10.99 %7.74 %
California9.26 %8.69 %
Washington9.24 %7.75 %
Florida7.65 %14.07 %
Georgia5.16 %4.00 %
New York4.87 %*
North Carolina4.74 %4.17 %
Arizona3.15 %4.05 %
New Jersey*4.02 %
Other (33 and 32 states each at <4%)28.40 %29.66 %
100.00 %100.00 %
*Included in “Other.”
Collateral Property TypeDecember 31, 2024December 31, 2023
Multifamily99.57 %97.45 %
Manufactured Housing0.43 %2.55 %
100.00 %100.00 %
v3.25.1
Common and Preferred Stock Investments
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Common and Preferred Stock Investments Common and Preferred Stock Investments
Common Stock Investments, at fair value
The Company owns approximately 25.7% of the total outstanding shares of common stock of NSP and thus can exercise significant influence over NSP. NSP is a VIE and the Company has determined that it is not the primary beneficiary of NSP. The investment qualifies to be accounted for using the equity method. However, the Company elected the fair-value option in accordance with ASC 825-10-10 for NSP.
The investment in NSP is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. The Company's valuation policy for common stock is to use readily available market prices on the relevant valuation date to the extent they are available. On a quarterly basis, the Company determines the value using widely accepted valuation techniques. A bottom up approach was used by valuing the wholly-owned self-storage assets in aggregate and development loans individually. In this bottom up approach, the discounted cash flow methodology is applied to the self-storage assets owned by NSP. Additionally, the income approach is used to determine the fair value of the development loans owned by NSP whereby contractual cash flows are discounted at observable market discount rates. In addition, as a secondary check for reasonableness, a top down approach was applied whereby observable market terminal capitalization rates and discount rates are applied to the consolidated NSP cash flows. The valuation relies primarily on the bottom up approach but uses the top-down approach to corroborate the bottom up conclusion with a reasonable precision.
The Company owns approximately 6.3% of the total outstanding shares of common stock of the Private REIT as of December 31, 2024 and 2023. The Company elected the fair-value option in accordance with ASC 825-10-10 for the Private REIT.
The investment in the Private REIT is a Level 3 asset in the fair value hierarchy. As of December 31, 2024 and 2023, the Company valued this investment based on the Private REIT's market approach yield of $19.31 and $20.37 per share, respectively.
The following table presents the common stock investments as of December 31, 2024 and 2023, respectively (in thousands, except share amounts):
InvestmentInvestment DateProperty TypeSharesFair Value
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Common Stock
NexPoint Storage Partners11/6/2020Self-storage41,96341,963$30,467 $33,129 
Private REIT4/14/2022Ground lease1,394,2131,394,21326,922 28,400 
The following table presents “Change in unrealized gain (loss) on common stock investments” (in thousands):
For the Year Ended December 31,
202420232022
Change in unrealized gain (loss) on NexPoint Storage Partners$(2,662)$(17,251)$(8,080)
Change in unrealized gain (loss) on Private REIT(1,478)515 2,884 
Change in unrealized gain (loss) on common stock investments$(4,140)$(16,736)$(5,196)
Equity Method Investments
The Company owns approximately 98.0% of the total outstanding common equity of each of Resmark Forney Gateway Holdings, LLC ("RFGH") and Resmark The Brook Holdings, LLC ("RTB"). These investments are held in entities that are considered VIEs as the power to direct activities is not proportional to ownership interests. The investments are accounted for under the equity method and classified as Equity method investments.
The Company owns approximately 12.3% of the total outstanding common equity of Slater Apartments ("SK Apartments"). The investment is held in an entity that is considered a VIE as the power to direct activities is not proportional to ownership interests. The investments are accounted for under the equity method and classified as Equity method investments.
The Company owns approximately 79.1% of total outstanding membership interests of Capital Acquisitions Partners, LLC ("CAP"). The investment is held in an entity that is considered a VIE as the power to direct activities is not proportional to ownership interests. The investment is accounted for under the equity method and classified as Equity method investments.
Preferred Stock Investments, at fair value
On November 9, 2023, the Company invested in the Series D-1 preferred stock (“Series D-1”) of IQHQ, Inc., a privately held life sciences real estate investment trust. The preferred stock dividend accumulates quarterly at a 10.5% dividend rate per annum. The Series D-1 are not deemed to be in-substance common stock and are accounted for as investments in equity securities measured at fair value. The securities do not have a readily determinable fair value, and the Company does not elect the measurement alternative. The Company owns approximately 11.8% and 9.5% of the total outstanding shares of preferred stock of the Series D-1 as of December 31, 2024 and 2023, respectively.
The investment in the Series D-1 is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. As of December 31, 2024 and 2023, the Company valued this investment using the discounted cash flow method based on the present value of the expected future cash flows of the underlying investment. The discount rate of 11.5% considered the implied yield of both the payment in kind and cash interest margins.
CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities
As of December 31, 2024, the Company held twelve CMBS I/O Strips at fair value. The CMBS I/O Strips consist of interest only tranches of Freddie Mac structured pass-through certificates with underlying portfolios of fixed-rate mortgage loans secured primarily by stabilized multifamily properties. MSCR Notes are unguaranteed securities designed to transfer to investors a portion of the credit risk associated with eligible multifamily mortgages linked to a reference pool. Mortgage backed securities receive principal and interest on floating-rate loans secured by SFR, multifamily and self-storage properties.
The following table presents the CMBS I/O Strips as of December 31, 2024 (dollars in thousands):
InvestmentInvestment DateCarrying ValueProperty TypeInterest RateCurrent Yield (1)Maturity Date
CMBS I/O Strips
CMBS I/O Strip5/18/2020$1,395 Multifamily2.02 %16.62 %1/25/2030
CMBS I/O Strip8/6/202014,188 Multifamily2.98 %20.73 %6/25/2030
CMBS I/O Strip4/28/20214,175 Multifamily1.59 %20.52 %1/25/2030
CMBS I/O Strip5/27/20212,972 Multifamily3.38 %20.56 %5/25/2030
CMBS I/O Strip6/7/2021330 Multifamily2.31 %27.43 %11/25/2028
CMBS I/O Strip6/11/20211,581 Multifamily0.61 %9.13 %5/25/2029
CMBS I/O Strip6/21/20211,001 Multifamily1.15 %19.71 %5/25/2030
CMBS I/O Strip8/10/20211,925 Multifamily1.89 %20.89 %4/25/2030
CMBS I/O Strip8/11/20211,104 Multifamily3.10 %17.20 %7/25/2031
CMBS I/O Strip8/24/2021199 Multifamily2.61 %18.42 %1/25/2031
CMBS I/O Strip9/1/20212,947 Multifamily1.92 %19.72 %6/25/2030
CMBS I/O Strip9/11/20213,162 Multifamily2.95 %17.01 %9/25/2031
Total$34,979 2.49 %19.50 %
(1)Current yield is the annualized income earned divided by the cost basis of the investment.
The following table presents the CMBS I/O Strips, MSCR Notes and Mortgage Backed Securities as of December 31, 2023 (dollars in thousands):
InvestmentInvestment
Date		Carrying ValueProperty TypeInterest RateCurrent Yield (1)Maturity Date
CMBS I/O Strips
CMBS I/O Strip5/18/2020$1,622 Multifamily2.02 %14.64 %1/25/2030
CMBS I/O Strip8/6/202016,601 Multifamily2.98 %17.98 %6/25/2030
CMBS I/O Strip4/28/20215,022 Multifamily1.59 %17.68 %1/25/2030
CMBS I/O Strip5/27/20213,436 Multifamily3.39 %17.79 %5/25/2030
CMBS I/O Strip6/7/2021395 Multifamily2.31 %22.31 %11/25/2028
CMBS I/O Strip6/11/20212,643 Multifamily1.18 %14.57 %5/25/2029
CMBS I/O Strip6/21/2021833 Multifamily1.17 %18.07 %5/25/2030
CMBS I/O Strip8/10/20212,255 Multifamily1.89 %17.98 %4/25/2030
CMBS I/O Strip8/11/20211,241 Multifamily3.10 %15.24 %7/25/2031
CMBS I/O Strip8/24/2021229 Multifamily2.61 %16.15 %1/25/2031
CMBS I/O Strip9/1/20213,390 Multifamily1.92 %17.01 %6/25/2030
CMBS I/O Strip9/11/20213,545 Multifamily2.95 %15.14 %9/25/2031
Total$41,212 2.50 %17.21 %
MSCR Notes
MSCR Notes5/25/2022$4,020 Multifamily14.83 %14.83 %5/25/2052
MSCR Notes5/25/20225,000 Multifamily11.83 %11.83 %5/25/2052
MSCR Notes9/23/20221,358 Multifamily12.18 %13.38 %11/25/2051
Total$10,378 13.04 %13.20 %
Mortgage Backed Securities
Mortgage Backed Securities6/1/2022$9,924 Single-Family8.64 %8.91 %4/17/2026
Mortgage Backed Securities6/1/20229,369 Single-Family4.87 %5.01 %11/19/2025
Mortgage Backed Securities7/28/2022538 Single-Family6.23 %6.31 %10/17/2027
Mortgage Backed Securities7/28/2022856 Single-Family3.60 %4.12 %6/20/2028
Mortgage Backed Securities9/12/20223,881 Multifamily11.57 %11.55 %1/25/2031
Mortgage Backed Securities9/29/20227,960 Self Storage11.10 %11.12 %9/15/2027
Mortgage Backed Securities3/10/20235,742 Multifamily13.93 %13.95 %2/25/2025
Total$38,270 9.17 %9.30 %
(1)Current yield is the annualized income earned divided by the cost basis of the investment.

The following table presents activity related to the Company’s CMBS I/O Strips, MSCR Notes and mortgage backed securities (in thousands):
For the Year Ended December 31,
202420232022
Net interest earned$284 $2,905 $5,668 
Change in unrealized gain (loss) on CMBS structured pass-through certificates1,925 1,533 (12,664)
Change in unrealized gain (loss) on MSCR Notes(13)65 (53)
Change in unrealized gain (loss) on mortgage backed securities763 467 (1,230)
Total$2,959 $4,970 $(8,279)
v3.25.1
Unconsolidated Variable Interest Entities
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Unconsolidated Variable Interest Entities Unconsolidated Variable Interest Entities
Unconsolidated VIEs
The Company continually reassesses whether it remains the primary beneficiary for VIEs consolidated under the VIE model.
As of December 31, 2024 and 2023, the Company has accounted for the following investments as unconsolidated VIEs:
EntitiesInstrumentAsset TypeAccounting Treatment
Percentage Ownership as of December 31, 2024
Relationship as of December 31, 2024
Percentage Ownership as of December 31, 2023
Relationship as of December 31, 2023
Unconsolidated Entities:
NexPoint Storage Partners, Inc.Common StockSelf-storageFair Value25.7 %VIE25.7 %VIE
Resmark Forney Gateway Holdings, LLCCommon EquityMultifamilyEquity Method98.0 %VIE98.0 %VIE
Resmark The Brook Holdings, LLCCommon EquityMultifamilyEquity Method98.0 %VIE98.0 %VIE
Private REITCommon StockGround leaseFair Value6.3 %VIE6.4 %VIE
SK ApartmentsCommon EquityMultifamilyEquity Method12.3 %VIEN/AN/A
Capital Acquisitions Partners, LLCMembership InterestsMultifamilyEquity Method79.1 %VIEN/AN/A
The Company's maximum exposure to loss of value for the NSP investment is the fair value of the Company's $30.5 million NSP common stock investment. The Company's maximum exposure to loss of value for CAP is the $1.5 million carrying value.
v3.25.1
CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities Common and Preferred Stock Investments
Common Stock Investments, at fair value
The Company owns approximately 25.7% of the total outstanding shares of common stock of NSP and thus can exercise significant influence over NSP. NSP is a VIE and the Company has determined that it is not the primary beneficiary of NSP. The investment qualifies to be accounted for using the equity method. However, the Company elected the fair-value option in accordance with ASC 825-10-10 for NSP.
The investment in NSP is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. The Company's valuation policy for common stock is to use readily available market prices on the relevant valuation date to the extent they are available. On a quarterly basis, the Company determines the value using widely accepted valuation techniques. A bottom up approach was used by valuing the wholly-owned self-storage assets in aggregate and development loans individually. In this bottom up approach, the discounted cash flow methodology is applied to the self-storage assets owned by NSP. Additionally, the income approach is used to determine the fair value of the development loans owned by NSP whereby contractual cash flows are discounted at observable market discount rates. In addition, as a secondary check for reasonableness, a top down approach was applied whereby observable market terminal capitalization rates and discount rates are applied to the consolidated NSP cash flows. The valuation relies primarily on the bottom up approach but uses the top-down approach to corroborate the bottom up conclusion with a reasonable precision.
The Company owns approximately 6.3% of the total outstanding shares of common stock of the Private REIT as of December 31, 2024 and 2023. The Company elected the fair-value option in accordance with ASC 825-10-10 for the Private REIT.
The investment in the Private REIT is a Level 3 asset in the fair value hierarchy. As of December 31, 2024 and 2023, the Company valued this investment based on the Private REIT's market approach yield of $19.31 and $20.37 per share, respectively.
The following table presents the common stock investments as of December 31, 2024 and 2023, respectively (in thousands, except share amounts):
InvestmentInvestment DateProperty TypeSharesFair Value
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Common Stock
NexPoint Storage Partners11/6/2020Self-storage41,96341,963$30,467 $33,129 
Private REIT4/14/2022Ground lease1,394,2131,394,21326,922 28,400 
The following table presents “Change in unrealized gain (loss) on common stock investments” (in thousands):
For the Year Ended December 31,
202420232022
Change in unrealized gain (loss) on NexPoint Storage Partners$(2,662)$(17,251)$(8,080)
Change in unrealized gain (loss) on Private REIT(1,478)515 2,884 
Change in unrealized gain (loss) on common stock investments$(4,140)$(16,736)$(5,196)
Equity Method Investments
The Company owns approximately 98.0% of the total outstanding common equity of each of Resmark Forney Gateway Holdings, LLC ("RFGH") and Resmark The Brook Holdings, LLC ("RTB"). These investments are held in entities that are considered VIEs as the power to direct activities is not proportional to ownership interests. The investments are accounted for under the equity method and classified as Equity method investments.
The Company owns approximately 12.3% of the total outstanding common equity of Slater Apartments ("SK Apartments"). The investment is held in an entity that is considered a VIE as the power to direct activities is not proportional to ownership interests. The investments are accounted for under the equity method and classified as Equity method investments.
The Company owns approximately 79.1% of total outstanding membership interests of Capital Acquisitions Partners, LLC ("CAP"). The investment is held in an entity that is considered a VIE as the power to direct activities is not proportional to ownership interests. The investment is accounted for under the equity method and classified as Equity method investments.
Preferred Stock Investments, at fair value
On November 9, 2023, the Company invested in the Series D-1 preferred stock (“Series D-1”) of IQHQ, Inc., a privately held life sciences real estate investment trust. The preferred stock dividend accumulates quarterly at a 10.5% dividend rate per annum. The Series D-1 are not deemed to be in-substance common stock and are accounted for as investments in equity securities measured at fair value. The securities do not have a readily determinable fair value, and the Company does not elect the measurement alternative. The Company owns approximately 11.8% and 9.5% of the total outstanding shares of preferred stock of the Series D-1 as of December 31, 2024 and 2023, respectively.
The investment in the Series D-1 is a Level 3 asset in the fair value hierarchy and was initially measured using the entry price of the asset. As of December 31, 2024 and 2023, the Company valued this investment using the discounted cash flow method based on the present value of the expected future cash flows of the underlying investment. The discount rate of 11.5% considered the implied yield of both the payment in kind and cash interest margins.
CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities
As of December 31, 2024, the Company held twelve CMBS I/O Strips at fair value. The CMBS I/O Strips consist of interest only tranches of Freddie Mac structured pass-through certificates with underlying portfolios of fixed-rate mortgage loans secured primarily by stabilized multifamily properties. MSCR Notes are unguaranteed securities designed to transfer to investors a portion of the credit risk associated with eligible multifamily mortgages linked to a reference pool. Mortgage backed securities receive principal and interest on floating-rate loans secured by SFR, multifamily and self-storage properties.
The following table presents the CMBS I/O Strips as of December 31, 2024 (dollars in thousands):
InvestmentInvestment DateCarrying ValueProperty TypeInterest RateCurrent Yield (1)Maturity Date
CMBS I/O Strips
CMBS I/O Strip5/18/2020$1,395 Multifamily2.02 %16.62 %1/25/2030
CMBS I/O Strip8/6/202014,188 Multifamily2.98 %20.73 %6/25/2030
CMBS I/O Strip4/28/20214,175 Multifamily1.59 %20.52 %1/25/2030
CMBS I/O Strip5/27/20212,972 Multifamily3.38 %20.56 %5/25/2030
CMBS I/O Strip6/7/2021330 Multifamily2.31 %27.43 %11/25/2028
CMBS I/O Strip6/11/20211,581 Multifamily0.61 %9.13 %5/25/2029
CMBS I/O Strip6/21/20211,001 Multifamily1.15 %19.71 %5/25/2030
CMBS I/O Strip8/10/20211,925 Multifamily1.89 %20.89 %4/25/2030
CMBS I/O Strip8/11/20211,104 Multifamily3.10 %17.20 %7/25/2031
CMBS I/O Strip8/24/2021199 Multifamily2.61 %18.42 %1/25/2031
CMBS I/O Strip9/1/20212,947 Multifamily1.92 %19.72 %6/25/2030
CMBS I/O Strip9/11/20213,162 Multifamily2.95 %17.01 %9/25/2031
Total$34,979 2.49 %19.50 %
(1)Current yield is the annualized income earned divided by the cost basis of the investment.
The following table presents the CMBS I/O Strips, MSCR Notes and Mortgage Backed Securities as of December 31, 2023 (dollars in thousands):
InvestmentInvestment
Date		Carrying ValueProperty TypeInterest RateCurrent Yield (1)Maturity Date
CMBS I/O Strips
CMBS I/O Strip5/18/2020$1,622 Multifamily2.02 %14.64 %1/25/2030
CMBS I/O Strip8/6/202016,601 Multifamily2.98 %17.98 %6/25/2030
CMBS I/O Strip4/28/20215,022 Multifamily1.59 %17.68 %1/25/2030
CMBS I/O Strip5/27/20213,436 Multifamily3.39 %17.79 %5/25/2030
CMBS I/O Strip6/7/2021395 Multifamily2.31 %22.31 %11/25/2028
CMBS I/O Strip6/11/20212,643 Multifamily1.18 %14.57 %5/25/2029
CMBS I/O Strip6/21/2021833 Multifamily1.17 %18.07 %5/25/2030
CMBS I/O Strip8/10/20212,255 Multifamily1.89 %17.98 %4/25/2030
CMBS I/O Strip8/11/20211,241 Multifamily3.10 %15.24 %7/25/2031
CMBS I/O Strip8/24/2021229 Multifamily2.61 %16.15 %1/25/2031
CMBS I/O Strip9/1/20213,390 Multifamily1.92 %17.01 %6/25/2030
CMBS I/O Strip9/11/20213,545 Multifamily2.95 %15.14 %9/25/2031
Total$41,212 2.50 %17.21 %
MSCR Notes
MSCR Notes5/25/2022$4,020 Multifamily14.83 %14.83 %5/25/2052
MSCR Notes5/25/20225,000 Multifamily11.83 %11.83 %5/25/2052
MSCR Notes9/23/20221,358 Multifamily12.18 %13.38 %11/25/2051
Total$10,378 13.04 %13.20 %
Mortgage Backed Securities
Mortgage Backed Securities6/1/2022$9,924 Single-Family8.64 %8.91 %4/17/2026
Mortgage Backed Securities6/1/20229,369 Single-Family4.87 %5.01 %11/19/2025
Mortgage Backed Securities7/28/2022538 Single-Family6.23 %6.31 %10/17/2027
Mortgage Backed Securities7/28/2022856 Single-Family3.60 %4.12 %6/20/2028
Mortgage Backed Securities9/12/20223,881 Multifamily11.57 %11.55 %1/25/2031
Mortgage Backed Securities9/29/20227,960 Self Storage11.10 %11.12 %9/15/2027
Mortgage Backed Securities3/10/20235,742 Multifamily13.93 %13.95 %2/25/2025
Total$38,270 9.17 %9.30 %
(1)Current yield is the annualized income earned divided by the cost basis of the investment.

The following table presents activity related to the Company’s CMBS I/O Strips, MSCR Notes and mortgage backed securities (in thousands):
For the Year Ended December 31,
202420232022
Net interest earned$284 $2,905 $5,668 
Change in unrealized gain (loss) on CMBS structured pass-through certificates1,925 1,533 (12,664)
Change in unrealized gain (loss) on MSCR Notes(13)65 (53)
Change in unrealized gain (loss) on mortgage backed securities763 467 (1,230)
Total$2,959 $4,970 $(8,279)
v3.25.1
Real Estate Investments, net
 12 Months Ended
Dec. 31, 2024
Real Estate Investments, Net [Abstract]  
Real Estate Investment, net Real Estate Investments, net
On December 31, 2021, the Company acquired a 204-unit multifamily property in Charlotte, North Carolina (Hudson Montford).
On October 10, 2023, the Company exercised its right to terminate and replace the existing manager of SPG Alexander JV LLC, which owns a 280-unit multifamily property in Atlanta, Georgia. The Company, through its subsidiaries, holds both preferred and common equity investment in SPG Alexander JV LLC and also solely owns the replacement manager. As such, the Company is the primary beneficiary of SPG Alexander JV LLC and consolidates the property within our consolidated financial statements. The investment was considered an asset acquisition, and the fair value of the components of the investment as of October 10, 2023 totaled $68.8 million. The total value consisted of $7.9 million of land, $59.0 million of buildings and improvements, $0.6 million of furniture, fixtures, and equipment, and $1.3 million of intangible assets.
As of December 31, 2024, the components of the Company's investments in multifamily properties were as follows (in thousands):
Real Estate Investments, NetLandBuildings and
Improvements		Intangible Lease
Assets		Construction in ProgressFurniture,
Fixtures and
Equipment		Totals
Hudson Montford$10,996 $50,204 $— $— $1,018 $62,218 
Alexander at the District7,806 59,331 — 2 1,229 68,368 
Accumulated depreciation and amortization— (7,662)— — (1,088)(8,750)
Total Real Estate Investments, Net$18,802 $101,873 $— $2 $1,159 $121,836 
As of December 31, 2023, the components of the Company's investments in multifamily properties were as follows (in thousands):
Real Estate Investments, NetLandBuildings and
Improvements		Intangible Lease
Assets		Construction in ProgressFurniture,
Fixtures and
Equipment		Totals
Hudson Montford$10,996 $49,912 $— $401 $691 $62,000 
Alexander at the District7,806 59,162 1,271 — 716 68,955 
Accumulated depreciation and amortization— (3,948)— — (456)(4,404)
Total Real Estate Investments, Net$18,802 $105,126 $1,271 $401 $951 $126,551 
The following table reflects the revenue and expenses for the years ended December 31, 2024, 2023, and 2022, for our multifamily properties (in thousands).
For the Year Ended December 31,
202420232022
Revenues
Rental income$8,715 $4,962 $11,116 
Other income149 182 1,286 
Total revenues8,864 5,144 12,402 
Expenses
Interest expense8,219 3,984 4,183 
Real estate taxes and insurance1,325 862 1,493 
Property operating expenses2,415 1,145 2,548 
Property general and administrative expenses466 257 366 
Property management fees260 158 301 
Depreciation and amortization5,613 2,465 2,895 
Rate cap (income) expense80 (2,045)(1,014)
Debt service bridge— — 626 
Casualty (gain) loss(1)(148)— 
Total expenses18,377 6,678 11,398 
Net income (loss) from consolidated real estate owned$(9,513)$(1,534)$1,004 
v3.25.1
Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt Debt
The following table summarizes the Company’s financing arrangements in place as of December 31, 2024 (dollars in thousands):
 December 31, 2024
 FacilityCollateral
 Date issuedOutstanding
face amount		Carrying
value		Final stated
maturity		Weighted
average
interest
rate (1)		Weighted
average
life (years)
(2)		Outstanding
face amount		Amortized cost basisCarrying
value (3)		Weighted
average
life (years)
(2)
Master Repurchase Agreements
CMBS
Mizuho(4)4/15/2020$243,454 $243,454 N/A(5)6.49 %0.0$740,022 $360,427 $350,379 4.7
Asset Specific Financing
Single Family Rental loans
Freddie Mac7/12/2019110,097 110,097 7/12/20292.70 %2.8120,618 124,071 124,071 2.8
Mezzanine loans
Freddie Mac10/20/202059,252 59,253 8/1/20310.30 %5.396,817 98,597 98,597 5.3
Multifamily properties
CBRE12/31/202132,480 31,964 6/1/2028(6)8.06 %3.4N/A56,348 56,348 3.4
Argentic10/10/202363,500 63,500 11/6/2025(7)8.59 %0.8N/A65,488 65,488 0.8
Common stock investment
NexBank, SSB4/29/202410,0009,8694/28/20258.78 %0.3N/AN/A26,922 N/A
Promissory note
Raymond James5/20/202457,52056,5505/20/2025(8)10.55 %0.4140,283 139,324 139,324 2.1
Unsecured Financing
Various10/15/202036,500 36,205 10/25/20257.50 %0.8N/AN/AN/AN/A
Various4/20/2021180,000 178,296 5/1/20265.75 %1.3N/AN/AN/AN/A
NFRO REIT Sub, LLC10/18/20226,500 6,500 10/18/20277.50 %2.8N/AN/AN/AN/A
Total/weighted average$799,303 $795,688 5.95 %1.4$1,097,740 $844,255 $861,129 4.2
(1)Weighted-average interest rate using unpaid principal balances.
(2)Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower.
(3)CMBS are shown at fair value on an unconsolidated basis. SFR Loans and mezzanine loans are shown at amortized cost.
(4)On April 15, 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho Securities ("Mizuho"). Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces and CMBS I/O Strips.
(5)The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly.
(6)Debt was assumed upon acquisition of this property and recorded at the outstanding principal amount, net of debt issuance costs. The loan can be prepaid at a 1.0% prepayment premium on any unpaid principal. The loan is open to pre-payment in the last three months of the term.
(7)Debt was assumed upon consolidation of this property and recorded at the outstanding principal amount. The loan was extended on November 6, 2024 for one year.
(8)Debt was extended from the original loan maturity of November 20, 2024 to May 20, 2025.
The following table summarizes the Company’s financing arrangements in place as of December 31, 2023 (dollars in thousands):
December 31, 2023
FacilityCollateral
Date issuedOutstanding
face amount		Carrying valueFinal stated
maturity		Weighted
average interest
rate (1)		Weighted
average life
(years) (2)		Outstanding
face amount		Amortized cost
basis		Carrying value
(3)		Weighted
average life
(years) (2)
Master Repurchase Agreements
CMBS
Mizuho(4)4/15/2020$303,514 $303,514 N/A(5)7.26 %0.0$931,296 $470,761 $464,888 6.4
Asset Specific Financing
Single Family Rental loans
Freddie Mac7/12/2019590,306 590,306 7/12/20292.34 %4.5645,277 676,420 676,420 4.5
Mezzanine loans
Freddie Mac10/20/202059,252 59,252 8/1/20310.30 %6.396,817 98,839 98,839 6.3
Multifamily properties
CBRE12/31/202132,366 32,157 6/1/2028(6)8.05 %4.4N/A64,697 64,697 4.4
Various10/10/202363,500 63,500 11/6/2024(7)8.84 %0.9N/A61,854 61,854 0.9
Unsecured Financing
Various10/15/202036,500 35,852 10/25/20257.50 %1.8N/AN/AN/AN/A
Various4/20/2021180,000 177,131 5/1/20265.75 %2.3N/AN/AN/AN/A
Various10/18/20226,500 6,500 10/18/20277.50 %3.8N/AN/AN/AN/A
Total/weighted average$1,271,938 $1,268,212 4.55 %2.9$676,420 $1,372,571 $1,366,698 5.6
(1)Weighted-average interest rate using unpaid principal balances.
(2)Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower.
(3)CMBS are shown at fair value on an unconsolidated basis. SFR Loans and mezzanine loans are shown at amortized cost.
(4)On April 15, 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho. Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities.
(5)The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly.
(6)Debt was assumed upon acquisition of this property and recorded at the outstanding principal amount, net of debt issuance costs. The loan can be prepaid at a 1.0% prepayment premium on any unpaid principal. The loan is open to pre-payment in the last three months of the term.
(7)Debt was assumed upon consolidation of this property and recorded at the outstanding principal amount.
Prior to the Formation Transaction, two of our subsidiaries entered into a loan and security agreement dated, July 12, 2019, with Freddie Mac (the “Credit Facility”). Under the Credit Facility, these entities borrowed approximately $788.8 million in connection with their acquisition of senior pooled mortgage loans backed by SFR properties (the “Underlying Loans”). No additional borrowings can be made under the Credit Facility, and our obligations will be secured by the Underlying Loans. The Credit Facility is guaranteed by certain members of the Contribution Group and the OP. The guarantors are subject to minimum net worth and liquidity covenants. The Credit Facility continues to be guaranteed by members of the Contribution Group and the OP as of December 31, 2024. The Credit Facility was assumed by the Company as part of the Formation Transaction at carrying value which approximated fair value. As such, the remaining outstanding balance of $788.8 million was contributed to the Company on February 11, 2020. Our borrowings under the Credit Facility will mature on July 12, 2029. However, if an Underlying Loan matures
or is paid off prior to July 12, 2029, the Company will be required to repay the portion of the Credit Facility that is allocated to that loan. As of December 31, 2024 and 2023, the outstanding balance on the Credit Facility was $110.1 million and $590.3 million, respectively.
We, through the Subsidiary OPs, have borrowed approximately $243.5 million under our repurchase agreements and posted $740.0 million par value of our CMBS B-Piece and CMBS I/O Strip as collateral as of December 31, 2024. The CMBS B-Pieces and CMBS I/O Strips held as collateral are illiquid and irreplaceable in nature. These assets are restricted solely to satisfy the interest and principal balances owed to the lender.
On November 15, 2023, the Company issued an additional $15.0 million aggregate principal amount of its 5.75% Notes at a price equal to 92.0% par value, including accrued interest, for proceeds of approximately $13.6 million after original issue discount and underwriting fees. As of December 31, 2024 the principal outstanding is $180.0 million.
Outstanding principal balance represents the total repurchase agreement balance outstanding as of December 31, 2024.
As of December 31, 2023, the outstanding principal balances related to our senior loans, which include the SFR Loans and levered mezzanine loans consisted of the following (dollars in thousands):
InvestmentInvestment DateOutstanding Principal Balance (1)LocationProperty TypeInterest TypeInterest RateMaturity Date
Senior Loans
Senior loan2/11/2020$465,690 VariousSingle-familyFixed2.24 %9/1/2028
Senior loan2/11/202031,416 VariousSingle-familyFixed2.14 %10/1/2025
Senior loan2/11/202033,967 VariousSingle-familyFixed2.70 %11/1/2028
Senior loan2/11/20209,156 VariousSingle-familyFixed2.79 %9/1/2028
Senior loan2/11/20209,284 VariousSingle-familyFixed2.45 %3/1/2026
Senior loan2/11/20208,111 VariousSingle-familyFixed3.51 %2/1/2028
Senior loan2/11/20208,787 VariousSingle-familyFixed3.30 %10/1/2028
Senior loan2/11/20207,881 VariousSingle-familyFixed3.14 %1/1/2029
Senior loan2/11/20205,848 VariousSingle-familyFixed2.99 %3/1/2029
Senior loan2/11/20205,240 VariousSingle-familyFixed3.14 %12/1/2028
Senior loan2/11/20204,926 VariousSingle-familyFixed2.64 %10/1/2028
Total$590,306 2.34 %
Mezzanine Loans
Mezzanine loan10/20/20208,723 Wilmington, DEMultifamilyFixed0.30 %6/1/2029
Mezzanine loan10/20/20207,344 White Marsh, MDMultifamilyFixed0.30 %4/1/2031
Mezzanine loan10/20/20206,353 Philadelphia, PAMultifamilyFixed0.30 %7/1/2031
Mezzanine loan10/20/20205,881 Daytona Beach, FLMultifamilyFixed0.30 %7/1/2031
Mezzanine loan10/20/20204,523 Laurel, MDMultifamilyFixed0.30 %7/1/2031
Mezzanine loan10/20/20204,179 Temple Hills, MDMultifamilyFixed0.30 %1/1/2029
Mezzanine loan10/20/20203,390 Temple Hills, MDMultifamilyFixed0.30 %5/1/2029
Mezzanine loan10/20/20203,348 Lakewood, NJMultifamilyFixed0.30 %5/1/2029
Mezzanine loan10/20/20202,454 North Aurora, ILMultifamilyFixed0.30 %11/1/2028
Mezzanine loan10/20/20202,264 Rosedale, MDMultifamilyFixed0.30 %10/1/2028
Mezzanine loan10/20/20202,215 Cockeysville, MDMultifamilyFixed0.30 %7/1/2031
Mezzanine loan10/20/20202,026 Laurel, MDMultifamilyFixed0.30 %7/1/2029
Mezzanine loan10/20/20201,836 Vancouver, WAMultifamilyFixed0.30 %8/1/2031
Mezzanine loan10/20/20201,763 Tyler, TXMultifamilyFixed0.30 %11/1/2028
Mezzanine loan10/20/20201,307 Las Vegas, NVMultifamilyFixed0.30 %10/1/2028
Mezzanine loan10/20/2020918 Atlanta, GAMultifamilyFixed0.30 %8/1/2031
Mezzanine loan10/20/2020728 Des Moines, IAMultifamilyFixed0.30 %3/1/2029
Total$59,252 0.30 %
(1)Outstanding principal balance represents the total repurchase agreement balance outstanding as of December 31, 2023.
For the years ended December 31, 2024 and 2023, the activity related to the carrying value of the master repurchase agreements, secured financing agreements and unsecured financing were as follows (in thousands):
For the Year Ended December 31,
20242023
Balances as of January 1,$1,268,212 $1,345,101 
Adjustment to mortgages payable, net on deconsolidation of real estate— (89,012)
Increase in Mortgages Payable in connection with VIE consolidation— 63,500 
Principal borrowings247,606 55,239 
Principal repayments(721,943)(121,094)
Principal repayments on mortgages payable(240)— 
Unsecured notes offering— 13,557 
Loss on extinguishment of debt488 — 
Accretion of discounts1,518 966 
Amortization of deferred financing costs47 (45)
Balances as of December 31,$795,688 $1,268,212 
Schedule of Debt Maturities
The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to December 31, 2024 are as follows (in thousands):
YearRecourseNon-recourseTotal
2025 (1)$167,520 $272,018 $439,538 
2026180,000 9,284 189,284 
20276,500 — 6,500 
202832,480 66,543 99,023 
2029— 35,888 35,888 
Thereafter— 29,070 29,070 
$386,500 $412,803 $799,303 
(1)The transactions in place in the master repurchase agreement with Mizuho have a one-month to two-month tenor and are expected to roll accordingly.
v3.25.1
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
Fair-value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering market-participant assumptions in fair-value measurements, ASC 820 establishes a fair-value hierarchy that distinguishes between market-participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market-participant assumptions (unobservable inputs classified within Level 3 of the hierarchy):
•Level 1 inputs are adjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.
•Level 2 inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar instruments in active markets and inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves, that are observable at commonly quoted intervals.
•Level 3 inputs are unobservable inputs for the asset or liability and include situations where there is little, if any, related market activity for the asset or liability.
The Company’s assessment of the significance of a particular input to the fair-value measurement in its entirety requires judgment and considers factors specific to the asset or liability.
Derivative Financial Instruments and Hedging Activities
The Company utilizes an independent third party to perform the market valuations on its derivative financial instruments. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair values of interest rate caps are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected receipts on the cap are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both the Company’s own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of the Company’s derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with the Company’s derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company has determined that the significance of the impact of the credit valuation adjustments made to its derivative contracts, which determination was based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of the Company’s derivatives held as of December 31, 2024 and 2023 were classified as Level 2 of the fair value hierarchy.
The Company’s main objective in using interest rate derivatives is to add stability to interest expense related to floating rate debt. To accomplish this objective, the Company primarily uses interest rate caps as part of its interest rate risk management strategy. Interest rate caps involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. On December 30, 2021, the Company, through a subsidiary, entered into a $32.5 million interest rate cap agreement at a strike rate of 2.29% to hedge the variable cash flows associated with the Company's floating rate debt. The interest rate cap terminates on June 1, 2025. As of December 31, 2024 and 2023, this interest rate cap had a fair value of approximately $0.7 million and $1.0 million, respectively. On October 10, 2023, the Company, through a subsidiary, entered into a $63.5 million interest rate cap agreement at a strike rate of 1.50% to hedge the variable cash flows associated with the Company's floating rate debt. As of December 31, 2023, this interest rate cap had a fair value of approximately $1.8 million. The Company did not renew the interest rate cap for this loan, and as such, the interest rate cap terminated on November 6, 2024. The fair value of the interest rate caps are presented in "Accounts receivable and other assets" on the Consolidated Balance Sheets.
Financial Instruments Carried at Fair Value
See Notes 2, 4, 5, and 7 for additional information.
Financial Instruments Not Carried at Fair Value
The fair values of cash and cash equivalents, accrued interest and dividends, accounts payable and other accrued liabilities and accrued interest payable approximated their carrying values because of the short-term nature of these instruments. The estimated fair values of other financial instruments were determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize on the disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts.
In calculating the fair value of its long-term indebtedness, the Company used interest rate and spread assumptions that reflect current creditworthiness and market conditions available for the issuance of long-term debt with similar terms and remaining maturities. These financial instruments utilize Level 2 inputs.
Amounts borrowed under master repurchase agreements are based on their contractual amounts that reasonably approximate their fair value given the short to moderate term and floating rate nature.
The carrying values and fair values of the Company’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value as of December 31, 2024 (in thousands):
Fair Value
Carrying
Value		Level 1Level 2Level 3Total
Assets
Cash and cash equivalents$3,877 $3,877 $— $— $3,877 
Restricted cash3,176 3,176 — — 3,176 
Loans, held-for-investment, net497,544 — — 505,866 505,866 
Preferred stock investments, at fair value18,949 — — 18,949 18,949 
Common stock investments, at fair value57,389 — — 57,389 57,389 
Equity method investments1,504 — — 1,504 1,504 
Mortgage loans, held-for-investment, net263,395 — — 262,037 262,037 
Accrued interest41,208 41,208 — — 41,208 
Mortgage loans held in variable interest entities, at fair value4,343,359 — 4,343,359 — 4,343,359 
CMBS structured pass-through certificates, at fair value34,979 — 34,979 — 34,979 
Stock warrant investments27,400 — — 27,400 27,400 
Accounts receivable and other assets1,457 1,184 273 — 1,457 
Total Assets$5,294,237 $49,445 $4,378,611 $873,145 $5,301,201 
Liabilities
Secured financing agreements, net$235,769 $— $— $250,285 $250,285 
Master repurchase agreements243,454 — — 243,454 243,454 
Unsecured notes, net221,001 — 213,457 — 213,457 
Mortgages payable, net95,464 — — 92,157 92,157 
Accounts payable and other accrued liabilities9,458 9,458 — — 9,458 
Accrued interest payable10,020 10,020 — — 10,020 
Bonds payable held in variable interest entities, at fair value4,029,214 — 4,029,214 — 4,029,214 
Total Liabilities$4,844,380 $19,478 $4,242,671 $585,896 $4,848,045 
The carrying values and fair values of the Company’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value as of December 31, 2023 (in thousands):
Fair Value
Carrying
Value		Level 1Level 2Level 3Total
Assets
Cash and cash equivalents$13,824 $13,824 $— $— $13,824 
Restricted cash2,825 2,825 — — 2,825 
Loans, held-for-investment, net328,460 — — 337,110 337,110 
Preferred stock investments, at fair value14,776 — — 14,776 14,776 
Common stock investments, at fair value61,529 — — 61,529 61,529 
Mortgage loans, held-for-investment, net676,420 — — 663,866 663,866 
Accrued interest22,033 22,033 — — 22,033 
Mortgage loans held in variable interest entities, at fair value5,677,763 — 5,677,763 — 5,677,763 
CMBS structured pass-through certificates, at fair value41,212 — 41,212 — 41,212 
MSCR Notes, at fair value10,378 — 10,378 — 10,378 
Mortgage backed securities, at fair value38,270 — 38,270 — 38,270 
Accounts receivable and other assets4,312 1,560 2,752 — 4,312 
Total Assets$6,891,802 $40,242 $5,770,375 $1,077,281 $6,887,898 
Liabilities
Secured financing agreements, net$649,558 $— $— $666,423 $666,423 
Master repurchase agreements303,514 — — 303,514 303,514 
Unsecured notes, net219,483 — 199,859 — 199,859 
Mortgages payable, net95,657 — — 95,470 95,470 
Accounts payable and other accrued liabilities6,428 6,428 — — 6,428 
Accrued interest payable8,209 8,209 — — 8,209 
Bonds payable held in variable interest entities, at fair value5,289,997 — 5,289,997 — 5,289,997 
Total Liabilities$6,572,846 $14,637 $5,489,856 $1,065,407 $6,569,900 
The significant unobservable inputs used in the fair value measurement of the Company’s investment in NSP are the discount rate and terminal capitalization rate. Significant increases (decreases) in any of those inputs in isolation could
result in a significantly lower (higher) fair value measurement. The Company's investment in the Private REIT was transferred out of level 2 to level 3 due to a lack of observable market data for the three months ended December 31, 2023.
The following is a summary of significant unobservable inputs used in the fair valuation of the Company's Level 3 assets carried at fair value on the Consolidated Balance Sheets as of December 31, 2024 (dollars in thousands):
Carrying
Value		Valuation TechniqueUnobservable InputsRangeWeighted Average (1)
NexPoint Storage Partners$30,467 Discounted cash flowTerminal cap rate
5.00% - 5.50%
5.25 %
Discount rate
8.00% - 8.50%
8.25 %
IQHQ, Inc.18,949 Discounted cash flowDiscount rate
11.00% - 12.00%
11.50 %
Private REIT26,922 Market approachNAV per share multiple
1.00x - 1.15x
1.08x
(1)Averages are weighted based on the fair value of the related instrument.
The following is a summary of significant unobservable inputs used in the fair valuation of the Company's Level 3 assets carried at fair value on the Consolidated Balance Sheets as of December 31, 2023 (dollars in thousands):
Carrying
Value		Valuation TechniqueUnobservable InputsRangeWeighted Average (1)
NexPoint Storage Partners$33,129 Discounted cash flowTerminal cap rate
5.00% - 5.50%
5.25 %
Discount rate
7.50% - 9.50%
8.50 %
IQHQ, Inc.14,776 Discounted cash flowDiscount rate
11.00% - 12.00%
11.50 %
Private REIT28,400 Market approachNAV per share multiple
1.00x - 1.20x
1.10x
(1)Averages are weighted based on the fair value of the related instrument.
The table below reflects a summary of changes for the Company's Level 3 common and preferred stock assets carried at fair value on the Consolidated Balance Sheets for the year ended December 31, 2024:
Balances as of December 31, 2023AdditionsChange in Unrealized Gains/(Losses)Balances as of December 31, 2024
NexPoint Storage Partners$33,129 $— $(2,662)$30,467 
Private REIT28,400 — (1,478)26,922 
IQHQ, Inc.14,776 3,506 667 18,949 
The table below reflects a summary of changes for the Company's Level 3 common and preferred stock assets carried at fair value on the Consolidated Balance Sheets for the year ended December 31, 2023:
Balance as of December 31, 2022AdditionsChange in Unrealized Gains/(Losses)Balance as of December 31, 2023
NexPoint Storage Partners$50,380 $— $(17,251)$33,129 
Private REIT27,884 — 516 28,400 
IQHQ Inc.— 14,510 266 14,776 
Other Financial Instruments Carried at Fair Value
Redeemable noncontrolling interests in the OP have a redemption feature and are marked to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests in the OP (see Note 13). The redemption value is based on the fair value of the Company’s common stock at the redemption date, and therefore, is
calculated based on the fair value of the Company’s common stock at the balance sheet date. Since the valuation is based on observable inputs such as quoted prices for similar instruments in active markets, redeemable noncontrolling interests in the OP are classified as Level 2 if they are adjusted to their redemption value. As of December 31, 2024 and 2023, the redeemable noncontrolling interests in the OP are valued at their carrying value on the Consolidated Balance Sheets (see Note 13).
v3.25.1
Stockholders' Equity
 12 Months Ended
Dec. 31, 2024
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders’ Equity
Common Stock
During the year ended December 31, 2024, the Company issued 229,216 shares of common stock, par value of $0.1 per share (the "common stock") pursuant to the NexPoint Real Estate Finance 2020 Long Term Incentive Plan (as amended and restated, the "LTIP").
As of December 31, 2024, the Company had 17,461,129 shares of common stock issued and outstanding.
Preferred Stock
On July 24, 2020, the Company issued 2,000,000 shares of its 8.50% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) at a price to the public of $24.00 per share, for gross proceeds of $48.0 million before deducting underwriting discounts and commissions of approximately $1.2 million and other offering expenses of approximately $0.8 million. The Series A Preferred Stock has a $25.00 per share liquidation preference.
On November 2, 2023, the Company announced the launch of a continuous public offering (the “Series B Preferred Offering”) of up to 16,000,000 shares of its 9.00% Series B Cumulative Redeemable Preferred Stock (the "Series B Preferred Stock") at a price to the public of $25.00 per share. As of December 31, 2024, the Company has issued 6,697,461 shares of Series B Preferred Stock for gross proceeds of $163.8 million before deducting selling commissions and dealer manager fees of approximately $13.1 million. The Series B Preferred Stock has a $25.00 per share liquidation preference. The Company expects that the Series B Preferred Offering will terminate on the earlier of the date the Company sells all 16,000,000 shares of the Series B Preferred Stock in the Series B Preferred Offering or December 29, 2026 (which is the third anniversary of the effective date of the Company’s registration statement), which may be extended by the Board in its sole discretion. The Board may elect to terminate the Series B Preferred Offering at any time. During the year ended December 31, 2024, Series B Preferred shareholders redeemed 1,746 shares of Series B Preferred Stock.
Share Repurchase Program
On March 9, 2020, the Board authorized a share repurchase program (the “Prior Share Repurchase Program”) through which the Company could repurchase an indeterminate number of shares of our common stock at an aggregate market value of up to $10.0 million in shares of its common stock during a two-year period that expired on March 9, 2022. On September 28, 2020, the Board authorized the expansion of the Prior Share Repurchase Program to include the Company’s Series A Preferred Stock with the same period and repurchase limit. The Company was able to utilize various methods to affect the repurchases, and the timing and extent of the repurchases will depend upon several factors, including market and business conditions, regulatory requirements and other corporate considerations, including whether the Company’s common stock is trading at a significant discount to net asset value ("NAV") per share. From inception through expiration, the Company repurchased 327,422 shares of its common stock, par value $0.01 per share, at a total cost of approximately $4.8 million, or $14.61 per share. These repurchased shares of common stock are classified as treasury stock and reduce the number of shares of the Company’s common stock outstanding and, accordingly, are considered in the weighted-average number of shares outstanding during the period. On March 3, 2021, the Company cancelled 40,435 shares of common stock, reducing the total classified as treasury stock to 286,987.
On February 22, 2023, the Board authorized a share repurchase program (the “Share Repurchase Program”) through which the Company may repurchase an indeterminate number of shares of our common stock and Series A Preferred Stock at an aggregate market value of up to $20.0 million in shares of its common stock, during a two-year period set to expire on February 22, 2025. The Board extended the Share Repurchase Program for an additional two-year period set to expire on February 24, 2027. The Company may utilize various methods to affect the repurchases, and the timing and extent of the repurchases will depend upon several factors, including market and business conditions, regulatory requirements and other corporate considerations, including whether the Company’s common stock is trading at a significant discount to NAV per share. Repurchases under this program may be discontinued at any time. The Company has not made any purchases under the Share Repurchase Program as of December 31, 2024.
Long Term Incentive Plan
On January 31, 2020, the Original LTIP was approved and on May 7, 2020, the Company filed a registration statement on Form S-8 registering 1,319,734 shares of common stock, which the Company may issue pursuant to the Original LTIP.
On January 26, 2024, the Amended and Restated LTIP was approved and on January 30, 2024, the Company filed a registration statement on Form S-8 registering an additional 2,308,000 shares of common stock, which the Company may issue pursuant to the Amended and Restated LTIP. The LTIP authorizes the compensation committee of the Board to provide equity-based compensation in the form of stock options, appreciation rights, restricted shares, restricted stock units, performance shares, performance units and certain other awards denominated or payable in, or otherwise based on, the Company’s common stock or factors that may influence the value of the Company’s common stock, plus cash incentive awards, for the purpose of providing the Company’s directors, officers and other key employees (and those of the Manager and the Company’s subsidiaries), the Company’s non-employee directors, and potentially certain non-employees who perform employee-type functions, incentives and rewards for performance.
Restricted Stock Units
Under the LTIP, restricted stock units may be granted to the Company’s directors, officers and other key employees (and those of the Manager and the Company’s subsidiaries) and typically vest over a three to five-year period for officers, employees and certain key employees of the Manager and annually for directors. The most recent grant of restricted stock units to officers, employees and certain key employees of the Manager will vest over a four-year period. Beginning on the date of grant, restricted stock units earn dividends that are payable in cash on the vesting date. On February 22, 2021, the Company granted 220,352 restricted stock units to its officers and other employees of the Manager and 11,832 restricted stock units to its directors, on November 8, 2021, the Company granted 1,201 restricted stock units to the sole member of the general partner of one of the Company’s subsidiaries, on February 21, 2022, the Company granted 264,476 restricted stock units to its officers and other employees of the Manager and 12,464 restricted stock units to its directors, on April 4, 2023, the Company granted 418,685 restricted stock units to its officers and other employees of the Manager and 21,370 restricted stock units to its directors, and on March 13, 2024, the Company granted 442,666 restricted stock units to its officers and other employees of the Manager and 22,650 restricted stock units to its directors. Compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award. Forfeitures are recognized as they occur.
The following table includes the number of restricted stock units granted, vested, forfeited and outstanding as of December 31, 2024:

2024
Number of UnitsWeighted Average
Grant Date Fair Value
Outstanding December 31, 2023771,671 $16.70 
Granted465,316 14.66 
Vested(315,246)(1)16.28 
Forfeited(1,665)14.66 
Outstanding December 31, 2024920,076 $15.81 
(1)Certain key employees of the Manager elected to net the taxes owed upon vesting against the shares issued resulting in 229,216 shares being issued as shown on the consolidated statements of stockholders' equity.
The vesting schedule for restricted stock units as of December 31, 2024, is as follows:
Shares Vesting
FebruaryMarchAprilTotal
2025116,998132,905102,201352,104
202654,893110,25091,166256,309
2027—110,24891,168201,416
2028—110,247—110,247
Total171,891463,650284,535920,076
As of December 31, 2024, total unrecognized compensation expense on restricted stock unit awards was approximately $11.2 million, and the expense is expected to be recognized over a weighted average vesting period of 1.3 years.
At-The-Market-Offering
On March 15, 2022, the Company, the OP and the Manager entered into separate equity distribution agreements (the “Equity Distribution Agreements”) with each of Raymond James, Keefe, Bruyette & Woods, Inc., Robert W. Baird & Co. Incorporated and Virtu Americas LLC (collectively, the “Sales Agents”), pursuant to which the Company could issue and sell from time to time shares of the Company's common stock and Series A Preferred Stock having an aggregate sales price of up to $100.0 million (the “ATM Program”). The Equity Distribution Agreements provided for the issuance and sale of common stock or Series A Preferred Stock by the Company through a sales agent acting as a sales agent or directly to the sales agent acting as principal for its own account at a price agreed upon at the time of sale.
Sales of shares of common stock or Series A Preferred Stock under the ATM Program, if any, may be made in transactions that are deemed to be “at the market” offerings, as defined in Rule 415 under the Securities Act including, without limitation, sales made by means of ordinary brokers' transactions on NYSE, to or through a market maker at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices based on prevailing market prices.
The following table contains summary information of the ATM Program since its inception through December 31, 2024:
Gross Proceeds$12,575,493 
Shares of Common Stock Issued531,728
Gross Average Sale Price per Share of Common Stock$23.65 
Sales Commissions$188,655 
Offering Costs888,249 
Net Proceeds$11,498,589 
Average Price Per Share, net$21.62 
OP Unit Redemptions
At the 2021 annual meeting of the Company, the Company's stockholders approved the potential issuance of 13,758,906 shares of the Company's common stock to related parties in connection with the redemption of their OP Units or SubOP Units that may be redeemed for OP Units. As of December 31, 2024, the Company had issued 8,748,735 shares of the Company's common stock to redeeming unitholders.
v3.25.1
Earnings Per Share
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of the Company’s common stock outstanding and excludes any unvested restricted stock units issued pursuant to the LTIP.
Diluted earnings per share is computed by adjusting basic earnings per share for the dilutive effect of the assumed vesting of restricted stock units. Additionally, the Company includes the dilutive effect of the potential redemption of OP Units for common shares in accordance with the second amended and restated limited partnership agreement of the OP (as amended, the "OP LPA"). The Company also includes the assumed conversion of the Series B Preferred Stock using the if-converted method. During periods of net loss, the assumed vesting of restricted stock units is anti-dilutive and is not included in the calculation of earnings (loss) per share.
The following table sets forth the computation of basic and diluted earnings per share for the periods presented (in thousands, except per share amounts):
For the Year Ended
December 31,
202420232022
Net income (loss) attributable to common stockholders$17,693 $10,399 $3,234 
Earnings for basic computations
Net income attributable to redeemable noncontrolling interests6,770 4,765 4,969 
Net income attributable to Series B preferred stockholders8,003 80 — 
Net income for diluted computations$32,466 $15,244 $8,203 
Weighted-average common shares outstanding
Average number of common shares outstanding - basic17,402 017,199 14,686 
Average number of common shares from assumed vesting of unvested restricted stock units908 0740 571 
Average number of common shares from assumed conversion of OP Units5,038 05,038 7,218 
Average number of common shares from assumed conversion of Series B Preferred Stock5,798 24 — 
Average number of common shares outstanding - diluted29,146 23,001 22,475 
Earnings per weighted average common share:
Basic$1.02 $0.60 $0.22 
Diluted (1)$1.02 $0.60 $0.22 
(1) Diluted EPS calculations were higher than basic EPS and thus anti-dilutive for the years ended December 31, 2024, 2023, and 2022, respectively. As such, the Company is presenting diluted EPS as equal to basic EPS for the years ended December 31, 2024, 2023, and 2022, respectively.
v3.25.1
Noncontrolling Interests
 12 Months Ended
Dec. 31, 2024
Noncontrolling Interest [Abstract]  
Noncontrolling Interests Noncontrolling Interests
Redeemable Noncontrolling Interests in the OP
Interests in the OP held by limited partners are represented by OP Units. As of December 31, 2024 and 2023, the Company holds the majority economic interests in the OP. Net income is allocated to holders of OP Units based upon net income attributable to common stockholders and the weighted-average number of OP Units outstanding to total common shares plus OP Units outstanding during the period. Capital contributions, distributions, and profits and losses are allocated to OP Units in accordance with the terms of the partnership agreement of the OP. Each time the OP distributes cash to the Company, limited partners of the OP receive their pro-rata share of the distribution. Redeemable noncontrolling interests in the OP have a redemption feature and are marked to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests in the OP.
Pursuant to the OP LPA, limited partners holding OP Units have the right to cause the OP to redeem their units at a redemption price equal to and in the form of the Cash Amount (as defined in the OP LPA), provided that such OP Units have been outstanding for at least one year. The Company may, in its sole discretion, purchase the OP Units by paying to the limited partner either the Cash Amount or the REIT Shares Amount (generally one share of common stock of the Company for each OP Unit, subject to adjustment) as defined in the OP LPA. Notwithstanding the foregoing, a limited partner will not be entitled to exercise its redemption right to the extent the issuance of the Company’s common stock to the redeeming limited partner would (1) be prohibited, as determined in the Company’s sole discretion, under the
Company’s charter or (2) cause the acquisition of common stock by such redeeming limited partner to be “integrated” with any other distribution of the Company’s common stock for purposes of complying with the Securities Act. Accordingly, the Company records the OP Units held by noncontrolling limited partners outside of permanent equity and reports the OP Units at the greater of their carrying value or their redemption value using the Company’s stock price at each balance sheet date.
The Cash Amount is defined in the OP LPA as the greater of the most recent NAV of the Company as determined by our Board and the volume-weighted average price of the Company’s common stock, which because the Company’s common stock is listed on the NYSE will be calculated for the ten consecutive trading days (the “Ten Day VWAP”) immediately preceding the date on which the general partner of the OP receives a notice of redemption from the limited partner, or the first business day thereafter (the “Valuation Date”). The Ten Day VWAP calculated based on a Valuation Date of December 31, 2024 was $15.69, and there were 5,038,382 OP Units outstanding other than those held by the Company. Assuming that (1) the Ten Day VWAP exceeded the NAV, (2) all OP unitholders exercised their right to cause the OP to redeem all of their OP Units with a Valuation Date of December 31, 2024, and (3) the Company then elected to purchase all of the OP Units by paying the Cash Amount, the Company would have paid $79.0 million in cash consideration to redeem the OP Units.
On September 8, 2021, the general partner of the OP executed the OP LPA for the purposes of creating a board of directors of the OP (the “Partnership Board”) and subdividing and reclassifying the outstanding OP Units into Class A, Class B and Class C OP Units. The OP LPA generally provides that the newly created Class A OP Units and Class B OP Units each have 50.0% of the voting power of the OP Units, including with respect to the election of directors to and removal of directors from the Partnership Board, and that the Class C OP Units have no voting power. The reclassification of the OP Units did not have a material effect on the economic interests of the holders of OP Units. In connection with the adoption of the OP LPA, the OP Units held by the Company were reclassified into Class A OP Units, the OP Units held by a subsidiary of NexPoint Diversified Real Estate Trust were reclassified into Class B OP Units and the remaining OP Units were reclassified into Class C OP Units. As of December 31, 2024, the Company owns 83.82% of the OP Units representing 100% of the Class A OP Units.
The Partnership Board of the OP has exclusive authority to select, remove and replace the general partner of the OP and no other authority. The Partnership Board may replace the general partner of the OP at any time. As of the date of this filing, the current director of the Partnership Board is Paul Richards. The number of directors on the Partnership Board is initially one but may be increased by following the affirmative vote or consent of the majority of the voting power of the OP Units (the “Requisite Approval”). The election of directors to and removal of directors from the Partnership Board also requires the Requisite Approval.
The following table sets forth the redeemable noncontrolling interests in the OP (reflecting the OP’s consolidation of the Subsidiary OPs) for the years ended December 31, 2024, 2023, and 2022 (in thousands):
For the Year Ended December 31,
202420232022
Redeemable noncontrolling interests in the OP, January 1,$89,471 $96,501 $261,423 
Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate— 297 — 
Net income attributable to redeemable noncontrolling interests in the OP6,770 4,765 4,969 
Redemption of redeemable noncontrolling interests in the OP— — (155,614)
Distributions to redeemable noncontrolling interests in the OP(10,077)(12,092)(14,277)
Redeemable noncontrolling interests in the OP, December 31,$86,164 $89,471 $96,501 
The tables below present the common shares and OP Units outstanding held by the noncontrolling interests (“NCI”), as the OP Units and SubOP Units held by the Company are eliminated in consolidation:
Period EndCommon Shares
Outstanding		OP Units Held by
NCI		Combined
Outstanding
December 31, 202417,461,1295,038,38222,499,511
December 31, 202317,231,9135,038,38222,270,295
v3.25.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Management Fee
In accordance with the Management Agreement, the Company pays the Manager an annual management fee equal to 1.5% of Equity (as defined below), paid monthly, in cash or shares of Company common stock at the election of our Manager (the “Annual Fee”). The duties performed by the Company’s Manager under the terms of the Management Agreement include, but are not limited to: providing daily management for the Company, selecting and working with third-party service providers, formulating an investment strategy for the Company and selecting suitable investments, managing the Company’s outstanding debt and its interest rate exposure and determining when to sell assets.
“Equity” means (a) the sum of (1) total stockholders’ equity immediately prior to the closing of the IPO, plus (2) the net proceeds received by the Company from all issuances of the Company’s equity securities in and after the IPO, plus (3) the Company’s cumulative Earnings Available for Distribution (“EAD”) (as defined below) from and after the IPO to the end of the most recently completed calendar quarter, (b) less (1) any distributions to the holders of the Company’s common stock from and after the IPO to the end of the most recently completed calendar quarter and (2) all amounts that the Company or any of its subsidiaries has paid to repurchase for cash the shares of the Company’s equity securities from and after the IPO to the end of the most recently completed calendar quarter. In the Company’s calculation of Equity, the Company will adjust its calculation of EAD to remove the compensation expense relating to awards granted under one or more of its long-term incentive plans that is added back in the calculation of EAD. Additionally, for the avoidance of doubt, Equity does not include the assets contributed to the Company in the Formation Transaction.
“EAD” means the net income (loss) attributable to the common stockholders of the Company, computed in accordance with GAAP, including realized gains and losses not otherwise included in net income (loss), excluding any unrealized gains or losses or other similar non-cash items that are included in net income (loss) for the applicable reporting period, regardless of whether such items are included in other comprehensive income (loss), or in net income (loss) and adding back amortization of stock-based compensation. For the purpose of calculating EAD for the Annual Fee, net income (loss) attributable to common stockholders may also be adjusted for the effects of certain GAAP adjustments and transactions that may not be indicative of the Company’s current operations, in each case after discussions between the Manager and the independent directors of the Board and approved by a majority of the independent directors of the Board. EAD has replaced our prior presentation of Core Earnings.
Pursuant to the terms of the Management Agreement, the Company is required to pay directly or reimburse the Manager for all documented Operating Expenses and Offering Expenses it incurs on behalf of the Company. “Operating Expenses” include legal, accounting, financial and due diligence services performed by the Manager that outside professionals or outside consultants would otherwise perform, the Company’s pro rata share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Manager required for the Company’s operations and compensation expenses under the LTIP. “Offering Expenses” include all expenses (other than underwriters’ discounts) in connection with an offering of securities, including, without limitation, legal, accounting, printing, mailing and filing fees and other documented offering expenses. For the years ended December 31, 2024, 2023, and 2022, there were no Offering Expenses that were paid on the Company’s behalf for which the Company reimbursed the Manager.
Connections at Buffalo Pointe Contribution
On May 29, 2020, the OP entered into a contribution agreement (the “Buffalo Pointe Contribution Agreement”) with entities affiliated with executive officers of the Company and the Manager (the “BP Contributors”) whereby the BP Contributors contributed their respective preferred membership interests in NexPoint Buffalo Pointe Holdings, LLC (“Buffalo Pointe”), to the OP for total consideration of $10.0 million paid in OP Units. A total of 564,334 OP Units were issued to the BP Contributors, which was calculated by dividing the total consideration of $10.0 million by the combined book value of the Company’s common stock and the SubOP Units, on a per share or unit basis, as of March 31, 2023, or $17.72 per OP Unit. The Company additionally contributed an aggregate of approximately $2.7 million through December 31, 2024. Buffalo Pointe owns a stabilized multifamily property located in Houston, Texas with 93.5% occupancy as of December 31, 2024. The preferred equity investment pays current interest at a rate of 6.5%, deferred interest at a rate of 4.5% and has a maturity date of May 1, 2030.
Pursuant to the OP LPA and the Buffalo Pointe Contribution Agreement, the BP Contributors have the right to cause our OP to redeem their OP Units for cash or, at our election, shares of our common stock on a one-for-one basis, subject to adjustment, as provided and subject to the limitations in our OP LPA, provided the OP Units have been outstanding for at least one year and our stockholders have approved the issuance of shares of common stock to the BP Contributors. On May
11, 2021, our stockholders approved the issuance of such shares upon the exercise of the BP Contributors' redemption rights.
RSU Issuance
On May 8, 2020, in accordance with the LTIP, the Company granted 14,739 restricted stock units to its directors, on June 24, 2020, the Company granted 274,274 restricted stock units to its officers and other employees of the Manager, on November 2, 2020, the Company granted 1,838 restricted stock units to the sole member of the general partner of one of the Company’s subsidiaries, on February 22, 2021, the Company granted 233,385 restricted stock units to its directors, officers employees and certain key employees of the Manager and its affiliates, the Company granted 1,201 restricted stock units to the sole member of the general partner of one of the Company's subsidiaries, on February 21, 2022, the Company granted 264,476 restricted stock units to its officers and other employees of the Manager and 12,464 restricted stock units to its directors, on April 4, 2023, the Company granted 418,685 restricted stock units to its officers and other employees of the Manager and 21,370 restricted stock units to its directors and on March 13, 2024, the Company granted 442,666 restricted stock units to its officers and other employees of the Manager and 22,650 restricted stock units to its directors.
OP Unit Redemptions
At the 2021 annual meeting of the Company, the Company's stockholders approved the potential issuance of 13,758,906 shares of the Company's common stock to related parties in connection with the redemption of their OP Units or SubOP Units that may be redeemed for OP Units. As of December 31, 2024, the Company had issued 8,748,735 shares of the Company's common stock to redeeming unitholders.
Expense Cap
Pursuant to the terms of the Management Agreement, direct payment of operating expenses by the Company, which includes compensation expense relating to equity awards granted under the LTIP, together with reimbursement of operating expenses of the Manager, plus the Annual Fee, may not exceed 2.5% of equity book value (the “Expense Cap”) for any calendar year or portion thereof; provided, however, that this limitation will not apply to Offering Expenses, legal, accounting, financial, due diligence and other service fees incurred in connection with extraordinary litigation and mergers and acquisitions and other events outside the ordinary course of business or any out-of-pocket acquisition or due diligence expenses incurred in connection with the acquisition or disposition of certain real estate-related investments. For the years ended December 31, 2024, 2023, and 2022, operating expenses did not exceed the Expense Cap.
For the years ended December 31, 2024, 2023, and 2022 the Company incurred management fees of $3.9 million, $3.3 million, and $3.2 million, respectively.
NSP Guaranty
On December 8, 2022 and in connection with a restructuring of NSP, the Company, through REIT Sub, together with NexPoint Diversified Real Estate Trust, Highland Income Fund and NexPoint Real Estate Strategies Fund (collectively, the "Co-Guarantors"), as guarantors, entered into a sponsor guaranty agreement in favor of Extra Space Storage, LP ("Extra Space") pursuant to which REIT Sub and the Co-Guarantors guaranteed obligations of NSP with respect to accrued dividends on NSP’s newly created Series D preferred stock and two promissory notes in an aggregate principal amount of approximately $64.2 million issued to Extra Space. The guaranties by REIT Sub and the Co-Guarantors are capped at $97.6 million, and each of REIT Sub and the Co-Guarantors generally guaranteed the foregoing obligations of NSP up to the cap amount on a pro rata basis with respect to its percentage ownership of NSP’s common stock. On February 15, 2023, NSP paid down approximately $15.0 million of these promissory notes, resulting in an aggregate principal amount of approximately $49.2 million. On December 8, 2023, NSP paid down the remaining principal balance of $49.2 million. The NSP Series D preferred stock remains outstanding as of December 31, 2024. As of December 31, 2024, the outstanding NSP Series D Preferred Stock accrued dividends was $11.9 million and the Company and NexPoint Diversified Real Estate Trust are jointly and severally liable for 85.9% of the guaranteed amount equal to $10.2 million.
Convertible Promissory Note
On October 18, 2022, the Company, through a subsidiary, borrowed $6.5 million from NFRO REIT Sub, LLC (the "Holder") and issued $6.5 million aggregate amount of a 7.50% note to the Holder maturing on October 18, 2027. Beginning on January 1, 2023 through June 30, 2027, the Holder may elect to convert all or any part of the outstanding
principal and accrued but unpaid interest due, and all other amounts due and payable to the Holder thereunder or in connection therewith, into equity interests of an affiliate of the borrower.
NXDT Promissory Note
On April 19, 2024, the Company, through a subsidiary, borrowed $6.5 million from NexPoint Diversified Real Estate Trust Operating Partnership, L.P. ("NXDT OP"), the operating partnership of NXDT, and issued $6.5 million aggregate amount of a 7.54% note to NXDT OP maturing on April 19, 2029. Interest is payable in kind and the note is interest only during its term. On June 4, 2024 the Company paid down $0.6 million in principal. On September 11, 2024 the Company extinguished the note and paid down the remaining outstanding principal balance of $5.9 million plus accrued interest.
Elysian at Hughes Center
On February 1, 2022, the Company, through a subsidiary (the “Trust”), purchased the Elysian at Hughes Center, a 368-unit multifamily property in Las Vegas, Nevada, for a total of $184.1 million. The Trust is managed by an affiliate of the Manager (the “Asset Manager”). Effective January 1, 2023, the Company restructured this investment such that it does not meet the requirements for consolidation under ASC 810 – Consolidation and has been deconsolidated herein as of January 1, 2023 and presented as a preferred equity investment. As of December 31, 2022, the Company owned a preferred equity investment and indirect common equity interests in Elysian at Hughes Center, which resulted in the consolidation at year end. However, the common equity interests have been transferred to the Asset Manager in exchange for $54,000 and a guarantee of payments due to the Company in respect of its preferred equity investment. The Company’s preferred investments were initially made from December 28, 2021 through July 26, 2022 and totaled $65.3 million. Following the transfer of the common equity interests, the Company no longer is the primary beneficiary of the Trust and as such does not consolidate it. The Company recognized a gain on deconsolidation of $1.5 million related to the residual effect of removing the consolidated assets and liabilities from the Consolidated Balance Sheets. The fair value of the preferred equity investment still approximates its par value so no portion of the gain on deconsolidation is related to a remeasurement of the fair value of the preferred equity investment. Management determined the fair value of the preferred equity investment using a market approach and performing a benchmarking analysis to comparable transactions. As of December 31, 2024, $54.0 million of the Company's preferred investment in Elysian at Hughes Center had been redeemed, resulting in a remaining principal balance of $11.4 million.
Series B Preferred Stock Offering
On November 2, 2023, the Company announced the launch of the Series B Preferred Offering. NexPoint Securities, Inc., an affiliate of the Manager, serves as the Company’s dealer manager (the "Dealer Manager") in connection with the Series B Preferred Offering. The Dealer Manager uses its reasonable best efforts to sell the shares of Series B Preferred Stock offered in the Series B Preferred Offering, and the Company pays the Dealer Manager, subject to the discounts and other special circumstances described or referenced therein, (i) selling commissions of 7.0% of the aggregate gross proceeds from sales of Series B Preferred Stock in the Series B Preferred Offering (“Selling Commissions”) and (ii) a dealer manager fee of 3.0% of the gross proceeds from sales of Series B Preferred Stock in the Series B Preferred Offering (the “Dealer Manager Fee”). The Dealer Manager, subject to federal and state securities laws, will reallow all or any portion of the Selling Commissions and may reallow a portion of the Dealer Manager Fee to other securities dealers that the Dealer Manager may retain who sold the shares of Series B Preferred Stock as is described more fully in the agreements between such dealers and the Dealer Manager. The Company expects that the offering will terminate on the earlier of the date the Company sells all 16,000,000 shares of the Series B Preferred Stock in the offering or December 29, 2026 (which is the third anniversary of the effective date of the Company’s registration statement), which may be extended by the Company’s Board in its sole discretion. The Board may elect to terminate this offering at any time. As of December 31, 2024, the Company has issued 6,697,461 shares of Series B Preferred Stock for gross proceeds of $163.8 million and paid the Dealer Manager $9.1 million Selling Commissions and $4.0 million Dealer Manager Fees. During the year ended December 31, 2024, Series B Preferred shareholders redeemed 1,746 shares of Series B Preferred Stock.
SFR OP Promissory Notes
On March 28, 2024, the Company loaned $0.5 million to NexPoint SFR Operating Partnership, L.P. (the “SFR OP”), the operating partnership of NexPoint Homes Trust, Inc., an entity that is advised by an affiliate of the Manager. In connection with the loan, SFR OP issued a $0.5 million 12.50% note (the “SFR OP Note”) to the Company on March 31, 2024. The SFR OP Note bears interest at 12.50%, which is payable in kind, is interest only during the term of the SFR OP Note and matures on March 31, 2025.
SFR OP issued a note (the “SFR OP Note II”) to the Company on July 10, 2024 with a maximum commitment of $5.0 million. The SFR OP Note II bears interest at 15%, which is payable in kind, is interest only during the term of the SFR OP Note II and matures on July 10, 2025. The Company funded $0.5 million, $2.0 million and $1.0 million on October 31, 2024, November 7, 2024 and November 30, 2024, respectively. The Company's maximum commitment under the loan is $5.0 million, of which $1.5 million was unfunded as of December 31, 2024.
VineBrook Homes Mortgage Backed Securities
On February 29, 2024, the Company, through one of the Subsidiary OPs, purchased approximately $49.2 million aggregate principal amount of the Class A, E1, and E2 tranches of the VINEB 2024 SFR1 CMBS at a blended price equal to 90.2% of par value. On March 1, 2024, the Company, through one of the Subsidiary OPs, borrowed approximately $35.8 million through the existing repurchase agreement. The loans bear interest at a rate of 1.0%, 1.6%, and 1.6% over SOFR, respectively. On May 8, 2024, the Company sold $30.0 million aggregate principal amount of the Class A tranche of VINEB 2024-SFR1 for net loss of $0.4 million. On September 27, 2024, the Company sold $6.7 million aggregate principal amount of the E2 tranche of the VINEB 2024 SFR1 for net proceeds of $2.2 million. On November 14, 2024, the Company sold $9.5 million aggregate principal amount of the E1 tranche of the VINEB 2024 SFR1 for net proceeds of $2.5 million.
Resmark Sales
During the year ended December 31, 2024, the Company, through one of the Subsidiary OPs, sold an aggregate of $7.75 million of preferred equity investments in RFG Preferred, LLC to VineBrook Homes Operating Partnership, L.P., the operating partnership of VineBrook Homes Trust, Inc., which is advised by an affiliate of our Manager (the "VB OP").
During the year ended December 31, 2024, the Company, through one of the Subsidiary OPs, sold an aggregate of $7.75 million of preferred equity investments in RTB Preferred, LLC to VB OP.
IQHQ Transactions
On May 10, 2024, the Company, through OP IV, along with entities advised by affiliates of our Manager or that may be deemed an affiliate of the Manager through common beneficial ownership, entered into an Assignment and Assumption and Co-Lender Agreement, pursuant to which OP IV assigned the right to fund up to specified amounts in the Alewife Loan (as defined in Note 15). Effective January 2, 2025, the Company, through OP IV, along with an entity that may be deemed an affiliate of the Manager through common beneficial ownership, entered into an Assignment and Assumption and Co-Lender Agreement, pursuant to which OP IV assigned a portion of its interest in the Alewife Loan for cash and increased the specified amounts such entity had the right to fund in the Alewife Loan. See Note 15 for additional information.
On May 23, 2024, the Company, through certain subsidiaries, along with certain entities advised by affiliates of our Manager, or that may be deemed an affiliate of the Manager through common beneficial ownership, entered into a participation rights agreement with NexPoint Bridge Investor I, LLC (“Bridge Investor I”), an entity owned by an affiliate of the Manager, pursuant to which the Company had a right to fund up to specified amounts of the IQHQ Promissory Note (as defined in Note 15) and the IQHQ Bridge Warrant (as defined in Note 15). See Note 15 for additional information.
On December 31, 2024, the Company, through certain subsidiaries, along with certain entities advised by affiliates of our Manager or that may be deemed an affiliate of the Manager through common beneficial ownership, entered into a participation rights agreement with Bridge Investor I pursuant to which the Company has a right to fund up to specified amounts of the IQHQ Subscription Agreement (as defined in Note 15) and the IQHQ Series E Warrant (as defined in Note 15). See Note 15 for additional information.
NexBank Loan
On April 29, 2024, the Company, through the OP, entered into a loan agreement with NexBank, as lender, providing for a loan in the aggregate principal amount of $10.0 million (the “NexBank Loan”). The NexBank Loan bears interest at the rate which is the higher of (i) One Month Term Secured Overnight Financing Rate plus 4.2% per annum or (ii) 8.25% per annum, which is interest only during the term of the NexBank Loan and matures on April 28, 2025, with the OP having two 364-day extension options, which may be exercised at the OP’s sole discretion. As of December 31, 2024, the outstanding balance of the loan is $10.0 million.
The NexBank Loan is secured by certain equity interests held by the OP and is guaranteed by the Company. The loan agreement contains customary events of default, including defaults in the payment of principal or interest, defaults in
compliance with the covenants contained therein, defaults in payments under any other security instrument, and bankruptcy or other insolvency events.
Capital Acquisitions Partners, LLC
The Company owns approximately 79.1% of total outstanding membership interests of CAP. The remaining ownership is held by NexPoint Real Estate Opportunities, LLC ("NREO"), a wholly owned subsidiary of NXDT. See Note 5 for additional information.
v3.25.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Except as otherwise disclosed below, the Company is not aware of any contractual obligations, legal proceedings or any other contingent obligations incurred in the normal course of business that would have a material adverse effect on our consolidated financial statements.
On March 14, 2023, the Company, through one of the Subsidiary OPs, committed to fund $24.0 million of preferred equity with respect to a ground up construction horizontal single-family property located in Phoenix, Arizona, of which $7.9 million was unfunded as of December 31, 2024. The preferred equity investment provides a floating annual return that is the greater of prime rate plus 5.0% or 11.25%, compounded monthly with a MOIC of 1.30x and 1.0% placement fee. The Company was also issued a common interest at the time of its first funding of preferred equity on May 16, 2023. The common interest allows the Company to receive a 10% profit share once aggregate distributions exceed the 20% internal rate of return ("IRR") hurdle as shown below. There was no value ascribed to the common interest as of December 31, 2024. Further, once the Company's preferred equity and accrued interest has been repaid, any additional cash flow and net sale proceeds shall be distributed as follows:
•0% to the Company and 100% to issuer up to a 20.0% IRR
•10% to the Company and 90% to issuer thereafter
On February 10, 2023, the Company, through one of the Subsidiary OPs, through a unit purchase agreement, committed to purchase $30.3 million of the preferred units with respect to a multifamily property development located in Forney, Texas, which has been fully funded as of December 31, 2024. Further, the Company committed to purchase $4.3 million of common equity with respect to the same property, of which $1.3 million was unfunded as of December 31, 2024.
On February 10, 2023, the Company, through one of the Subsidiary OPs, through a unit purchase agreement, committed to purchase $30.3 million of the preferred units with respect to a multifamily property development located in Richmond, Virginia, which has been fully funded as of December 31, 2024. Further, the Company committed to purchase $4.3 million of common equity with respect to the same property, of which $1.3 million was unfunded as of December 31, 2024.
SFR OP Promissory Note II Commitments
SFR OP issued a note (the “SFR OP Note II”) to the Company on July 10, 2024. The SFR OP Note II bears interest at 15%, which is payable in kind, is interest only during the term of the SFR OP Note II and matures on July 10, 2025. The Company funded $0.5 million, $2.0 million and $1.0 million on October 31, 2024, November 7, 2024 and November 30, 2024, respectively. The Company's maximum commitment under the loan is $5.0 million, of which $1.5 million was unfunded as of December 31, 2024.
Alewife Holdings Loan Commitments
On January 26, 2024, the Company, through one of its subsidiaries (“OP IV”), along with The Ohio State Life Insurance Company (“OSL”), an entity that may be deemed an affiliate of the Manager through common beneficial ownership, entered into a Mezzanine Loan and Security Agreement (the "Alewife Loan") whereby it made a loan in the maximum principal amount of up to $218.0 million to IQHQ-Alewife Holdings, LLC ("Alewife Holdings"), which is solely owned by IQHQ, L.P. The Company has an ownership interest in the Series D-1 preferred stock in IQHQ, who is the limited partner in IQHQ, L.P.; however, the Company has no controlling financial interest nor significant influence in IQHQ, L.P. The loan is secured by a first mortgage with a first lien position and other security interests.
On May 10, 2024, OP IV, NexPoint Diversified Real Estate Trust Operating Partnership, L.P. ("NXDT OP"), the operating partnership of NXDT, and OSL entered into an Assignment and Assumption and Co-Lender Agreement,
pursuant to which OP IV assigned the right to fund up to 9% of the Alewife Loan to NXDT OP and allocated the right to fund up to 9% of the Alewife Loan to OSL. Effective January 2, 2025, OP IV and OSL entered into an Assignment and Assumption and Co-Lender Agreement, pursuant to which OP IV assigned $7.5 million interest in the Alewife Loan to OSL for cash and increased OSL's allocation of the right to fund up to 10.32% of the Alewife Loan. In addition, under the Assignment Agreement, at any time and from time to time, NREF may purchase up to all of the amounts funded by OSL in the Alewife Loan from OSL. Upon receipt of a draw request, NXDT OP and OSL have the right to elect to fund an amount equal or greater than zero and up to (i) 9% or 10.32%, respectively, of the total amount of all advances previously made under the Alewife Loan plus the amount of the then current borrowing, (ii) less the total amount of advances previously made by NXDT OP and OSL, respectively. OP IV is required to fund any amounts not funded by OSL and NXDT OP. At any time that NXDT OP and OSL have funded less than their respective percentages of all advances made under the Alewife Loan, NXDT OP and OSL have the option upon notice to OP IV to pay to OP IV any amount of such unfunded amount. Upon such payment, NXDT OP or OSL would become entitled to all interest and fees accrued on the amount paid to OP IV on and after the date of such payment. The Company's expected maximum commitment under the Alewife Loan is $203.0 million, of which $62.7 million was unfunded as of December 31, 2024.
IQHQ Promissory Note and Warrant
On May 23, 2024, NexPoint Bridge Investor I, LLC ("Bridge Investor I"), an entity owned by an affiliate of the Manager, entered into a Secured Convertible Promissory Note and Warrant Purchase Agreement (“Bridge Purchase Agreement”) whereby IQHQ, L.P. issued and sold to Bridge Investor I a Secured Convertible Promissory Note (“IQHQ Promissory Note”) with a purchase commitment of $150.0 million. The IQHQ Promissory Note bore interest at 16.5%, which was payable in kind, and matured on May 23, 2025. The IQHQ Promissory Note would automatically convert into Series E preferred stock of IQHQ, Inc. upon a Qualified Equity Financing (as defined in the IQHQ Promissory Note). In accordance with the Bridge Purchase Agreement, IQHQ Holdings, L.P. (“IQHQ Holdings”) also issued and sold a corresponding warrant to Bridge Investor I to purchase Class A-3 Units of IQHQ Holdings (as amended, the “IQHQ Bridge Warrant”). The IQHQ Bridge Warrant entitles the holder to purchase, at an exercise price of $0.01, Class A-3 Units of IQHQ Holdings initially intended to represent 6.25% of the fully diluted and outstanding common equity of IQHQ Holdings. The IQHQ Bridge Warrant is exercisable, in whole or in part, at any time, and expires on May 23, 2034, unless there is an earlier change of control, initial public offering or liquidation.
In connection with the Bridge Purchase Agreement, the Company, through certain subsidiaries, along with certain entities advised by affiliates of our Manager or that may be deemed an affiliate of the Manager through common beneficial ownership (the “IQHQ Participating Purchasers”), entered into a participation rights agreement with Bridge Investor I pursuant to which the Company and the IQHQ Participating Purchasers had a right to fund up to specified amounts of the IQHQ Promissory Note and the IQHQ Bridge Warrant. Upon receipt of a draw request, each IQHQ Participating Purchaser had the right to elect to fund an amount equal or greater than zero up to their respective preemptive right under the IQHQ Holdings or IQHQ, L.P. organizational documents less the total amount of advances previously made by such IQHQ Participating Purchaser and NXDT OP had the right to elect to fund an amount equal or greater than zero up to 50% of the total requested amount that is not funded by the IQHQ Participating Purchasers. The Company, through certain subsidiaries, was required to fund any amounts not funded by the IQHQ Participating Purchasers and NXDT OP. Bridge Investor I can allocate all or any portion of the IQHQ Warrant to any parties to the participation rights agreement. On December 2, 2024, the IQHQ Promissory Note was fully funded. The Company funded $148.6 million and the IQHQ Participating Purchasers funded $1.4 million.
On December 31, 2024, the Company, through OP IV and the OP, along with the IQHQ Participating Purchasers that funded the IQHQ Promissory Note and Bluerock Total Income+ Real Estate Fund (“Bluerock”) entered into a Revolving Credit Agreement (the “IQHQ Revolving Loan”) whereby it made a loan in the maximum principal amount of up to $300.0 million to IQHQ, L.P. In connection with the IQHQ Revolving Loan, the full $150 million of the principal amount of the IQHQ Promissory Note and the full $150 million of the principal amount of a promissory note held by Bluerock was substituted and exchanged for deemed borrowings under the IQHQ Revolving Loan, and the IQHQ Revolving Loan was fully funded on December 31, 2024. The IQHQ Revolving Loan accrues interest at a rate per annum equal to 13.5% per annum, payable in kind. The revolving period during which IQHQ, L.P. is permitted to borrow, repay and re-borrow loans, subject to satisfaction of certain conditions and payment of certain fees, will terminate on December 31, 2027, the maturity date of the IQHQ Revolving Loan. The Company holds 49.533% of the revolving commitment under the IQHQ Revolving Loan.
In connection with the IQHQ Revolving Loan, on December 31, 2024, Bridge Investor I entered into a Subscription Agreement (“IQHQ Subscription Agreement”) whereby Bridge Investor I committed to purchase $160.1 million of Series E preferred stock of IQHQ, Inc. Pursuant to the IQHQ Subscription Agreement, the full $10.1 million of the interest accrued on the IQHQ Promissory Note was substituted and exchanged for a deemed funding of $10.1 million under the IQHQ Subscription Agreement. In connection with the IQHQ Subscription Agreement, on December 31, 2024, Bridge Investor I also entered into a Warrant Purchase Agreement (the “IQHQ Warrant Purchase Agreement”) whereby IQHQ Holdings issued and sold a corresponding warrant to Bridge Investor I to purchase Class A-3 Units of IQHQ Holdings (as
amended, the “IQHQ Series E Warrant”). The IQHQ Series E Warrant entitles the holder to purchase, at an exercise price of $0.01, Class A-3 Units of IQHQ Holdings initially intended to represent up to 10.25% of the fully diluted and outstanding common equity of IQHQ Holdings. The IQHQ Series E Warrant is exercisable, in whole or in part, at any time, for ten years, unless there is an earlier change of control, initial public offering or liquidation.
In connection with the IQHQ Subscription Agreement and IQHQ Warrant Purchase Agreement, the Company, through certain subsidiaries, along with the IQHQ Participating Purchasers entered into a participation rights agreement with Bridge Investor I pursuant to which the Company and the IQHQ Participating Purchasers have a right to fund up to specified amounts of the Series E preferred stock of IQHQ, Inc. commitment and the IQHQ Series E Warrant. Upon receipt of a draw request, each IQHQ Participating Purchaser has the right to elect to fund an amount equal or greater than zero up to their respective preemptive right under the IQHQ Holdings or IQHQ, L.P. organizational documents less the total amount of advances previously made by such IQHQ Participating Purchaser. Upon receipt of a draw request, NXDT OP will also have the right to elect to fund an amount equal or greater than zero up to 50% of the total requested amount that is not funded by the IQHQ Participating Purchasers. The Company, through certain subsidiaries, would be required to fund any amounts not funded by the IQHQ Participating Purchasers and NXDT OP. At any time that the IQHQ Participating Purchasers have funded less than their respective participation amounts, the IQHQ Participating Purchasers have the option to pay the Company or NXDT OP (to the extent it has funded) any amount of such unfunded amount. Upon such payment, the IQHQ Participating Purchaser would become entitled to all interest accrued on the amounts paid to the Company or NXDT OP, if applicable, on and after the date of such payment. Bridge Investor I can allocate all or any portion of the IQHQ Warrant to any parties to the participation rights agreement.
IQHQ Holdings is the sole common stockholder of IQHQ, and the IQHQ Participating Purchasers own common equity in IQHQ Holdings and/or IQHQ, L.P. The Company has an ownership interest in the Series D-1 preferred stock in IQHQ, which is the limited partner in IQHQ, L.P.; however, the Company has no controlling financial interest nor significant influence in IQHQ, L.P.
The loan participation was considered a transfer of the IQHQ Promissory Note and the IQHQ Bridge Warrant and is considered a transfer of the Series E preferred stock of IQHQ, Inc. and the IQHQ Series E Warrant qualified as a sale under ASC 860, Transfers and Servicing, as (1) the transfer legally isolated the transferred assets from the transferor, (2) the transferee has the right to pledge or exchange the transferred assets and no condition both constrains the transferee’s right to pledge or exchange the assets and provides more than a trivial benefit to the transferor, and (3) the transferor does not maintain effective control over the transferred assets. The IQHQ Promissory Note was classified as Loans, held-for-investment, net, the Series E preferred stock of IQHQ, Inc. is classified as preferred stock and the IQHQ Bridge Warrant is classified as Stock warrant investments. The IQHQ Bridge Warrant is accounted for as investments in equity securities under ASC 321, Investments – Equity Securities, and the Company elected to use the measurement alternative to measure the investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any.
As of December 31, 2024, the Company's expected maximum commitment under the IQHQ Subscription Agreement is $150.0 million.
The table below shows the Company's unfunded commitments by investment type as of December 31, 2024 and December 31, 2023 (in thousands):
Investment TypeDecember 31, 2024December 31, 2023
Unfunded Commitments Unfunded Commitments
Loans$64,217 $— 
Preferred Equity7,874 34,966 
Common Equity2,536 6,600 
Preferred Stock150,000 — 
$224,627 $41,566 
v3.25.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We have one reportable segment: NREF. For a description of the types of products and services from which this single reportable segment derives its revenues, see Notes 1 and 2. The accounting policies of the NREF segment are the same as those described in the Summary of Significant Accounting Policies. The chief operating decision maker assesses performance for the NREF segment and decides how to allocate resources based on net income that also is reported on the Consolidated Statements of Operations. The measure of segment assets is reported on the Consolidated Balance Sheets as Total Assets. The chief operating decision maker uses net income to evaluate profitability generated from the segment’s portfolio in deciding whether to reinvest profits into new or existing investments or into other parts of the entity, such as for acquisitions or dividend amounts. The chief operating decision maker manages the business on a consolidated basis, and therefore the Company has identified NREF as the one operating segment and the reportable segment. As of December 31, 2024 the Company’s chief operating decision maker was the VP of Originations and Investments. Subsequent to December 31, 2024, the Company's chief operating decision maker was appointed as Chief Financial Officer, Executive VP-Finance, Assistant Secretary and Treasurer of the Company.

The significant segment expenses are computed in accordance with GAAP and are consistent with the financial information presented in the Consolidated Statements of Operations.
v3.25.1
Subsequent Events
 12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Dividends Declared
The Board declared a dividend to Series B Preferred stockholders of $0.1875 per share on January 15, 2025, paid on March 5, 2025, to Series B Preferred stockholders of record as of February 25, 2025.
The Board declared a dividend to Series B Preferred stockholders of $0.1875 per share on February 19, 2025 to be paid on April 7, 2025, to Series B Preferred stockholders of record as of March 25, 2025.
The Board declared the first regular quarterly dividend of 2025 to common stockholders of $0.50 per share on February 24, 2025, to be paid on March 31, 2025, to common stockholders of record on March 14, 2025.
The Board declared a dividend to Series A Preferred stockholders of $0.53125 per share on February 24, 2025, to be paid on April 25, 2025, to Series A Preferred stockholders of record on April 15, 2025.
Series B Preferred
As of February 28, 2025, since December 31, 2024, the Company has issued an additional 1,151,129 shares of Series B Preferred Stock for net proceeds of $25.9 million.
Alewife Assignment Agreement
On January 2, 2025, OP IV and OSL entered into an Assignment and Assumption and Co-Lender Agreement, pursuant to which OP IV assigned $7.5 million interest in the Alewife Loan to OSL for cash and increased OSL's allocation of the right to fund to up to 10.32% of the Alewife Loan.
IQHQ Series E Funding
On January 2, 2025, the Company funded $10.0 million of the IQHQ Subscription Agreement, and converted $10.0 million of paid in kind interest on the original IQHQ Promissory Note into IQHQ Series E Preferred Stock.
CMBS I/O Strip Purchase
On January 16, 2025, the Company purchased a CMBS I/O strip for $5.9 million.
Series B Preferred Redemptions
On January 15, 2025, January 31, 2025, February 13, 2025, March 3, 2025 and March 17, 2025, the Company redeemed a total of 12,466 shares of the Series B Preferred Stock for $0.3 million, which is the share price of $25.00 per share subject to a redemption fee of 12% or 9% for the March 17, 2025 redemption plus any accrued but unpaid dividends.
NexBank Extension
On February 13, 2025, the Company extended the maturity date of the NexBank loan to April 27, 2026.
v3.25.1
Insider Trading Arrangements
 12 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
The Company’s Board recognizes the critical importance of maintaining the trust and confidence of our customers, clients, business partners and employees. The Board is actively involved in oversight of the Company’s risk management program, and cybersecurity represents an important component of the Company’s overall approach to risk management. Our Manager maintains cybersecurity policies, standards, processes and practices that are based on recognized security frameworks such as the National Institute of Standards and Technology cybersecurity framework (the “NIST CF”) and the Azure Security Benchmark. In general, our Manager seeks to address cybersecurity risks of the Company through a comprehensive, cross-functional approach that is focused on continually assessing the Company’s information systems to detect, prevent and mitigate cybersecurity threats and effectively respond to cybersecurity incidents when they occur.
As one of the critical elements of the Company’s overall risk management, our cybersecurity program is focused on the following key areas:

Governance: The Board’s oversight of cybersecurity risk management is supported by the Audit Committee of the Board (the “Audit Committee”), which interacts with our Manager’s Director of Information Technology and other members of management of our Manager that implement and oversee our Manager’s cybersecurity program.

Risk Assessment: No less frequently than annually, our Manager completes an assessment to identify potential cybersecurity threats and vulnerabilities to better prioritize and mitigate the Company’s cybersecurity risk. The assessment includes, among other things, evaluating the nature, sensitivity and location of information the Company collects, processes and stores and the resiliency of the underlying technologies, the validity and effectiveness of the Company’s security policies, controls and processes and the cybersecurity preparedness of the third-party vendors used by the Company and our Manager. To supplement our Manager’s internal assessment, our Manager also periodically engages third-party consultants to assess system configurations through configuration review and penetration testing.

Technical Safeguards: Our Manager deploys technical safeguards that are designed to protect the Company’s and our Manager’s information systems from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality and access controls, which are evaluated and improved through vulnerability assessments and cybersecurity threat intelligence.

Incident Response and Recovery Planning: Our Manager has established and maintains comprehensive business continuity plans that address potential impacts should the information or technology systems become compromised, and the technological components of such plans are tested and evaluated on a regular basis.

Third-Party Risk Management: Our Manager maintains a comprehensive, risk-based approach to identifying and overseeing cybersecurity risks presented by third parties, including key vendors, service providers and other external
users of the Company’s and the Manager’s systems, as well as the systems of third parties that could adversely impact our business in the event of a cybersecurity incident affecting those third-party systems.
Education and Awareness: Our Manager provides regular, mandatory training for its employees regarding cybersecurity threats as a means to equip its employees with effective tools to address cybersecurity threats, and to communicate our Manager’s evolving information security policies, standards, processes and practices.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
The Company’s Board recognizes the critical importance of maintaining the trust and confidence of our customers, clients, business partners and employees. The Board is actively involved in oversight of the Company’s risk management program, and cybersecurity represents an important component of the Company’s overall approach to risk management. Our Manager maintains cybersecurity policies, standards, processes and practices that are based on recognized security frameworks such as the National Institute of Standards and Technology cybersecurity framework (the “NIST CF”) and the Azure Security Benchmark. In general, our Manager seeks to address cybersecurity risks of the Company through a comprehensive, cross-functional approach that is focused on continually assessing the Company’s information systems to detect, prevent and mitigate cybersecurity threats and effectively respond to cybersecurity incidents when they occur.
As one of the critical elements of the Company’s overall risk management, our cybersecurity program is focused on the following key areas:
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Manager engages in the periodic assessment and testing of our Manager’s policies, standards, processes and practices that are designed to address the Company’s cybersecurity threats and incidents. These efforts include a wide range of activities, including annual penetration and third-party compliance testing and ongoing internal testing and creation and modification of policies and procedures. The results of the annual assessments are reported to the Audit Committee and the Board, and our Manager adjusts its cybersecurity policies, standards, processes and practices as necessary based on the information provided by these assessments and ongoing testing.

The Audit Committee oversees the Company’s risk management policies, including the management of risks arising from cybersecurity threats. The Audit Committee receives presentations and reports on cybersecurity risks, which address a wide range of topics including annual assessments of internal and third-party policies, vulnerability assessments, technological trends and information security considerations arising with respect to the Company and our Manager. The Audit Committee also receives prompt and timely information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been addressed. On an annual basis, the Board and the Audit Committee discuss the Company’s approach to cybersecurity risk management with our Manager, including the Manager’s Director of Information Technology.

The Manager’s Director of Information Technology, in coordination with relevant senior management and personnel of the Manager, which includes our Manager’s Chief Financial Officer, Senior Infrastructure Engineer, and Chief Compliance Officer, work to conceive, implement, and monitor the effectiveness of a program designed to protect the Company’s information systems from cybersecurity threats and to promptly respond to any security incidents in accordance with the Company’s business continuity plan. To ensure the effectiveness of these controls, the Manager’s technology team continually monitors, hardens, and evolves systems’ security postures to model and mirror various security frameworks such as NIST CSF and Azure Security Benchmark. The Manager’s Director of Information Technology will promptly notify our General Counsel of any cybersecurity events, with material cybersecurity events promptly communicated to the Audit Committee and publicly disclosed as deemed necessary.

The Manager’s Director of Information Technology has served in various roles in information technology and information security for 25 years, including serving as Global Technology Manager at a multi-national publicly traded broker-dealer, and 15 years as the Director of Information Technology at a privately held financial services firm. The Manager’s Director of Information Technology holds an undergraduate degree in biochemistry and has attained numerous information technology certifications over the years including Microsoft Certified Systems Engineer (MCSE) and Cisco Certified network Professional (CCNP). The Manager’s Senior Infrastructure Engineer has over 20 years industry experience, holds an undergraduate degree in radiology, and has completed various Microsoft related information technology certifications. Combined, our Manager’s information technology team has over 50 years of experience covering all major aspects of network architecture and management.

Risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected, and we do not believe are reasonably likely to materially affect, us, including our business strategy, results of operations or financial condition. However, the risk of cybersecurity threats could be significant if the cyber-attack disrupts the Company's critical operations, service or financial systems. See Item 1A. “Risk Factors—General Risks—We are highly dependent on information technology and security breaches or systems failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our securities and our ability to pay dividends.”
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee oversees the Company’s risk management policies, including the management of risks arising from cybersecurity threats. The Audit Committee receives presentations and reports on cybersecurity risks, which address a wide range of topics including annual assessments of internal and third-party policies, vulnerability assessments, technological trends and information security considerations arising with respect to the Company and our Manager. The Audit Committee also receives prompt and timely information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been addressed. On an annual basis, the Board and the Audit Committee discuss the Company’s approach to cybersecurity risk management with our Manager, including the Manager’s Director of Information Technology.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee receives presentations and reports on cybersecurity risks, which address a wide range of topics including annual assessments of internal and third-party policies, vulnerability assessments, technological trends and information security considerations arising with respect to the Company and our Manager. The Audit Committee also receives prompt and timely information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been addressed. On an annual basis, the Board and the Audit Committee discuss the Company’s approach to cybersecurity risk management with our Manager, including the Manager’s Director of Information Technology.
Cybersecurity Risk Role of Management [Text Block]
Our Manager engages in the periodic assessment and testing of our Manager’s policies, standards, processes and practices that are designed to address the Company’s cybersecurity threats and incidents. These efforts include a wide range of activities, including annual penetration and third-party compliance testing and ongoing internal testing and creation and modification of policies and procedures. The results of the annual assessments are reported to the Audit Committee and the Board, and our Manager adjusts its cybersecurity policies, standards, processes and practices as necessary based on the information provided by these assessments and ongoing testing.

The Audit Committee oversees the Company’s risk management policies, including the management of risks arising from cybersecurity threats. The Audit Committee receives presentations and reports on cybersecurity risks, which address a wide range of topics including annual assessments of internal and third-party policies, vulnerability assessments, technological trends and information security considerations arising with respect to the Company and our Manager. The Audit Committee also receives prompt and timely information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been addressed. On an annual basis, the Board and the Audit Committee discuss the Company’s approach to cybersecurity risk management with our Manager, including the Manager’s Director of Information Technology.

The Manager’s Director of Information Technology, in coordination with relevant senior management and personnel of the Manager, which includes our Manager’s Chief Financial Officer, Senior Infrastructure Engineer, and Chief Compliance Officer, work to conceive, implement, and monitor the effectiveness of a program designed to protect the Company’s information systems from cybersecurity threats and to promptly respond to any security incidents in accordance with the Company’s business continuity plan. To ensure the effectiveness of these controls, the Manager’s technology team continually monitors, hardens, and evolves systems’ security postures to model and mirror various security frameworks such as NIST CSF and Azure Security Benchmark. The Manager’s Director of Information Technology will promptly notify our General Counsel of any cybersecurity events, with material cybersecurity events promptly communicated to the Audit Committee and publicly disclosed as deemed necessary.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The Audit Committee oversees the Company’s risk management policies, including the management of risks arising from cybersecurity threats. The Audit Committee receives presentations and reports on cybersecurity risks, which address a wide range of topics including annual assessments of internal and third-party policies, vulnerability assessments, technological trends and information security considerations arising with respect to the Company and our Manager. The Audit Committee also receives prompt and timely information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been addressed. On an annual basis, the Board and the Audit Committee discuss the Company’s approach to cybersecurity risk management with our Manager, including the Manager’s Director of Information Technology.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]
The Manager’s Director of Information Technology has served in various roles in information technology and information security for 25 years, including serving as Global Technology Manager at a multi-national publicly traded broker-dealer, and 15 years as the Director of Information Technology at a privately held financial services firm. The Manager’s Director of Information Technology holds an undergraduate degree in biochemistry and has attained numerous information technology certifications over the years including Microsoft Certified Systems Engineer (MCSE) and Cisco Certified network Professional (CCNP). The Manager’s Senior Infrastructure Engineer has over 20 years industry experience, holds an undergraduate degree in radiology, and has completed various Microsoft related information technology certifications. Combined, our Manager’s information technology team has over 50 years of experience covering all major aspects of network architecture and management.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
The Manager’s Director of Information Technology, in coordination with relevant senior management and personnel of the Manager, which includes our Manager’s Chief Financial Officer, Senior Infrastructure Engineer, and Chief Compliance Officer, work to conceive, implement, and monitor the effectiveness of a program designed to protect the Company’s information systems from cybersecurity threats and to promptly respond to any security incidents in accordance with the Company’s business continuity plan. To ensure the effectiveness of these controls, the Manager’s technology team continually monitors, hardens, and evolves systems’ security postures to model and mirror various security frameworks such as NIST CSF and Azure Security Benchmark. The Manager’s Director of Information Technology will promptly notify our General Counsel of any cybersecurity events, with material cybersecurity events promptly communicated to the Audit Committee and publicly disclosed as deemed necessary.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Accounting
Basis of Accounting
The accompanying consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. Other than described below pertaining to the adoption of the new accounting pronouncement, there have been no significant changes to the Company’s significant accounting policies during the year ended December 31, 2024.
The accompanying consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading.
Use of Estimates and Assumptions
Use of Estimates and Assumptions
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that these estimates could change in the near term. Estimates are inherently subjective in nature and actual results could differ from our estimates and the differences could be material.
Principles of Consolidation
Principles of Consolidation
The Company accounts for subsidiary partnerships in which it holds an ownership interest in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has power to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an entity when it controls the entity through ownership of a majority voting interest. As of December 31, 2024, the Company has determined it must consolidate the OP and the Subsidiary OPs under the VIE model as it was determined the Company both controls the direct activities of the OP and Subsidiary OPs and possesses the right to receive benefits that could potentially be significant to the OP and Subsidiary OPs. The consolidated financial statements include the accounts of the Company and its subsidiaries, including the OP and its subsidiaries. The Company’s sole significant asset is its investment in the OP, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the OP.
Variable Interest Entities
Variable Interest Entities
The Company evaluates all of its interests in VIEs for consolidation. When the Company’s interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. FASB ASC Topic 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary, and it consolidates the VIE. Where either one of these factors is not present, the Company is not the primary beneficiary, and it does not consolidate the VIE (see Note 6).
CMBS Trusts
CMBS Trusts
The Company consolidates the trusts that issue beneficial ownership interests in mortgage loans secured by commercial real estate (commonly known as CMBS) when the Company holds a variable interest in, and management considers the Company to be the primary beneficiary of, those trusts. Management believes the performance of the assets that underlie CMBS issuances most significantly impact the economic performance of the trust, and the primary beneficiary is generally the entity that conducts activities that most significantly impact the performance of the underlying
assets. In particular, the most subordinate tranches of CMBS expose the holder to greater variability of economic performance when compared to more senior tranches since the subordinate tranches absorb a disproportionately higher amount of the credit risk related to the underlying assets. Generally, a trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint, remove and replace the special servicer for the trust. For the nine CMBS that the Company consolidates, the Company owns 100% of the most subordinate tranche of seven of the securities and 93.9% and 95.0%, respectively, of the most subordinate tranche of two of the securities issued by the trusts. The subordinate tranche includes the controlling class, and has the ability to remove and replace the special servicer. The portion of the controlling class not owned by the Company is classified as noncontrolling interest in CMBS variable interest entities.
On the Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023, the Company consolidated each of the Freddie Mac K-Series securitization entities (the “CMBS Entities”) that were determined to be VIEs and for which the Company is the primary beneficiary. The CMBS Entities are independent of the Company, and the assets and liabilities of the CMBS Entities are not owned by and are not legal obligations of ours. Our exposure to the CMBS Entities is through the subordinated tranches. For financial reporting purposes, the underlying mortgage loans held by the trusts are recorded as a separate line item on the balance sheet under “Mortgage loans held in variable interest entities, at fair value.” The liabilities of the trusts consist solely of obligations to the CMBS holders of the consolidated trusts, excluding the CMBS B-Piece investments held by the Company. The liabilities are presented as “Bonds payable held in variable interest entities, at fair value” on the Consolidated Balance Sheets. The CMBS B-Pieces held by the Company, and the interest earned thereon are eliminated in consolidation. Management has elected the measurement alternative in ASC 810 to report the fair value of the assets and liabilities of the consolidated CMBS Entities in order to provide users of the financial statements with better information regarding the effects of credit risk and other market factors on the CMBS B-Pieces owned by the Company. Management has elected to show interest income and interest expense related to the CMBS Entities in aggregate with the change in fair value as “Change in net assets related to consolidated CMBS variable interest entities.” The residual difference between the fair value of the CMBS Entities’ assets and liabilities represents the Company’s investments in the CMBS B-Pieces at fair value.
Investment in Subsidiaries
Investment in Subsidiaries
The Company conducts its operations through the OP, which directly or through a subsidiary, acts as the general partner of the Subsidiary OPs. The Subsidiary OPs own investments through limited liability companies that are SPEs which own investments directly. The OP is the sole member of the Mezz LLC, which owns investments directly. The OP has three classes of OP Units: Class A, Class B and Class C. Class A OP Units and Class B OP Units each have 50.0% of the voting power of the OP Units and Class C OP Units have no voting power. Each Class A OP Unit, Class B OP Unit and Class C OP Unit otherwise represents substantially the same economic interest in the OP. The Company is the majority limited partner of the OP in terms of economic interests, holding approximately 83.82% of the OP Units in the OP as of December 31, 2024 which represent 100.00% of the Class A OP Units, and the OP GP must generally receive approval of the Board to take any actions. As such, the Company consolidates the OP. The Company consolidates the SPEs in which it has a controlling financial interest, as well as any VIEs where it is the primary beneficiary. All of the investments the SPEs own are consolidated in the consolidated financial statements. Generally, the assets of each entity can only be used to settle obligations of that particular entity, and the creditors of each entity have no recourse to the assets of other entities or the Company notwithstanding equity pledges various lenders may have in certain entities or guarantees provided by certain entities. As of December 31, 2024, there are no outstanding redeemable noncontrolling interests issued by the Subsidiary OPs.
Redeemable Noncontrolling Interests
Redeemable Noncontrolling Interests
Noncontrolling interests represent the ownership interests in consolidated subsidiaries held by entities other than the Company. Those noncontrolling interests that the holder is allowed to redeem before liquidation or termination of the entity that issued those interests are considered redeemable noncontrolling interests.
The OP and the Subsidiary OPs have issued redeemable noncontrolling interests classified on the Consolidated Balance Sheets as temporary equity in accordance with ASC 480. This is presented as “Redeemable noncontrolling interests in the OP” on the Consolidated Balance Sheets and their share of “Net Income (Loss)” as “Net Income (Loss) attributable to redeemable noncontrolling interests” in the accompanying Consolidated Statements of Operations.
The redeemable noncontrolling interests were initially measured at the fair value of the contributed assets in accordance with ASC 805-50. The redeemable noncontrolling interests will be adjusted to their redemption value if such value exceeds the carrying value of the redeemable noncontrolling interests. Capital contributions, distributions and profits
and losses are allocated to the redeemable noncontrolling interests in accordance with the terms of the partnership agreements of the Subsidiary OPs and the OP.
Cash, Cash Equivalents and Restricted Cash
Cash, Cash Equivalents and Restricted Cash
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value. Substantially all amounts on deposit with major financial institutions exceed insured limits.
From time to time, the Company may have to post cash collateral to satisfy margin calls due to changes in fair value of the underlying collateral subject to master repurchase agreements. This cash is listed as restricted cash on the Consolidated Balance Sheets. Restricted cash is also stated at cost, which approximates fair value.
Mortgage and Other Loans Held-For-Investment, net
Mortgage and Other Loans Held-For-Investment, net
Loans that are held-for-investment are carried at their aggregate outstanding face amount, net of applicable (i) unamortized origination or acquisition premium and discounts, (ii) unamortized deferred fees and other direct loan origination costs, (iii) valuation allowance for credit losses and (iv) write-downs of impaired loans. The effective interest method is used to amortize origination or acquisition premiums and discounts and deferred fees or other direct loan origination costs. In general, an increase in prepayment rates accelerates the amortization of purchase premiums, thereby reducing the interest income earned on the assets. Conversely, discounts on such assets are accreted into interest income. In general, an increase in prepayment rates accelerates the accretion of purchase discounts, thereby increasing the interest income earned on the assets.
Purchase Price Allocation
Purchase Price Allocation
The Company considers the acquisition of real estate investments as asset acquisitions. Upon acquisition of a property, the purchase price and related acquisition costs (“total consideration”) are allocated to land, buildings, improvements, furniture, fixtures, and equipment, and intangible lease assets in accordance with FASB ASC 805, Business Combinations. Acquisition costs are capitalized in accordance with FASB ASC 805.
The allocation of total consideration, which is determined using inputs that are classified within Level 3 of the fair value hierarchy established by FASB ASC 820, Fair Value Measurement and Disclosures (“ASC 820”) (see Note 10), is based on management’s estimate of the property’s “as-if” vacant fair value and is calculated by using all available information such as the replacement cost of such asset, appraisals, property condition reports, market data and other related information. The allocation of the total consideration to intangible lease assets represents the value associated with the in-place leases, which may include lost rent, leasing commissions, legal and other related costs, which the Company, as buyer of the property, did not have to incur to obtain the residents. If any debt is assumed in an acquisition, the difference between the fair value, which is estimated using inputs that are classified within Level 2 of the fair value hierarchy, and the face value of debt is recorded as a premium or discount and amortized as interest expense over the life of the debt assumed.
Operating Real Estate Investments
Real estate assets, including land, buildings, improvements, furniture, fixtures and equipment, and intangible lease assets are stated at historical cost less accumulated depreciation and amortization. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. Expenditures for improvements, renovations, and replacements are capitalized at cost. Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as described in the following table:

LandNot depreciated
Buildings (in years)30
Improvements (in years)15
Furniture, fixtures, and equipment (in years)3
Intangible lease assets (in months)6

Post-acquisition, construction in progress includes the cost of renovation projects being performed at the various properties. Once a project is complete, the historical cost of the renovation is placed into service in one of the categories
above depending on the type of renovation project and is depreciated over the estimated useful lives as described in the table above.
Secured Financing and Master Repurchase Agreements
Secured Financing and Master Repurchase Agreements
The Company's borrowings under secured financing agreements and master repurchase agreements are treated as collateralized financing arrangements carried at their contractual amounts, net of unamortized debt issuance costs, if any.
Income and Revenue Recognition
Income Recognition
Interest Income - Loans and mortgage loans held-for-investment, CMBS structured pass-through certificates, mortgage loans held in variable interest entities, bridge loans, MSCR Notes and mortgage backed securities where the Company expects to collect the contractual interest and principal payments are considered to be performing loans. The Company recognizes income on performing loans in accordance with the terms of the loan on an accrual basis. Interest income also includes amortization of loan premiums or discounts and loan origination costs and prepayment penalties.
Realized Gain (Loss) on Investments - The Company recognizes the excess, or deficiency, of net proceeds received, less the carrying value of such investments, as realized gains or losses, respectively. The Company reverses cumulative, unrealized gains or losses previously reported in its Consolidated Statements of Operations with respect to the investment sold at the time of the sale.
Revenue Recognition
The Company owns two multifamily properties whereby its primary operations consist of rental income earned from its residents under lease agreements typically with terms of one year or less. See Note 8 for additional information regarding these multifamily properties. Rental income is recognized when earned. This policy effectively results in income recognition on the straight-line method over the related terms of the leases. The Company records an allowance to reflect revenue that may not be collectable. This is recorded through a provision for bad debts, which is included in revenues from consolidated real estate owned in the accompanying Consolidated Statements of Operations. Resident reimbursements and other income consist of charges billed to residents for utilities, carport and garage rental, pets and administrative, application and other fees and are recognized when earned.
In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements (“ASU 2018-11”), which provides entities with relief from the costs of implementing certain aspects of ASU 2016-02. ASU 2018-11 provides a practical expedient that allows lessors to not separate lease and non-lease components in a contract and allocate the consideration in the contract to the separate components if both (i) the timing and pattern of revenue recognition for the non-lease component and the related lease component are the same and (ii) the combined single lease component would be classified as an operating lease. The Company elected the practical expedient to account for lease and non-lease components as a single component in lease contracts where the Company is the lessor. The Company implemented the provisions of ASU 2018-11 and 2016-02, collectively Topic 842 Leases (“ASC 842”), effective January 1, 2022. The Company presents the disclosure of leases in the consolidated statements of operations and began presenting all rentals and reimbursements from tenants within revenues and expenses from consolidated real estate owned on the Consolidated Statements of Operations (Note 8)
Expense Recognition
Expense Recognition
Interest expense, in accordance with the Company’s financing agreements, is recorded on the accrual basis. General and administrative expenses are expensed as incurred
Allowance for Credit Losses
Allowance for Credit Losses
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses on Financial Instruments (“ASU 2016-13”), which establishes credit losses on certain types of financial instruments. The new approach changes the impairment model for most financial assets and requires the use of a current expected credit loss ("CECL") model for financial instruments measured at amortized cost and certain other instruments. This model applies to trade and other receivables, loans, debt securities, net investments in leases and off-balance sheet credit exposures (such as loan commitments, standby letters of credit and financial guarantees not accounted for as insurance) and requires entities to estimate the lifetime expected credit loss on such instruments and record an allowance that represents the portion of the amortized cost basis that the entity does not expect to collect.
We adopted ASU 2016-13 as of January 1, 2023. The implementation process included the utilization of loan loss forecasting models, updates to our loan credit loss policy documentation, changes to internal reporting processes and related internal controls, and overall operational readiness for our adoption of the new standard. We have implemented loan loss forecasting models for estimating expected life-time credit losses, at the individual loan level, for our loan portfolio. These models are also utilized for estimating expected life-time credit losses for unfunded loan commitments for which the Company has a present contractual obligation to extend the credit and the obligation is not unconditionally cancellable. The CECL forecasting methods used by the Company include (i) a probability of default and loss given default method using underlying third-party CMBS/Commercial Real Estate loan database with historical loan losses from 1998 to 2024, and (ii) probability weighted expected cash flow method, depending on the type of loan and the availability of relevant historical market loan loss data. We might use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data. Significant inputs to our forecasting methods include (i) key loan-specific inputs such as loan-to-value, vintage year, loan-term, underlying property type, occupancy, geographic location, performance against the underwritten business plan, and our internal loan risk rating, and (ii) a macro-economic environment forecast. The reasonable and supportable forecast period is determined based on the Company’s assessment of the most likely scenario of assumptions and plausible outcomes for the U.S. economy, current portfolio composition, level of historical loss forecast estimates, material changes in growth and credit strategy and other factors that may affect its loss experience. The Company regularly evaluates the reasonable and supportable forecast period to determine if a change is needed. The Company has determined that economic forecasts used in our CECL model can be reasonable and supportable over four quarters as it provides enough time to account for the expected changes of the economic conditions and the performance of the underlying assets. Beyond the Company’s reasonable and supportable forecast period, the Company immediately reverts to historical loss information. The Company considers an immediate reversion period appropriate in the CECL model because it provides a suitable balance between the stability of historical data and the flexibility to account for changing market conditions. The cumulative effect of adoption of ASU 2016-13 as of January 1, 2023 was a $1.6 million reduction in retained earnings. In 2023, charge offs related to the Alexander at the District consolidation were $5.8 million. The beginning allowance for credit loss as of January 1, 2024 was $2.1 million. The reversal of credit losses of $0.7 million for the year ended December 31, 2024 is included in reversal of (provision for) credit losses on the accompanying Consolidated Statements of Operations, resulting in an ending allowance for credit loss of $1.4 million as of December 31, 2024.
Significant judgment is required in determining impairment and in estimating the resulting loss allowance, and actual losses, if any, could materially differ from those estimates.
The Company performs a quarterly review of the portfolio. In conjunction with this review, the Company assesses the risk factors of each loan, including, without limitation, loan-to-value ratio, debt yield, property type, geographic and local market dynamics, physical condition, collateral, cash-flow volatility, leasing and tenant profile, loan structure, exit plan and project sponsorship. Based on a 5-point scale, our loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows:
1 – Outperform – Materially exceeds performance metrics (for example, technical milestones, occupancy, rents and net operating income) included in original or current credit underwriting and business plan;
2 – Exceeds Expectations – Collateral performance exceeds substantially all performance metrics included in original or current credit underwriting and business plan;
3 – Satisfactory – Collateral performance meets, or is on track to meet, underwriting; business plan is met or can reasonably be achieved;
4 – Underperformance – Collateral performance falls short of underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist or may soon occur absent material improvement; and
5 – Risk of Impairment/Default – Collateral performance is significantly worse than underwriting; major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable.
The Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral, as well as the financial and operating capability of the borrower. Specifically, the collateral’s operating results and any cash reserves are analyzed and used to assess (i) whether cash from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan and/or (iii) the collateral’s liquidation value. The Company also evaluates the financial condition of any loan
guarantors, as well as any changes in the borrower’s competency in managing and operating the collateral. In addition, the Company considers the overall economic environment, real estate or industry sector and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as property operating statements, occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan and capitalization and discount rates, (ii) site inspections and (iii) current credit spreads and discussions with market participants.
The Company considers loans to be past-due when a monthly payment is due and unpaid for 60 days or more. Loans will be placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when they become 120 days or more past-due unless the loan is both well secured and in the process of collection. Accrual of interest on individual loans is discontinued when management believes that, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. Our policy is to cease accruing interest when a loan’s delinquency exceeds 120 days. All interest accrued but not collected for loans that are placed on nonaccrual status or subsequently charged-off are reversed against interest income. Income is subsequently recognized on the cash basis until, in management’s judgment, the borrower’s ability to make periodic principal and interest payments returns and future payments are reasonably assured, in which case the loan is returned to accrual status.
A loan is written off when it is no longer realizable and/or it is legally discharged.
The Company also recognizes a liability for expected credit losses for off-balance sheet exposures if the Company has a present contractual obligation to extend the credit and the obligation is not unconditionally cancellable by the Company.
Fair Value, Valuation of Consolidated VIEs, and Valuation Methodologies
Fair Value
GAAP requires the categorization of the fair value of financial instruments into three broad levels that form a hierarchy based on the transparency of inputs to the valuation.

Level 1 – Inputs are adjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 – Inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar instruments in active markets, and inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 – Inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, related market activity for the asset or liability.

The Company follows this hierarchy for our financial instruments. Classifications will be based on the lowest level of input that is significant to the fair value measurement. The Company reviews the valuation of Level 3 financial instruments as part of our quarterly process.
Valuation of Consolidated VIEs
The Company reports the financial assets and liabilities of each consolidated CMBS trust at fair value using the measurement alternative included in ASU No. 2014-13, Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). Pursuant to ASU 2014-13, both the financial assets and financial liabilities of the consolidated CMBS trusts are measured using the fair value of the financial liabilities (which are considered more observable than the fair value of the financial assets) and the equity of the CMBS trusts beneficially owned by the Company. As a result, the CMBS issued by the consolidated trusts, but not beneficially owned by us, are presented as financial liabilities in our consolidated financial statements, measured at their estimated fair value; the Company measured the financial assets as the total estimated fair value of the CMBS issued by the consolidated trust, regardless of whether such CMBS represent interests beneficially owned by the Company. Under the measurement alternative prescribed by ASU 2014-13, “Net income (loss)” reflects the economic interests in the consolidated CMBS beneficially owned by the Company, presented as “Change in net assets related to consolidated CMBS variable interest entities” in the Consolidated Statements of Operations, which includes applicable (1) changes in the fair value of CMBS beneficially owned by the Company, (2) interest income, interest expense and servicing fees earned from the CMBS trusts and (3) other residual returns or losses of the CMBS trusts, if any.
Valuation Methodologies
CMBS Trusts - The financial liabilities and equity of the consolidated CMBS trusts were valued using broker quotes. Broker quotes represent the price that an investment could be sold for in a market transaction and represent fair market value. Loans and bonds with quotes that are based on actual trades with a sufficient level of activity on or near the valuation date are classified as Level 2 assets. Loans and bonds that are priced using quotes derived from implied values, bid/ask prices for trades that were never consummated, or a limited amount of actual trades are classified as Level 3 assets because the inputs used by the brokers and pricing services to derive the values are not readily observable.
CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities - CMBS structured pass-through certificates (“CMBS I/O Strips”), MSCR Notes and mortgage backed securities are categorized as Level 2 assets in the fair value hierarchy. CMBS I/O Strips, MSCR notes and mortgage backed securities are valued using broker quotes. Broker quotes represent the price that an investment could be sold for in a market transaction and represent fair market value. Loans and bonds with quotes that are based on actual trades with a sufficient level of activity on or near the valuation date are classified as Level 2 assets.

Senior Loans, Preferred Equity Investments, Mezzanine Loans, Revolving Credit Facilities and Convertible Notes - Senior loans, which include the SFR Loans, preferred equity, mezzanine loans, revolving credit facilities and convertible debt investments are categorized as Level 3 assets in the fair value hierarchy. Senior loans, which include the SFR Loans, preferred equity, mezzanine loans, revolving credit facilities and convertible debt investments are valued using a discounted cash flow model using discount rates derived from observable market data applied to the internal rate of return implied by the expected contractual cash flows. The valuation is done for disclosure purposes only as these investments are not carried at fair value on the consolidated balance sheet.

Common Stock Investments - The common stock investment in NexPoint Storage Partners, Inc. ("NSP") is categorized as a Level 3 asset in the fair value hierarchy. Despite our ability to exercise significant influence, the Company chose to value the NSP investment using the fair value option in accordance with ASC 825-10. The common stock investment in a private ground lease REIT (the "Private REIT") is presented at fair value using the fair value option in accordance with ASC 825-10. The investment is categorized as a Level 3 asset in the fair value hierarchy. See Note 5 for additional disclosures regarding the fair value of these investments.

Repurchase Agreements - The repurchase agreements are categorized as Level 3 liabilities in the fair value hierarchy as such liabilities represent borrowings on collateral with terms specific to each borrower. Given the short to moderate term of the floating-rate facilities, the Company expects the fair value of repurchase agreements to approximate their outstanding principal balances.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis - Certain assets not measured at fair value on an ongoing basis but that are subject to fair-value adjustments only in certain circumstances, such as when there is evidence of impairment, will be measured at fair value on a nonrecurring basis. For first mortgage loans, mezzanine loans and preferred equity investments, the Company applies the amortized cost method of accounting.

Overall, our determination of fair value is based upon the best information available for a given circumstance and may incorporate assumptions that are our best estimates after consideration of a variety of internal and external factors. When an independent valuation firm expresses an opinion on the fair value of a financial instrument in the form of a range, the Company selects a value within the range provided by the independent valuation firm, generally the midpoint, to assess the reasonableness of our estimated fair value for that financial instrument.
Income Taxes
Income Taxes
The Company has elected to be taxed as a REIT. As a result of the Company’s REIT qualification, the Company does not expect to pay U.S. federal corporate level taxes. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement to distribute annually at least 90% of its “REIT taxable income,” as defined by the Code, to its stockholders. If the Company fails to meet these requirements, it could be subject to federal income tax on all of the Company’s taxable income at regular corporate rates for that year. The Company would not be able to deduct distributions paid to stockholders in any year in which it fails to qualify as a REIT. Additionally, the Company will also be disqualified from electing to be taxed as a REIT for the four taxable years following the year during which qualification was lost unless the Company is entitled to relief under specific statutory provisions. Taxable income from certain non-REIT activities is managed through a taxable REIT subsidiary (“TRS”), which is subject to U.S. federal and applicable state and local corporate income taxes. As of December 31, 2024, the Company believes it is in compliance with all applicable REIT requirements and had no significant taxes associated with its TRS.
The Company evaluates the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” (greater than 50 percent probability) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Our management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. There are no examinations in progress and none are expected at this time.
The Company recognizes its tax positions and evaluates them using a two-step process. First, the Company determines whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. The Company had no material unrecognized tax benefit or expense, accrued interest or penalties as of December 31, 2024.
Segment Reporting
Segment Reporting
We adopted ASU 2023-07, Segment Reporting – Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires a public entity to disclose significant segment expenses and other segment items in interim and annual periods and expands the GAAP disclosure requirements for interim periods. The ASU 2023-07 also explicitly requires public entities with a single reportable segment to provide all segment disclosures under GAAP. The Company identifies and discloses its reporting segment(s) in accordance with ASC 280, Segment Reporting. In applying this guidance, the Company first identifies its operating segment(s) from the component(s) where: (1) it engages in business activities from which it may recognize revenue and incur expenses, (2) its operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and (3) its discrete financial information is available. Reportable segments are generally those operating segments that meet certain quantitative thresholds. The Company has determined it has one reportable segment: NREF.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
Section 107 of the Jumpstart Our Business Startups Act (“JOBS Act”) provides that an emerging growth company can take advantage of the extended transition period provided in Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for complying with new or revised accounting standards applicable to public companies. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of this extended transition period. As a result of this election, our consolidated financial statements may not be comparable to companies that comply with public company effective dates for such new or revised standards. The Company may elect to comply with public company effective dates at any time, and such election would be irrevocable pursuant to Section 107(b) of the JOBS Act.
In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06"), which simplifies an issuer’s accounting for convertible instruments and its application of the derivatives scope exception for contracts in its own equity. The amendment also requires entities to use the if-converted method for all convertible instruments in the diluted EPS calculation and include the effect of potential share settlement (if the effect is more dilutive) for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. In addition, the amendment requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. We adopted ASU 2020-06 as of January 1, 2024 using a modified retrospective method. ASU 2020-06 had no material impact upon adoption.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (“ASU 2024-03”). ASU 2024-03 requires disclosures of disaggregated information about certain income statement expense line items on an annual and interim basis. The amendments are effective for fiscal years beginning after December 15, 2026, with early adoption permitted, and should be applied prospectively, with the option to apply retrospectively. The Company is currently evaluating the impact of adopting the amendments on its disclosures.
v3.25.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Property, Plant, and Equipment, Estimated Useful Life Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as described in the following table:
LandNot depreciated
Buildings (in years)30
Improvements (in years)15
Furniture, fixtures, and equipment (in years)3
Intangible lease assets (in months)6
v3.25.1
Loans Held for Investment, Net (Tables)
 12 Months Ended
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable The following tables summarize our loans held-for-investment as of December 31, 2024 and December 31, 2023, respectively (dollars in thousands):
Loan TypeOutstanding Face AmountCarrying Value (1)Loan CountWeighted Average
 Fixed Rate (2) Coupon (3)Life (years) (4)
December 31, 2024
Mortgage loans, held-for-investment$260,901 $263,395 1046.23 %9.99 %2.41
Mezzanine loans, held-for-investment133,207 134,870 2278.31 %9.41 %4.35
Preferred equity, held-for-investment224,423 223,653 1642.43 %11.92 %2.27
Promissory notes, held-for-investment4,000 3,992 2100.00 %14.69 %0.49
Revolving credit facility, held-for-investment148,600 135,029 1100.00 %13.50 %3.00
$771,131 $760,939 5161.31 %11.15 %2.81
Loan TypeOutstanding Face AmountCarrying Value (1)Loan Count Weighted Average
 Fixed Rate (2)Coupon (3)Life (years) (4)
December 31, 2023
Mortgage loans, held-for-investment$645,277 $676,420 11100.00 %4.79 %4.49
Mezzanine loans, held-for-investment133,207 135,069 2278.31 %9.61 %5.36
Preferred equity, held-for-investment195,392 193,391 1539.12 %12.20 %2.22
$973,876 $1,004,880 4884.82 %6.94 %4.15
(1)Carrying value includes the outstanding face amount plus unamortized purchase premiums/discounts and any allowance for loan losses.
(2)The weighted-average of loans paying a fixed rate is weighted on current principal balance.
(3)The weighted-average coupon is weighted on outstanding face amount.
(4)The weighted-average life is weighted on outstanding face amount and assumes no prepayments. The maturity date for preferred equity investments represents the maturity date of the senior mortgage, as the preferred equity investments require repayment upon the sale or refinancing of the asset.
Schedule of Loan and Preferred Equity Portfolio Activity
For the years ended December 31, 2024 and 2023, the loans held for investment, net and preferred equity portfolio activity was as follows (in thousands):
For the Year Ended December 31,
20242023
Balances, January 1,$1,004,880 $982,678 
Recognition of retained preferred equity investment upon deconsolidation of real estate (Note 14)— 36,022 
Cumulative effect of adoption of ASU 2016-13 (See Note 2)— (1,624)
Originations306,980 92,701 
Proceeds from principal repayments(555,485)(97,259)
Decrease in loans, held for investment, net on consolidation of real estate— (9,685)
PIK distribution reinvested in Preferred Units14,486 8,990 
Amortization of loan premium, net (1)(10,645)(7,146)
(Provision for) reversal of credit losses723 (4,299)
Reversal of specific reserve of credit losses— 4,502 
Balance as of December 31,$760,939 $1,004,880 
(1)Includes net amortization of loan purchase premiums.
Financing Receivable Credit Quality Indicators The following tables allocate the principal balance and net book value of the loan portfolio based on our internal risk ratings (dollars in thousands):
Risk RatingDecember 31, 2024
Number of LoansCarrying Value% of Loan Portfolio
1—$— — 
2—— — 
349739,960 97.24 %
4220,979 2.76 %
5—— — %
51$760,939 100.00 %
Risk RatingDecember 31, 2023
Number of
Loans		Carrying
Value		% of Loan
Portfolio
1—$— — 
2—— — 
346992,751 98.79 %
4212,129 1.21 %
5—— — 
48$1,004,880 100.00 %
The following tables present the carrying value of the loan portfolio by the Company's internal risk rating and year of origination as of December 31, 2024 and 2023 (dollars in thousands):
December 31, 2024
Carrying Value by Year of Origination (1)
Risk RatingNumber of
Loans		Outstanding Face Amount20242023202220212020PriorTotal Carrying Value
1—$— $— $— $— $— $— $— $— 
2—— — — — — — — — 
349750,031 284,958 94,446 74,658 38,067 19,812 228,019 739,960 
4221,100 — — 8,479 12,500 — — 20,979 
5—— — — — — — — — 
51$771,131 $284,958 $94,446 $83,137 $50,567 $19,812 $228,019 $760,939 
December 31, 2023
Carrying Value by Year of Origination (1)
Risk RatingNumber of
Loans		Outstanding Face Amount20232022202120202019PriorTotal Carrying Value
1—$— $— $— $— $— $— $— $— 
2—— — — — — — — — 
346961,756 82,879 69,958 40,981 19,158 759,828 19,947 992,751 
4212,120 — 12,129 — — — — 12,129 
5—— — — — — — — — 
48$973,876 $82,879 $82,087 $40,981 $19,158 $759,828 $19,947 $1,004,880 
(1)Represents the date a loan was originated or acquired.
Schedule of Loans Held for Investment as a Percentage of Face Amount by Geographic Areas
The following tables present the geographies and property types of collateral underlying the Company’s loans held-for-investment as a percentage of the loans’ face amounts.
GeographyDecember 31, 2024December 31, 2023
Massachusetts22.68 %*
Texas16.39 %13.87 %
Georgia8.68 %30.50 %
Maryland8.61 %5.47 %
California8.55 %4.92 %
Virginia5.15 %*
Florida5.15 %18.40 %
Minnesota*7.31 %
Other (21 and 23 states each at <4%)24.79 %19.53 %
100.00 %100.00 %
*Included in “Other.”
Collateral Property TypeDecember 31, 2024December 31, 2023
Life Science34.98 %6.33 %
Multifamily34.57 %21.99 %
Single Family Rental26.57 %69.93 %
Self-Storage2.73 %1.75 %
Marina1.15 %— %
100.00 %100.00 %
v3.25.1
CMBS Trusts (Tables)
 12 Months Ended
Dec. 31, 2024
Mortgage Banking [Abstract]  
Schedule of Recognized Trusts Assets and Liabilities
The following table presents the Company’s recognized Trust’s Assets and Liabilities (in thousands):
Trust's AssetsDecember 31, 2024December 31, 2023
Mortgage loans held in variable interest entities, at fair value$4,343,359 $5,677,763 
Accrued interest receivable3,877 3,902 
Trust's Liabilities
Bonds payable held in variable interest entities, at fair value(4,029,214)(5,289,997)
Accrued interest payable(3,212)(3,220)
Schedule of Change in Net Assets Related to Consolidated CMBS Variable Interest Entities
The following table presents “Change in net assets related to consolidated CMBS variable interest entities” (in thousands):
For the Year Ended December 31,
202420232022
Net interest earned$33,327 $27,035 $35,523 
Realized gain10,548 13,592 344 
Unrealized loss(7,206)(2,414)(25,627)
Change in net assets related to consolidated CMBS variable interest entities$36,669 $38,213 $10,240 
Summary Of Loan Collateral Unpaid Balance
The following tables present the geographies and property types of collateral underlying the CMBS trusts consolidated by the Company as a percentage of the collateral unpaid principal balance:
GeographyDecember 31, 2024December 31, 2023
Texas16.54 %15.85 %
Colorado10.99 %7.74 %
California9.26 %8.69 %
Washington9.24 %7.75 %
Florida7.65 %14.07 %
Georgia5.16 %4.00 %
New York4.87 %*
North Carolina4.74 %4.17 %
Arizona3.15 %4.05 %
New Jersey*4.02 %
Other (33 and 32 states each at <4%)28.40 %29.66 %
100.00 %100.00 %
*Included in “Other.”
Collateral Property TypeDecember 31, 2024December 31, 2023
Multifamily99.57 %97.45 %
Manufactured Housing0.43 %2.55 %
100.00 %100.00 %
v3.25.1
Common and Preferred Stock Investments (Tables)
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Debt Securities, Trading, and Equity Securities, FV-NI
The following table presents the common stock investments as of December 31, 2024 and 2023, respectively (in thousands, except share amounts):
InvestmentInvestment DateProperty TypeSharesFair Value
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Common Stock
NexPoint Storage Partners11/6/2020Self-storage41,96341,963$30,467 $33,129 
Private REIT4/14/2022Ground lease1,394,2131,394,21326,922 28,400 
The following table presents the CMBS I/O Strips as of December 31, 2024 (dollars in thousands):
InvestmentInvestment DateCarrying ValueProperty TypeInterest RateCurrent Yield (1)Maturity Date
CMBS I/O Strips
CMBS I/O Strip5/18/2020$1,395 Multifamily2.02 %16.62 %1/25/2030
CMBS I/O Strip8/6/202014,188 Multifamily2.98 %20.73 %6/25/2030
CMBS I/O Strip4/28/20214,175 Multifamily1.59 %20.52 %1/25/2030
CMBS I/O Strip5/27/20212,972 Multifamily3.38 %20.56 %5/25/2030
CMBS I/O Strip6/7/2021330 Multifamily2.31 %27.43 %11/25/2028
CMBS I/O Strip6/11/20211,581 Multifamily0.61 %9.13 %5/25/2029
CMBS I/O Strip6/21/20211,001 Multifamily1.15 %19.71 %5/25/2030
CMBS I/O Strip8/10/20211,925 Multifamily1.89 %20.89 %4/25/2030
CMBS I/O Strip8/11/20211,104 Multifamily3.10 %17.20 %7/25/2031
CMBS I/O Strip8/24/2021199 Multifamily2.61 %18.42 %1/25/2031
CMBS I/O Strip9/1/20212,947 Multifamily1.92 %19.72 %6/25/2030
CMBS I/O Strip9/11/20213,162 Multifamily2.95 %17.01 %9/25/2031
Total$34,979 2.49 %19.50 %
(1)Current yield is the annualized income earned divided by the cost basis of the investment.
The following table presents the CMBS I/O Strips, MSCR Notes and Mortgage Backed Securities as of December 31, 2023 (dollars in thousands):
InvestmentInvestment
Date		Carrying ValueProperty TypeInterest RateCurrent Yield (1)Maturity Date
CMBS I/O Strips
CMBS I/O Strip5/18/2020$1,622 Multifamily2.02 %14.64 %1/25/2030
CMBS I/O Strip8/6/202016,601 Multifamily2.98 %17.98 %6/25/2030
CMBS I/O Strip4/28/20215,022 Multifamily1.59 %17.68 %1/25/2030
CMBS I/O Strip5/27/20213,436 Multifamily3.39 %17.79 %5/25/2030
CMBS I/O Strip6/7/2021395 Multifamily2.31 %22.31 %11/25/2028
CMBS I/O Strip6/11/20212,643 Multifamily1.18 %14.57 %5/25/2029
CMBS I/O Strip6/21/2021833 Multifamily1.17 %18.07 %5/25/2030
CMBS I/O Strip8/10/20212,255 Multifamily1.89 %17.98 %4/25/2030
CMBS I/O Strip8/11/20211,241 Multifamily3.10 %15.24 %7/25/2031
CMBS I/O Strip8/24/2021229 Multifamily2.61 %16.15 %1/25/2031
CMBS I/O Strip9/1/20213,390 Multifamily1.92 %17.01 %6/25/2030
CMBS I/O Strip9/11/20213,545 Multifamily2.95 %15.14 %9/25/2031
Total$41,212 2.50 %17.21 %
MSCR Notes
MSCR Notes5/25/2022$4,020 Multifamily14.83 %14.83 %5/25/2052
MSCR Notes5/25/20225,000 Multifamily11.83 %11.83 %5/25/2052
MSCR Notes9/23/20221,358 Multifamily12.18 %13.38 %11/25/2051
Total$10,378 13.04 %13.20 %
Mortgage Backed Securities
Mortgage Backed Securities6/1/2022$9,924 Single-Family8.64 %8.91 %4/17/2026
Mortgage Backed Securities6/1/20229,369 Single-Family4.87 %5.01 %11/19/2025
Mortgage Backed Securities7/28/2022538 Single-Family6.23 %6.31 %10/17/2027
Mortgage Backed Securities7/28/2022856 Single-Family3.60 %4.12 %6/20/2028
Mortgage Backed Securities9/12/20223,881 Multifamily11.57 %11.55 %1/25/2031
Mortgage Backed Securities9/29/20227,960 Self Storage11.10 %11.12 %9/15/2027
Mortgage Backed Securities3/10/20235,742 Multifamily13.93 %13.95 %2/25/2025
Total$38,270 9.17 %9.30 %
(1)Current yield is the annualized income earned divided by the cost basis of the investment.
Schedule of Investment
The following table presents “Change in unrealized gain (loss) on common stock investments” (in thousands):
For the Year Ended December 31,
202420232022
Change in unrealized gain (loss) on NexPoint Storage Partners$(2,662)$(17,251)$(8,080)
Change in unrealized gain (loss) on Private REIT(1,478)515 2,884 
Change in unrealized gain (loss) on common stock investments$(4,140)$(16,736)$(5,196)
v3.25.1
Unconsolidated Variable Interest Entities (Tables)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Variable Interest Entities
As of December 31, 2024 and 2023, the Company has accounted for the following investments as unconsolidated VIEs:
EntitiesInstrumentAsset TypeAccounting Treatment
Percentage Ownership as of December 31, 2024
Relationship as of December 31, 2024
Percentage Ownership as of December 31, 2023
Relationship as of December 31, 2023
Unconsolidated Entities:
NexPoint Storage Partners, Inc.Common StockSelf-storageFair Value25.7 %VIE25.7 %VIE
Resmark Forney Gateway Holdings, LLCCommon EquityMultifamilyEquity Method98.0 %VIE98.0 %VIE
Resmark The Brook Holdings, LLCCommon EquityMultifamilyEquity Method98.0 %VIE98.0 %VIE
Private REITCommon StockGround leaseFair Value6.3 %VIE6.4 %VIE
SK ApartmentsCommon EquityMultifamilyEquity Method12.3 %VIEN/AN/A
Capital Acquisitions Partners, LLCMembership InterestsMultifamilyEquity Method79.1 %VIEN/AN/A
v3.25.1
CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities (Tables)
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Debt Securities, Trading, and Equity Securities, FV-NI
The following table presents the common stock investments as of December 31, 2024 and 2023, respectively (in thousands, except share amounts):
InvestmentInvestment DateProperty TypeSharesFair Value
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Common Stock
NexPoint Storage Partners11/6/2020Self-storage41,96341,963$30,467 $33,129 
Private REIT4/14/2022Ground lease1,394,2131,394,21326,922 28,400 
The following table presents the CMBS I/O Strips as of December 31, 2024 (dollars in thousands):
InvestmentInvestment DateCarrying ValueProperty TypeInterest RateCurrent Yield (1)Maturity Date
CMBS I/O Strips
CMBS I/O Strip5/18/2020$1,395 Multifamily2.02 %16.62 %1/25/2030
CMBS I/O Strip8/6/202014,188 Multifamily2.98 %20.73 %6/25/2030
CMBS I/O Strip4/28/20214,175 Multifamily1.59 %20.52 %1/25/2030
CMBS I/O Strip5/27/20212,972 Multifamily3.38 %20.56 %5/25/2030
CMBS I/O Strip6/7/2021330 Multifamily2.31 %27.43 %11/25/2028
CMBS I/O Strip6/11/20211,581 Multifamily0.61 %9.13 %5/25/2029
CMBS I/O Strip6/21/20211,001 Multifamily1.15 %19.71 %5/25/2030
CMBS I/O Strip8/10/20211,925 Multifamily1.89 %20.89 %4/25/2030
CMBS I/O Strip8/11/20211,104 Multifamily3.10 %17.20 %7/25/2031
CMBS I/O Strip8/24/2021199 Multifamily2.61 %18.42 %1/25/2031
CMBS I/O Strip9/1/20212,947 Multifamily1.92 %19.72 %6/25/2030
CMBS I/O Strip9/11/20213,162 Multifamily2.95 %17.01 %9/25/2031
Total$34,979 2.49 %19.50 %
(1)Current yield is the annualized income earned divided by the cost basis of the investment.
The following table presents the CMBS I/O Strips, MSCR Notes and Mortgage Backed Securities as of December 31, 2023 (dollars in thousands):
InvestmentInvestment
Date		Carrying ValueProperty TypeInterest RateCurrent Yield (1)Maturity Date
CMBS I/O Strips
CMBS I/O Strip5/18/2020$1,622 Multifamily2.02 %14.64 %1/25/2030
CMBS I/O Strip8/6/202016,601 Multifamily2.98 %17.98 %6/25/2030
CMBS I/O Strip4/28/20215,022 Multifamily1.59 %17.68 %1/25/2030
CMBS I/O Strip5/27/20213,436 Multifamily3.39 %17.79 %5/25/2030
CMBS I/O Strip6/7/2021395 Multifamily2.31 %22.31 %11/25/2028
CMBS I/O Strip6/11/20212,643 Multifamily1.18 %14.57 %5/25/2029
CMBS I/O Strip6/21/2021833 Multifamily1.17 %18.07 %5/25/2030
CMBS I/O Strip8/10/20212,255 Multifamily1.89 %17.98 %4/25/2030
CMBS I/O Strip8/11/20211,241 Multifamily3.10 %15.24 %7/25/2031
CMBS I/O Strip8/24/2021229 Multifamily2.61 %16.15 %1/25/2031
CMBS I/O Strip9/1/20213,390 Multifamily1.92 %17.01 %6/25/2030
CMBS I/O Strip9/11/20213,545 Multifamily2.95 %15.14 %9/25/2031
Total$41,212 2.50 %17.21 %
MSCR Notes
MSCR Notes5/25/2022$4,020 Multifamily14.83 %14.83 %5/25/2052
MSCR Notes5/25/20225,000 Multifamily11.83 %11.83 %5/25/2052
MSCR Notes9/23/20221,358 Multifamily12.18 %13.38 %11/25/2051
Total$10,378 13.04 %13.20 %
Mortgage Backed Securities
Mortgage Backed Securities6/1/2022$9,924 Single-Family8.64 %8.91 %4/17/2026
Mortgage Backed Securities6/1/20229,369 Single-Family4.87 %5.01 %11/19/2025
Mortgage Backed Securities7/28/2022538 Single-Family6.23 %6.31 %10/17/2027
Mortgage Backed Securities7/28/2022856 Single-Family3.60 %4.12 %6/20/2028
Mortgage Backed Securities9/12/20223,881 Multifamily11.57 %11.55 %1/25/2031
Mortgage Backed Securities9/29/20227,960 Self Storage11.10 %11.12 %9/15/2027
Mortgage Backed Securities3/10/20235,742 Multifamily13.93 %13.95 %2/25/2025
Total$38,270 9.17 %9.30 %
(1)Current yield is the annualized income earned divided by the cost basis of the investment.
Schedule of Activity Related to Commercial Mortgage Backed Securities [Table Text Block]
The following table presents activity related to the Company’s CMBS I/O Strips, MSCR Notes and mortgage backed securities (in thousands):
For the Year Ended December 31,
202420232022
Net interest earned$284 $2,905 $5,668 
Change in unrealized gain (loss) on CMBS structured pass-through certificates1,925 1,533 (12,664)
Change in unrealized gain (loss) on MSCR Notes(13)65 (53)
Change in unrealized gain (loss) on mortgage backed securities763 467 (1,230)
Total$2,959 $4,970 $(8,279)
v3.25.1
Real Estate Investments, net (Tables)
 12 Months Ended
Dec. 31, 2024
Real Estate Investments, Net [Abstract]  
Schedule of Real Estate Properties
As of December 31, 2024, the components of the Company's investments in multifamily properties were as follows (in thousands):
Real Estate Investments, NetLandBuildings and
Improvements		Intangible Lease
Assets		Construction in ProgressFurniture,
Fixtures and
Equipment		Totals
Hudson Montford$10,996 $50,204 $— $— $1,018 $62,218 
Alexander at the District7,806 59,331 — 2 1,229 68,368 
Accumulated depreciation and amortization— (7,662)— — (1,088)(8,750)
Total Real Estate Investments, Net$18,802 $101,873 $— $2 $1,159 $121,836 
As of December 31, 2023, the components of the Company's investments in multifamily properties were as follows (in thousands):
Real Estate Investments, NetLandBuildings and
Improvements		Intangible Lease
Assets		Construction in ProgressFurniture,
Fixtures and
Equipment		Totals
Hudson Montford$10,996 $49,912 $— $401 $691 $62,000 
Alexander at the District7,806 59,162 1,271 — 716 68,955 
Accumulated depreciation and amortization— (3,948)— — (456)(4,404)
Total Real Estate Investments, Net$18,802 $105,126 $1,271 $401 $951 $126,551 
Schedule of Real Estate Investment Financial Statements, Disclosure
The following table reflects the revenue and expenses for the years ended December 31, 2024, 2023, and 2022, for our multifamily properties (in thousands).
For the Year Ended December 31,
202420232022
Revenues
Rental income$8,715 $4,962 $11,116 
Other income149 182 1,286 
Total revenues8,864 5,144 12,402 
Expenses
Interest expense8,219 3,984 4,183 
Real estate taxes and insurance1,325 862 1,493 
Property operating expenses2,415 1,145 2,548 
Property general and administrative expenses466 257 366 
Property management fees260 158 301 
Depreciation and amortization5,613 2,465 2,895 
Rate cap (income) expense80 (2,045)(1,014)
Debt service bridge— — 626 
Casualty (gain) loss(1)(148)— 
Total expenses18,377 6,678 11,398 
Net income (loss) from consolidated real estate owned$(9,513)$(1,534)$1,004 
v3.25.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt Instruments
The following table summarizes the Company’s financing arrangements in place as of December 31, 2024 (dollars in thousands):
 December 31, 2024
 FacilityCollateral
 Date issuedOutstanding
face amount		Carrying
value		Final stated
maturity		Weighted
average
interest
rate (1)		Weighted
average
life (years)
(2)		Outstanding
face amount		Amortized cost basisCarrying
value (3)		Weighted
average
life (years)
(2)
Master Repurchase Agreements
CMBS
Mizuho(4)4/15/2020$243,454 $243,454 N/A(5)6.49 %0.0$740,022 $360,427 $350,379 4.7
Asset Specific Financing
Single Family Rental loans
Freddie Mac7/12/2019110,097 110,097 7/12/20292.70 %2.8120,618 124,071 124,071 2.8
Mezzanine loans
Freddie Mac10/20/202059,252 59,253 8/1/20310.30 %5.396,817 98,597 98,597 5.3
Multifamily properties
CBRE12/31/202132,480 31,964 6/1/2028(6)8.06 %3.4N/A56,348 56,348 3.4
Argentic10/10/202363,500 63,500 11/6/2025(7)8.59 %0.8N/A65,488 65,488 0.8
Common stock investment
NexBank, SSB4/29/202410,0009,8694/28/20258.78 %0.3N/AN/A26,922 N/A
Promissory note
Raymond James5/20/202457,52056,5505/20/2025(8)10.55 %0.4140,283 139,324 139,324 2.1
Unsecured Financing
Various10/15/202036,500 36,205 10/25/20257.50 %0.8N/AN/AN/AN/A
Various4/20/2021180,000 178,296 5/1/20265.75 %1.3N/AN/AN/AN/A
NFRO REIT Sub, LLC10/18/20226,500 6,500 10/18/20277.50 %2.8N/AN/AN/AN/A
Total/weighted average$799,303 $795,688 5.95 %1.4$1,097,740 $844,255 $861,129 4.2
(1)Weighted-average interest rate using unpaid principal balances.
(2)Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower.
(3)CMBS are shown at fair value on an unconsolidated basis. SFR Loans and mezzanine loans are shown at amortized cost.
(4)On April 15, 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho Securities ("Mizuho"). Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces and CMBS I/O Strips.
(5)The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly.
(6)Debt was assumed upon acquisition of this property and recorded at the outstanding principal amount, net of debt issuance costs. The loan can be prepaid at a 1.0% prepayment premium on any unpaid principal. The loan is open to pre-payment in the last three months of the term.
(7)Debt was assumed upon consolidation of this property and recorded at the outstanding principal amount. The loan was extended on November 6, 2024 for one year.
(8)Debt was extended from the original loan maturity of November 20, 2024 to May 20, 2025.
The following table summarizes the Company’s financing arrangements in place as of December 31, 2023 (dollars in thousands):
December 31, 2023
FacilityCollateral
Date issuedOutstanding
face amount		Carrying valueFinal stated
maturity		Weighted
average interest
rate (1)		Weighted
average life
(years) (2)		Outstanding
face amount		Amortized cost
basis		Carrying value
(3)		Weighted
average life
(years) (2)
Master Repurchase Agreements
CMBS
Mizuho(4)4/15/2020$303,514 $303,514 N/A(5)7.26 %0.0$931,296 $470,761 $464,888 6.4
Asset Specific Financing
Single Family Rental loans
Freddie Mac7/12/2019590,306 590,306 7/12/20292.34 %4.5645,277 676,420 676,420 4.5
Mezzanine loans
Freddie Mac10/20/202059,252 59,252 8/1/20310.30 %6.396,817 98,839 98,839 6.3
Multifamily properties
CBRE12/31/202132,366 32,157 6/1/2028(6)8.05 %4.4N/A64,697 64,697 4.4
Various10/10/202363,500 63,500 11/6/2024(7)8.84 %0.9N/A61,854 61,854 0.9
Unsecured Financing
Various10/15/202036,500 35,852 10/25/20257.50 %1.8N/AN/AN/AN/A
Various4/20/2021180,000 177,131 5/1/20265.75 %2.3N/AN/AN/AN/A
Various10/18/20226,500 6,500 10/18/20277.50 %3.8N/AN/AN/AN/A
Total/weighted average$1,271,938 $1,268,212 4.55 %2.9$676,420 $1,372,571 $1,366,698 5.6
(1)Weighted-average interest rate using unpaid principal balances.
(2)Weighted-average life is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower.
(3)CMBS are shown at fair value on an unconsolidated basis. SFR Loans and mezzanine loans are shown at amortized cost.
(4)On April 15, 2020, three of our subsidiaries entered into a master repurchase agreement with Mizuho. Borrowings under these repurchase agreements are collateralized by portions of the CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities.
(5)The master repurchase agreement with Mizuho does not have a stated maturity date. The transactions in place have a one-month to two-month tenor and are expected to roll accordingly.
(6)Debt was assumed upon acquisition of this property and recorded at the outstanding principal amount, net of debt issuance costs. The loan can be prepaid at a 1.0% prepayment premium on any unpaid principal. The loan is open to pre-payment in the last three months of the term.
(7)Debt was assumed upon consolidation of this property and recorded at the outstanding principal amount.
Schedule of Debt
As of December 31, 2024, the outstanding principal balances related to the levered senior and mezzanine loans consisted of the following (dollars in thousands):
InvestmentInvestment DateOutstanding Principal Balance (1)LocationProperty TypeInterest TypeInterest RateMaturity Date
Senior Loans
Senior loan2/11/2020$28,564 VariousSingle-familyFixed2.14 %10/1/2025
Senior loan2/11/202033,171 VariousSingle-familyFixed2.70 %11/1/2028
Senior loan2/11/20209,284 VariousSingle-familyFixed2.45 %3/1/2026
Senior loan2/11/20207,107 VariousSingle-familyFixed3.51 %2/1/2028
Senior loan2/11/20208,657 VariousSingle-familyFixed3.30 %10/1/2028
Senior loan2/11/20207,748 VariousSingle-familyFixed3.14 %1/1/2029
Senior loan2/11/20205,745 VariousSingle-familyFixed2.99 %3/1/2029
Senior loan2/11/20205,102 VariousSingle-familyFixed3.14 %12/1/2028
Senior loan2/11/20204,719 VariousSingle-familyFixed2.64 %10/1/2028
Senior loan1/26/2024140,283 Cambridge, MALife sciencesFloating14.00 %2/9/2027
Total$250,380 9.03 %
Mezzanine Loans
Mezzanine loan10/20/2020$8,723 Wilmington, DEMultifamilyFixed0.30 %6/1/2029
Mezzanine loan10/20/20207,344 White Marsh, MDMultifamilyFixed0.30 %4/1/2031
Mezzanine loan10/20/20206,353 Philadelphia, PAMultifamilyFixed0.30 %7/1/2031
Mezzanine loan10/20/20205,881 Daytona Beach, FLMultifamilyFixed0.30 %7/1/2031
Mezzanine loan10/20/20204,523 Laurel, MDMultifamilyFixed0.30 %7/1/2031
Mezzanine loan10/20/20204,179 Temple Hills, MDMultifamilyFixed0.30 %1/1/2029
Mezzanine loan10/20/20203,390 Temple Hills, MDMultifamilyFixed0.30 %5/1/2029
Mezzanine loan10/20/20203,348 Lakewood, NJMultifamilyFixed0.30 %5/1/2029
Mezzanine loan10/20/20202,454 North Aurora, ILMultifamilyFixed0.30 %11/1/2028
Mezzanine loan10/20/20202,264 Rosedale, MDMultifamilyFixed0.30 %10/1/2028
Mezzanine loan10/20/20202,215 Cockeysville, MDMultifamilyFixed0.30 %7/1/2031
Mezzanine loan10/20/20202,026 Laurel, MDMultifamilyFixed0.30 %7/1/2029
Mezzanine loan10/20/20201,836 Vancouver, WAMultifamilyFixed0.30 %8/1/2031
Mezzanine loan10/20/20201,763 Tyler, TXMultifamilyFixed0.30 %11/1/2028
Mezzanine loan10/20/20201,307 Las Vegas, NVMultifamilyFixed0.30 %10/1/2028
Mezzanine loan10/20/2020918 Atlanta, GAMultifamilyFixed0.30 %8/1/2031
Mezzanine loan10/20/2020728 Des Moines, IAMultifamilyFixed0.30 %3/1/2029
Total$59,252 0.30 %
Outstanding principal balance represents the total repurchase agreement balance outstanding as of December 31, 2024.
As of December 31, 2023, the outstanding principal balances related to our senior loans, which include the SFR Loans and levered mezzanine loans consisted of the following (dollars in thousands):
InvestmentInvestment DateOutstanding Principal Balance (1)LocationProperty TypeInterest TypeInterest RateMaturity Date
Senior Loans
Senior loan2/11/2020$465,690 VariousSingle-familyFixed2.24 %9/1/2028
Senior loan2/11/202031,416 VariousSingle-familyFixed2.14 %10/1/2025
Senior loan2/11/202033,967 VariousSingle-familyFixed2.70 %11/1/2028
Senior loan2/11/20209,156 VariousSingle-familyFixed2.79 %9/1/2028
Senior loan2/11/20209,284 VariousSingle-familyFixed2.45 %3/1/2026
Senior loan2/11/20208,111 VariousSingle-familyFixed3.51 %2/1/2028
Senior loan2/11/20208,787 VariousSingle-familyFixed3.30 %10/1/2028
Senior loan2/11/20207,881 VariousSingle-familyFixed3.14 %1/1/2029
Senior loan2/11/20205,848 VariousSingle-familyFixed2.99 %3/1/2029
Senior loan2/11/20205,240 VariousSingle-familyFixed3.14 %12/1/2028
Senior loan2/11/20204,926 VariousSingle-familyFixed2.64 %10/1/2028
Total$590,306 2.34 %
Mezzanine Loans
Mezzanine loan10/20/20208,723 Wilmington, DEMultifamilyFixed0.30 %6/1/2029
Mezzanine loan10/20/20207,344 White Marsh, MDMultifamilyFixed0.30 %4/1/2031
Mezzanine loan10/20/20206,353 Philadelphia, PAMultifamilyFixed0.30 %7/1/2031
Mezzanine loan10/20/20205,881 Daytona Beach, FLMultifamilyFixed0.30 %7/1/2031
Mezzanine loan10/20/20204,523 Laurel, MDMultifamilyFixed0.30 %7/1/2031
Mezzanine loan10/20/20204,179 Temple Hills, MDMultifamilyFixed0.30 %1/1/2029
Mezzanine loan10/20/20203,390 Temple Hills, MDMultifamilyFixed0.30 %5/1/2029
Mezzanine loan10/20/20203,348 Lakewood, NJMultifamilyFixed0.30 %5/1/2029
Mezzanine loan10/20/20202,454 North Aurora, ILMultifamilyFixed0.30 %11/1/2028
Mezzanine loan10/20/20202,264 Rosedale, MDMultifamilyFixed0.30 %10/1/2028
Mezzanine loan10/20/20202,215 Cockeysville, MDMultifamilyFixed0.30 %7/1/2031
Mezzanine loan10/20/20202,026 Laurel, MDMultifamilyFixed0.30 %7/1/2029
Mezzanine loan10/20/20201,836 Vancouver, WAMultifamilyFixed0.30 %8/1/2031
Mezzanine loan10/20/20201,763 Tyler, TXMultifamilyFixed0.30 %11/1/2028
Mezzanine loan10/20/20201,307 Las Vegas, NVMultifamilyFixed0.30 %10/1/2028
Mezzanine loan10/20/2020918 Atlanta, GAMultifamilyFixed0.30 %8/1/2031
Mezzanine loan10/20/2020728 Des Moines, IAMultifamilyFixed0.30 %3/1/2029
Total$59,252 0.30 %
(1)Outstanding principal balance represents the total repurchase agreement balance outstanding as of December 31, 2023.
Schedule of Line of Credit Facilities
For the years ended December 31, 2024 and 2023, the activity related to the carrying value of the master repurchase agreements, secured financing agreements and unsecured financing were as follows (in thousands):
For the Year Ended December 31,
20242023
Balances as of January 1,$1,268,212 $1,345,101 
Adjustment to mortgages payable, net on deconsolidation of real estate— (89,012)
Increase in Mortgages Payable in connection with VIE consolidation— 63,500 
Principal borrowings247,606 55,239 
Principal repayments(721,943)(121,094)
Principal repayments on mortgages payable(240)— 
Unsecured notes offering— 13,557 
Loss on extinguishment of debt488 — 
Accretion of discounts1,518 966 
Amortization of deferred financing costs47 (45)
Balances as of December 31,$795,688 $1,268,212 
Schedule of Maturities of Long-Term Debt
The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to December 31, 2024 are as follows (in thousands):
YearRecourseNon-recourseTotal
2025 (1)$167,520 $272,018 $439,538 
2026180,000 9,284 189,284 
20276,500 — 6,500 
202832,480 66,543 99,023 
2029— 35,888 35,888 
Thereafter— 29,070 29,070 
$386,500 $412,803 $799,303 
(1)The transactions in place in the master repurchase agreement with Mizuho have a one-month to two-month tenor and are expected to roll accordingly.
v3.25.1
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The carrying values and fair values of the Company’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value as of December 31, 2024 (in thousands):
Fair Value
Carrying
Value		Level 1Level 2Level 3Total
Assets
Cash and cash equivalents$3,877 $3,877 $— $— $3,877 
Restricted cash3,176 3,176 — — 3,176 
Loans, held-for-investment, net497,544 — — 505,866 505,866 
Preferred stock investments, at fair value18,949 — — 18,949 18,949 
Common stock investments, at fair value57,389 — — 57,389 57,389 
Equity method investments1,504 — — 1,504 1,504 
Mortgage loans, held-for-investment, net263,395 — — 262,037 262,037 
Accrued interest41,208 41,208 — — 41,208 
Mortgage loans held in variable interest entities, at fair value4,343,359 — 4,343,359 — 4,343,359 
CMBS structured pass-through certificates, at fair value34,979 — 34,979 — 34,979 
Stock warrant investments27,400 — — 27,400 27,400 
Accounts receivable and other assets1,457 1,184 273 — 1,457 
Total Assets$5,294,237 $49,445 $4,378,611 $873,145 $5,301,201 
Liabilities
Secured financing agreements, net$235,769 $— $— $250,285 $250,285 
Master repurchase agreements243,454 — — 243,454 243,454 
Unsecured notes, net221,001 — 213,457 — 213,457 
Mortgages payable, net95,464 — — 92,157 92,157 
Accounts payable and other accrued liabilities9,458 9,458 — — 9,458 
Accrued interest payable10,020 10,020 — — 10,020 
Bonds payable held in variable interest entities, at fair value4,029,214 — 4,029,214 — 4,029,214 
Total Liabilities$4,844,380 $19,478 $4,242,671 $585,896 $4,848,045 
The carrying values and fair values of the Company’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value as of December 31, 2023 (in thousands):
Fair Value
Carrying
Value		Level 1Level 2Level 3Total
Assets
Cash and cash equivalents$13,824 $13,824 $— $— $13,824 
Restricted cash2,825 2,825 — — 2,825 
Loans, held-for-investment, net328,460 — — 337,110 337,110 
Preferred stock investments, at fair value14,776 — — 14,776 14,776 
Common stock investments, at fair value61,529 — — 61,529 61,529 
Mortgage loans, held-for-investment, net676,420 — — 663,866 663,866 
Accrued interest22,033 22,033 — — 22,033 
Mortgage loans held in variable interest entities, at fair value5,677,763 — 5,677,763 — 5,677,763 
CMBS structured pass-through certificates, at fair value41,212 — 41,212 — 41,212 
MSCR Notes, at fair value10,378 — 10,378 — 10,378 
Mortgage backed securities, at fair value38,270 — 38,270 — 38,270 
Accounts receivable and other assets4,312 1,560 2,752 — 4,312 
Total Assets$6,891,802 $40,242 $5,770,375 $1,077,281 $6,887,898 
Liabilities
Secured financing agreements, net$649,558 $— $— $666,423 $666,423 
Master repurchase agreements303,514 — — 303,514 303,514 
Unsecured notes, net219,483 — 199,859 — 199,859 
Mortgages payable, net95,657 — — 95,470 95,470 
Accounts payable and other accrued liabilities6,428 6,428 — — 6,428 
Accrued interest payable8,209 8,209 — — 8,209 
Bonds payable held in variable interest entities, at fair value5,289,997 — 5,289,997 — 5,289,997 
Total Liabilities$6,572,846 $14,637 $5,489,856 $1,065,407 $6,569,900 
Schedule of Fair Value Measurement Inputs and Valuation Techniques
The following is a summary of significant unobservable inputs used in the fair valuation of the Company's Level 3 assets carried at fair value on the Consolidated Balance Sheets as of December 31, 2024 (dollars in thousands):
Carrying
Value		Valuation TechniqueUnobservable InputsRangeWeighted Average (1)
NexPoint Storage Partners$30,467 Discounted cash flowTerminal cap rate
5.00% - 5.50%
5.25 %
Discount rate
8.00% - 8.50%
8.25 %
IQHQ, Inc.18,949 Discounted cash flowDiscount rate
11.00% - 12.00%
11.50 %
Private REIT26,922 Market approachNAV per share multiple
1.00x - 1.15x
1.08x
(1)Averages are weighted based on the fair value of the related instrument.
The following is a summary of significant unobservable inputs used in the fair valuation of the Company's Level 3 assets carried at fair value on the Consolidated Balance Sheets as of December 31, 2023 (dollars in thousands):
Carrying
Value		Valuation TechniqueUnobservable InputsRangeWeighted Average (1)
NexPoint Storage Partners$33,129 Discounted cash flowTerminal cap rate
5.00% - 5.50%
5.25 %
Discount rate
7.50% - 9.50%
8.50 %
IQHQ, Inc.14,776 Discounted cash flowDiscount rate
11.00% - 12.00%
11.50 %
Private REIT28,400 Market approachNAV per share multiple
1.00x - 1.20x
1.10x
(1)Averages are weighted based on the fair value of the related instrument.
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The table below reflects a summary of changes for the Company's Level 3 common and preferred stock assets carried at fair value on the Consolidated Balance Sheets for the year ended December 31, 2024:
Balances as of December 31, 2023AdditionsChange in Unrealized Gains/(Losses)Balances as of December 31, 2024
NexPoint Storage Partners$33,129 $— $(2,662)$30,467 
Private REIT28,400 — (1,478)26,922 
IQHQ, Inc.14,776 3,506 667 18,949 
The table below reflects a summary of changes for the Company's Level 3 common and preferred stock assets carried at fair value on the Consolidated Balance Sheets for the year ended December 31, 2023:
Balance as of December 31, 2022AdditionsChange in Unrealized Gains/(Losses)Balance as of December 31, 2023
NexPoint Storage Partners$50,380 $— $(17,251)$33,129 
Private REIT27,884 — 516 28,400 
IQHQ Inc.— 14,510 266 14,776 
v3.25.1
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2024
Stockholders' Equity Note [Abstract]  
Schedule of Share-Based Payment Arrangement, Restricted Stock Unit, Activity
The following table includes the number of restricted stock units granted, vested, forfeited and outstanding as of December 31, 2024:

2024
Number of UnitsWeighted Average
Grant Date Fair Value
Outstanding December 31, 2023771,671 $16.70 
Granted465,316 14.66 
Vested(315,246)(1)16.28 
Forfeited(1,665)14.66 
Outstanding December 31, 2024920,076 $15.81 
(1)Certain key employees of the Manager elected to net the taxes owed upon vesting against the shares issued resulting in 229,216 shares being issued as shown on the consolidated statements of stockholders' equity.
The vesting schedule for restricted stock units as of December 31, 2024, is as follows:
Shares Vesting
FebruaryMarchAprilTotal
2025116,998132,905102,201352,104
202654,893110,25091,166256,309
2027—110,24891,168201,416
2028—110,247—110,247
Total171,891463,650284,535920,076
Schedule of Sale of Stock
The following table contains summary information of the ATM Program since its inception through December 31, 2024:
Gross Proceeds$12,575,493 
Shares of Common Stock Issued531,728
Gross Average Sale Price per Share of Common Stock$23.65 
Sales Commissions$188,655 
Offering Costs888,249 
Net Proceeds$11,498,589 
Average Price Per Share, net$21.62 
v3.25.1
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table sets forth the computation of basic and diluted earnings per share for the periods presented (in thousands, except per share amounts):
For the Year Ended
December 31,
202420232022
Net income (loss) attributable to common stockholders$17,693 $10,399 $3,234 
Earnings for basic computations
Net income attributable to redeemable noncontrolling interests6,770 4,765 4,969 
Net income attributable to Series B preferred stockholders8,003 80 — 
Net income for diluted computations$32,466 $15,244 $8,203 
Weighted-average common shares outstanding
Average number of common shares outstanding - basic17,402 017,199 14,686 
Average number of common shares from assumed vesting of unvested restricted stock units908 0740 571 
Average number of common shares from assumed conversion of OP Units5,038 05,038 7,218 
Average number of common shares from assumed conversion of Series B Preferred Stock5,798 24 — 
Average number of common shares outstanding - diluted29,146 23,001 22,475 
Earnings per weighted average common share:
Basic$1.02 $0.60 $0.22 
Diluted (1)$1.02 $0.60 $0.22 
(1) Diluted EPS calculations were higher than basic EPS and thus anti-dilutive for the years ended December 31, 2024, 2023, and 2022, respectively. As such, the Company is presenting diluted EPS as equal to basic EPS for the years ended December 31, 2024, 2023, and 2022, respectively.
v3.25.1
Noncontrolling Interests (Tables)
 12 Months Ended
Dec. 31, 2024
Noncontrolling Interest [Abstract]  
Schedule of Redeemable Noncontrolling Interest
The following table sets forth the redeemable noncontrolling interests in the OP (reflecting the OP’s consolidation of the Subsidiary OPs) for the years ended December 31, 2024, 2023, and 2022 (in thousands):
For the Year Ended December 31,
202420232022
Redeemable noncontrolling interests in the OP, January 1,$89,471 $96,501 $261,423 
Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate— 297 — 
Net income attributable to redeemable noncontrolling interests in the OP6,770 4,765 4,969 
Redemption of redeemable noncontrolling interests in the OP— — (155,614)
Distributions to redeemable noncontrolling interests in the OP(10,077)(12,092)(14,277)
Redeemable noncontrolling interests in the OP, December 31,$86,164 $89,471 $96,501 
Schedule of Consolidated Common Shares of Noncontrolling Interest
The tables below present the common shares and OP Units outstanding held by the noncontrolling interests (“NCI”), as the OP Units and SubOP Units held by the Company are eliminated in consolidation:
Period EndCommon Shares
Outstanding		OP Units Held by
NCI		Combined
Outstanding
December 31, 202417,461,1295,038,38222,499,511
December 31, 202317,231,9135,038,38222,270,295
v3.25.1
Commitment and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Purchase Commitment, Excluding Long-Term Commitment
The table below shows the Company's unfunded commitments by investment type as of December 31, 2024 and December 31, 2023 (in thousands):
Investment TypeDecember 31, 2024December 31, 2023
Unfunded Commitments Unfunded Commitments
Loans$64,217 $— 
Preferred Equity7,874 34,966 
Common Equity2,536 6,600 
Preferred Stock150,000 — 
$224,627 $41,566 
v3.25.1
Organization and Description of Business (Details)
 12 Months Ended
Dec. 31, 2024
metropolitan_area
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]  
Number of top metropolitan statistical areas 50
Company management term 1 year
NexPoint Real Estate Finance Operating Partnership, L.P.  
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]  
Limited partnership, ownership interest (as a percent) 83.82%
NexPoint Real Estate Finance Operating Partnership, L.P. | Class A OP Units  
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]  
Limited partnership, ownership interest (as a percent) 100.00%
Three Subsidiary Partnerships | NexPoint Real Estate Finance Operating Partnership, L.P.  
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]  
Limited partnership, ownership interest (as a percent) 100.00%
v3.25.1
Summary of Significant Accounting Policies - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
property
security
unit
Jan. 01, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Sep. 08, 2021
Variable Interest Entity [Line Items]            
Number of classes of OP units | unit 3          
Number of properties with lease terms of year or less | property 2          
Cumulative effect of adoption of ASU 2016-13 $ (336,484)   $ (347,437) $ (448,513) $ (245,283)  
Current expected credit loss reserve 1,400 $ 2,100        
Credit losses $ 700          
Class B OP Units            
Variable Interest Entity [Line Items]            
Limited liability units, voting power, percent per share 50.00%         50.00%
Class A OP Units            
Variable Interest Entity [Line Items]            
Limited liability units, voting power, percent per share           50.00%
Retained Earnings Less Dividends            
Variable Interest Entity [Line Items]            
Cumulative effect of adoption of ASU 2016-13     5,800      
Cumulative Effect, Period of Adoption, Adjustment            
Variable Interest Entity [Line Items]            
Cumulative effect of adoption of ASU 2016-13     1,624      
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings Less Dividends            
Variable Interest Entity [Line Items]            
Cumulative effect of adoption of ASU 2016-13     $ 1,600      
Variable Interest Entity, Primary Beneficiary            
Variable Interest Entity [Line Items]            
Number of CMBS securities | security 9          
NexPoint Real Estate Finance Operating Partnership, L.P.            
Variable Interest Entity [Line Items]            
Limited partnership, ownership interest (as a percent) 83.82%          
NexPoint Real Estate Finance Operating Partnership, L.P. | Class A OP Units            
Variable Interest Entity [Line Items]            
Limited partnership, ownership interest (as a percent) 100.00%          
Seven Securities | Variable Interest Entity, Primary Beneficiary            
Variable Interest Entity [Line Items]            
Number of CMBS securities | security 7          
Variable interest entity, qualitative or quantitative information, ownership percentage 100.00%          
Subordinate Tranche One Securities | Variable Interest Entity, Primary Beneficiary            
Variable Interest Entity [Line Items]            
Number of CMBS securities | security 2          
Variable interest entity, qualitative or quantitative information, ownership percentage 93.90%          
Subordinate Tranche Two Securities | Variable Interest Entity, Primary Beneficiary            
Variable Interest Entity [Line Items]            
Variable interest entity, qualitative or quantitative information, ownership percentage 95.00%          
v3.25.1
Summary of Significant Accounting Policies - Estimated Useful Lives (Details)
Dec. 31, 2024
Buildings (in years)  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 30 years
Improvements (in years)  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 15 years
Furniture, fixtures, and equipment (in years)  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 3 years
Intangible lease assets (in months)  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 6 months
v3.25.1
Loans Held for Investment, Net - Summary of Loans Held for Investment (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2024
loan
Dec. 31, 2024
Dec. 31, 2024
unit
Dec. 31, 2023
loan
Dec. 31, 2023
Dec. 31, 2023
unit
Financing Receivable, Troubled Debt Restructuring [Line Items]                
Outstanding Face Amount $ 771,131 $ 973,876            
Carrying Value $ 760,939 $ 1,004,880            
Loan Count     51   51 48   48
Fixed Rate       61.31%     84.82%  
Coupon       11.15%     6.94%  
Life (years) 2 years 9 months 21 days 4 years 1 month 24 days            
Mortgage loans, held-for-investment                
Financing Receivable, Troubled Debt Restructuring [Line Items]                
Outstanding Face Amount $ 260,901 $ 645,277            
Carrying Value $ 263,395 $ 676,420            
Loan Count | loan     10     11    
Fixed Rate       46.23%     100.00%  
Coupon       9.99%     4.79%  
Life (years) 2 years 4 months 28 days 4 years 5 months 26 days            
Mezzanine loans, held-for-investment                
Financing Receivable, Troubled Debt Restructuring [Line Items]                
Outstanding Face Amount $ 133,207 $ 133,207            
Carrying Value $ 134,870 $ 135,069            
Loan Count | loan     22     22    
Fixed Rate       78.31%     78.31%  
Coupon       9.41%     9.61%  
Life (years) 4 years 4 months 6 days 5 years 4 months 9 days            
Preferred equity, held-for-investment                
Financing Receivable, Troubled Debt Restructuring [Line Items]                
Outstanding Face Amount $ 224,423 $ 195,392            
Carrying Value $ 223,653 $ 193,391            
Loan Count | loan     16     15    
Fixed Rate       42.43%     39.12%  
Coupon       11.92%     12.20%  
Life (years) 2 years 3 months 7 days 2 years 2 months 19 days            
Promissory notes, held-for-investment                
Financing Receivable, Troubled Debt Restructuring [Line Items]                
Outstanding Face Amount $ 4,000              
Carrying Value $ 3,992              
Loan Count | loan     2          
Fixed Rate       100.00%        
Coupon       14.69%        
Life (years) 5 months 26 days              
Revolving credit facility, held-for-investment                
Financing Receivable, Troubled Debt Restructuring [Line Items]                
Outstanding Face Amount $ 148,600              
Carrying Value $ 135,029              
Loan Count | loan     1          
Fixed Rate       100.00%        
Coupon       13.50%        
Life (years) 3 years              
v3.25.1
Loans Held for Investment, Net - Loan and Preferred Equity Portfolio Activity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Roll Forward]      
Beginning balance $ 1,004,880    
Recognition of retained preferred equity investment upon deconsolidation of real estate (Note 14) 167,987 $ 92,701 $ 0
Ending balance 760,939 1,004,880  
Loans Receivable, Held for Investment      
Accounts, Notes, Loans and Financing Receivable [Roll Forward]      
Beginning balance 1,004,880 982,678  
Recognition of retained preferred equity investment upon deconsolidation of real estate (Note 14) 0 36,022  
Cumulative effect of adoption of ASU 2016-13 (See Note 2) 0 (1,624)  
Originations 306,980 92,701  
Proceeds from principal repayments (555,485) (97,259)  
Decrease in loans, held for investment, net on consolidation of real estate 0 (9,685)  
PIK distribution reinvested in Preferred Units 14,486 8,990  
Amortization of loan premium, net (10,645) (7,146)  
(Provision for) reversal of credit losses 723 (4,299)  
Reversal of specific reserve of credit losses 0 4,502  
Ending balance $ 760,939 $ 1,004,880 $ 982,678
v3.25.1
Loans Held for Investment, Net - Additional Information (Details)
$ in Millions
Dec. 31, 2024
loan
Dec. 31, 2024
USD ($)
Dec. 31, 2024
Dec. 31, 2024
unit
Dec. 31, 2023
loan
Dec. 31, 2023
USD ($)
Dec. 31, 2023
Dec. 31, 2023
unit
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]                
Financing receivable, unamortized purchase premium (discount)   $ 8.8       $ 33.1    
Number of Loans 51     51 48     48
Weighted average risk rating     3.0       3.0  
v3.25.1
Loans Held for Investment, Net - Principal Balance and Net Book Value of the Loan Portfolio Based on Internal Risk Ratings (Details)
$ in Thousands
Dec. 31, 2024
loan
Dec. 31, 2024
USD ($)
Dec. 31, 2024
Dec. 31, 2024
unit
Dec. 31, 2023
loan
Dec. 31, 2023
USD ($)
Dec. 31, 2023
Dec. 31, 2023
unit
Financing Receivable, Nonaccrual [Line Items]                
Number of Loans 51     51 48     48
Carrying Value   $ 760,939       $ 1,004,880    
% of Loan Portfolio     1.0000       1.0000  
Risk Rating 1                
Financing Receivable, Nonaccrual [Line Items]                
Number of Loans 0     0 0     0
Carrying Value   0       0    
% of Loan Portfolio     0       0  
Risk Rating 2                
Financing Receivable, Nonaccrual [Line Items]                
Number of Loans 0     0 0     0
Carrying Value   0       0    
% of Loan Portfolio     0       0  
Risk Rating 3                
Financing Receivable, Nonaccrual [Line Items]                
Number of Loans 49     49 46     46
Carrying Value   739,960       992,751    
% of Loan Portfolio     0.9724       0.9879  
Risk Rating 4                
Financing Receivable, Nonaccrual [Line Items]                
Number of Loans 2     2 2     2
Carrying Value   20,979       12,129    
% of Loan Portfolio     0.0276       0.0121  
Risk Rating 5                
Financing Receivable, Nonaccrual [Line Items]                
Number of Loans 0     0 0     0
Carrying Value   $ 0       $ 0    
% of Loan Portfolio     0       0  
v3.25.1
Loans Held for Investment, Net - Summary of Loans by Origination (Details)
$ in Thousands
Dec. 31, 2024
loan
Dec. 31, 2024
unit
Dec. 31, 2024
USD ($)
Dec. 31, 2023
loan
Dec. 31, 2023
unit
Dec. 31, 2023
USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]            
Number of Loans 51 51   48 48  
Outstanding Face Amount     $ 771,131     $ 973,876
2024     284,958     82,879
2023     94,446     82,087
2022     83,137     40,981
2021     50,567     19,158
2020     19,812     759,828
Prior     228,019     19,947
Total Carrying Value     760,939     1,004,880
Risk Rating 1            
Financing Receivable, Credit Quality Indicator [Line Items]            
Number of Loans 0 0   0 0  
Outstanding Face Amount     0     0
2024     0     0
2023     0     0
2022     0     0
2021     0     0
2020     0     0
Prior     0     0
Total Carrying Value     0     0
Risk Rating 2            
Financing Receivable, Credit Quality Indicator [Line Items]            
Number of Loans 0 0   0 0  
Outstanding Face Amount     0     0
2024     0     0
2023     0     0
2022     0     0
2021     0     0
2020     0     0
Prior     0     0
Total Carrying Value     0     0
Risk Rating 3            
Financing Receivable, Credit Quality Indicator [Line Items]            
Number of Loans 49 49   46 46  
Outstanding Face Amount     750,031     961,756
2024     284,958     82,879
2023     94,446     69,958
2022     74,658     40,981
2021     38,067     19,158
2020     19,812     759,828
Prior     228,019     19,947
Total Carrying Value     739,960     992,751
Risk Rating 4            
Financing Receivable, Credit Quality Indicator [Line Items]            
Number of Loans 2 2   2 2  
Outstanding Face Amount     21,100     12,120
2024     0     0
2023     0     12,129
2022     8,479     0
2021     12,500     0
2020     0     0
Prior     0     0
Total Carrying Value     20,979     12,129
Risk Rating 5            
Financing Receivable, Credit Quality Indicator [Line Items]            
Number of Loans 0 0   0 0  
Outstanding Face Amount     0     0
2024     0     0
2023     0     0
2022     0     0
2021     0     0
2020     0     0
Prior     0     0
Total Carrying Value     $ 0     $ 0
v3.25.1
Loans Held for Investment, Net - Geographies and Property Types of Collateral Underlying the Loans Held-for-investment as a Percentage of the Loans' Face Amounts (Details)
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 1.0000 1.0000
Life Science    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.3498 0.0633
Multifamily    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.3457 0.2199
Single Family Rental    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.2657 0.6993
Self-Storage    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.0273 0.0175
Marina    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.0115 0
Massachusetts    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.2268  
Texas    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.1639 0.1387
Georgia    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.0868 0.3050
Maryland    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.0861 0.0547
California    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.0855 0.0492
Virginia    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.0515  
Florida    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.0515 0.1840
Minnesota    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio   0.0731
Other    
Financing Receivable, Nonaccrual [Line Items]    
% of loan portfolio 0.2479 0.1953
v3.25.1
CMBS Trusts - Schedule of Recognized Trusts Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Loans and Leases Receivable Disclosure [Line Items]    
Bonds payable held in variable interest entities, at fair value $ (799,303)  
Variable Interest Entity, Primary Beneficiary    
Loans and Leases Receivable Disclosure [Line Items]    
Mortgage loans held in variable interest entities, at fair value 4,343,359 $ 5,677,763
Accrued interest receivable 3,877 3,902
Bonds payable held in variable interest entities, at fair value (4,029,214) (5,289,997)
Accrued interest payable $ (3,212) $ (3,220)
v3.25.1
CMBS Trusts - Schedule of Change in Net Assets Related to Consolidated CMBS Variable Interest Entities (Details) - Variable Interest Entity, Primary Beneficiary - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Securitization or Asset-Backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]      
Net interest earned $ 33,327 $ 27,035 $ 35,523
Realized gain 10,548 13,592 344
Unrealized loss (7,206) (2,414) (25,627)
Change in net assets related to consolidated CMBS variable interest entities $ 36,669 $ 38,213 $ 10,240
v3.25.1
CMBS Trusts - Schedule of Geographies and Property Types of Collateral Underlying the CMBS Trusts as Percentage of Collateral Unpaid Principal Balance (Details) - Variable Interest Entity, Primary Beneficiary
Dec. 31, 2024
Dec. 31, 2023
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 100.00% 100.00%
Multifamily    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 99.57% 97.45%
Manufactured Housing    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 0.43% 2.55%
Texas    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 16.54% 15.85%
Colorado    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 10.99% 7.74%
California    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 9.26% 8.69%
Washington    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 9.24% 7.75%
Florida    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 7.65% 14.07%
Georgia    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 5.16% 4.00%
New York    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 4.87%  
North Carolina    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 4.74% 4.17%
Arizona    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 3.15% 4.05%
New Jersey    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance   4.02%
Other    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Percentage of collateral unpaid principal balance 28.40% 29.66%
v3.25.1
Common and Preferred Stock Investments - Additional Information (Details) - $ / shares
Nov. 09, 2023
Dec. 31, 2024
Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]      
Private offering price per share (in usd per share)   $ 19.31 $ 20.37
Preferred stock, dividend rate, percentage 10.50%    
Discount rate | Valuation Technique, Discounted Cash Flow      
Schedule of Equity Method Investments [Line Items]      
Measurement input   0.115  
Private REIT | VIE      
Schedule of Equity Method Investments [Line Items]      
Effective ownership   6.30% 6.40%
IQHQ, Inc. | Variable Interest Entity, Primary Beneficiary      
Schedule of Equity Method Investments [Line Items]      
Effective ownership   11.80% 9.50%
NexPoint Storage Partners, Inc. (“NSP”) | VIE      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage   25.70% 25.70%
Capital Acquisition Partner | VIE      
Schedule of Equity Method Investments [Line Items]      
Equity method investment, ownership percentage   79.10%  
v3.25.1
Common and Preferred Stock Investments - Schedule of Common Stock Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]    
Preferred stock investments, at fair value $ 57,389 $ 61,529
NexPoint Storage Partners    
Schedule of Equity Method Investments [Line Items]    
Investment owned, balance (in shares) 41,963,000 41,963,000
Preferred stock investments, at fair value $ 30,467 $ 33,129
Private REIT    
Schedule of Equity Method Investments [Line Items]    
Investment owned, balance (in shares) 1,394,213,000 1,394,213,000
Preferred stock investments, at fair value $ 26,922 $ 28,400
v3.25.1
Common and Preferred Stock Investments - Schedule of Change in Unrealized Gain on Common Stock Investment (Details) - Common Stock - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]      
Change in unrealized gain (loss) $ (4,140) $ (16,736) $ (5,196)
Change In Unrealized Gain (Loss) On Common Stock Investments (4,140) (16,736) (5,196)
NexPoint Storage Partners      
Schedule of Equity Method Investments [Line Items]      
Change in unrealized gain (loss) (2,662) (17,251) (8,080)
Private REIT      
Schedule of Equity Method Investments [Line Items]      
Change in unrealized gain (loss) $ (1,478) $ 515 $ 2,884
v3.25.1
Unconsolidated Variable Interest Entities - Schedule of Variable Interest Entities (Details) - VIE
Dec. 31, 2024
Dec. 31, 2023
NexPoint Storage Partners, Inc. (“NSP”)    
Variable Interest Entity [Line Items]    
Equity method investment, ownership percentage 25.70% 25.70%
Resmark Forney Gateway Holdings, LLC    
Variable Interest Entity [Line Items]    
Effective ownership 98.00% 98.00%
Resmark The Brook Holdings, LLC    
Variable Interest Entity [Line Items]    
Effective ownership 98.00% 98.00%
Private REIT    
Variable Interest Entity [Line Items]    
Effective ownership 6.30% 6.40%
SK Apartments    
Variable Interest Entity [Line Items]    
Effective ownership 12.30%  
Capital Acquisition Partners, LLC    
Variable Interest Entity [Line Items]    
Effective ownership 79.10%  
v3.25.1
Unconsolidated Variable Interest Entities - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Variable Interest Entity [Line Items]    
Preferred stock investments, at fair value $ 57,389 $ 61,529
NexPoint Storage Partners    
Variable Interest Entity [Line Items]    
Preferred stock investments, at fair value 30,467 $ 33,129
Capital Acquisition Partners, LLC    
Variable Interest Entity [Line Items]    
Maximum loss exposure $ 1,500  
v3.25.1
CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities - Additional Information (Details)
Dec. 31, 2024
strip
Investments, Debt and Equity Securities [Abstract]  
Number of CMBS I/O Strips 12
v3.25.1
CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities - Summary of CMBS I/O Strips (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Change in unrealized gain (loss) on MSCR Notes    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 0 $ 10,378
Change in unrealized gain (loss) on mortgage backed securities    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value 0 $ 38,270
Interest Rate   9.17%
Current Yield   9.30%
Multifamily | CMBS I/O Strip, One    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 1,395 $ 1,622
Interest Rate 2.02% 2.02%
Current Yield 16.62% 14.64%
Multifamily | CMBS I/O Strip, Two    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 14,188 $ 16,601
Interest Rate 2.98% 2.98%
Current Yield 20.73% 17.98%
Multifamily | CMBS I/O Strip, Three    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 4,175 $ 5,022
Interest Rate 1.59% 1.59%
Current Yield 20.52% 17.68%
Multifamily | CMBS I/O Strip, Four    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 2,972 $ 3,436
Interest Rate 3.38% 3.39%
Current Yield 20.56% 17.79%
Multifamily | CMBS I/O Strip, Five    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 330 $ 395
Interest Rate 2.31% 2.31%
Current Yield 27.43% 22.31%
Multifamily | CMBS I/O Strip, Six    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 1,581 $ 2,643
Interest Rate 0.61% 1.18%
Current Yield 9.13% 14.57%
Multifamily | CMBS IO Strip Seven    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 1,001 $ 833
Interest Rate 1.15% 1.17%
Current Yield 19.71% 18.07%
Multifamily | CMBS IO Strip Eight    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 1,925 $ 2,255
Interest Rate 1.89% 1.89%
Current Yield 20.89% 17.98%
Multifamily | CMBS I/O Strip, Nine    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 1,104 $ 1,241
Interest Rate 3.10% 3.10%
Current Yield 17.20% 15.24%
Multifamily | CMBS I/O Strip, Ten    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 199 $ 229
Interest Rate 2.61% 2.61%
Current Yield 18.42% 16.15%
Multifamily | CMBS I/O Strip, Eleven    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 2,947 $ 3,390
Interest Rate 1.92% 1.92%
Current Yield 19.72% 17.01%
Multifamily | CMBS I/O Strip, Twelve    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 3,162 $ 3,545
Interest Rate 2.95% 2.95%
Current Yield 17.01% 15.14%
Multifamily | CMBS I/O Strips    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value $ 34,979 $ 41,212
Interest Rate 2.49% 2.50%
Current Yield 19.50% 17.21%
Multifamily | MSCR Notes One    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value   $ 4,020
Interest Rate   14.83%
Current Yield   14.83%
Multifamily | MSCR Notes Two    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value   $ 5,000
Interest Rate   11.83%
Current Yield   11.83%
Multifamily | MSCR Notes Three    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value   $ 1,358
Interest Rate   12.18%
Current Yield   13.38%
Multifamily | Change in unrealized gain (loss) on MSCR Notes    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value   $ 10,378
Interest Rate   13.04%
Current Yield   13.20%
Multifamily | Mortgage Backed Securities 5    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value   $ 3,881
Interest Rate   11.57%
Current Yield   11.55%
Multifamily | Mortgage Backed Securities 7    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value   $ 5,742
Interest Rate   13.93%
Current Yield   13.95%
Single-Family | Mortgage Backed Securities 1    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value   $ 9,924
Interest Rate   8.64%
Current Yield   8.91%
Single-Family | Mortgage Backed Securities 2    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value   $ 9,369
Interest Rate   4.87%
Current Yield   5.01%
Single-Family | Mortgage Backed Securities 3    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value   $ 538
Interest Rate   6.23%
Current Yield   6.31%
Single-Family | Mortgage Backed Securities 4    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value   $ 856
Interest Rate   3.60%
Current Yield   4.12%
Self Storage | Mortgage Backed Securities 6    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying Value   $ 7,960
Interest Rate   11.10%
Current Yield   11.12%
v3.25.1
CMBS Structured Pass-Through Certificates, MSCR Notes and Mortgage Backed Securities - Schedule of Activity Related to CMBS I/O Strips (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Debt and Equity Securities, FV-NI [Line Items]      
Total $ 2,959 $ 4,970 $ (8,279)
Commercial Mortgage-Backed Securities      
Debt and Equity Securities, FV-NI [Line Items]      
Net interest earned 284 2,905 5,668
Unrealized loss 1,925 1,533 (12,664)
Change in unrealized gain (loss) on MSCR Notes      
Debt and Equity Securities, FV-NI [Line Items]      
Unrealized loss (13) 65 (53)
Change in unrealized gain (loss) on mortgage backed securities      
Debt and Equity Securities, FV-NI [Line Items]      
Unrealized loss $ 763 $ 467 $ (1,230)
v3.25.1
Real Estate Investments, net - Additional Information (Details)
$ in Millions
Oct. 10, 2023
USD ($)
unit
Feb. 01, 2022
unit
Dec. 31, 2021
unit
Real Estate Properties [Line Items]      
Number of units in multifamily property | unit   368  
SPG Alexander JV LLC      
Real Estate Properties [Line Items]      
Assets acquired $ 68.8    
Land 7.9    
Building improvements 59.0    
Furniture, fixtures and equipment 0.6    
Intangible assets $ 1.3    
Charlotte, NC      
Real Estate Properties [Line Items]      
Number of units in multifamily property | unit     204
Atlanta, GA      
Real Estate Properties [Line Items]      
Number of units in multifamily property | unit 280    
v3.25.1
Real Estate Investments, net - Investments in Properties (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Real Estate Properties [Line Items]    
Accumulated depreciation and amortization $ (8,750) $ (4,404)
Total Real Estate Investments, Net 121,836 126,551
Land    
Real Estate Properties [Line Items]    
Accumulated depreciation and amortization 0 0
Total Real Estate Investments, Net 18,802 18,802
Buildings and Improvements    
Real Estate Properties [Line Items]    
Accumulated depreciation and amortization (7,662) (3,948)
Total Real Estate Investments, Net 101,873 105,126
Intangible Lease Assets    
Real Estate Properties [Line Items]    
Accumulated depreciation and amortization 0 0
Total Real Estate Investments, Net 0 1,271
Construction in Progress    
Real Estate Properties [Line Items]    
Accumulated depreciation and amortization 0 0
Total Real Estate Investments, Net 2 401
Furniture, Fixtures and Equipment    
Real Estate Properties [Line Items]    
Accumulated depreciation and amortization (1,088) (456)
Total Real Estate Investments, Net 1,159 951
Hudson Montford    
Real Estate Properties [Line Items]    
Real estate investment property, at cost 62,218 62,000
Hudson Montford | Land    
Real Estate Properties [Line Items]    
Real estate investment property, at cost 10,996 10,996
Hudson Montford | Buildings and Improvements    
Real Estate Properties [Line Items]    
Real estate investment property, at cost 50,204 49,912
Hudson Montford | Intangible Lease Assets    
Real Estate Properties [Line Items]    
Real estate investment property, at cost 0 0
Hudson Montford | Construction in Progress    
Real Estate Properties [Line Items]    
Real estate investment property, at cost 0 401
Hudson Montford | Furniture, Fixtures and Equipment    
Real Estate Properties [Line Items]    
Real estate investment property, at cost 1,018 691
Alexander at the District    
Real Estate Properties [Line Items]    
Real estate investment property, at cost 68,368 68,955
Alexander at the District | Land    
Real Estate Properties [Line Items]    
Real estate investment property, at cost 7,806 7,806
Alexander at the District | Buildings and Improvements    
Real Estate Properties [Line Items]    
Real estate investment property, at cost 59,331 59,162
Alexander at the District | Intangible Lease Assets    
Real Estate Properties [Line Items]    
Real estate investment property, at cost 0 1,271
Alexander at the District | Construction in Progress    
Real Estate Properties [Line Items]    
Real estate investment property, at cost 2 0
Alexander at the District | Furniture, Fixtures and Equipment    
Real Estate Properties [Line Items]    
Real estate investment property, at cost $ 1,229 $ 716
v3.25.1
Real Estate Investments, net - Revenue and Expenses of Property (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Real Estate Properties [Line Items]      
Property general and administrative expenses $ 12,812 $ 9,204 $ 7,243
Depreciation and amortization 5,613 2,465 2,895
Multifamily Property, Including Netting      
Real Estate Properties [Line Items]      
Other income 149 182 1,286
Total revenues 8,864 5,144 12,402
Interest expense 8,219 3,984 4,183
Real estate taxes and insurance 1,325 862 1,493
Property operating expenses 2,415 1,145 2,548
Property general and administrative expenses 466 257 366
Property management fees 260 158 301
Depreciation and amortization 5,613 2,465 2,895
Rate cap (income) expense 80 (2,045) (1,014)
Debt service bridge 0 0 626
Casualty (gain) loss (1) (148) 0
Total expenses 18,377 6,678 11,398
Net income (loss) from consolidated real estate owned (9,513) (1,534) 1,004
Multifamily Property, Including Netting | Rental Income      
Real Estate Properties [Line Items]      
Rental income $ 8,715 $ 4,962 $ 11,116
v3.25.1
Debt - Summary of Financing Arrangements (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Oct. 18, 2022
USD ($)
Apr. 15, 2020
subsidiary
Jul. 11, 2019
subsidiary
Debt Instrument [Line Items]          
Number of subsidiaries | subsidiary       3 2
Facility          
Debt Instrument [Line Items]          
Outstanding face amount $ 799,303 $ 1,271,938      
Carrying value $ 795,688 $ 1,268,212      
Weighted average interest rate 5.95% 4.55%      
Weighted average life (years) 1 year 4 months 24 days 2 years 10 months 24 days      
Collateral          
Debt Instrument [Line Items]          
Collateral outstanding face amount $ 1,097,740 $ 676,420      
Collateral amortized cost basis 844,255 1,372,571      
Collateral carrying value $ 861,129 $ 1,366,698      
Weighted average life (years) 4 years 2 months 12 days 5 years 7 months 6 days      
Master Repurchase Agreements | Mizuho          
Debt Instrument [Line Items]          
Outstanding face amount $ 243,500        
Collateral outstanding face amount 740,000        
Master Repurchase Agreements | Mizuho | Facility          
Debt Instrument [Line Items]          
Outstanding face amount 243,454 $ 303,514      
Carrying value $ 243,454 $ 303,514      
Weighted average interest rate 6.49% 7.26%      
Weighted average life (years) 0 years 0 years      
Master Repurchase Agreements | Mizuho | Collateral          
Debt Instrument [Line Items]          
Collateral outstanding face amount $ 740,022 $ 931,296      
Collateral amortized cost basis 360,427 470,761      
Collateral carrying value $ 350,379 $ 464,888      
Weighted average life (years) 4 years 8 months 12 days 6 years 4 months 24 days      
Asset Specific Financing | Freddie Mac | Facility          
Debt Instrument [Line Items]          
Outstanding face amount $ 110,097 $ 590,306      
Carrying value $ 110,097 $ 590,306      
Weighted average interest rate 2.70% 2.34%      
Weighted average life (years) 2 years 9 months 18 days 4 years 6 months      
Asset Specific Financing | Freddie Mac | Collateral          
Debt Instrument [Line Items]          
Collateral outstanding face amount $ 120,618 $ 645,277      
Collateral amortized cost basis 124,071 676,420      
Collateral carrying value $ 124,071 $ 676,420      
Weighted average life (years) 2 years 9 months 18 days 4 years 6 months      
Mezzanine loans | Freddie Mac | Facility          
Debt Instrument [Line Items]          
Outstanding face amount $ 59,252 $ 59,252      
Carrying value $ 59,253 $ 59,252      
Weighted average interest rate 0.30% 0.30%      
Weighted average life (years) 5 years 3 months 18 days 6 years 3 months 18 days      
Mezzanine loans | Freddie Mac | Collateral          
Debt Instrument [Line Items]          
Collateral outstanding face amount $ 96,817 $ 96,817      
Collateral amortized cost basis 98,597 98,839      
Collateral carrying value $ 98,597 $ 98,839      
Weighted average life (years) 5 years 3 months 18 days 6 years 3 months 18 days      
Multifamily Property Debt Due 2028          
Debt Instrument [Line Items]          
Debt instrument, repayment premium, percent 1.00% 1.00%      
Multifamily Property Debt Due 2028 | Facility          
Debt Instrument [Line Items]          
Outstanding face amount $ 32,480 $ 32,366      
Carrying value $ 31,964 $ 32,157      
Weighted average interest rate 8.06% 8.05%      
Weighted average life (years) 3 years 4 months 24 days 4 years 4 months 24 days      
Multifamily Property Debt Due 2028 | Collateral          
Debt Instrument [Line Items]          
Collateral amortized cost basis $ 56,348 $ 64,697      
Collateral carrying value $ 56,348 $ 64,697      
Weighted average life (years) 3 years 4 months 24 days 4 years 4 months 24 days      
Multifamily Property Debt Due 2024 | Facility          
Debt Instrument [Line Items]          
Outstanding face amount $ 63,500 $ 63,500      
Carrying value $ 63,500 $ 63,500      
Weighted average interest rate 8.59% 8.84%      
Weighted average life (years) 9 months 18 days 10 months 24 days      
Multifamily Property Debt Due 2024 | Collateral          
Debt Instrument [Line Items]          
Collateral amortized cost basis $ 65,488 $ 61,854      
Collateral carrying value $ 65,488 $ 61,854      
Weighted average life (years) 9 months 18 days 10 months 24 days      
The 7.50 Percent Senior Notes Due 2025 | Unsecured Debt | Facility          
Debt Instrument [Line Items]          
Outstanding face amount $ 36,500 $ 36,500      
Carrying value $ 36,205 $ 35,852      
Weighted average interest rate 7.50% 7.50%      
Weighted average life (years) 9 months 18 days 1 year 9 months 18 days      
The 5.75 Percent Senior Notes Due 2026 | Unsecured Debt | Facility          
Debt Instrument [Line Items]          
Outstanding face amount $ 180,000 $ 180,000      
Carrying value $ 178,296 $ 177,131      
Weighted average interest rate 5.75% 5.75%      
Weighted average life (years) 1 year 3 months 18 days 2 years 3 months 18 days      
The 7.50 Percent Senior Notes Due 2027 | Unsecured Debt | Facility          
Debt Instrument [Line Items]          
Outstanding face amount $ 6,500 $ 6,500 $ 6,500    
Carrying value $ 6,500 $ 6,500      
Weighted average interest rate 7.50% 7.50% 7.50%    
Weighted average life (years) 2 years 9 months 18 days 3 years 9 months 18 days      
Common Stock Investments | Facility          
Debt Instrument [Line Items]          
Outstanding face amount $ 10,000        
Carrying value $ 9,869        
Weighted average interest rate 8.78%        
Weighted average life (years) 3 months 18 days        
Common Stock Investments | Collateral          
Debt Instrument [Line Items]          
Collateral carrying value $ 26,922        
Promissory notes, held-for-investment | Facility          
Debt Instrument [Line Items]          
Outstanding face amount 57,520        
Carrying value $ 56,550        
Weighted average interest rate 10.55%        
Weighted average life (years) 4 months 24 days        
Promissory notes, held-for-investment | Collateral          
Debt Instrument [Line Items]          
Collateral outstanding face amount $ 140,283        
Collateral amortized cost basis 139,324        
Collateral carrying value $ 139,324        
Weighted average life (years) 2 years 1 month 6 days        
v3.25.1
Debt - Additional Information (Details)
Feb. 29, 2024
Nov. 15, 2023
USD ($)
Jul. 12, 2019
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Apr. 15, 2020
subsidiary
Feb. 11, 2020
USD ($)
Jul. 11, 2019
subsidiary
Debt Instrument [Line Items]                
Number of subsidiaries | subsidiary           3   2
Secured financing agreements, net       $ 235,769,000 $ 649,558,000      
Percentage of par value 90.20%              
Facility                
Debt Instrument [Line Items]                
Outstanding face amount       799,303,000 1,271,938,000      
Carrying value       795,688,000 1,268,212,000      
Collateral                
Debt Instrument [Line Items]                
Collateral outstanding face amount       1,097,740,000 676,420,000      
Credit Facility | Freddie Mac                
Debt Instrument [Line Items]                
Principal repayments     $ 788,800,000          
Credit facility, remaining borrowing capacity     $ 0          
Secured financing agreements, net             $ 788,800,000  
Master Repurchase Agreements | Mizuho                
Debt Instrument [Line Items]                
Outstanding face amount       243,500,000        
Collateral outstanding face amount       740,000,000.0        
Master Repurchase Agreements | Mizuho | Facility                
Debt Instrument [Line Items]                
Outstanding face amount       243,454,000 303,514,000      
Carrying value       243,454,000 303,514,000      
Master Repurchase Agreements | Mizuho | Collateral                
Debt Instrument [Line Items]                
Collateral outstanding face amount       740,022,000 931,296,000      
The Third 5.75 Percent Senior Notes                
Debt Instrument [Line Items]                
Outstanding face amount   $ 15,000,000            
Interest rate, stated percentage   5.75%            
Percentage of par value   92.00%            
Principal borrowings   $ 13,600,000            
Carrying value       180,000,000        
Asset Specific Financing | Freddie Mac | Facility                
Debt Instrument [Line Items]                
Outstanding face amount       110,097,000 590,306,000      
Carrying value       110,097,000 590,306,000      
Asset Specific Financing | Freddie Mac | Collateral                
Debt Instrument [Line Items]                
Collateral outstanding face amount       $ 120,618,000 $ 645,277,000      
v3.25.1
Debt - Schedule of Outstanding Principal Balances Related to SFR Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Secured financing agreements, net $ 235,769 $ 649,558
Senior Loan | Debt Instrument Eleven    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 250,380  
Interest Rate 9.03%  
Senior Loan | Single Family Rental    
Debt Instrument [Line Items]    
Secured financing agreements, net   $ 590,306
Interest Rate   2.34%
Senior Loan | Single Family Rental | Debt Instrument One    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 28,564 $ 465,690
Interest Rate 2.14% 2.24%
Senior Loan | Single Family Rental | Debt Instrument Two    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 33,171 $ 31,416
Interest Rate 2.70% 2.14%
Senior Loan | Single Family Rental | Debt Instrument Three    
Debt Instrument [Line Items]    
Secured financing agreements, net   $ 33,967
Interest Rate   2.70%
Senior Loan | Single Family Rental | Debt Instrument Four    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 9,284 $ 9,156
Interest Rate 2.45% 2.79%
Senior Loan | Single Family Rental | Debt Instrument Five    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 7,107 $ 9,284
Interest Rate 3.51% 2.45%
Senior Loan | Single Family Rental | Debt Instrument Six    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 8,657 $ 8,111
Interest Rate 3.30% 3.51%
Senior Loan | Single Family Rental | Debt Instrument Seven    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 7,748 $ 8,787
Interest Rate 3.14% 3.30%
Senior Loan | Single Family Rental | Debt Instrument Eight    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 5,745 $ 7,881
Interest Rate 2.99% 3.14%
Senior Loan | Single Family Rental | Debt Instrument Nine    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 5,102 $ 5,848
Interest Rate 3.14% 2.99%
Senior Loan | Single Family Rental | Debt Instrument Ten    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 4,719 $ 5,240
Interest Rate 2.64% 3.14%
Senior Loan | Single Family Rental | Debt Instrument Eleven    
Debt Instrument [Line Items]    
Secured financing agreements, net   $ 4,926
Interest Rate   2.64%
Senior Loan | Multifamily | Mezzanine Loans    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 59,252 $ 59,252
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument One | Mezzanine Loans | Wilmington, DE    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 8,723 $ 8,723
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Two | Mezzanine Loans | White Marsh, MD    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 7,344 $ 7,344
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Three | Mezzanine Loans | Philadelphia, PA    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 6,353 $ 6,353
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Four | Mezzanine Loans | Daytona Beach, FL    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 5,881 $ 5,881
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Five | Mezzanine Loans | Laurel, MD    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 4,523 $ 4,523
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Six | Mezzanine Loans | Temple Hills, MD    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 4,179 $ 4,179
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Seven | Mezzanine Loans | Temple Hills, MD    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 3,390 $ 3,390
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Eight | Mezzanine Loans | Lakewood, NJ    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 3,348 $ 3,348
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Nine | Mezzanine Loans | North Aurora, IL    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 2,454 $ 2,454
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Ten | Mezzanine Loans | Rosedale, MD    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 2,264 $ 2,264
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Eleven | Mezzanine Loans | Cockeysville, MD    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 2,215 $ 2,215
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Twelve | Mezzanine Loans | Laurel, MD    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 2,026 $ 2,026
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Thirteen | Mezzanine Loans | Vancouver, WA    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 1,836 $ 1,836
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Fourteen | Mezzanine Loans | Tyler, TX    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 1,763 $ 1,763
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Fifteen | Mezzanine Loans | Las Vegas, NV    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 1,307 $ 1,307
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Sixteen | Mezzanine Loans | Atlanta, GA    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 918 $ 918
Interest Rate 0.30% 0.30%
Senior Loan | Multifamily | Debt Instrument Seventeen | Mezzanine Loans | Des Moines, IA    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 728 $ 728
Interest Rate 0.30% 0.30%
Senior Loan | Life sciences | Debt Instrument Eleven    
Debt Instrument [Line Items]    
Secured financing agreements, net $ 140,283  
Interest Rate 14.00%  
v3.25.1
Debt - Activity Related to Carrying Value of Secured Financing Agreements and Master Repurchase Agreements (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Line Of Credit Facility [Roll Forward]      
Unsecured notes offering $ 0 $ 13,557 $ 40,674
Loss on extinguishment of debt 488 0 (17)
Amortization of deferred financing costs 47 (45) 48
Ending balance 799,303    
Secured Financing Agreements and Master Repurchase Agreements      
Line Of Credit Facility [Roll Forward]      
Beginning balance 1,268,212 1,345,101  
Adjustment to mortgages payable, net on deconsolidation of real estate 0 (89,012)  
Increase in Mortgages Payable in connection with VIE consolidation 0 63,500  
Principal borrowings 247,606 55,239  
Principal repayments (721,943) (121,094)  
Principal repayments on mortgages payable (240) 0  
Unsecured notes offering 0 13,557  
Loss on extinguishment of debt 488 0  
Accretion of discounts 1,518 966  
Amortization of deferred financing costs 47 (45)  
Ending balance $ 795,688 $ 1,268,212 $ 1,345,101
v3.25.1
Debt - Summary of Aggregate Scheduled Maturities of Total Debt (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Debt Instrument [Line Items]  
2025 $ 439,538
2026 189,284
2027 6,500
2028 99,023
2029 35,888
Thereafter 29,070
Total long-term debt 799,303
Recourse  
Debt Instrument [Line Items]  
2025 167,520
2026 180,000
2027 6,500
2028 32,480
2029 0
Thereafter 0
Total long-term debt 386,500
Non-recourse  
Debt Instrument [Line Items]  
2025 272,018
2026 9,284
2027 0
2028 66,543
2029 35,888
Thereafter 29,070
Total long-term debt $ 412,803
v3.25.1
Fair Value of Financial Instruments - Additional Information (Details) - Designated as Hedging Instrument
$ in Millions
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Oct. 10, 2023
USD ($)
Dec. 30, 2021
USD ($)
Interest Rate Cap        
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Derivative, fair value, net $ 0.7 $ 1.0 $ 63.5 $ 32.5
Derivative strike price       0.0229
Interest Rate Cap | Maximum        
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Derivative strike price     0.0150  
Secondary Interest Rate Cap        
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Derivative, fair value, net   $ 1.8    
v3.25.1
Fair Value of Financial Instruments - Schedule of Carrying Values and Fair Values of Financial Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Carrying Value | Fair Value, Recurring    
Assets    
Cash and cash equivalents $ 3,877 $ 13,824
Restricted cash 3,176 2,825
Loans, held-for-investment, net 497,544 328,460
Accrued interest 41,208 22,033
Accounts receivable and other assets 1,457 4,312
Total Assets 5,294,237 6,891,802
Liabilities    
Secured financing agreements, net 235,769 649,558
Master repurchase agreements 243,454 303,514
Unsecured notes, net 221,001 219,483
Mortgages payable, net 95,464 95,657
Accounts payable and other accrued liabilities 9,458 6,428
Accrued interest payable 10,020 8,209
Total Liabilities 4,844,380 6,572,846
Carrying Value | Fair Value, Recurring | Equity method investments    
Assets    
Preferred stock investments, at fair value 1,504  
Carrying Value | Fair Value, Recurring | Series A Preferred Stock    
Assets    
Preferred stock investments, at fair value 18,949 14,776
Carrying Value | Fair Value, Recurring | Common Stock    
Assets    
Preferred stock investments, at fair value 57,389 61,529
Carrying Value | Fair Value, Recurring | Mortgages    
Assets    
Loans, held-for-investment, net 263,395 676,420
Carrying Value | Fair Value, Recurring | CMBS Structured Pass Through Certificates    
Assets    
CMBS structured pass-through certificates, at fair value 34,979 41,212
Carrying Value | Fair Value, Recurring | Change in unrealized gain (loss) on MSCR Notes    
Assets    
CMBS structured pass-through certificates, at fair value   10,378
Carrying Value | Fair Value, Recurring | Change in unrealized gain (loss) on mortgage backed securities    
Assets    
CMBS structured pass-through certificates, at fair value   38,270
Stock warrant investments 27,400  
Carrying Value | Fair Value, Recurring | Variable Interest Entity, Primary Beneficiary    
Liabilities    
Bonds payable held in variable interest entities, at fair value 4,029,214 5,289,997
Carrying Value | Fair Value, Recurring | Variable Interest Entity, Primary Beneficiary | Mortgages    
Assets    
Loans, held-for-investment, net 4,343,359 5,677,763
Preferred stock investments, at fair value 57,389 61,529
Stock warrant investments 27,400 0
CMBS Structured Pass Through Certificates    
Assets    
CMBS structured pass-through certificates, at fair value 34,979 41,212
Change in unrealized gain (loss) on MSCR Notes    
Assets    
CMBS structured pass-through certificates, at fair value 0 10,378
Change in unrealized gain (loss) on mortgage backed securities    
Assets    
CMBS structured pass-through certificates, at fair value 0 38,270
Fair Value, Recurring    
Assets    
Cash and cash equivalents 3,877 13,824
Restricted cash 3,176 2,825
Loans, held-for-investment, net 505,866 337,110
Accrued interest 41,208 22,033
Accounts receivable and other assets 1,457 4,312
Total Assets 5,301,201 6,887,898
Liabilities    
Secured financing agreements, net 250,285 666,423
Master repurchase agreements 243,454 303,514
Unsecured notes, net 213,457 199,859
Mortgages payable, net 92,157 95,470
Accounts payable and other accrued liabilities 9,458 6,428
Accrued interest payable 10,020 8,209
Total Liabilities 4,848,045 6,569,900
Fair Value, Recurring | Equity method investments    
Assets    
Preferred stock investments, at fair value 1,504  
Fair Value, Recurring | Series A Preferred Stock    
Assets    
Preferred stock investments, at fair value 18,949 14,776
Fair Value, Recurring | Common Stock    
Assets    
Preferred stock investments, at fair value 57,389 61,529
Fair Value, Recurring | Mortgages    
Assets    
Loans, held-for-investment, net 262,037 663,866
Fair Value, Recurring | CMBS Structured Pass Through Certificates    
Assets    
CMBS structured pass-through certificates, at fair value 34,979 41,212
Fair Value, Recurring | Change in unrealized gain (loss) on MSCR Notes    
Assets    
CMBS structured pass-through certificates, at fair value   10,378
Fair Value, Recurring | Change in unrealized gain (loss) on mortgage backed securities    
Assets    
CMBS structured pass-through certificates, at fair value   38,270
Stock warrant investments 27,400  
Fair Value, Recurring | Variable Interest Entity, Primary Beneficiary    
Liabilities    
Bonds payable held in variable interest entities, at fair value 4,029,214 5,289,997
Fair Value, Recurring | Variable Interest Entity, Primary Beneficiary | Mortgages    
Assets    
Loans, held-for-investment, net 4,343,359 5,677,763
Fair Value, Recurring | Level 1    
Assets    
Cash and cash equivalents 3,877 13,824
Restricted cash 3,176 2,825
Loans, held-for-investment, net 0 0
Accrued interest 41,208 22,033
Accounts receivable and other assets 1,184 1,560
Total Assets 49,445 40,242
Liabilities    
Secured financing agreements, net 0 0
Master repurchase agreements 0 0
Unsecured notes, net 0 0
Mortgages payable, net 0 0
Accounts payable and other accrued liabilities 9,458 6,428
Accrued interest payable 10,020 8,209
Total Liabilities 19,478 14,637
Fair Value, Recurring | Level 1 | Equity method investments    
Assets    
Preferred stock investments, at fair value 0  
Fair Value, Recurring | Level 1 | Series A Preferred Stock    
Assets    
Preferred stock investments, at fair value 0 0
Fair Value, Recurring | Level 1 | Common Stock    
Assets    
Preferred stock investments, at fair value 0 0
Fair Value, Recurring | Level 1 | Mortgages    
Assets    
Loans, held-for-investment, net 0 0
Fair Value, Recurring | Level 1 | CMBS Structured Pass Through Certificates    
Assets    
CMBS structured pass-through certificates, at fair value 0 0
Fair Value, Recurring | Level 1 | Change in unrealized gain (loss) on MSCR Notes    
Assets    
CMBS structured pass-through certificates, at fair value   0
Fair Value, Recurring | Level 1 | Change in unrealized gain (loss) on mortgage backed securities    
Assets    
CMBS structured pass-through certificates, at fair value   0
Stock warrant investments 0  
Fair Value, Recurring | Level 1 | Variable Interest Entity, Primary Beneficiary    
Liabilities    
Bonds payable held in variable interest entities, at fair value 0 0
Fair Value, Recurring | Level 1 | Variable Interest Entity, Primary Beneficiary | Mortgages    
Assets    
Loans, held-for-investment, net 0 0
Fair Value, Recurring | Level 2    
Assets    
Cash and cash equivalents 0 0
Restricted cash 0 0
Loans, held-for-investment, net 0 0
Accrued interest 0 0
Accounts receivable and other assets 273 2,752
Total Assets 4,378,611 5,770,375
Liabilities    
Secured financing agreements, net 0 0
Master repurchase agreements 0 0
Unsecured notes, net 213,457 199,859
Mortgages payable, net 0 0
Accounts payable and other accrued liabilities 0 0
Accrued interest payable 0 0
Total Liabilities 4,242,671 5,489,856
Fair Value, Recurring | Level 2 | Equity method investments    
Assets    
Preferred stock investments, at fair value 0  
Fair Value, Recurring | Level 2 | Series A Preferred Stock    
Assets    
Preferred stock investments, at fair value 0 0
Fair Value, Recurring | Level 2 | Common Stock    
Assets    
Preferred stock investments, at fair value 0 0
Fair Value, Recurring | Level 2 | Mortgages    
Assets    
Loans, held-for-investment, net 0 0
Fair Value, Recurring | Level 2 | CMBS Structured Pass Through Certificates    
Assets    
CMBS structured pass-through certificates, at fair value 34,979 41,212
Fair Value, Recurring | Level 2 | Change in unrealized gain (loss) on MSCR Notes    
Assets    
CMBS structured pass-through certificates, at fair value   10,378
Fair Value, Recurring | Level 2 | Change in unrealized gain (loss) on mortgage backed securities    
Assets    
CMBS structured pass-through certificates, at fair value   38,270
Stock warrant investments 0  
Fair Value, Recurring | Level 2 | Variable Interest Entity, Primary Beneficiary    
Liabilities    
Bonds payable held in variable interest entities, at fair value 4,029,214 5,289,997
Fair Value, Recurring | Level 2 | Variable Interest Entity, Primary Beneficiary | Mortgages    
Assets    
Loans, held-for-investment, net 4,343,359 5,677,763
Fair Value, Recurring | Level 3    
Assets    
Cash and cash equivalents 0 0
Restricted cash 0 0
Loans, held-for-investment, net 505,866 337,110
Accrued interest 0 0
Accounts receivable and other assets 0 0
Total Assets 873,145 1,077,281
Liabilities    
Secured financing agreements, net 250,285 666,423
Master repurchase agreements 243,454 303,514
Unsecured notes, net 0 0
Mortgages payable, net 92,157 95,470
Accounts payable and other accrued liabilities 0 0
Accrued interest payable 0 0
Total Liabilities 585,896 1,065,407
Fair Value, Recurring | Level 3 | Equity method investments    
Assets    
Preferred stock investments, at fair value 1,504  
Fair Value, Recurring | Level 3 | Series A Preferred Stock    
Assets    
Preferred stock investments, at fair value 18,949 14,776
Fair Value, Recurring | Level 3 | Common Stock    
Assets    
Preferred stock investments, at fair value 57,389 61,529
Fair Value, Recurring | Level 3 | Mortgages    
Assets    
Loans, held-for-investment, net 262,037 663,866
Fair Value, Recurring | Level 3 | CMBS Structured Pass Through Certificates    
Assets    
CMBS structured pass-through certificates, at fair value 0 0
Fair Value, Recurring | Level 3 | Change in unrealized gain (loss) on MSCR Notes    
Assets    
CMBS structured pass-through certificates, at fair value   0
Fair Value, Recurring | Level 3 | Change in unrealized gain (loss) on mortgage backed securities    
Assets    
CMBS structured pass-through certificates, at fair value   0
Stock warrant investments 27,400  
Fair Value, Recurring | Level 3 | Variable Interest Entity, Primary Beneficiary    
Liabilities    
Bonds payable held in variable interest entities, at fair value 0 0
Fair Value, Recurring | Level 3 | Variable Interest Entity, Primary Beneficiary | Mortgages    
Assets    
Loans, held-for-investment, net $ 0 $ 0
v3.25.1
Fair Value of Financial Instruments - Significant Unobservable Inputs of Level 3 Assets (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Carrying Value $ 57,389 $ 61,529
Valuation Technique, Discounted Cash Flow | Level 3 | NexPoint Storage Partners    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Carrying Value 30,467 33,129
Valuation Technique, Discounted Cash Flow | Level 3 | IQHQ, Inc.    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Carrying Value 18,949 14,776
Valuation, Market Approach | Level 3 | Private REIT    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Carrying Value $ 26,922 $ 28,400
Terminal cap rate | Valuation Technique, Discounted Cash Flow | Level 3 | Minimum | NexPoint Storage Partners    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 0.0500 0.0500
Terminal cap rate | Valuation Technique, Discounted Cash Flow | Level 3 | Maximum | NexPoint Storage Partners    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 0.0550 0.0550
Terminal cap rate | Valuation Technique, Discounted Cash Flow | Level 3 | Weighted Average | NexPoint Storage Partners    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 0.0525 0.0525
Discount rate | Valuation Technique, Discounted Cash Flow    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 0.115  
Discount rate | Valuation Technique, Discounted Cash Flow | Level 3 | Minimum | NexPoint Storage Partners    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 0.0800 0.0750
Discount rate | Valuation Technique, Discounted Cash Flow | Level 3 | Minimum | IQHQ, Inc.    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 0.1100 0.1100
Discount rate | Valuation Technique, Discounted Cash Flow | Level 3 | Maximum | NexPoint Storage Partners    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 0.0850 0.0950
Discount rate | Valuation Technique, Discounted Cash Flow | Level 3 | Maximum | IQHQ, Inc.    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 0.1200 0.1200
Discount rate | Valuation Technique, Discounted Cash Flow | Level 3 | Weighted Average | NexPoint Storage Partners    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 0.0825 0.0850
Discount rate | Valuation Technique, Discounted Cash Flow | Level 3 | Weighted Average | IQHQ, Inc.    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 0.1150 0.1150
NAV per share multiple | Valuation, Market Approach | Level 3 | Minimum | Private REIT    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 1.00 1.00
NAV per share multiple | Valuation, Market Approach | Level 3 | Maximum | Private REIT    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 1.15 1.20
NAV per share multiple | Valuation, Market Approach | Level 3 | Weighted Average | Private REIT    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average 1.08 0.011
v3.25.1
Fair Value of Financial Instruments - Changes in Level 3 Assets (Details) - Equity Securities - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
NexPoint Storage Partners    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance $ 33,129 $ 50,380
Additions 0 0
Change in Unrealized Gains/(Losses) (2,662) (17,251)
Ending balance 30,467 33,129
Private REIT    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance 14,776 0
Additions 3,506 14,510
Change in Unrealized Gains/(Losses) 667 266
Ending balance 18,949 14,776
IQHQ, Inc.    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance 28,400 27,884
Additions 0 0
Change in Unrealized Gains/(Losses) (1,478) 516
Ending balance $ 26,922 $ 28,400
v3.25.1
Stockholders' Equity - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended 24 Months Ended
Mar. 13, 2024
Jan. 26, 2024
Nov. 09, 2023
Nov. 02, 2023
Apr. 04, 2023
Feb. 22, 2023
Feb. 21, 2022
Nov. 08, 2021
Mar. 03, 2021
Feb. 22, 2021
Nov. 02, 2020
Jul. 24, 2020
Jun. 24, 2020
May 08, 2020
Mar. 09, 2020
Jan. 31, 2020
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Mar. 09, 2022
Mar. 15, 2022
Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Common stock, par value per share (in dollars per share)                                 $ 0.01 $ 0.01   $ 0.01    
Common stock, issued (in shares)                                 17,461,129 17,518,900        
Common stock, outstanding (in shares)                                 17,461,129 17,231,913        
Preferred stock, dividend rate, percentage     10.50%                                      
Stock repurchase program, authorized amount           $ 20.0                 $ 10.0              
Stock repurchase program, period in force           2 years                 2 years              
Treasury stock shares acquired (in shares)                                       327,422    
Repurchase of common stock                                       $ 4.8    
Treasury stock acquired, average cost per share (in dollars per share)                                       $ 14.61    
Treasury stock, shares retired (in shares)                 40,435                          
Treasury stock, common (in shares)                 286,987               0 286,987        
Stock issuance agreement, number of shares (in shares)                                           13,758,906
Conversion of redeemable noncontrolling interests in the OP (in shares)                                 8,748,735          
2020 LTIP                                            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Share-based compensation arrangement by share-based payment award, shares issued in period (in shares)   2,308,000                           1,319,734            
At-the-market Offering                                            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Equity distribution agreements, maximum aggregate sales price                                         $ 100.0  
Series A Preferred Stock                                            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Issuance of common stock through at-the-market offering, net (in shares)                       2,000,000                    
Preferred stock, dividend rate, percentage                       8.50%                    
Preferred stock, redemption price per share (in dollars per share)                       $ 24.00                    
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs                       $ 48.0                    
Underwriting discount and commission expenses                       1.2                    
Payments of stock issuance costs                       $ 0.8                    
Preferred stock, liquidation preference per share (in dollars per share)                       $ 25.00                    
Series B Preferred Stock                                            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Issuance of common stock through at-the-market offering, net (in shares)       16,000,000                         6,697,461          
Preferred stock, dividend rate, percentage                       9.00%                    
Preferred stock, redemption price per share (in dollars per share)       $ 25.00                                    
Preferred stock, liquidation preference per share (in dollars per share)                                 $ 25.00          
Paymentof commissions and dealer manager fees                                 $ 13.1          
Sale of stock, number of shares issued (in shares)                                 16,000,000          
Stock redeemed (in shares)                                 1,746          
Common Stock                                            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Vesting of stock-based compensation (in shares)                                 229,216,000 151,970 114,678      
Common stock, par value per share (in dollars per share)                                 $ 0.1          
Common stock, outstanding (in shares)                                 17,461,129,000 17,231,913,000 17,079,943     9,163,934
Issuance of common stock through at-the-market offering, net (in shares)                                     531,728      
Conversion of redeemable noncontrolling interests in the OP (in shares)                                     7,269,603      
Restricted Stock Units (RSUs)                                            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Granted (in shares)                                 465,316          
Restricted stock unit awards                                 1 year 3 months 18 days          
Weighted average vesting period                                 $ 11.2          
Restricted Stock Units (RSUs) | 2020 LTIP                                            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Share-based compensation arrangement by share-based payment award, award vesting period                                 4 years          
Restricted Stock Units (RSUs) | Officers and Other Employees | 2020 LTIP                                            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Granted (in shares) 442,666       418,685   264,476     220,352     274,274                  
Restricted Stock Units (RSUs) | Director | 2020 LTIP                                            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Granted (in shares) 22,650       21,370   12,464     11,832       14,739                
Restricted Stock Units (RSUs) | General Partner of Subsidiary | 2020 LTIP                                            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Granted (in shares)               1,201   1,201 1,838                      
Restricted Stock Units (RSUs) | Minimum | 2020 LTIP                                            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Share-based compensation arrangement by share-based payment award, award vesting period                                 3 years          
Restricted Stock Units (RSUs) | Maximum | 2020 LTIP                                            
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]                                            
Share-based compensation arrangement by share-based payment award, award vesting period                                 5 years          
v3.25.1
Stockholders' Equity - Number of Restricted Stock Units Granted, Vested, Forfeited and Outstanding (Details) - Restricted Stock Units (RSUs)
 12 Months Ended
Dec. 31, 2024
$ / shares
shares
Number of Units  
Outstanding, beginning balance (in shares) | shares 771,671
Granted (in shares) | shares 465,316
Vested (in shares) | shares (315,246)
Forfeited (in shares) | shares (1,665)
Outstanding, ending balance (in shares) | shares 920,076
Weighted Average Grant Date Fair Value  
Outstanding, Weighted Average Grant Date Fair Value, beginning balance (in dollars per share) | $ / shares $ 16.70
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares 14.66
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares 16.28
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares 14.66
Outstanding, Weighted Average Grant Date Fair Value, ending balance (in dollars per share) | $ / shares $ 15.81
v3.25.1
Stockholders' Equity - Vesting Schedule (Details) - Restricted Stock Units (RSUs) - shares
Dec. 31, 2024
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Total 920,076 771,671
February    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
2025 (in shares) 116,998  
2026 (in shares) 54,893  
2027 (in shares) 0  
2028 (in shares) 0  
Total 171,891  
March    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
2025 (in shares) 132,905  
2026 (in shares) 110,250  
2027 (in shares) 110,248  
2028 (in shares) 110,247  
Total 463,650  
April    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
2025 (in shares) 102,201  
2026 (in shares) 91,166  
2027 (in shares) 91,168  
2028 (in shares) 0  
Total 284,535  
Share-Based Payment Arrangement, Vesting in February Through May    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
2025 (in shares) 352,104  
2026 (in shares) 256,309  
2027 (in shares) 201,416  
2028 (in shares) 110,247  
Total 920,076  
v3.25.1
Stockholders' Equity - Summary of ATM Program Sales (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Net Proceeds $ 0 $ 0 $ 156,491,000
The 2022 At The Market Program (ATM)      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Gross Proceeds $ 12,575,493    
Shares of common stock issued (in shares) 531,728    
Gross Average Sale Price per Share of Common Stock (in usd per share) $ 23.65    
Sales Commissions $ 188,655    
Offering Costs 888,249    
Net Proceeds $ 11,498,589    
Average Price Per Share, net (in usd per share) $ 21.62    
v3.25.1
Earnings Per Share - Computation of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings Per Share [Abstract]      
Net income (loss) attributable to common stockholders $ 17,693 $ 10,399 $ 3,234
Earnings for basic computations      
Net income attributable to redeemable noncontrolling interests 6,770 4,765 4,969
Net income attributable to Series B preferred stockholders 8,003 80 0
Net income for diluted computations $ 32,466 $ 15,244 $ 8,203
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]      
Average number of common shares outstanding - basic (in shares) [1] 17,402 17,199 14,686
Average number of common shares from assumed vesting of unvested restricted stock units (in shares) 908 740 571
Average number of common shares from assumed conversion of OP Units (in shares) 5,038 5,038 7,218
Average number of common shares from assumed conversion of Series B Preferred Stock Stock (in shares) 5,798 24 0
Average number of common shares outstanding - diluted (in shares) 29,146 23,001 22,475
Earnings per weighted average common share:      
Basic (in dollars per share) $ 1.02 $ 0.60 $ 0.22
Diluted (in dollars per share) $ 1.02 $ 0.60 $ 0.22
[1] Diluted EPS calculations were higher than basic EPS and thus anti-dilutive for the years ended December 31, 2024, 2023, and 2022, respectively. As such, the Company is presenting diluted EPS as equal to basic EPS for the years ended December 31, 2024, 2023, and 2022, respectively
v3.25.1
Noncontrolling Interests - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2024
Sep. 08, 2021
Class A OP Units    
Noncontrolling Interest [Line Items]    
Limited liability units, voting power, percent per share   50.00%
Class B OP Units    
Noncontrolling Interest [Line Items]    
Limited liability units, voting power, percent per share 50.00% 50.00%
NexPoint Real Estate Finance Operating Partnership, L.P.    
Noncontrolling Interest [Line Items]    
Limited partnership, ownership interest (as a percent) 83.82%  
NexPoint Real Estate Finance Operating Partnership, L.P. | Class A OP Units    
Noncontrolling Interest [Line Items]    
Limited partnership, ownership interest (as a percent) 100.00%  
Manager Affiliates | Subscription Agreements | NexPoint Real Estate Finance Operating Partnership, L.P.    
Noncontrolling Interest [Line Items]    
Partners' capital, distribution amount per share (in dollars per share) $ 15.69  
Weighted average limited partnership units outstanding, basic (in shares) 5,038,382  
Cash payment for redemption of OP units $ 79.0  
v3.25.1
Noncontrolling Interests - Redeemable Noncontrolling Interests in the OP (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]      
Redeemable noncontrolling interests in the OP, beginning balance $ 89,471 $ 96,501 $ 261,423
Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate 0 297 0
Net income attributable to redeemable noncontrolling interests in the OP 6,770 4,765 4,969
Redemption of redeemable noncontrolling interests in the OP 0 0 (155,614)
Distributions to redeemable noncontrolling interests in the OP (10,077) (12,092) (14,277)
Redeemable noncontrolling interests in the OP, ending balance $ 86,164 $ 89,471 $ 96,501
v3.25.1
Noncontrolling Interests - Consolidated Common Shares (Details) - shares
Dec. 31, 2024
Dec. 31, 2023
Noncontrolling Interest [Line Items]    
Common stock, outstanding (in shares) 17,461,129 17,231,913
Combined outstanding (in shares) 22,499,511 22,270,295
OP Units | Noncontrolling Interest    
Noncontrolling Interest [Line Items]    
Op units held by NCI (in shares) 5,038,382 5,038,382
v3.25.1
Related Party Transactions - Additional Information 1 (Details)
 12 Months Ended
Mar. 13, 2024
shares
Aug. 16, 2023
USD ($)
May 25, 2023
USD ($)
Apr. 04, 2023
shares
Mar. 28, 2023
USD ($)
Mar. 06, 2023
USD ($)
Jan. 09, 2023
USD ($)
Feb. 21, 2022
shares
Nov. 08, 2021
shares
Feb. 22, 2021
shares
Nov. 02, 2020
shares
Jun. 24, 2020
shares
May 29, 2020
USD ($)
$ / shares
shares
May 08, 2020
shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Jul. 10, 2024
USD ($)
Apr. 19, 2024
USD ($)
Mar. 28, 2024
USD ($)
Dec. 08, 2023
USD ($)
Feb. 15, 2023
USD ($)
Dec. 08, 2022
USD ($)
note
Oct. 18, 2022
USD ($)
Dec. 31, 2021
shares
Related Party Transaction [Line Items]                                                  
Payment for management fee                             $ 0 $ 0 $ 0                
Stock issuance agreement, number of shares (in shares) | shares                                                 13,758,906
Conversion of redeemable noncontrolling interests in the OP (in shares) | shares                             8,748,735                    
Management fees                             $ 3,867,000 3,281,000 $ 3,151,000                
SFR OP Note                                                  
Related Party Transaction [Line Items]                                                  
Outstanding face amount                                   $ 5,000,000   $ 500,000          
Facility                                                  
Related Party Transaction [Line Items]                                                  
Outstanding face amount                             $ 799,303,000 $ 1,271,938,000                  
Weighted average interest rate                             5.95% 4.55%                  
Facility | The 7.50 Percent Senior Notes Due 2027 | Unsecured Debt                                                  
Related Party Transaction [Line Items]                                                  
Outstanding face amount                             $ 6,500,000 $ 6,500,000               $ 6,500,000  
Weighted average interest rate                             7.50% 7.50%               7.50%  
Facility | The 7.535 Percent Senior Notes Due 2029 | Unsecured Debt                                                  
Related Party Transaction [Line Items]                                                  
Outstanding face amount                                     $ 6,500,000            
Weighted average interest rate                                     7.54%            
Restricted Stock Units (RSUs)                                                  
Related Party Transaction [Line Items]                                                  
Granted (in shares) | shares                             465,316                    
Director | Restricted Stock Units (RSUs) | 2020 LTIP                                                  
Related Party Transaction [Line Items]                                                  
Granted (in shares) | shares 22,650     21,370       12,464   11,832       14,739                      
Officers and Other Employees | Restricted Stock Units (RSUs) | 2020 LTIP                                                  
Related Party Transaction [Line Items]                                                  
Granted (in shares) | shares 442,666     418,685       264,476   220,352   274,274                          
General Partner of Subsidiary | Restricted Stock Units (RSUs) | 2020 LTIP                                                  
Related Party Transaction [Line Items]                                                  
Granted (in shares) | shares                 1,201 1,201 1,838                            
Directors, Officers and Certain Key Employees | Restricted Stock Units (RSUs) | 2020 LTIP                                                  
Related Party Transaction [Line Items]                                                  
Granted (in shares) | shares                   233,385                              
REIT Sub and the Co-Guarantors                                                  
Related Party Transaction [Line Items]                                                  
Number of promissory notes | note                                             2    
Guarantor obligations, current carrying value                                           $ 49,200,000 $ 64,200,000    
Guarantor obligations, maximum exposure                                             $ 97,600,000    
Guarantor obligations, paid down value                                         $ 49,200,000 $ 15,000,000      
Accrued dividends                             $ 11,900,000                    
Severable liability percentage                             85.90%                    
Guaranteed amount                             $ 10,200,000                    
NexPoint Real Estate Advisors VII, L.P.                                                  
Related Party Transaction [Line Items]                                                  
Percentage of annual advisory paid monthly                             1.50%                    
NexPoint Real Estate Advisors VII, L.P. | Maximum                                                  
Related Party Transaction [Line Items]                                                  
Percentage of direct payment of operating expense                             2.50%                    
Buffalo Pointe | Contribution Agreement                                                  
Related Party Transaction [Line Items]                                                  
Percentage of occupancy of multifamily property                             93.50%                    
Percentage of preferred equity investment current interest rate                             6.50%                    
Percentage of preferred equity investment deferred interest rate                             4.50%                    
Common stock conversion basis                             1                    
Buffalo Pointe | Contribution Agreement | NexPoint Real Estate Finance Operating Partnership, L.P.                                                  
Related Party Transaction [Line Items]                                                  
Payments of distributions to affiliates   $ 2,700,000 $ 2,700,000   $ 2,700,000 $ 2,700,000 $ 2,700,000           $ 10,000,000                        
Partners' capital account, total sale of units (in shares) | shares                         564,334                        
Book value of common stock per share (in dollars per share) | $ / shares                         $ 17.72                        
v3.25.1
Related Party Transactions - Additional Information 2 (Details)
 12 Months Ended
Nov. 30, 2024
USD ($)
Nov. 07, 2024
USD ($)
Oct. 31, 2024
USD ($)
Jun. 04, 2024
USD ($)
Apr. 29, 2024
USD ($)
Nov. 02, 2023
shares
Jan. 01, 2023
USD ($)
Feb. 01, 2022
USD ($)
unit
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Sep. 11, 2024
USD ($)
Jul. 10, 2024
USD ($)
Apr. 19, 2024
USD ($)
Mar. 28, 2024
USD ($)
Oct. 18, 2022
USD ($)
Jul. 26, 2022
USD ($)
Related Party Transaction [Line Items]                                  
Bonds payable held in variable interest entities, at fair value                 $ 799,303,000                
Number of units in multifamily property | unit               368                  
Payments to acquire real estate                 0 $ 0 $ 184,552,000            
Common equity interests transferred             $ 54,000                    
Preferred equity method investments                 11,400,000               $ 65,300,000
Gains on sales of other real estate                 1,500,000                
NexPoint Securities                                  
Related Party Transaction [Line Items]                                  
Payment to dealer manager                 9,100,000                
Payment of selling commission                 4,000,000                
Redeemable Preferred Stock                                  
Related Party Transaction [Line Items]                                  
Stock redeemed during the period                 $ 54,000,000                
Series B Preferred Stock                                  
Related Party Transaction [Line Items]                                  
Sale of stock, number of shares issued (in shares) | shares                 16,000,000                
Issuance of common stock through at-the-market offering, net (in shares) | shares           16,000,000     6,697,461                
Stock redeemed (in shares) | shares                 1,746                
Series B Preferred Stock | NexPoint Securities                                  
Related Party Transaction [Line Items]                                  
Selling commissions (as a percent)           7.00%                      
Dealer manager fee (as a percent)           3.00%                      
Sale of stock, number of shares issued (in shares) | shares                 16,000,000                
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs                 $ 163,800,000                
Elysian at Hughes Center                                  
Related Party Transaction [Line Items]                                  
Payments to acquire real estate               $ 184,100,000                  
SFR OP Note                                  
Related Party Transaction [Line Items]                                  
Outstanding face amount                         $ 5,000,000   $ 500,000    
Interest rate, stated percentage                         15.00%   12.50%    
The NexBank Loan                                  
Related Party Transaction [Line Items]                                  
Proceeds from debt $ 1,000,000 $ 2,000,000 $ 500,000   $ 10,000,000       10,000,000                
Facility                                  
Related Party Transaction [Line Items]                                  
Outstanding face amount                 $ 799,303,000 $ 1,271,938,000              
Weighted average interest rate                 5.95% 4.55%              
Facility | The 7.535 Percent Senior Notes Due 2029 | Unsecured Debt                                  
Related Party Transaction [Line Items]                                  
Outstanding face amount                           $ 6,500,000      
Weighted average interest rate                           7.54%      
Paydown of principal       $ 600,000                          
Bonds payable held in variable interest entities, at fair value                       $ 5,900,000          
Facility | The 7.50 Percent Senior Notes Due 2027 | Unsecured Debt                                  
Related Party Transaction [Line Items]                                  
Outstanding face amount                 $ 6,500,000 $ 6,500,000           $ 6,500,000  
Weighted average interest rate                 7.50% 7.50%           7.50%  
v3.25.1
Related Party Transactions - Additional Information 3 (Details)
$ in Thousands
 12 Months Ended
Nov. 30, 2024
USD ($)
Nov. 07, 2024
USD ($)
Oct. 31, 2024
USD ($)
Apr. 29, 2024
USD ($)
extension
Mar. 01, 2024
USD ($)
Feb. 29, 2024
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Nov. 14, 2024
USD ($)
Sep. 27, 2024
USD ($)
May 08, 2024
USD ($)
Related Party Transaction [Line Items]                        
Purchase of principal amount of tranche           $ 49,200            
Percentage of par value           90.20%            
Secured debt, repurchase agreements         $ 35,800              
Sale of principal amount of tranche                   $ 9,500 $ 6,700 $ 30,000
Net proceeds                   $ 2,500 $ 2,200 $ 400
Proceeds from sale of equity method investments             $ 5,437 $ 0 $ 0      
Resmark Forney Gateway Holdings | VineBrook Homes                        
Related Party Transaction [Line Items]                        
Proceeds from sale of equity method investments             7,750          
Resmark the Brook Holdings, LLC | VineBrook Homes                        
Related Party Transaction [Line Items]                        
Proceeds from sale of equity method investments             $ 7,750          
Capital Acquisition Partner | VIE                        
Related Party Transaction [Line Items]                        
Equity method investment, ownership percentage             79.10%          
Class A CMBS                        
Related Party Transaction [Line Items]                        
Securities sold under agreements to repurchase, average rate paid         1.00%              
Class E1 CMBS                        
Related Party Transaction [Line Items]                        
Securities sold under agreements to repurchase, average rate paid         1.60%              
Class E2 CMBS                        
Related Party Transaction [Line Items]                        
Securities sold under agreements to repurchase, average rate paid         1.60%              
The NexBank Loan                        
Related Party Transaction [Line Items]                        
Proceeds from debt $ 1,000 $ 2,000 $ 500 $ 10,000     $ 10,000          
Debt instrument, interest rate       4.20%                
Interest rate       8.25%                
Number of extension options | extension       2                
Extension period       364 days                
Line Of Credit, Maximum Commitment, Unfunded Amount             $ 1,500          
v3.25.1
Commitments and Contingencies - Additional Information (Details)
 12 Months Ended
May 23, 2024
USD ($)
$ / shares
Mar. 14, 2023
USD ($)
Dec. 31, 2024
USD ($)
$ / shares
Jan. 16, 2025
USD ($)
Jan. 02, 2025
USD ($)
Nov. 30, 2024
USD ($)
Nov. 07, 2024
USD ($)
Oct. 15, 2024
USD ($)
Jul. 10, 2024
USD ($)
May 10, 2024
Mar. 28, 2024
USD ($)
Jan. 26, 2024
USD ($)
Feb. 10, 2023
USD ($)
Jul. 26, 2022
USD ($)
Other Commitments [Line Items]                            
Preferred equity method investments     $ 11,400,000                     $ 65,300,000
Multiple on invested capital   1.30                        
Preferred equity investment, placement fee   0.010                        
Subsequent Event                            
Other Commitments [Line Items]                            
Outstanding face amount       $ 5,900,000                    
IQHQ, Inc.                            
Other Commitments [Line Items]                            
Guarantor obligations, maximum exposure     150,000,000     $ 1,000,000 $ 2,000,000 $ 5,000,000            
Guarantor obligations, current carrying value     1,500,000                      
Outstanding face amount     $ 160,100,000                      
Exercise price (in dollars per share) | $ / shares $ 0.01   $ 0.01                      
Fully diluted and outstanding common equity (as a percent) 6.25%   10.25%                      
IQHQ, Inc. | Subsequent Event                            
Other Commitments [Line Items]                            
Outstanding face amount         $ 10,000,000                  
IQHQ, Inc. | Subscription Agreements                            
Other Commitments [Line Items]                            
Outstanding face amount     $ 10,100,000                      
Alewife Loan                            
Other Commitments [Line Items]                            
Guarantor obligations, maximum exposure     203,000,000                      
Guarantor obligations, current carrying value     62,700,000                      
Loan funding percentage                   9.00%        
Alewife Loan | Subsequent Event                            
Other Commitments [Line Items]                            
Guarantor obligations, maximum exposure         $ 7,500,000                  
Loan funding percentage         10.32%                  
Convertible Promissory Note | IQHQ, Inc.                            
Other Commitments [Line Items]                            
Interest rate, stated percentage 16.50%                          
Outstanding face amount $ 150,000,000   10,100,000                      
IQHQ, Inc.                            
Other Commitments [Line Items]                            
Guarantor obligations, current carrying value 1,400,000                          
SFR OP Note                            
Other Commitments [Line Items]                            
Interest rate, stated percentage                 15.00%   12.50%      
Outstanding face amount                 $ 5,000,000   $ 500,000      
Revolving Loan                            
Other Commitments [Line Items]                            
Guarantor obligations, maximum exposure     $ 150,000,000                      
Revolving Loan | IQHQ, Inc.                            
Other Commitments [Line Items]                            
Interest rate, stated percentage     13.50%                      
Guarantor obligations, maximum exposure     $ 300,000,000                      
Fully diluted and outstanding common equity (as a percent)     49.533%                      
NexPoint Real Estate Finance, Inc.                            
Other Commitments [Line Items]                            
Guarantor obligations, current carrying value $ 148,600,000                          
IQHQ-Alewife Holdings, LLC                            
Other Commitments [Line Items]                            
Guarantor obligations, maximum exposure                       $ 218,000,000    
Preferred Equity Investment, Return, Tranche Two | NexPoint Real Estate Finance, Inc.                            
Other Commitments [Line Items]                            
Preferred equity investment, return   0.10                        
Preferred Equity Investment, Return, Tranche Two | Preferred Equity Issuer                            
Other Commitments [Line Items]                            
Preferred equity investment, return   0.90                        
Preferred Equity Investment, Return, Tranche One                            
Other Commitments [Line Items]                            
Internal rate of return   20.00%                        
Preferred Equity Investment, Return, Tranche One | NexPoint Real Estate Finance, Inc.                            
Other Commitments [Line Items]                            
Preferred equity investment, return   0                        
Preferred Equity Investment, Return, Tranche One | Preferred Equity Issuer                            
Other Commitments [Line Items]                            
Preferred equity investment, return   1                        
Minimum                            
Other Commitments [Line Items]                            
Preferred equity investment, basis spread on variable rate   0.050                        
Minimum | IQHQ, Inc.                            
Other Commitments [Line Items]                            
Percentage of total requested amount (as a percent) 0.00%   0.00%                      
Minimum | Alewife Loan                            
Other Commitments [Line Items]                            
Loan funding percentage                   9.00%        
Maximum                            
Other Commitments [Line Items]                            
Preferred equity investment, basis spread on variable rate   0.1125                        
Maximum | IQHQ, Inc.                            
Other Commitments [Line Items]                            
Percentage of total requested amount (as a percent) 50.00%   50.00%                      
Maximum | Alewife Loan                            
Other Commitments [Line Items]                            
Loan funding percentage                   10.32%        
Phoenix, AZ                            
Other Commitments [Line Items]                            
Preferred equity method investments   $ 24,000,000                        
Preferred equity method investments, unfunded     $ 7,900,000                      
Richmond, Virginia | Multifamily Property, Including Netting                            
Other Commitments [Line Items]                            
Purchase of preferred equity, purchase amount                         $ 30,300,000  
Purchase of common equity, purchase amount                         4,300,000  
Purchase of common equity, amount unfunded     1,300,000                      
Forney, Texas | Multifamily Property, Including Netting                            
Other Commitments [Line Items]                            
Purchase of common equity, purchase amount                         $ 4,300,000  
Purchase of common equity, amount unfunded     $ 1,300,000                      
v3.25.1
Commitments and Contingencies - Schedule of Purchase Commitments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Other Commitments [Line Items]    
Purchase commitment, unfunded amount $ 224,627 $ 41,566
Loans    
Other Commitments [Line Items]    
Purchase commitment, unfunded amount 64,217 0
Preferred Equity    
Other Commitments [Line Items]    
Purchase commitment, unfunded amount 7,874 34,966
Common Equity    
Other Commitments [Line Items]    
Purchase commitment, unfunded amount 2,536 6,600
Preferred Stock Purchase Commitment    
Other Commitments [Line Items]    
Purchase commitment, unfunded amount $ 150,000 $ 0
v3.25.1
Segment Reporting (Details)
 12 Months Ended
Dec. 31, 2024
segment
Segment Reporting [Abstract]  
Number of reportable segments 1
v3.25.1
Subsequent Events (Details) - USD ($)
 12 Months Ended
Feb. 28, 2025
Feb. 26, 2025
Feb. 24, 2025
Feb. 13, 2025
Jan. 31, 2025
Jan. 21, 2025
Jan. 18, 2025
Jan. 15, 2025
Jul. 24, 2020
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Jan. 16, 2025
Jan. 02, 2025
Nov. 30, 2024
Nov. 07, 2024
Oct. 15, 2024
May 10, 2024
Nov. 02, 2023
Subsequent Event [Line Items]                                      
Preferred stock dividends declared (in usd per share)                   $ 2.1250 $ 2.1250 $ 2.1250              
Common stock dividends declared (in usd per share)                   $ 2.0000 $ 2.7400 $ 2.0000              
Series A preferred stock, issued (in shares)                   1,645,000 2,000,000                
Alewife Loan                                      
Subsequent Event [Line Items]                                      
Guarantor obligations, maximum exposure                   $ 203,000,000                  
Loan funding percentage                                   9.00%  
IQHQ, Inc.                                      
Subsequent Event [Line Items]                                      
Guarantor obligations, maximum exposure                   150,000,000         $ 1,000,000 $ 2,000,000 $ 5,000,000    
Outstanding face amount                   $ 160,100,000                  
Series B Preferred Stock                                      
Subsequent Event [Line Items]                                      
Stock redeemed (in shares)                   1,746                  
Preferred stock, redemption price per share (in dollars per share)                                     $ 25.00
Series A Preferred Stock                                      
Subsequent Event [Line Items]                                      
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs                 $ 48,000,000                    
Preferred stock, redemption price per share (in dollars per share)                 $ 24.00                    
Subsequent Event                                      
Subsequent Event [Line Items]                                      
Common stock dividends declared (in usd per share)   $ 0.50                                  
Outstanding face amount                         $ 5,900,000            
Stock redeemed (in shares)     12,466 12,466 12,466     12,466                      
Subsequent Event | Alewife Loan                                      
Subsequent Event [Line Items]                                      
Guarantor obligations, maximum exposure                           $ 7,500,000          
Loan funding percentage                           10.32%          
Subsequent Event | IQHQ, Inc.                                      
Subsequent Event [Line Items]                                      
Outstanding face amount                           $ 10,000,000          
Subsequent Event | Series B Preferred Stock                                      
Subsequent Event [Line Items]                                      
Preferred stock dividends declared (in usd per share)           $ 0.1875 $ 0.1875                        
Stock redeemed during the period               $ 300,000                      
Preferred stock, redemption price per share (in dollars per share)               $ 25.00                      
Subsequent Event | Series B Preferred Stock | Debt Instrument, Redemption, Period One                                      
Subsequent Event [Line Items]                                      
Redemption price, percentage               12.00%                      
Subsequent Event | Series B Preferred Stock | Debt Instrument, Redemption, Period Two                                      
Subsequent Event [Line Items]                                      
Redemption price, percentage               9.00%                      
Subsequent Event | Series A Preferred Stock                                      
Subsequent Event [Line Items]                                      
Preferred stock dividends declared (in usd per share)   $ 0.53125                                  
Series A preferred stock, issued (in shares) 1,151,129                                    
Proceeds from the issuance of Series B preferred stock through public offering, net of offering costs $ 25,900,000