Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 20, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
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 | $ 269 | ||
Entity Common Stock, Shares Outstanding | 17,593,244 | ||
Documents Incorporated by Reference | Portions of the proxy statement for the registrant’s 2024 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 | 2023 | ||
Entity Central Index Key | 0001786248 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | NREF | ||
Security Exchange Name | NYSE | ||
Series A Cumulative Redeemable Preferred Stock, 8.5% | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 8.50% Series A Cumulative Redeemable Preferred Stock, par value 0.01 per share | ||
Trading Symbol | NREF-PRA | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG, LLP |
Auditor Location | Dallas, Texas, United States |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 13,824 | $ 20,048 |
Restricted cash | 2,825 | 299 |
Real estate investments, net | 126,551 | 245,222 |
Common stock investments, at fair value | 61,529 | 78,264 |
Mortgage loans, held-for-investment, net | 676,420 | 726,531 |
Preferred stock investments, at fair value | 14,776 | 0 |
Accrued interest and dividends | 22,033 | 15,665 |
Accounts receivable and other assets | 4,312 | 2,197 |
TOTAL ASSETS | 7,018,353 | 8,154,136 |
Liabilities: | ||
Secured financing agreements, net | 649,558 | 687,885 |
Master repurchase agreements | 303,514 | 331,020 |
Unsecured notes, net | 219,483 | 204,960 |
Mortgages payable, net | 95,657 | 121,236 |
Accounts payable and other accrued liabilities | 6,428 | 6,231 |
Accrued interest payable | 8,209 | 7,986 |
Bonds payable held in variable interest entities, at fair value | 5,289,997 | 6,249,804 |
Total Liabilities | 6,572,846 | 7,609,122 |
Redeemable Series B Preferred stock | 8,599 | 0 |
Redeemable noncontrolling interests in the OP | 89,471 | 96,501 |
Stockholders' Equity: | ||
Preferred Stock, Value, Outstanding | 16 | 16 |
Common Stock, Value, Outstanding | 172 | 171 |
Additional paid-in capital | 395,737 | 392,124 |
Retained earnings (accumulated deficit) | (35,821) | 4,435 |
Treasury stock, preferred | (8,567) | (8,567) |
Treasury stock, common | (4,195) | (4,195) |
Total Stockholders' Equity | 347,437 | 448,513 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 7,018,353 | 8,154,136 |
Related Party | ||
ASSETS | ||
Loans and leases receivable, net amount | 22,989 | 46,022 |
Common stock investments, at fair value | 33,129 | 50,380 |
Consolidated Entity, Excluding Consolidated VIE | ||
ASSETS | ||
Loans and leases receivable, net amount | 328,460 | 256,147 |
Variable Interest Entity, Primary Beneficiary | ||
ASSETS | ||
Loans and leases receivable, net amount | 5,677,763 | 6,720,246 |
Subsidiaries | ||
Stockholders' Equity: | ||
Noncontrolling interest in subsidiary | 95 | 64,529 |
CMBS Structured Pass Through Certificates | ||
ASSETS | ||
Debt securities, trading | 41,212 | 46,876 |
MSCR Notes | ||
ASSETS | ||
Debt securities, trading | 10,378 | 10,313 |
Collateralized Mortgage-Backed Securities | ||
ASSETS | ||
Debt securities, trading | $ 38,270 | $ 32,328 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Common stock investments, at fair value | $ 61,529 | $ 78,264 |
Redeemable Series B Preferred stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Redeemable Series B Preferred stock, shares authorized (in shares) | 16,000,000 | 16,000,000 |
Redeemable Series B Preferred stock, shares issued (in shares) | 427,218 | 0 |
Redeemable Series B Preferred stock, shares outstanding (in shares) | 427,218 | 0 |
Series A Preferred stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Series A Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Series A Preferred stock, issued (in shares) | 2,000,000 | 2,000,000 |
Series A 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) | 17,518,900 | 17,366,930 |
Common stock, outstanding (in shares) | 17,231,913 | 17,079,943 |
Treasury stock, preferred (in shares) | 355,000 | 355,000 |
Treasury stock, common (in shares) | 286,987 | 286,987 |
Related Party | ||
Loans and leases receivable, net amount | $ 22,989 | $ 46,022 |
Common stock investments, at fair value | $ 33,129 | $ 50,380 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Net interest income | ||||
Interest income | $ 68,358 | $ 77,988 | $ 55,827 | |
Interest expense | (51,560) | (40,255) | (29,772) | |
Total net interest income | 16,798 | 37,733 | 26,055 | |
Other income (loss) | ||||
Reversal of (provision for) credit losses | (4,299) | (169) | (189) | |
Dividend income, net | 193 | 0 | 0 | |
Realized Losses | 0 | (1,084) | (257) | |
Other income | 1,520 | 399 | 780 | |
Gain on deconsolidation of real estate owned | 1,490 | 0 | 0 | |
Gain on extinguishment of debt | 0 | 17 | 0 | |
Equity in income (losses) of equity method investments | (2,564) | 0 | 0 | |
Revenues from consolidated real estate owned | 5,144 | 12,402 | 10 | |
Total other income (loss) | 25,292 | 2,661 | 71,313 | |
Operating expenses | ||||
Property general and administrative expenses | 9,204 | 7,243 | 6,371 | |
Loan servicing fees | 4,187 | 4,388 | 5,179 | |
Management fees | 3,281 | 3,151 | 2,296 | |
Expenses from consolidated real estate owned | 6,678 | 11,398 | 50 | |
Total operating expenses | 23,350 | 26,180 | 13,896 | |
Net income (loss) | 18,740 | 14,214 | 83,472 | |
Net (income) loss attributable to redeemable noncontrolling interests | (4,765) | (4,969) | (40,387) | |
Net (income) loss attributable to redeemable noncontrolling interests in subsidiaries | $ 10,399 | $ 3,234 | $ 39,577 | |
Weighted-average common shares outstanding - basic (in shares) | 17,199 | 14,686 | 6,601 | |
Weighted-average common shares outstanding - diluted (in shares) | [1] | 17,199 | 14,686 | 20,366 |
Earnings per share outstanding - basic (in dollars per share) | $ 0.60 | $ 0.22 | $ 6 | |
Earnings per share outstanding - diluted (in dollars per share) | 0.60 | 0.22 | 3.93 | |
Dividends declared per common share (in dollars per share) | $ 2.7400 | $ 2 | $ 1.9000 | |
Series A Preferred Stock | ||||
Operating expenses | ||||
Net (income) loss attributable to series A preferred shareholders | $ (3,496) | $ (3,512) | $ (3,508) | |
Series B Preferred Stock | ||||
Operating expenses | ||||
Net (income) loss attributable to series A preferred shareholders | (80) | 0 | 0 | |
CMBS Structured Pass Through Certificates | ||||
Other income (loss) | ||||
Debt securities, trading, unrealized gain (loss) | 1,533 | (12,664) | (483) | |
Common Stock | ||||
Other income (loss) | ||||
Change in unrealized gain (loss) on common stock investments | (16,736) | (5,196) | 13,834 | |
Preferred stock investments, at fair value | ||||
Other income (loss) | ||||
Change in unrealized gain (loss) on common stock investments | 266 | 0 | 0 | |
MSCR Notes | ||||
Other income (loss) | ||||
Debt securities, trading, unrealized gain (loss) | 65 | (53) | 0 | |
Collateralized Mortgage-Backed Securities | ||||
Other income (loss) | ||||
Debt securities, trading, unrealized gain (loss) | 467 | (1,230) | 0 | |
Variable Interest Entity, Primary Beneficiary | ||||
Other income (loss) | ||||
Change in net assets related to consolidated CMBS variable interest entities | 38,213 | 10,239 | 57,618 | |
Debt securities, trading, unrealized gain (loss) | (2,414) | (25,627) | 29,838 | |
Redeemable Noncontrolling Interests | ||||
Operating expenses | ||||
Net (income) loss attributable to redeemable noncontrolling interests | (4,765) | (4,969) | (40,387) | |
Subsidiaries | ||||
Operating expenses | ||||
Net (income) loss attributable to redeemable noncontrolling interests | $ 0 | $ (2,499) | $ 0 | |
[1] Diluted EPS calculations were higher than basic EPS and thus anti-dilutive for the years ended December 31, 2023 and 2022, respectively. As such, the Company is presenting diluted EPS as equal to basic EPS. |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | At-the-market Offering | Public Offering | Private Placement | Series B Preferred Stock | Preferred stock investments, at fair value Series A Preferred Stock | Common Stock | Common Stock At-the-market Offering | Common Stock Public Offering | Additional Paid-in Capital | Additional Paid-in Capital At-the-market Offering | Additional Paid-in Capital Public Offering | 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 | Noncontrolling Interest Private Placement Subsidiaries |
Preferred stock, beginning balance (in shares) at Dec. 31, 2020 | 1,645,000 | |||||||||||||||||||
Beginning balance at Dec. 31, 2020 | $ 128,243 | $ 16 | $ 50 | $ 138,043 | $ 3,485 | $ (4,784) | $ (8,567) | $ 0 | $ 0 | |||||||||||
Common stock, beginning balance (in shares) at Dec. 31, 2020 | 5,022,578 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Vesting of stock-based compensation (in shares) | 69,830 | |||||||||||||||||||
Vesting of stock-based compensation | 1,700 | $ 1 | 1,699 | |||||||||||||||||
Cancellation of common stock held in treasury | 0 | (589) | 589 | |||||||||||||||||
Issuance of common stock and preferred stock (in shares) | 532,694 | 2,059,700 | ||||||||||||||||||
Issuance of common stock and preferred stock | $ 10,301 | $ 40,494 | $ 5 | $ 21 | $ 10,296 | $ 40,473 | ||||||||||||||
Issuance of subsidiary preferred membership units through private offering, net | $ 95 | $ 95 | ||||||||||||||||||
Conversion of redeemable noncontrolling interests in the OP (in shares) | 1,479,132 | |||||||||||||||||||
Conversion of redeemable noncontrolling interests in the OP | 32,393 | $ 15 | 32,378 | |||||||||||||||||
Noncontrolling interest in CMBS VIEs | 7,175 | 7,175 | ||||||||||||||||||
Net income attributable to preferred stockholders | 3,508 | 3,508 | ||||||||||||||||||
Net income attributable to common stockholders | 39,577 | 39,577 | ||||||||||||||||||
Preferred stock dividends declared | (3,508) | (3,508) | ||||||||||||||||||
Common stock dividends declared | (14,695) | (14,695) | ||||||||||||||||||
Preferred stock, ending balance (in shares) at Dec. 31, 2021 | 1,645,000 | |||||||||||||||||||
Ending balance at Dec. 31, 2021 | 245,283 | $ 16 | $ 92 | 222,300 | 28,367 | (4,195) | (8,567) | 7,175 | 95 | |||||||||||
Common stock, ending 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 | $ 1 | 2,789 | |||||||||||||||||
Issuance of common stock and preferred stock (in shares) | 531,728 | |||||||||||||||||||
Issuance of common stock and preferred stock | $ 11,499 | $ 5 | $ 11,494 | |||||||||||||||||
Proceeds from DST syndication fundraising | 64,434 | 64,434 | ||||||||||||||||||
Conversion of redeemable noncontrolling interests in the OP (in shares) | 7,269,603 | |||||||||||||||||||
Conversion of redeemable noncontrolling interests in the OP | 155,614 | $ 73 | 155,541 | |||||||||||||||||
Noncontrolling interest in CMBS VIEs | (7,175) | (7,175) | ||||||||||||||||||
Adjustment to noncontrolling interest in subsidiary on deconsolidation of real estate | 1,174 | 1,174 | ||||||||||||||||||
Net income attributable NCI in subsidiaries | 2,499 | 2,499 | ||||||||||||||||||
Net income attributable to preferred stockholders | 3,512 | 3,512 | ||||||||||||||||||
Net income attributable to common stockholders | 3,234 | 3,234 | ||||||||||||||||||
Preferred stock dividends declared | (3,512) | (3,512) | ||||||||||||||||||
Common stock dividends declared | $ (30,839) | (30,839) | ||||||||||||||||||
Preferred stock, ending balance (in shares) at Dec. 31, 2022 | 1,645,000 | 1,645,000 | ||||||||||||||||||
Ending balance at Dec. 31, 2022 | $ 448,513 | $ (1,624) | $ 16 | $ 171 | 392,124 | 4,435 | $ (1,624) | (4,195) | (8,567) | 0 | 64,529 | |||||||||
Common stock, ending balance (in shares) at Dec. 31, 2022 | 17,079,943 | 17,079,943 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | |||||||||||||||||||
Vesting of stock-based compensation (in shares) | 151,970 | |||||||||||||||||||
Vesting of stock-based compensation | $ 3,614 | $ 1 | 3,613 | |||||||||||||||||
Issuance of common stock and preferred stock (in shares) | 427,218 | |||||||||||||||||||
Conversion of redeemable noncontrolling interests in the OP (in shares) | 8,748,735 | |||||||||||||||||||
Adjustment to noncontrolling interest in subsidiary on deconsolidation of real estate | $ (64,434) | (64,434) | ||||||||||||||||||
Net income attributable to preferred stockholders | 3,496 | 3,496 | ||||||||||||||||||
Net income attributable to common stockholders | 10,399 | 10,399 | ||||||||||||||||||
Preferred stock dividends declared | (3,496) | (3,496) | ||||||||||||||||||
Common stock dividends declared | $ (49,031) | (49,031) | ||||||||||||||||||
Preferred stock, ending balance (in shares) at Dec. 31, 2023 | 1,645,000 | 1,645,000 | ||||||||||||||||||
Ending balance at Dec. 31, 2023 | $ 347,437 | $ 16 | $ 172 | $ 395,737 | $ (35,821) | $ (4,195) | $ (8,567) | $ 0 | $ 95 | |||||||||||
Common stock, ending balance (in shares) at Dec. 31, 2023 | 17,231,913 | 17,231,913 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Preferred stock dividends declared (in usd per share) | $ 2.1250 | $ 2.1250 | $ 2.1250 |
Common stock dividends declared (in usd per share) | $ 2.7400 | $ 2 | $ 1.9000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 18,740 | $ 14,214 | $ 83,472 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of premiums | 15,301 | 20,840 | 15,769 |
Accretion of discounts | (13,877) | (13,312) | (9,196) |
Depreciation and amortization of real estate investment | 2,465 | 2,895 | 0 |
Amortization of deferred financing costs | (45) | 48 | 0 |
Change in Fair Value on Interest Rate Caps | (1,675) | 0 | 0 |
Net Cash Received (Paid) On Interest Rate Caps | (440) | 0 | 0 |
Provision for (reversal of) credit losses, net | 4,299 | 169 | 189 |
Net change in unrealized (gain) loss on investments held at fair value | 16,820 | 44,765 | (43,503) |
Realized Losses | 0 | 1,084 | 257 |
Equity in (income) losses of unconsolidated equity method ventures | 2,564 | 0 | 0 |
Gain on deconsolidation of variable interest entity | (1,490) | 0 | 0 |
Stock-based compensation expense | 4,411 | 3,286 | 2,023 |
Payment in kind income | (8,990) | (715) | (91) |
Gain on extinguishment of debt | 0 | (17) | 0 |
Changes in operating assets and liabilities: | |||
Accrued interest and dividends receivable | (4,319) | (10,247) | (3,241) |
Accounts receivable and other assets | (354) | (433) | 352 |
Accrued interest payable | 338 | 2,914 | 1,674 |
Accounts payable, accrued expenses and other liabilities | (2,192) | 310 | 1,593 |
Net cash provided by operating activities | 31,556 | 65,801 | 49,298 |
Cash flows from investing activities | |||
Proceeds from payments received on bridge loan | 0 | 13,500 | 32,759 |
Originations of bridge loan | 0 | (13,434) | (32,595) |
Originations of loans, held-for-investment, net | (92,701) | (110,502) | (117,727) |
Purchases of preferred stock | (14,510) | 0 | 0 |
Purchases of equity method investments | (2,564) | 0 | 0 |
Increase in Cash in connection with VIE consolidation | 1,814 | 0 | 0 |
Decrease in Cash in connection with VIE deconsolidation | (4,992) | 0 | 0 |
Acquisitions of real estate investments | 0 | (184,552) | (29,789) |
Additions to real estate investments | (526) | (117) | 0 |
Net cash provided by investing activities | 741,342 | 950,578 | 517,878 |
Cash flows from financing activities | |||
Principal repayments on borrowings under secured financing agreements | (38,327) | (98,341) | (54,227) |
Borrowings under master repurchase agreements | 55,239 | 130,629 | 153,844 |
Principal repayments on borrowings under master repurchase agreements | (82,745) | (85,933) | (28,985) |
Proceeds received on borrowings under secured financing agreements | 0 | 89,634 | 0 |
Proceeds received from unsecured notes offering | 13,557 | 40,674 | 132,813 |
Repurchase of unsecured notes | 0 | (4,829) | (304) |
Borrowings under bridge facility | 0 | 55,000 | 20,000 |
Bridge facility payments | 0 | (55,000) | (20,000) |
Proceeds from issuance of common stock | 0 | 156,491 | 32,393 |
Increase in Mortages Payable In Connection With VIE Consolidation, Financing Activities | 416 | ||
Principal repayments on mortgages payable | (22) | 0 | 0 |
Payments for taxes related to net share settlement of stock-based compensation | (797) | (495) | (323) |
Dividends paid to common stockholders | (47,950) | (29,652) | (14,164) |
Distributions to redeemable noncontrolling interests in the OP | (12,092) | (14,277) | (22,241) |
Contributions from noncontrolling interests | 0 | 67,255 | 0 |
Net cash used in financing activities | (776,596) | (1,029,264) | (567,415) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (3,698) | (12,885) | (239) |
Cash, cash equivalents and restricted cash, beginning of year | 20,347 | 33,232 | 33,471 |
Cash, cash equivalents and restricted cash, end of year | 16,649 | 20,347 | 33,232 |
Supplemental Disclosure of Cash Flow Information | |||
Interest paid | 51,337 | 35,416 | 27,546 |
Supplemental Disclosure of Noncash Investing and Financing Activities | |||
Adjustment to loans, held for investment, net on deconsolidation of real estate | 36,022 | 0 | 0 |
Adjustment to real estate investments, net on deconsolidation of real estate | (185,732) | 0 | 0 |
Adjustment to accrued interest and dividends on deconsolidation of real estate | 2,049 | 0 | 0 |
Adjustment to accounts receivable and other assets on deconsolidation of real estate | (799) | 0 | 0 |
Adjustment to mortgages payable, net on deconsolidation of real estate | 89,012 | 0 | 0 |
Adjustment to accounts payable and accrued liabilities on deconsolidation of real estate | 705 | 0 | 0 |
Adjustment to accrued interest payable on deconsolidation of real estate | 1,087 | 0 | 0 |
Adjustment to noncontrolling interest in subsidiary on deconsolidation of real estate | 64,434 | 0 | 0 |
Adjustment to retained earnings on deconsolidation of real estate | 1,490 | 0 | 0 |
Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate | (297) | 0 | 0 |
Increase in dividends payable upon vesting of restricted stock units | 1,081 | 1,187 | 0 |
Deconsolidation of mortgage loans and bonds payable held in variable interest entities | (448,396) | 0 | 0 |
Consolidation of mortgage loans and bonds payable held in variable interest entities | 0 | 1,244,826 | 2,946,224 |
Conversion of convertible notes to common stock | 0 | 25,000 | 0 |
Adjustment to loans, held for investment, net on consolidation of real estate | (9,685) | 0 | 0 |
Adjustment to real estate investments, net on consolidation of real estate | 69,000 | 0 | 0 |
Adjustment to accounts receivable and other assets on consolidation of real estate | 445 | 0 | 0 |
Adjustment to mortgages payable, net on consolidation of real estate | (63,084) | 0 | 0 |
Adjustment to accrued interest payable on consolidation of real estate | (972) | 0 | 0 |
Adjustment to accounts payable and accrued liabilities on consolidation of real estate | (2,436) | 0 | 0 |
Consolidation of noncontrolling interest in CMBS variable interest entities | 0 | 0 | 7,175 |
Increase in dividends payable upon vesting of restricted stock units | 0 | 0 | 531 |
Other assets acquired from acquisitions | 0 | 0 | 14 |
Liabilities assumed from acquisitions | 0 | 0 | 47 |
Assumed debt on acquisitions | 0 | 0 | 32,480 |
Series A Preferred Stock | |||
Cash flows from financing activities | |||
Dividends paid to preferred stockholders | (3,496) | (3,512) | (3,508) |
Series B Preferred Stock | |||
Cash flows from financing activities | |||
Proceeds from issuance of preferred stock | 10,500 | ||
Dividends paid to preferred stockholders | (80) | 0 | 0 |
Public Offering | |||
Cash flows from financing activities | |||
Proceeds from issuance of common stock | 0 | 11,499 | 50,795 |
Proceeds from issuance of preferred stock | 8,599 | 0 | 0 |
At-the-market Offering | |||
Cash flows from financing activities | |||
Proceeds from issuance of common stock | 0 | (156,491) | (32,393) |
Private Placement | |||
Cash flows from financing activities | |||
Proceeds from issuance of preferred stock | 0 | 0 | 95 |
Variable Interest Entity, Primary Beneficiary | |||
Cash flows from investing activities | |||
Proceeds from sale of loans held-for-investment | 717,966 | 1,223,322 | 841,953 |
Cash flows from financing activities | |||
Distributions to bondholders of variable interest entities | (668,898) | (1,131,916) | (781,210) |
Variable Interest Entity, Primary Beneficiary | CMBS Structured Pass Through Certificates | |||
Cash flows from investing activities | |||
Proceeds from sale of loans held-for-investment | 44,783 | 0 | 0 |
Purchases of debt securities, at fair value | 0 | (115,276) | (204,574) |
Consolidated Entity, Excluding Consolidated VIE | |||
Cash flows from investing activities | |||
Proceeds from sale of loans held-for-investment | 97,259 | 178,990 | 62,991 |
Consolidated Entity, Excluding Consolidated VIE | Collateralized Mortgage-Backed Securities | |||
Cash flows from investing activities | |||
Proceeds from sale of loans held-for-investment | 546 | 518 | 0 |
Purchases of debt securities, at fair value | (5,733) | (33,926) | 0 |
Consolidated Entity, Excluding Consolidated VIE | CMBS Structured Pass Through Certificates | |||
Cash flows from investing activities | |||
Proceeds from sale of loans held-for-investment | 0 | 6,962 | 3,921 |
Purchases of debt securities, at fair value | 0 | (4,542) | (39,061) |
Consolidated Entity, Excluding Consolidated VIE | MSCR Notes | |||
Cash flows from investing activities | |||
Purchases of debt securities, at fair value | $ 0 | $ (10,365) | $ 0 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
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”) 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”), multifamily structured credit risk notes (“MSCR Notes”) and mortgage backed securities, 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, life science, hospitality and office 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, 2023, 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, 2024 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, life science, hospitality and office 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023. 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, 2023, 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 CMBS that the Company consolidates, the Company owns 100% of the most subordinate tranche of the securities. The subordinate tranche includes the controlling class and has the ability to remove and replace the special servicer. On the Consolidated Balance Sheets as of December 31, 2023 and December 31, 2022, 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, 2023 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, 2023, 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. Acquisition Accounting The Company accounts for the assets acquired in the Formation Transaction as asset acquisitions pursuant to ASC 805-50, rather than as business combinations. Substantially all of the fair value of the assets acquired are concentrated in a group of similar identifiable assets, i.e. the SFR Loans represent one acquisition of similar identifiable assets, and the acquisition of the CMBS B-Pieces represents an additional acquisition of similar identifiable assets. Additionally, there were no corresponding in-place workforce, servicing platforms or any other item that could be considered an input or process associated with these assets. As such, the SFR Loans and the CMBS B-Pieces do not constitute businesses as defined by ASC 805-10-55. As the investments in the Initial Portfolio were contributed to the Subsidiary OPs in a non-cash transaction, cost is based on the fair value of the assets at the time of contribution. 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. 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: Land Not 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 rental income 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. The Company implemented the provisions of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014- 09”) as of December 31, 2021. The adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements as a substantial portion of its revenue consists of rental income from leasing arrangements, which is specifically excluded from ASU 2014-09. 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 periods ending on or prior to December 31, 2022, the Company, with the assistance of an independent valuations firm, performed a quarterly evaluation of loans classified as held for investment for impairment on a loan-by-loan basis in accordance with ASC 310-10-35, Receivables, Subsequent Measurement (“ASC 310-10-35”). If the Company determined that it was probable that it would be unable to collect all amounts owed according to the contractual terms of a loan, impairment of that loan was indicated. If a loan was considered to be impaired, the Company would establish an allowance for loan losses, through a valuation provision in earnings that reduced carrying value of the loan to the present value of expected future cash flows discounted at the loan’s contractual effective rate or the fair value of the collateral, if repayment was expected solely from the collateral. For non-impaired loans with no specific allowance the Company determined an allowance for loan losses in accordance with ASC 450-20, Loss Contingencies (“ASC 450-20”), which represented management’s best estimate of incurred losses inherent in the portfolio at the balance sheet date, excluding impaired loans and loans carried at fair value. Management considered quantitative factors likely to cause estimated credit losses, including default rate and loss severity rates. The Company also evaluated qualitative factors such as macroeconomic conditions, evaluations of underlying collateral, trends in delinquencies and non-performing assets. Increases to (or reversals of) the allowance for loan loss for the fiscal year ended December 31, 2022 are included in “Reversal of (provision for) credit losses” on the accompanying Consolidated Statements of Operations. 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 2022, 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 allowance for loan and lease losses reserve as of December 31, 2022, was $0.7 million and the CECL reserve as of January 1, 2023, was $2.3 million. As such, the cumulative effect of adoption of ASU 2016-13 was a $1.6 million reduction in retained earnings. The provision for credit losses of $4.3 million for the year ended December 31, 2023 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 $2.1 million as of December 31, 2023. 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 will evaluate acquired loans and debt securities for which it is probable at acquisition that all contractually required payments will not be collected in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . During the year ended December 31, 2023, there were no loans acquired with deteriorated credit quality. 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 cancelable by the entity. 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 alternati |
Loans Held for Investment, Net
Loans Held for Investment, Net | 12 Months Ended |
Dec. 31, 2023 | |
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 and convertible notes 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 and convertible notes 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, 2023 and December 31, 2022, respectively (dollars in thousands): Loan Type Outstanding Face Amount Carrying 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 11 100.00 % 4.79 % 4.49 Mezzanine loans, held-for-investment 133,207 135,069 22 78.31 % 9.61 % 5.36 Preferred equity, held-for-investment 195,392 193,391 15 39.12 % 12.20 % 2.22 $ 973,876 $ 1,004,880 48 84.82 % 6.94 % 4.15 Loan Type Outstanding Face Amount Carrying Value (1) Loan Count Weighted Average Fixed Rate (2) Coupon (3) Life (years) (4) December 31, 2022 Mortgage loans, held-for-investment $ 688,046 $ 726,531 15 100.00 % 4.81 % 5.36 Mezzanine loans, held-for-investment 163,021 165,182 23 63.99 % 10.42 % 5.39 Preferred equity, held-for-investment 91,382 90,965 10 67.69 % 11.51 % 2.76 $ 942,449 $ 982,678 48 90.64 % 6.43 % 5.11 (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, 2023 and 2022, the loan and preferred equity portfolio activity was as follows (in thousands): For the Year Ended December 31, 2023 2022 Balance at January 1, $ 982,678 $ 1,088,881 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) — Conversion of convertible bonds to common stock — (25,000) Originations 92,701 110,502 Decrease in loans, held for investment, net on consolidation of real estate (9,685) — Proceeds from principal repayments (97,259) (178,990) PIK distribution reinvested in Preferred Units 8,990 715 Amortization of loan premium, net (1) (7,146) (13,261) (Provision for) reversal of credit losses (4,299) (169) Reversal of specific reserve of credit losses 4,502 — Balance at December 31, $ 1,004,880 $ 982,678 (1) Includes net amortization of loan purchase premiums. As of December 31, 2023, and December 31, 2022, there were $33.1 million and $40.9 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 Rating December 31, 2023 Number of Carrying % of Loan 1 — $ — — 2 — — — 3 46 992,751 98.79 % 4 2 12,129 1.21 % 5 — — — % 48 $ 1,004,880 100.00 % Risk Rating December 31, 2022 Number of Carrying % of Loan 1 — $ — — 2 — — — 3 48 982,678 100.00 % 4 — — — 5 — — — 48 $ 982,678 100.00 % As of December 31, 2023, 46 loans held-for-investment in our portfolio were rated “3,” or “Satisfactory”, 2 loans held-for-investment in our portfolio were rated "4," or "Underperformance", and 0 loans held-for-investment in our portfolio were rated "5," or "Risk of Impairment/Default", based on the factors assessed by the Company and discussed in Note 2. Our loan portfolio had a weighted-average risk rating of 3.0 as of December 31, 2023, and 3.0 as of December 31, 2022. 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, 2023 and December 31, 2022 (dollars in thousands): December 31, 2023 Carrying Value by Year of Origination (1) Risk Rating Number of Outstanding Face Amount 2023 2022 2021 2020 2019 Prior Total Carrying Value 1 — $ — $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — — — 3 46 961,756 82,879 69,958 40,981 19,158 759,828 19,947 992,751 4 2 12,120 — 12,129 — — — — 12,129 5 — — — — — — — — — 48 $ 973,876 $ 82,879 $ 82,087 $ 40,981 $ 19,158 $ 759,828 $ 19,947 $ 1,004,880 December 31, 2022 Carrying Value by Year of Origination (1) Risk Rating Number of Outstanding Face Amount 2022 2021 2020 2019 2018 Prior Total Carrying Value 1 — $ — $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — — — 3 48 999,080 72,606 98,129 17,500 774,381 20,062 — 982,678 4 — — — — — — — — — 5 — — — — — — — — — 48 $ 999,080 $ 72,606 $ 98,129 $ 17,500 $ 774,381 $ 20,062 $ — $ 982,678 (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. Geography December 31, 2023 December 31, 2022 Georgia 30.50 % 34.04 % Florida 18.40 % 19.34 % Texas 13.87 % 11.21 % Nevada 1.46 % * Maryland 5.47 % 5.59 % Minnesota 7.31 % 6.97 % California 4.92 % 4.66 % Alabama 3.51 % 3.81 % North Carolina 2.78 % 2.65 % Virginia 2.65 % * Arkansas 1.37 % 1.42 % Other (18 and 19 states each at <1%) 7.76 % 10.31 % 100.00 % 100.00 % *Included in “Other.” Collateral Property Type December 31, 2023 December 31, 2022 Single Family Rental 69.94 % 72.26 % Multifamily 21.99 % 23.11 % Life Science 6.33 % 2.85 % Self-Storage 1.75 % 1.79 % 100.00 % 100.00 % |
CMBS Trusts
CMBS Trusts | 12 Months Ended |
Dec. 31, 2023 | |
Mortgage Banking [Abstract] | |
CMBS Trusts | CMBS Trusts As of December 31, 2023, 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 Assets December 31, 2023 December 31, 2022 Mortgage loans held in variable interest entities, at fair value $ 5,677,763 $ 6,720,246 Accrued interest receivable 3,902 4,029 Trust's Liabilities Bonds payable held in variable interest entities, at fair value (5,289,997) (6,249,804) Accrued interest payable (3,220) (3,207) The following table presents “Change in net assets related to consolidated CMBS variable interest entities” (in thousands): For the Year Ended December 31, 2023 2022 2021 Net interest earned $ 40,627 $ 35,866 $ 27,780 Unrealized gain (loss) (2,414) (25,627) 29,838 Change in net assets related to consolidated CMBS variable interest entities $ 38,213 $ 10,239 $ 57,618 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: Geography December 31, 2023 December 31, 2022 Texas 15.85 % 17.95 % Florida 14.07 % 13.82 % Arizona 4.05 % 6.98 % California 8.69 % 9.28 % Georgia 4.00 % 4.68 % Washington 7.75 % 6.88 % New Jersey 4.02 % 3.97 % Nevada 2.49 % 1.99 % Pennsylvania 1.27 % 1.01 % Colorado 7.74 % 6.21 % Connecticut 2.04 % 3.64 % North Carolina 4.17 % 3.53 % New York 3.37 % 2.76 % Ohio 2.48 % 2.00 % Virginia 2.03 % 1.62 % Indiana 2.13 % 1.69 % Illinois 1.65 % 1.37 % Michigan 1.38 % 1.11 % Maryland 1.18 % * Missouri 1.56 % 1.25 % Other (21 and 22 states each at <1%) 8.08 % 8.26 % 100.00 % 100.00 % *Included in “Other.” Collateral Property Type December 31, 2023 December 31, 2022 Multifamily 97.45 % 98.45 % Manufactured Housing 2.55 % 1.55 % 100.00 % 100.00 % |
Common and Preferred Stock Inve
Common and Preferred Stock Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Common and Preferred Stock Investments | Common and Preferred Stock Investments Common Stock Investments 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 bottoms up approach was used by valuing the wholly-owned self-storage assets in aggregate and development loans individually. In this bottoms-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 bottoms-up approach, but uses the top down approach to corroborate the bottoms-up conclusion with a reasonable precision. The Company owns approximately 6.4% of the total outstanding shares of common stock of the Private REIT as of December 31, 2023 and 2022. 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 and was initially measured using the convertible notes conversion share price of $17.50. On April 14, 2022, the two convertible notes converted into 1,394,213 shares or $25.0 million of common stock in the Private REIT, the parent company of the borrower under the convertible notes. As of December 31, 2023 and 2022, the Company valued this investment based on the Private REIT's market approach yield of $20.37 and $19.33 per share, respectively. As of December 31, 2023, the Company owns approximately 98.0% of the total outstanding common equity of Resmark Forney Gateway Holdings, LLC ("RFGH") and Resmark the Brook, LLC ("RTB"). The investments in RFGH and RTB are equity method investments. These investments are held in entities that are considered VIEs as the power to direct activities is not proportional to ownership interests. The Company is not the primary beneficiary, but is deemed to have significant influence, and as such accounts for them using the equity method. The following table presents the common stock investments as of December 31, 2023 and 2022, respectively (in thousands, except share amounts): Investment Investment Property Type Shares Fair Value December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Common Stock NexPoint Storage Partners 11/6/2020 Self-storage 41,963 41,963 $ 33,129 $ 50,380 Private REIT 4/14/2022 Ground lease 1,394,213 1,394,213 28,400 27,884 The following table presents “Change in unrealized gain (loss) on common stock investments” (in thousands): For the Year Ended December 31, 2023 2022 2021 Change in unrealized gain (loss) on NexPoint Storage Partners $ (17,251) $ (8,080) $ 13,834 Change in unrealized gain (loss) on Private REIT 515 2,884 — Change in unrealized gain (loss) on common stock investments $ (16,736) $ (5,196) $ 13,834 Preferred Stock Investments On November 9, 2023, the Company invested in the Series D-1 preferred stock (“Series D-1”) of IQHQ, Inc. (“IQHQ”), 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 9.5% of the total outstanding shares of preferred stock of the Series D-1 as of December 31, 2023. 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, 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. As of December 31, 2023, the Company held twelve CMBS I/O Strips, three MSCR Notes and seven mortgage backed securities 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. The 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, MSCR Notes and mortgage backed securities as of December 31, 2023 (dollars in thousands): Investment Investment Carrying Value Property Type Interest Rate Current Yield (1) Maturity Date CMBS I/O Strips CMBS I/O Strip 5/18/2020 $ 1,622 Multifamily 2.02 % 14.64 % 9/25/2046 CMBS I/O Strip 8/6/2020 16,601 Multifamily 2.98 % 17.98 % 6/25/2030 CMBS I/O Strip 4/28/2021 (2) 5,022 Multifamily 1.59 % 17.68 % 1/25/2030 CMBS I/O Strip 5/27/2021 3,436 Multifamily 3.39 % 17.79 % 5/25/2030 CMBS I/O Strip 6/7/2021 395 Multifamily 2.31 % 22.31 % 11/25/2028 CMBS I/O Strip 6/11/2021 (3) 2,643 Multifamily 1.18 % 14.57 % 5/25/2029 CMBS I/O Strip 6/21/2021 833 Multifamily 1.17 % 18.07 % 5/25/2030 CMBS I/O Strip 8/10/2021 2,255 Multifamily 1.89 % 17.98 % 4/25/2030 CMBS I/O Strip 8/11/2021 1,241 Multifamily 3.10 % 15.24 % 7/25/2031 CMBS I/O Strip 8/24/2021 229 Multifamily 2.61 % 16.15 % 1/25/2031 CMBS I/O Strip 9/1/2021 3,390 Multifamily 1.92 % 17.01 % 6/25/2030 CMBS I/O Strip 9/11/2021 3,545 Multifamily 2.95 % 15.14 % 9/25/2031 Total $ 41,212 2.50 % 17.21 % MSCR Notes MSCR Notes 5/25/2022 $ 4,020 Multifamily 14.83 % 14.83 % 5/25/2052 MSCR Notes 5/25/2022 5,000 Multifamily 11.83 % 11.83 % 5/25/2052 MSCR Notes 9/23/2022 1,358 Multifamily 12.18 % 13.38 % 11/25/2051 Total $ 10,378 13.04 % 13.20 % Mortgage Backed Securities Mortgage Backed Securities 6/1/2022 $ 9,924 Single-Family 8.64 % 8.91 % 4/17/2026 Mortgage Backed Securities 6/1/2022 9,369 Single-Family 4.87 % 5.01 % 11/19/2025 Mortgage Backed Securities 7/28/2022 538 Single-Family 6.23 % 6.31 % 10/17/2027 Mortgage Backed Securities 7/28/2022 856 Single-Family 3.60 % 4.12 % 6/20/2028 Mortgage Backed Securities 9/12/2022 3,881 Multifamily 11.57 % 11.55 % 1/25/2031 Mortgage Backed Securities 9/29/2022 7,960 Self Storage 11.10 % 11.12 % 9/15/2027 Mortgage Backed Securities 3/10/2023 5,742 Multifamily 13.93 % 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. (2) The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively. (3) The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively. The following table presents the CMBS I/O Strips, MSCR Notes and Mortgage Backed Securities as of December 31, 2022 (dollars in thousands): Investment Investment Carrying Value Property Type Interest Rate Current Yield (1) Maturity Date CMBS I/O Strips CMBS I/O Strip 5/18/2020 $ 1,807 Multifamily 2.02 % 14.56 % 9/25/2046 CMBS I/O Strip 8/6/2020 18,364 Multifamily 2.98 % 15.98 % 6/25/2030 CMBS I/O Strip 4/28/2021 (2) 5,676 Multifamily 1.59 % 15.52 % 1/25/2030 CMBS I/O Strip 5/27/2021 3,693 Multifamily 3.39 % 15.73 % 5/25/2030 CMBS I/O Strip 6/7/2021 455 Multifamily 2.31 % 18.91 % 11/25/2028 CMBS I/O Strip 6/11/2021 (3) 4,188 Multifamily 1.19 % 13.34 % 5/25/2029 CMBS I/O Strip 6/21/2021 1,117 Multifamily 1.18 % 16.77 % 5/25/2030 CMBS I/O Strip 8/10/2021 2,445 Multifamily 1.89 % 15.87 % 4/25/2030 CMBS I/O Strip 8/11/2021 1,333 Multifamily 3.10 % 13.74 % 7/25/2031 CMBS I/O Strip 8/24/2021 250 Multifamily 2.61 % 14.44 % 1/25/2031 CMBS I/O Strip 9/1/2021 3,726 Multifamily 1.92 % 15.03 % 6/25/2030 CMBS I/O Strip 9/11/2021 3,822 Multifamily 2.95 % 13.70 % 9/25/2031 Total $ 46,876 2.46 % 15.32 % MSCR Notes MSCR Notes 5/25/2022 $ 4,019 Multifamily 13.02 % 13.02 % 5/25/2052 MSCR Notes 5/25/2022 4,988 Multifamily 10.02 % 10.02 % 5/25/2052 MSCR Notes 9/23/2022 1,306 Multifamily 10.37 % 11.40 % 11/25/2051 Total $ 10,313 11.23 % 11.36 % Mortgage Backed Securities Mortgage Backed Securities 6/1/2022 $ 9,638 Single-Family 7.08 % 7.39 % 4/17/2026 Mortgage Backed Securities 6/1/2022 8,966 Single-Family 4.87 % 5.08 % 11/19/2025 Mortgage Backed Securities 7/28/2022 526 Single-Family 6.23 % 6.33 % 10/17/2027 Mortgage Backed Securities 7/28/2022 819 Single-Family 3.60 % 4.23 % 6/20/2028 Mortgage Backed Securities 9/12/2022 4,473 Multifamily 9.29 % 9.27 % 1/25/2031 Mortgage Backed Securities 9/29/2022 7,906 Self Storage 9.57 % 9.59 % 9/15/2027 Total $ 32,328 7.28 % 7.45 % (1) Current yield is the annualized income earned divided by the cost basis of the investment. (2) The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively. (3) The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively. 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, 2023 2022 2021 Net interest earned $ 2,905 $ 5,668 $ 3,052 Change in unrealized gain (loss) on CMBS structured pass-through certificates 1,533 (12,664) (483) Change in unrealized gain (loss) on MSCR notes 65 (53) — Change in unrealized gain (loss) on mortgage backed securities 467 (1,230) — Realized gain on CMBS structured pass-through certificates — — 484 Total $ 4,970 $ (8,279) $ 3,053 |
Unconsolidated Variable Interes
Unconsolidated Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, the Company has accounted for the following investments as unconsolidated VIEs: Entities Instrument Asset Type Accounting Treatment Percentage Ownership as of December 31, 2023 Relationship as of December 31, 2023 Unconsolidated Entities: NexPoint Storage Partners, Inc. Common Stock Self-storage Fair Value 25.7 % VIE Resmark Forney Gateway Holdings, LLC Common Equity Multifamily Equity Method 98.0 % VIE Resmark the Brook, LLC Common Equity Multifamily Equity Method 98.0 % VIE Private REIT Common Equity Ground lease Fair Value 6.4 % VIE The Company's maximum exposure to loss of value for the NSP investment is the fair value of the Company's $33.1 million NSP common stock investment. The Company's maximum exposure to loss of value for the RFGH and RTB common equity investments is the $1.0 million carrying value for each investment and may include an additional $2.8 million in unfunded commitments for each investment to the extent those commitments are funded. |
CMBS Structured Pass Through Ce
CMBS Structured Pass Through Certificates, MSCR Notes and Mortgage Backed Securities | 12 Months Ended |
Dec. 31, 2023 | |
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 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 bottoms up approach was used by valuing the wholly-owned self-storage assets in aggregate and development loans individually. In this bottoms-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 bottoms-up approach, but uses the top down approach to corroborate the bottoms-up conclusion with a reasonable precision. The Company owns approximately 6.4% of the total outstanding shares of common stock of the Private REIT as of December 31, 2023 and 2022. 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 and was initially measured using the convertible notes conversion share price of $17.50. On April 14, 2022, the two convertible notes converted into 1,394,213 shares or $25.0 million of common stock in the Private REIT, the parent company of the borrower under the convertible notes. As of December 31, 2023 and 2022, the Company valued this investment based on the Private REIT's market approach yield of $20.37 and $19.33 per share, respectively. As of December 31, 2023, the Company owns approximately 98.0% of the total outstanding common equity of Resmark Forney Gateway Holdings, LLC ("RFGH") and Resmark the Brook, LLC ("RTB"). The investments in RFGH and RTB are equity method investments. These investments are held in entities that are considered VIEs as the power to direct activities is not proportional to ownership interests. The Company is not the primary beneficiary, but is deemed to have significant influence, and as such accounts for them using the equity method. The following table presents the common stock investments as of December 31, 2023 and 2022, respectively (in thousands, except share amounts): Investment Investment Property Type Shares Fair Value December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Common Stock NexPoint Storage Partners 11/6/2020 Self-storage 41,963 41,963 $ 33,129 $ 50,380 Private REIT 4/14/2022 Ground lease 1,394,213 1,394,213 28,400 27,884 The following table presents “Change in unrealized gain (loss) on common stock investments” (in thousands): For the Year Ended December 31, 2023 2022 2021 Change in unrealized gain (loss) on NexPoint Storage Partners $ (17,251) $ (8,080) $ 13,834 Change in unrealized gain (loss) on Private REIT 515 2,884 — Change in unrealized gain (loss) on common stock investments $ (16,736) $ (5,196) $ 13,834 Preferred Stock Investments On November 9, 2023, the Company invested in the Series D-1 preferred stock (“Series D-1”) of IQHQ, Inc. (“IQHQ”), 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 9.5% of the total outstanding shares of preferred stock of the Series D-1 as of December 31, 2023. 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, 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. As of December 31, 2023, the Company held twelve CMBS I/O Strips, three MSCR Notes and seven mortgage backed securities 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. The 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, MSCR Notes and mortgage backed securities as of December 31, 2023 (dollars in thousands): Investment Investment Carrying Value Property Type Interest Rate Current Yield (1) Maturity Date CMBS I/O Strips CMBS I/O Strip 5/18/2020 $ 1,622 Multifamily 2.02 % 14.64 % 9/25/2046 CMBS I/O Strip 8/6/2020 16,601 Multifamily 2.98 % 17.98 % 6/25/2030 CMBS I/O Strip 4/28/2021 (2) 5,022 Multifamily 1.59 % 17.68 % 1/25/2030 CMBS I/O Strip 5/27/2021 3,436 Multifamily 3.39 % 17.79 % 5/25/2030 CMBS I/O Strip 6/7/2021 395 Multifamily 2.31 % 22.31 % 11/25/2028 CMBS I/O Strip 6/11/2021 (3) 2,643 Multifamily 1.18 % 14.57 % 5/25/2029 CMBS I/O Strip 6/21/2021 833 Multifamily 1.17 % 18.07 % 5/25/2030 CMBS I/O Strip 8/10/2021 2,255 Multifamily 1.89 % 17.98 % 4/25/2030 CMBS I/O Strip 8/11/2021 1,241 Multifamily 3.10 % 15.24 % 7/25/2031 CMBS I/O Strip 8/24/2021 229 Multifamily 2.61 % 16.15 % 1/25/2031 CMBS I/O Strip 9/1/2021 3,390 Multifamily 1.92 % 17.01 % 6/25/2030 CMBS I/O Strip 9/11/2021 3,545 Multifamily 2.95 % 15.14 % 9/25/2031 Total $ 41,212 2.50 % 17.21 % MSCR Notes MSCR Notes 5/25/2022 $ 4,020 Multifamily 14.83 % 14.83 % 5/25/2052 MSCR Notes 5/25/2022 5,000 Multifamily 11.83 % 11.83 % 5/25/2052 MSCR Notes 9/23/2022 1,358 Multifamily 12.18 % 13.38 % 11/25/2051 Total $ 10,378 13.04 % 13.20 % Mortgage Backed Securities Mortgage Backed Securities 6/1/2022 $ 9,924 Single-Family 8.64 % 8.91 % 4/17/2026 Mortgage Backed Securities 6/1/2022 9,369 Single-Family 4.87 % 5.01 % 11/19/2025 Mortgage Backed Securities 7/28/2022 538 Single-Family 6.23 % 6.31 % 10/17/2027 Mortgage Backed Securities 7/28/2022 856 Single-Family 3.60 % 4.12 % 6/20/2028 Mortgage Backed Securities 9/12/2022 3,881 Multifamily 11.57 % 11.55 % 1/25/2031 Mortgage Backed Securities 9/29/2022 7,960 Self Storage 11.10 % 11.12 % 9/15/2027 Mortgage Backed Securities 3/10/2023 5,742 Multifamily 13.93 % 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. (2) The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively. (3) The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively. The following table presents the CMBS I/O Strips, MSCR Notes and Mortgage Backed Securities as of December 31, 2022 (dollars in thousands): Investment Investment Carrying Value Property Type Interest Rate Current Yield (1) Maturity Date CMBS I/O Strips CMBS I/O Strip 5/18/2020 $ 1,807 Multifamily 2.02 % 14.56 % 9/25/2046 CMBS I/O Strip 8/6/2020 18,364 Multifamily 2.98 % 15.98 % 6/25/2030 CMBS I/O Strip 4/28/2021 (2) 5,676 Multifamily 1.59 % 15.52 % 1/25/2030 CMBS I/O Strip 5/27/2021 3,693 Multifamily 3.39 % 15.73 % 5/25/2030 CMBS I/O Strip 6/7/2021 455 Multifamily 2.31 % 18.91 % 11/25/2028 CMBS I/O Strip 6/11/2021 (3) 4,188 Multifamily 1.19 % 13.34 % 5/25/2029 CMBS I/O Strip 6/21/2021 1,117 Multifamily 1.18 % 16.77 % 5/25/2030 CMBS I/O Strip 8/10/2021 2,445 Multifamily 1.89 % 15.87 % 4/25/2030 CMBS I/O Strip 8/11/2021 1,333 Multifamily 3.10 % 13.74 % 7/25/2031 CMBS I/O Strip 8/24/2021 250 Multifamily 2.61 % 14.44 % 1/25/2031 CMBS I/O Strip 9/1/2021 3,726 Multifamily 1.92 % 15.03 % 6/25/2030 CMBS I/O Strip 9/11/2021 3,822 Multifamily 2.95 % 13.70 % 9/25/2031 Total $ 46,876 2.46 % 15.32 % MSCR Notes MSCR Notes 5/25/2022 $ 4,019 Multifamily 13.02 % 13.02 % 5/25/2052 MSCR Notes 5/25/2022 4,988 Multifamily 10.02 % 10.02 % 5/25/2052 MSCR Notes 9/23/2022 1,306 Multifamily 10.37 % 11.40 % 11/25/2051 Total $ 10,313 11.23 % 11.36 % Mortgage Backed Securities Mortgage Backed Securities 6/1/2022 $ 9,638 Single-Family 7.08 % 7.39 % 4/17/2026 Mortgage Backed Securities 6/1/2022 8,966 Single-Family 4.87 % 5.08 % 11/19/2025 Mortgage Backed Securities 7/28/2022 526 Single-Family 6.23 % 6.33 % 10/17/2027 Mortgage Backed Securities 7/28/2022 819 Single-Family 3.60 % 4.23 % 6/20/2028 Mortgage Backed Securities 9/12/2022 4,473 Multifamily 9.29 % 9.27 % 1/25/2031 Mortgage Backed Securities 9/29/2022 7,906 Self Storage 9.57 % 9.59 % 9/15/2027 Total $ 32,328 7.28 % 7.45 % (1) Current yield is the annualized income earned divided by the cost basis of the investment. (2) The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively. (3) The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively. 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, 2023 2022 2021 Net interest earned $ 2,905 $ 5,668 $ 3,052 Change in unrealized gain (loss) on CMBS structured pass-through certificates 1,533 (12,664) (483) Change in unrealized gain (loss) on MSCR notes 65 (53) — Change in unrealized gain (loss) on mortgage backed securities 467 (1,230) — Realized gain on CMBS structured pass-through certificates — — 484 Total $ 4,970 $ (8,279) $ 3,053 |
Real Estate Investments, net
Real Estate Investments, net | 12 Months Ended |
Dec. 31, 2023 | |
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 February 1, 2022, the Company acquired a 368-unit multifamily property in Las Vegas, Nevada (Elysian at Hughes Center). The Company no longer maintains a common equity interest in this property and through a restructuring effective January 1, 2023, the investment was deconsolidated and presented solely as a preferred equity investment as of December 31, 2023. 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, 2023, the components of the Company's investments in multifamily properties was as follows (in thousands): Real Estate Investments, Net Land Buildings and Intangible Lease Construction in Progress Furniture, Totals Hudson Montford $ 10,996 $ 49,912 $ — $ 401 $ 691 $ 62,000 Alexander at the District 7,806 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 As of December 31, 2022, the components of the Company's investments in multifamily properties were as follows (in thousands): Real Estate Investments, Net Land Buildings and Intangible Lease Construction in Progress Furniture, Totals Hudson Montford $ 10,996 $ 49,831 $ — $ 2 $ 602 $ 61,431 Elysian at Hughes 25,590 160,141 — — — 185,731 Accumulated depreciation and amortization — (1,752) — — (188) (1,940) Total Real Estate Investments, Net $ 36,586 $ 208,220 $ — $ 2 $ 414 $ 245,222 The following table reflects the revenue and expenses for the years ended December 31, 2023 and 2022, for our multifamily properties (in thousands). For the Year Ended December 31, 2023 2022 Revenues Rental income $ 4,962 $ 11,116 Other income 182 1,286 Total revenues 5,144 12,402 Expenses Interest expense 3,984 4,183 Real estate taxes and insurance 862 1,493 Property operating expenses 1,145 2,548 Property general and administrative expenses 257 366 Property management fees 158 301 Depreciation and amortization 2,465 2,895 Rate cap (income) expense (2,045) (1,014) Debt service bridge — 626 Casualty (gain) loss (148) — Total expenses 6,678 11,398 Net income (loss) from consolidated real estate owned $ (1,534) $ 1,004 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the Company’s financing arrangements in place as of December 31, 2023 (dollars in thousands): December 31, 2023 Facility Collateral Date issued Outstanding Carrying value Final stated Weighted Weighted Outstanding Amortized cost Carrying value Weighted 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 Mac 7/12/2019 590,306 590,306 7/12/2029 2.34 % 4.5 645,277 676,420 676,420 4.5 Mezzanine loans Freddie Mac 10/20/2020 59,252 59,252 8/1/2031 0.30 % 6.3 96,817 98,839 98,839 6.3 Multifamily properties CBRE 12/31/2021 32,366 32,157 6/1/2028 (6) 8.05 % 4.4 N/A 64,697 64,697 4.4 Various 10/10/2023 63,500 63,500 11/6/2024 (7) 8.84 % 0.9 N/A 61,854 61,854 0.9 Unsecured Financing Various 10/15/2020 36,500 35,852 10/25/2025 7.50 % 1.8 N/A N/A N/A N/A Various 4/20/2021 180,000 177,131 5/1/2026 5.75 % 2.3 N/A N/A N/A N/A Various 10/18/2022 6,500 6,500 10/18/2027 7.50 % 3.8 N/A N/A N/A N/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 Securities ("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. The following table summarizes the Company’s financing arrangements in place as of December 31, 2022 (dollars in thousands): December 31, 2022 Facility Collateral Date issued Outstanding Carrying Maximum Final stated Weighted Weighted Outstanding Carrying Weighted Master Repurchase Agreements CMBS Mizuho(4) 4/15/2020 $ 331,020 $ 331,020 N/A (5) 5.83 % 0.2 $ 974,440 $ 543,919 $ 539,736 7.0 Asset Specific Financing Single Family Rental loans Freddie Mac 7/12/2019 628,633 628,633 7/12/2029 2.35 % 5.4 688,046 726,531 726,531 5.4 Mezzanine loans Freddie Mac 10/20/2020 59,252 59,252 8/1/2031 0.30 % 7.3 105,817 108,390 108,390 7.3 Multifamily properties CBRE 12/31/2021 32,480 32,176 6/1/2028 (6) 5.80 % 5.4 N/A 59,491 59,491 5.4 CBRE 2/1/2022 89,634 89,060 2/1/2032 3.52 % 9.1 N/A 185,731 185,731 9.1 Unsecured Financing Various 10/15/2020 36,500 35,530 10/25/2025 7.50 % 2.8 N/A N/A N/A N/A Various 4/20/2021 165,000 162,930 5/1/2026 5.75 % 3.3 N/A N/A N/A N/A Various 10/18/2022 6,500 6,500 10/18/2027 7.50 % 4.8 N/A N/A N/A N/A Total/weighted average $ 1,349,019 $ 1,345,101 3.85 % 4.1 $ 1,768,303 $ 1,624,062 $ 1,619,879 6.4 (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. 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, 2023. 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, 2023 and 2022, the outstanding balance on the Credit Facility was $590.3 million and $628.6 million, respectively. We, through the Subsidiary OPs, have borrowed approximately $303.5 million under our repurchase agreements and posted $931.3 million par value of our CMBS B-Piece, CMBS I/O Strip, MSCR Notes and mortgage backed security investments as collateral as of December 31, 2023. The CMBS B-Pieces, CMBS I/O Strips, MSCR Notes and mortgage backed securities 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, 2023, the outstanding principal balances related to the SFR Loans and levered Mezzanine Loans consisted of the following (dollars in thousands): Investment Investment Date Outstanding Principal Balance (1) Location Property Type Interest Type Interest Rate Maturity Date SFR Loans Senior loan 2/11/2020 $ 465,690 Various Single-family Fixed 2.24 % 9/1/2028 Senior loan 2/11/2020 31,416 Various Single-family Fixed 2.14 % 10/1/2025 Senior loan 2/11/2020 33,967 Various Single-family Fixed 2.70 % 11/1/2028 Senior loan 2/11/2020 9,156 Various Single-family Fixed 2.79 % 9/1/2028 Senior loan 2/11/2020 9,284 Various Single-family Fixed 2.45 % 3/1/2026 Senior loan 2/11/2020 8,111 Various Single-family Fixed 3.51 % 2/1/2028 Senior loan 2/11/2020 8,787 Various Single-family Fixed 3.30 % 10/1/2028 Senior loan 2/11/2020 7,881 Various Single-family Fixed 3.14 % 1/1/2029 Senior loan 2/11/2020 5,848 Various Single-family Fixed 2.99 % 3/1/2029 Senior loan 2/11/2020 5,240 Various Single-family Fixed 3.14 % 12/1/2028 Senior loan 2/11/2020 4,926 Various Single-family Fixed 2.64 % 10/1/2028 Total $ 590,306 2.34 % Mezzanine Loans Senior loan 10/20/2020 $ 8,723 Wilmington, DE Multifamily Fixed 0.30 % 6/1/2029 Senior loan 10/20/2020 7,344 White Marsh, MD Multifamily Fixed 0.30 % 4/1/2031 Senior loan 10/20/2020 6,353 Philadelphia, PA Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 5,881 Daytona Beach, FL Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 4,523 Laurel, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 4,179 Temple Hills, MD Multifamily Fixed 0.30 % 1/1/2029 Senior loan 10/20/2020 3,390 Temple Hills, MD Multifamily Fixed 0.30 % 5/1/2029 Senior loan 10/20/2020 3,348 Lakewood, NJ Multifamily Fixed 0.30 % 5/1/2029 Senior loan 10/20/2020 2,454 North Aurora, IL Multifamily Fixed 0.30 % 11/1/2028 Senior loan 10/20/2020 2,264 Rosedale, MD Multifamily Fixed 0.30 % 10/1/2028 Senior loan 10/20/2020 2,215 Cockeysville, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 2,026 Laurel, MD Multifamily Fixed 0.30 % 7/1/2029 Senior loan 10/20/2020 1,836 Vancouver, WA Multifamily Fixed 0.30 % 8/1/2031 Senior loan 10/20/2020 1,763 Tyler, TX Multifamily Fixed 0.30 % 11/1/2028 Senior loan 10/20/2020 1,307 Las Vegas, NV Multifamily Fixed 0.30 % 10/1/2028 Senior loan 10/20/2020 918 Atlanta, GA Multifamily Fixed 0.30 % 8/1/2031 Senior loan 10/20/2020 728 Des Moines, IA Multifamily Fixed 0.30 % 3/1/2029 Total $ 59,252 0.30 % Outstanding principal balance represents the total repurchase agreement balance outstanding as of December 31, 2023. As of December 31, 2022, the outstanding principal balances related to the SFR Loans and levered Mezzanine Loans consisted of the following (dollars in thousands): Investment Investment Date Outstanding Principal Balance (1) Location Property Type Interest Type Interest Rate Maturity Date SFR Loans Senior loan 2/11/2020 $ 465,690 Various Single-family Fixed 2.24 % 9/1/2028 Senior loan 2/11/2020 46,094 Various Single-family Fixed 2.14 % 10/1/2025 Senior loan 2/11/2020 34,528 Various Single-family Fixed 2.70 % 11/1/2028 Senior loan 2/11/2020 9,293 Various Single-family Fixed 2.79 % 9/1/2028 Senior loan 2/11/2020 9,284 Various Single-family Fixed 2.45 % 3/1/2026 Senior loan 2/11/2020 8,828 Various Single-family Fixed 3.51 % 2/1/2028 Senior loan 2/11/2020 8,805 Various Single-family Fixed 3.30 % 10/1/2028 Senior loan 2/11/2020 8,007 Various Single-family Fixed 3.14 % 1/1/2029 Senior loan 2/11/2020 6,778 Various Single-family Fixed 2.98 % 2/1/2029 Senior loan 2/11/2020 5,947 Various Single-family Fixed 2.99 % 3/1/2029 Senior loan 2/11/2020 5,513 Various Single-family Fixed 2.40 % 2/1/2024 Senior loan 2/11/2020 5,346 Various Single-family Fixed 3.14 % 12/1/2028 Senior loan 2/11/2020 5,015 Various Single-family Fixed 2.64 % 10/1/2028 Senior loan 2/11/2020 4,770 Various Single-family Fixed 2.48 % 8/1/2023 Senior loan 2/11/2020 4,735 Various Single-family Fixed 2.97 % 1/1/2029 Total $ 628,633 2.35 % Mezzanine Loans Senior loan 10/20/2020 $ 8,723 Wilmington, DE Multifamily Fixed 0.30 % 6/1/2029 Senior loan 10/20/2020 7,344 White Marsh, MD Multifamily Fixed 0.30 % 4/1/2031 Senior loan 10/20/2020 6,353 Philadelphia, PA Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 5,881 Daytona Beach, FL Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 4,523 Laurel, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 4,179 Temple Hills, MD Multifamily Fixed 0.30 % 1/1/2029 Senior loan 10/20/2020 3,390 Temple Hills, MD Multifamily Fixed 0.30 % 5/1/2029 Senior loan 10/20/2020 3,348 Lakewood, NJ Multifamily Fixed 0.30 % 5/1/2029 Senior loan 10/20/2020 2,454 North Aurora, IL Multifamily Fixed 0.30 % 11/1/2028 Senior loan 10/20/2020 2,264 Rosedale, MD Multifamily Fixed 0.30 % 10/1/2028 Senior loan 10/20/2020 2,215 Cockeysville, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 2,026 Laurel, MD Multifamily Fixed 0.30 % 7/1/2029 Senior loan 10/20/2020 1,836 Vancouver, WA Multifamily Fixed 0.30 % 8/1/2031 Senior loan 10/20/2020 1,763 Tyler, TX Multifamily Fixed 0.30 % 11/1/2028 Senior loan 10/20/2020 1,307 Las Vegas, NV Multifamily Fixed 0.30 % 10/1/2028 Senior loan 10/20/2020 918 Atlanta, GA Multifamily Fixed 0.30 % 8/1/2031 Senior loan 10/20/2020 728 Des Moines, IA Multifamily Fixed 0.30 % 3/1/2029 Total $ 59,252 0.30 % (1) Outstanding principal balance represents the total repurchase agreement balance outstanding as of December 31, 2022. For the years ended December 31, 2023 and 2022, 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, 2023 2022 Balances as of December 31, $ 1,345,101 $ 1,273,355 Decrease in Mortgages Payable in connection with VIE deconsolidation (89,012) — Increase in Mortgages Payable in connection with VIE consolidation 63,500 — Principal borrowings 55,239 260,937 Principal repayments (121,094) (185,200) Unsecured notes offering 13,557 — Repurchase of unsecured notes — (4,829) Accretion of discounts 966 790 Amortization of deferred financing costs (45) 48 Balances as of December 31, $ 1,268,212 $ 1,345,101 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, 2023 are as follows (in thousands): Year Recourse Non-recourse Total 2024(1) $ 63,500 $ 303,514 $ 367,014 2025 36,500 31,416 67,916 2026 180,000 9,284 189,284 2027 6,500 — 6,500 2028 32,366 543,665 576,031 Thereafter — 65,193 65,193 $ 318,866 $ 953,072 $ 1,271,938 (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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 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, 2024. As of December 31, 2023 and 2022, this interest rate cap had a fair value of approximately $1.0 million and $1.1 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. The interest rate cap terminates on November 6, 2024. As of December 31, 2023, this interest rate cap had a fair value of approximately $1.8 million. 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, 2023 (in thousands): Fair Value Carrying Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 13,824 $ 13,824 $ — $ — $ 13,824 Restricted cash 2,825 2,825 — — 2,825 Loans, held-for-investment, net 328,460 — — 337,110 337,110 Preferred stock investments, at fair value 14,776 — — 14,776 14,776 Common stock investments, at fair value 61,529 — — 61,529 61,529 Mortgage loans, held-for-investment, net 676,420 — — 663,866 663,866 Accrued interest 22,033 22,033 — — 22,033 Mortgage loans held in variable interest entities, at fair value 5,677,763 — 5,677,763 — 5,677,763 CMBS structured pass-through certificates, at fair value 41,212 — 41,212 — 41,212 MSCR notes, at fair value 10,378 — 10,378 — 10,378 Mortgage backed securities, at fair value 38,270 — 38,270 — 38,270 Accounts receivable and other assets 4,312 1,560 2,752 — 4,312 $ 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 agreements 303,514 — — 303,514 303,514 Unsecured notes, net 219,483 — 199,859 — 199,859 Mortgages payable, net 95,657 — — 95,470 95,470 Accounts payable and other accrued liabilities 6,428 6,428 — — 6,428 Accrued interest payable 8,209 8,209 — — 8,209 Bonds payable held in variable interest entities, at fair value 5,289,997 — 5,289,997 — 5,289,997 $ 6,572,846 $ 14,637 $ 5,489,856 $ 1,065,407 $ 6,569,900 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, 2022 (in thousands): Fair Value Carrying Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 20,048 $ 20,048 $ — $ — $ 20,048 Restricted cash 299 299 — — 299 Loans, held-for-investment, net 256,147 — — 255,254 255,254 Common stock investment, at fair value 78,264 — — 78,264 78,264 Mortgage loans, held-for-investment, net 726,531 — — 727,533 727,533 Accrued interest 15,665 15,665 — — 15,665 Mortgage loans held in variable interest entities, at fair value 6,720,246 — 6,720,246 — 6,720,246 CMBS structured pass-through certificates, at fair value 46,876 — 46,876 — 46,876 MSCR notes, at fair value 10,313 — 10,313 — 10,313 Mortgage backed securities, at fair value 32,328 — 32,328 — 32,328 Accounts receivable and other assets 2,197 1,120 1,077 — 2,197 $ 7,908,914 $ 37,132 $ 6,810,840 $ 1,061,051 $ 7,909,023 Liabilities Secured financing agreements, net $ 687,885 $ — $ — $ 713,253 $ 713,253 Master repurchase agreements 331,020 — — 331,020 331,020 Unsecured notes, net 204,960 — 175,560 — 175,560 Mortgages payable, net 121,236 — — 121,236 121,236 Accounts payable and other accrued liabilities 6,231 6,236 — — 6,236 Accrued interest payable 7,986 7,986 — — 7,986 Bonds payable held in variable interest entities, at fair value 6,249,804 — 6,249,804 — 6,249,804 $ 7,609,122 $ 14,222 $ 6,425,364 $ 1,165,509 $ 7,605,095 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, 2022. 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 Valuation Technique Unobservable Inputs Range Weighted Average (1) NexPoint Storage Partners $ 33,129 Discounted cash flow Terminal cap rate 5.00% - 5.50% 5.25 % Discount rate 7.50% - 9.50% 8.50 % IQHQ Inc. $ 14,776 Discounted cash flow Discount rate 11.00% - 12.00% 11.50 % Private REIT $ 28,400 Market approach NAV per share multiple 1.00 - 1.20x 1.10x (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, 2022 (dollars in thousands): Carrying Valuation Technique Unobservable Inputs Range Weighted Average (1) NexPoint Storage Partners $ 50,380 Discounted cash flow Terminal cap rate 5.13% - 5.63% 5.38 % Discount rate 7.75% - 9.75% 8.75 % Private REIT $ 27,884 Recent transaction Yield 3.35% - 5.00% 3.81 % (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, 2023: Balance as of 12/31/22 Additions Change in Unrealized Gains/(Losses) Balance as of 12/31/23 NexPoint Storage Partners $ 50,380 $ — $ (17,251) $ 33,129 Private REIT $ 27,884 $ — $ 516 $ 28,400 IQHQ Inc. $ — $ 14,510 $ 266 $ 14,776 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, 2022: Balance as of 12/31/21 Additions Change in Unrealized Gains /(Losses) Balance as of 12/31/22 NexPoint Storage Partners $ 58,460 $ — $ (8,080) $ 50,380 Private REIT $ — $ 27,884 $ — $ 27,884 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, 2023 and 2022, the redeemable noncontrolling interests in the OP are valued at their carrying value on the Consolidated Balance Sheets (see Note 13). |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock During the year ended December 31, 2023, the Company issued 151,970 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, 2023, the Company had 17,518,900 shares of common stock issued and 17,231,913 shares of common stock 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, 2023, the Company has issued 427,218 shares of Series B Preferred Stock for gross proceeds of $10.5 million before deducting selling commissions and dealer manager fees of approximately $0.9 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 March 14, 2025 (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. 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 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, 2023. Long Term Incentive Plan On January 31, 2020, the 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 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. On January 26, 2024, the Amended & Restated NexPoint Real Estate, Inc. 2020 Long Term Incentive Plan 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 LTIP. The amended 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 The following table includes the number of restricted stock units granted, vested, forfeited and outstanding as of December 31, 2023: 2023 Number of Units Weighted Average Outstanding December 31, 2022 577,360 $ 17.88 Granted 440,055 15.14 Vested (201,678) (1) 17.27 Forfeited (44,066) 16.81 Outstanding December 31, 2023 771,671 $ 16.70 (1) Certain key employees of the Manager elected to net the taxes owed upon vesting against the shares issued resulting in 151,970 shares being issued as shown on the consolidated statements of stockholders' equity. The vesting schedule for restricted stock units as of December 31, 2023, is as follows: Shares Vesting February April May Total 2024 120,640 126,042 68,564 315,246 2025 116,998 102,201 — 219,199 2026 54,893 91,166 — 146,059 2027 — 91,167 — 91,167 Total 292,531 410,576 68,564 771,671 As of December 31, 2023, total unrecognized compensation expense on restricted stock unit awards was approximately $9.8 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 “2022 Equity Distribution Agreements”) with each of Raymond James, Keefe, Bruyette & Woods, Inc., Robert W. Baird & Co. Incorporated and Virtu Americas LLC (collectively, the “2022 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 “2022 ATM Program”). The 2022 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 2022 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 2022 ATM Program since its inception through December 31, 2023: Gross Proceeds $ 12,575,493 Shares of Common Stock Issued 531,728 Gross Average Sale Price per Share of Common Stock $ 23.65 Sales Commissions $ 188,655 Offering Costs 888,249 Net Proceeds $ 11,498,589 Average Price Per Share, net $ 21.62 Noncontrolling Interest in Subsidiary On April 1, 2021, a subsidiary of one of the Subsidiary OPs (such subsidiary, the “REIT Sub”) closed its issuance of 125 preferred membership units of the REIT Sub (the “Preferred Membership Units”) at a price of $1,000 per unit, for gross proceeds of approximately $0.1 million, net of offering costs and initial administrative expenses. Holders of Preferred Membership Units are entitled to receive distributions semiannually from the REIT Sub at a per annum rate equal to 12.0% of the total of the purchase price of $1,000 per unit plus accumulated and unpaid distributions. The Preferred Membership Units are generally redeemable by the REIT Sub at any time for $1,000 per unit plus accumulated and unpaid distributions and an additional redemption premium if the Preferred Membership Units are redeemed on or before December 31, 2023. The issuance of the 125 Preferred Membership Units is presented as “Noncontrolling interest in subsidiary” on the Consolidated Balance Sheets and Consolidated Statements of Stockholders’ Equity. OP Unit Redemptions |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 Net income (loss) attributable to common stockholders $ 10,399 $ 3,234 $ 39,577 Earnings for basic computations Net income attributable to redeemable noncontrolling interests 4,765 4,969 40,387 Net income for diluted computations $ 15,164 $ 8,203 $ 79,964 Weighted-average common shares outstanding Average number of common shares outstanding - basic 17,199 14,686 6,601 Average number of common shares from assumed vesting of unvested restricted stock units 740 571 444 Average number of common shares from assumed conversion of OP Units 5,038 7,218 13,321 Average number of common shares from assumed conversion of Series B Preferred Stock 24 — — Average number of common shares outstanding - diluted 23,001 22,475 20,366 Earnings per weighted average common share: Basic $ 0.60 $ 0.22 $ 6.00 Diluted (1) $ 0.60 $ 0.22 $ 3.93 (1) Diluted EPS calculations were higher than basic EPS and thus anti-dilutive for the years ended December 31, 2023 and 2022, respectively. As such, the Company is presenting diluted EPS as equal to basic EPS. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022, 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, 2023 was $15.75, 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, 2023, and (3) the Company then elected to purchase all of the OP Units by paying the Cash Amount, the Company would have paid $79.4 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, 2023, 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. Pursuant to the terms of the OP LPA, the Company appointed Brian Mitts as the sole initial director of the Partnership Board. 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, 2023, 2022, and 2021 (in thousands): For the Year Ended December 31, 2023 2022 2021 Redeemable noncontrolling interests in the OP, January 1, $ 96,501 $ 261,423 $ 275,670 Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate 297 — — Net income attributable to redeemable noncontrolling interests in the OP 4,765 4,969 40,387 Redemption of redeemable noncontrolling interests in the OP — (155,614) (32,393) Distributions to redeemable noncontrolling interests in the OP (12,092) (14,277) (22,241) Redeemable noncontrolling interests in the OP, December 31, $ 89,471 $ 96,501 $ 261,423 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 End Common Shares Outstanding OP Units Held by NCI Combined Outstanding December 31, 2023 17,231,913 5,038,382 22,270,295 Period End Common Shares OP Units Held by Combined December 31, 2022 17,079,943 5,038,382 22,118,325 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
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 year ended December 31, 2023, 2022, and 2021, 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 $1.7 million on January 9, 2023, March 6, 2023, March 28, 2023, May 25, 2023, and August 16, 2023. Buffalo Pointe owns a stabilized multifamily property located in Houston, Texas with 93.8% occupancy as of December 31, 2023. The preferred equity investment pays current interest at a rate of 6.5%, deferred interest at a rate of 4.5%, has a loan-to-value ratio of 76.1% and 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, and 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. 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, 2023, 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, 2023, 2022 and 2021, operating expenses did not exceed the Expense Cap. For the years ended December 31, 2023, 2022, and 2021 and the Company incurred management fees of $3.3 million, $3.2 million, and $2.3 million, respectively. Bridge Loan On March 31, 2022, the Company, through one of the Subsidiary OPs, originated a bridge loan for $13.5 million to a subsidiary of an entity advised by an affiliate of the Manager. The bridge loan was secured by a development property in Las Vegas, Nevada, and was used by the borrower to finance the acquisition of the property prior to obtaining construction financing. The loan bore interest at a rate of 1.50% plus the WSJ Prime Rate and was set to mature on October 1, 2022. On August 9, 2022, the bridge loan was paid off. 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, 2023. 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. 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 if the investment is not redeemed prior to the close of the ongoing private offering of Class I Beneficial Interests in the Trust, which will continue until the maximum offering amount of $115.3 million has been reached. 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, 2023, $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 March 14, 2025 (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, 2023, the Company has issued 427,218 shares of Series B Preferred Stock for gross proceeds of $10.5 million and paid the Dealer Manager $0.6 million Selling Commissions and $0.3 million Dealer Manager Fees. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
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 September 29, 2021, the Company, through one of the Subsidiary OPs, entered into an agreement to purchase up to $50.0 million in a new preferred equity investment (the “Preferred Units”) upon notice from the issuer. Subject to certain conditions, the Company may be required to purchase an additional $25.0 million of Preferred Units at the option of the issuer. The funds are expected to be used to capitalize special purpose limited liability companies (“PropCos”) to engage in sale-and-leaseback transactions and development transactions on life science real property. On September, 22, 2023, the issuer exercised its right to extend the final obligation date to purchase any additional Preferred Units to September 29, 2024. As of December 31, 2023, the Company may have the obligation to fund an additional $3.6 million by September 29, 2024, which the issuer may extend for up to one year at its option for an extension fee. The Preferred Units accrue distributions at a rate of 10.0% annually, compounded monthly. Distributions on the Preferred Units will be paid in cash with respect to stabilized PropCos and paid in kind with respect to unstabilized PropCos. The obligations of the issuer will be supported by a pledge of all equity units of the PropCos. All or a portion of the Preferred Units may be redeemed at any time for a redemption price equal to the purchase price of the Preferred Units to be redeemed plus any accrued and unpaid distributions thereon and a cash redemption fee. Upon the redemption of any Preferred Units and if the parties agree, the remaining amount to be funded by the Company may be increased by the aggregate purchase price of the redeemed Preferred Units. In addition, if the issuer experiences a change of control, the redemption price will also include a payment equal to the amount needed to achieve a multiple on invested capital ("MOIC") equal to 1.25x for unstabilized PropCos and 1.10x for stabilized PropCos. As of December 31, 2023, the Company has not recorded any contingencies on its Consolidated Balance Sheets as the obligation to fund additional Preferred Units other than under the existing commitment is considered remote. 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 $16.9 million was unfunded as of December 31, 2023. 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% IRR hurdle as shown below. There was no value ascribed to the common interest as of December 31, 2023. 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% internal rate of return ("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, of which $3.4 million was unfunded as of December 31, 2023. Further, the Company committed to purchase $4.3 million of common equity with respect to the same property, of which $3.3 million was unfunded as of December 31, 2023. 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, of which $11.1 million was unfunded as of December 31, 2023. Further, the Company committed to purchase $4.3 million of common equity with respect to the same property, of which $3.3 million was unfunded as of December 31, 2023. The table below shows the Company's unfunded commitments by investment type as of December 31, 2023 and December 31, 2022 (in thousands): Investment Type December 31, 2023 December 31, 2022 Unfunded Commitments Unfunded Commitments Preferred Equity $ 34,966 $ 33,704 Common Equity 6,600 — $ 41,566 $ 33,704 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividends Declared The Board declared a dividend to Series B Preferred stockholders of $0.1875 on January 2, 2024, paid on February 5, 2024, to Series B Preferred stockholders of record as of January 25, 2025. The Board declared a dividend to Series B Preferred stockholders of $0.1875 on January 18, 2024, paid on March 5, 2024, to Series B Preferred stockholders of record as of February 23, 2024. The Board declared a dividend to Series B Preferred stockholders of $0.1875 on February 21, to be paid on April 5, 2024, to Series B Preferred stockholders of record as of March 25, 2024. The Board declared the first regular quarterly dividend of 2024 to common stockholders of $0.50 per share on February 26, 2024, to be paid on March 28, 2024, to common stockholders of record on March 15, 2024. The Board declared a dividend to Series A Preferred stockholders of $0.53125 per share on February 26, 2024, to be paid on April 25, 2024, to Series A Preferred stockholders of record on April 15, 2024. Series B Preferred As of February 28, 2024, since December 31, 2023, the Company has issued an additional 771,477 shares of Series B Preferred Stock for gross proceeds of $18.1 million. Second Amendment and Restatement of Bylaws On January 3, 2024, the Board approved and adopted a second amendment and restatement of the Company’s Bylaws. SFR Loan On January 25, 2024, one of the Company’s SFR loans was prepaid in its entirety for a total principal of $508.7 million, of which $465.7 million of financing was repaid. As a result, the Company recognized prepayment income of $8.9 million and wrote off the premium on the loan of $25.4 million. The Company received net cash of $52.8 million on the paydown. Long Term Incentive Plan On January 26, 2024, the Amended & Restated NexPoint Real Estate Finance, Inc. 2020 Long Term Incentive Plan was approved by stockholders 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 LTIP. Loan Commitments On January 26, 2024, the Company, along with related party The Ohio State Life Insurance Company (“OSL”), entered into a Mezzanine Loan and Security Agreement whereby it made a loan in the maximum principal amount of up to $218.0 million to IQHQ-Alewife Holdings, LLC, which is solely owned by IQHQ, LP. The Company has an ownership interest in the Series D-1 preferred stock in IQHQ, Inc., who is the limited partner in IQHQ, LP; however, the Company has no controlling financial interest nor significant influence in IQHQ, LP. The loan is secured by a first mortgage with a first lien position and other security interests. The Company made the initial advances of $20.0 million, and subsequent advances of the mezzanine loan may be made by the Company or OSL. The Company’s portion of the total commitment is $208.0 million. On February 9, 2024, the Company additionally contributed approximately $8.1 million aggregate principal amount under the Mezzanine Loan and Security Agreement. On March 7, 2024, the Company additionally contributed approximately $15.2 million aggregate principal amount under the Mezzanine Loan and Security Agreement. Mortgage Backed Security Dispositions On February 1, 2024, the Company, through one of the Subsidiary OPs, sold approximately $10.1 million aggregate principal amount of the Class G2 tranche of the AMSR 2020-SFR4 G2 at a price equal to 96.4% of par value. CMBS Acquisitions On February 22, 2024, the Company, through one of the Subsidiary OPs, purchased approximately $30.9 million aggregate principal amount of the Class C tranche of the FREMF 2024-K515 CMBS at a price equal to 85.6% of par value, representing 100% of the Class C tranche. The investment pays a fixed coupon of 5.9% with an all-in unlevered yield of 9.75%. On February 23, 2024, the Company through one of the Subsidiary OPs, entered into a repurchase agreement and borrowed approximately $17.2 million. The loan bears interest at a rate of 2.0% over SOFR. 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. The investment has a blended unlevered yield of 6.9%. On March 1, 2024, the Company through one of the Subsidiary OPs, entered into a repurchase agreement and borrowed approximately $35.8 million. The loans bear interest at a rate of 1.0%, 1.6%, and 1.6% over SOFR, respectively. Connections at Buffalo Pointe Contribution On March 1, 2024, the Company additionally contributed approximately $0.7 million aggregate principal amount under the Buffalo Pointe Contribution Agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
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 |
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 |
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 CMBS that the Company consolidates, the Company owns 100% of the most subordinate tranche of the securities. The subordinate tranche includes the controlling class and has the ability to remove and replace the special servicer. |
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, 2023 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, 2023, 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. |
Acquisition Accounting | Acquisition Accounting The Company accounts for the assets acquired in the Formation Transaction as asset acquisitions pursuant to ASC 805-50, rather than as business combinations. Substantially all of the fair value of the assets acquired are concentrated in a group of similar identifiable assets, i.e. the SFR Loans represent one acquisition of similar identifiable assets, and the acquisition of the CMBS B-Pieces represents an additional acquisition of similar identifiable assets. Additionally, there were no corresponding in-place workforce, servicing platforms or any other item that could be considered an input or process associated with these assets. As such, the SFR Loans and the CMBS B-Pieces do not constitute businesses as defined by ASC 805-10-55. As the investments in the Initial Portfolio were contributed to the Subsidiary OPs in a non-cash transaction, cost is based on the fair value of the assets at the time of contribution. |
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. 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: Land Not 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 rental income 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. The Company implemented the provisions of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014- 09”) as of December 31, 2021. The adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements as a substantial portion of its revenue consists of rental income from leasing arrangements, which is specifically excluded from ASU 2014-09. In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements |
Expense Recognition | Expense Recognition |
Allowance for Credit Losses | Allowance for Credit Losses In periods ending on or prior to December 31, 2022, the Company, with the assistance of an independent valuations firm, performed a quarterly evaluation of loans classified as held for investment for impairment on a loan-by-loan basis in accordance with ASC 310-10-35, Receivables, Subsequent Measurement (“ASC 310-10-35”). If the Company determined that it was probable that it would be unable to collect all amounts owed according to the contractual terms of a loan, impairment of that loan was indicated. If a loan was considered to be impaired, the Company would establish an allowance for loan losses, through a valuation provision in earnings that reduced carrying value of the loan to the present value of expected future cash flows discounted at the loan’s contractual effective rate or the fair value of the collateral, if repayment was expected solely from the collateral. For non-impaired loans with no specific allowance the Company determined an allowance for loan losses in accordance with ASC 450-20, Loss Contingencies (“ASC 450-20”), which represented management’s best estimate of incurred losses inherent in the portfolio at the balance sheet date, excluding impaired loans and loans carried at fair value. Management considered quantitative factors likely to cause estimated credit losses, including default rate and loss severity rates. The Company also evaluated qualitative factors such as macroeconomic conditions, evaluations of underlying collateral, trends in delinquencies and non-performing assets. Increases to (or reversals of) the allowance for loan loss for the fiscal year ended December 31, 2022 are included in “Reversal of (provision for) credit losses” on the accompanying Consolidated Statements of Operations. 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 2022, 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 allowance for loan and lease losses reserve as of December 31, 2022, was $0.7 million and the CECL reserve as of January 1, 2023, was $2.3 million. As such, the cumulative effect of adoption of ASU 2016-13 was a $1.6 million reduction in retained earnings. The provision for credit losses of $4.3 million for the year ended December 31, 2023 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 $2.1 million as of December 31, 2023. 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 will evaluate acquired loans and debt securities for which it is probable at acquisition that all contractually required payments will not be collected in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . During the year ended December 31, 2023, there were no loans acquired with deteriorated credit quality. 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 cancelable by the entity. |
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. SFR Loans, Preferred Equity Investments, Mezzanine Loans and Convertible Notes - SFR Loans, preferred equity, mezzanine loans and convertible debt investments are categorized as Level 3 assets in the fair value hierarchy. SFR Loans, preferred equity, mezzanine loans, 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, 2023, 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, 2023. |
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 November 2023, the FASB issued 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 ASC 280 disclosure requirements for interim periods. The ASU also explicitly requires public entities with a single reportable segment to provide all segment disclosures under ASC 280, including the new disclosures under ASU 2023-07. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company's disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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: Land Not depreciated Buildings (in years) 30 Improvements (in years) 15 Furniture, fixtures, and equipment (in years) 3 Intangible lease assets (in months) 6 |
Loans Held for Investment, Net
Loans Held for Investment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and December 31, 2022, respectively (dollars in thousands): Loan Type Outstanding Face Amount Carrying 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 11 100.00 % 4.79 % 4.49 Mezzanine loans, held-for-investment 133,207 135,069 22 78.31 % 9.61 % 5.36 Preferred equity, held-for-investment 195,392 193,391 15 39.12 % 12.20 % 2.22 $ 973,876 $ 1,004,880 48 84.82 % 6.94 % 4.15 Loan Type Outstanding Face Amount Carrying Value (1) Loan Count Weighted Average Fixed Rate (2) Coupon (3) Life (years) (4) December 31, 2022 Mortgage loans, held-for-investment $ 688,046 $ 726,531 15 100.00 % 4.81 % 5.36 Mezzanine loans, held-for-investment 163,021 165,182 23 63.99 % 10.42 % 5.39 Preferred equity, held-for-investment 91,382 90,965 10 67.69 % 11.51 % 2.76 $ 942,449 $ 982,678 48 90.64 % 6.43 % 5.11 (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, 2023 and 2022, the loan and preferred equity portfolio activity was as follows (in thousands): For the Year Ended December 31, 2023 2022 Balance at January 1, $ 982,678 $ 1,088,881 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) — Conversion of convertible bonds to common stock — (25,000) Originations 92,701 110,502 Decrease in loans, held for investment, net on consolidation of real estate (9,685) — Proceeds from principal repayments (97,259) (178,990) PIK distribution reinvested in Preferred Units 8,990 715 Amortization of loan premium, net (1) (7,146) (13,261) (Provision for) reversal of credit losses (4,299) (169) Reversal of specific reserve of credit losses 4,502 — Balance at December 31, $ 1,004,880 $ 982,678 (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 Rating December 31, 2023 Number of Carrying % of Loan 1 — $ — — 2 — — — 3 46 992,751 98.79 % 4 2 12,129 1.21 % 5 — — — % 48 $ 1,004,880 100.00 % Risk Rating December 31, 2022 Number of Carrying % of Loan 1 — $ — — 2 — — — 3 48 982,678 100.00 % 4 — — — 5 — — — 48 $ 982,678 100.00 % 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, 2023 and December 31, 2022 (dollars in thousands): December 31, 2023 Carrying Value by Year of Origination (1) Risk Rating Number of Outstanding Face Amount 2023 2022 2021 2020 2019 Prior Total Carrying Value 1 — $ — $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — — — 3 46 961,756 82,879 69,958 40,981 19,158 759,828 19,947 992,751 4 2 12,120 — 12,129 — — — — 12,129 5 — — — — — — — — — 48 $ 973,876 $ 82,879 $ 82,087 $ 40,981 $ 19,158 $ 759,828 $ 19,947 $ 1,004,880 December 31, 2022 Carrying Value by Year of Origination (1) Risk Rating Number of Outstanding Face Amount 2022 2021 2020 2019 2018 Prior Total Carrying Value 1 — $ — $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — — — 3 48 999,080 72,606 98,129 17,500 774,381 20,062 — 982,678 4 — — — — — — — — — 5 — — — — — — — — — 48 $ 999,080 $ 72,606 $ 98,129 $ 17,500 $ 774,381 $ 20,062 $ — $ 982,678 (1) |
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. Geography December 31, 2023 December 31, 2022 Georgia 30.50 % 34.04 % Florida 18.40 % 19.34 % Texas 13.87 % 11.21 % Nevada 1.46 % * Maryland 5.47 % 5.59 % Minnesota 7.31 % 6.97 % California 4.92 % 4.66 % Alabama 3.51 % 3.81 % North Carolina 2.78 % 2.65 % Virginia 2.65 % * Arkansas 1.37 % 1.42 % Other (18 and 19 states each at <1%) 7.76 % 10.31 % 100.00 % 100.00 % *Included in “Other.” Collateral Property Type December 31, 2023 December 31, 2022 Single Family Rental 69.94 % 72.26 % Multifamily 21.99 % 23.11 % Life Science 6.33 % 2.85 % Self-Storage 1.75 % 1.79 % 100.00 % 100.00 % |
CMBS Trusts (Tables)
CMBS Trusts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 Assets December 31, 2023 December 31, 2022 Mortgage loans held in variable interest entities, at fair value $ 5,677,763 $ 6,720,246 Accrued interest receivable 3,902 4,029 Trust's Liabilities Bonds payable held in variable interest entities, at fair value (5,289,997) (6,249,804) Accrued interest payable (3,220) (3,207) |
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, 2023 2022 2021 Net interest earned $ 40,627 $ 35,866 $ 27,780 Unrealized gain (loss) (2,414) (25,627) 29,838 Change in net assets related to consolidated CMBS variable interest entities $ 38,213 $ 10,239 $ 57,618 |
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: Geography December 31, 2023 December 31, 2022 Texas 15.85 % 17.95 % Florida 14.07 % 13.82 % Arizona 4.05 % 6.98 % California 8.69 % 9.28 % Georgia 4.00 % 4.68 % Washington 7.75 % 6.88 % New Jersey 4.02 % 3.97 % Nevada 2.49 % 1.99 % Pennsylvania 1.27 % 1.01 % Colorado 7.74 % 6.21 % Connecticut 2.04 % 3.64 % North Carolina 4.17 % 3.53 % New York 3.37 % 2.76 % Ohio 2.48 % 2.00 % Virginia 2.03 % 1.62 % Indiana 2.13 % 1.69 % Illinois 1.65 % 1.37 % Michigan 1.38 % 1.11 % Maryland 1.18 % * Missouri 1.56 % 1.25 % Other (21 and 22 states each at <1%) 8.08 % 8.26 % 100.00 % 100.00 % *Included in “Other.” Collateral Property Type December 31, 2023 December 31, 2022 Multifamily 97.45 % 98.45 % Manufactured Housing 2.55 % 1.55 % 100.00 % 100.00 % |
Common and Preferred Stock In_2
Common and Preferred Stock Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022, respectively (in thousands, except share amounts): Investment Investment Property Type Shares Fair Value December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Common Stock NexPoint Storage Partners 11/6/2020 Self-storage 41,963 41,963 $ 33,129 $ 50,380 Private REIT 4/14/2022 Ground lease 1,394,213 1,394,213 28,400 27,884 The following table presents the CMBS I/O Strips, MSCR Notes and mortgage backed securities as of December 31, 2023 (dollars in thousands): Investment Investment Carrying Value Property Type Interest Rate Current Yield (1) Maturity Date CMBS I/O Strips CMBS I/O Strip 5/18/2020 $ 1,622 Multifamily 2.02 % 14.64 % 9/25/2046 CMBS I/O Strip 8/6/2020 16,601 Multifamily 2.98 % 17.98 % 6/25/2030 CMBS I/O Strip 4/28/2021 (2) 5,022 Multifamily 1.59 % 17.68 % 1/25/2030 CMBS I/O Strip 5/27/2021 3,436 Multifamily 3.39 % 17.79 % 5/25/2030 CMBS I/O Strip 6/7/2021 395 Multifamily 2.31 % 22.31 % 11/25/2028 CMBS I/O Strip 6/11/2021 (3) 2,643 Multifamily 1.18 % 14.57 % 5/25/2029 CMBS I/O Strip 6/21/2021 833 Multifamily 1.17 % 18.07 % 5/25/2030 CMBS I/O Strip 8/10/2021 2,255 Multifamily 1.89 % 17.98 % 4/25/2030 CMBS I/O Strip 8/11/2021 1,241 Multifamily 3.10 % 15.24 % 7/25/2031 CMBS I/O Strip 8/24/2021 229 Multifamily 2.61 % 16.15 % 1/25/2031 CMBS I/O Strip 9/1/2021 3,390 Multifamily 1.92 % 17.01 % 6/25/2030 CMBS I/O Strip 9/11/2021 3,545 Multifamily 2.95 % 15.14 % 9/25/2031 Total $ 41,212 2.50 % 17.21 % MSCR Notes MSCR Notes 5/25/2022 $ 4,020 Multifamily 14.83 % 14.83 % 5/25/2052 MSCR Notes 5/25/2022 5,000 Multifamily 11.83 % 11.83 % 5/25/2052 MSCR Notes 9/23/2022 1,358 Multifamily 12.18 % 13.38 % 11/25/2051 Total $ 10,378 13.04 % 13.20 % Mortgage Backed Securities Mortgage Backed Securities 6/1/2022 $ 9,924 Single-Family 8.64 % 8.91 % 4/17/2026 Mortgage Backed Securities 6/1/2022 9,369 Single-Family 4.87 % 5.01 % 11/19/2025 Mortgage Backed Securities 7/28/2022 538 Single-Family 6.23 % 6.31 % 10/17/2027 Mortgage Backed Securities 7/28/2022 856 Single-Family 3.60 % 4.12 % 6/20/2028 Mortgage Backed Securities 9/12/2022 3,881 Multifamily 11.57 % 11.55 % 1/25/2031 Mortgage Backed Securities 9/29/2022 7,960 Self Storage 11.10 % 11.12 % 9/15/2027 Mortgage Backed Securities 3/10/2023 5,742 Multifamily 13.93 % 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. (2) The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively. (3) The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively. The following table presents the CMBS I/O Strips, MSCR Notes and Mortgage Backed Securities as of December 31, 2022 (dollars in thousands): Investment Investment Carrying Value Property Type Interest Rate Current Yield (1) Maturity Date CMBS I/O Strips CMBS I/O Strip 5/18/2020 $ 1,807 Multifamily 2.02 % 14.56 % 9/25/2046 CMBS I/O Strip 8/6/2020 18,364 Multifamily 2.98 % 15.98 % 6/25/2030 CMBS I/O Strip 4/28/2021 (2) 5,676 Multifamily 1.59 % 15.52 % 1/25/2030 CMBS I/O Strip 5/27/2021 3,693 Multifamily 3.39 % 15.73 % 5/25/2030 CMBS I/O Strip 6/7/2021 455 Multifamily 2.31 % 18.91 % 11/25/2028 CMBS I/O Strip 6/11/2021 (3) 4,188 Multifamily 1.19 % 13.34 % 5/25/2029 CMBS I/O Strip 6/21/2021 1,117 Multifamily 1.18 % 16.77 % 5/25/2030 CMBS I/O Strip 8/10/2021 2,445 Multifamily 1.89 % 15.87 % 4/25/2030 CMBS I/O Strip 8/11/2021 1,333 Multifamily 3.10 % 13.74 % 7/25/2031 CMBS I/O Strip 8/24/2021 250 Multifamily 2.61 % 14.44 % 1/25/2031 CMBS I/O Strip 9/1/2021 3,726 Multifamily 1.92 % 15.03 % 6/25/2030 CMBS I/O Strip 9/11/2021 3,822 Multifamily 2.95 % 13.70 % 9/25/2031 Total $ 46,876 2.46 % 15.32 % MSCR Notes MSCR Notes 5/25/2022 $ 4,019 Multifamily 13.02 % 13.02 % 5/25/2052 MSCR Notes 5/25/2022 4,988 Multifamily 10.02 % 10.02 % 5/25/2052 MSCR Notes 9/23/2022 1,306 Multifamily 10.37 % 11.40 % 11/25/2051 Total $ 10,313 11.23 % 11.36 % Mortgage Backed Securities Mortgage Backed Securities 6/1/2022 $ 9,638 Single-Family 7.08 % 7.39 % 4/17/2026 Mortgage Backed Securities 6/1/2022 8,966 Single-Family 4.87 % 5.08 % 11/19/2025 Mortgage Backed Securities 7/28/2022 526 Single-Family 6.23 % 6.33 % 10/17/2027 Mortgage Backed Securities 7/28/2022 819 Single-Family 3.60 % 4.23 % 6/20/2028 Mortgage Backed Securities 9/12/2022 4,473 Multifamily 9.29 % 9.27 % 1/25/2031 Mortgage Backed Securities 9/29/2022 7,906 Self Storage 9.57 % 9.59 % 9/15/2027 Total $ 32,328 7.28 % 7.45 % (1) Current yield is the annualized income earned divided by the cost basis of the investment. (2) The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively. (3) The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively. |
Schedule of Investment | The following table presents “Change in unrealized gain (loss) on common stock investments” (in thousands): For the Year Ended December 31, 2023 2022 2021 Change in unrealized gain (loss) on NexPoint Storage Partners $ (17,251) $ (8,080) $ 13,834 Change in unrealized gain (loss) on Private REIT 515 2,884 — Change in unrealized gain (loss) on common stock investments $ (16,736) $ (5,196) $ 13,834 |
Unconsolidated Variable Inter_2
Unconsolidated Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | As of December 31, 2023, the Company has accounted for the following investments as unconsolidated VIEs: Entities Instrument Asset Type Accounting Treatment Percentage Ownership as of December 31, 2023 Relationship as of December 31, 2023 Unconsolidated Entities: NexPoint Storage Partners, Inc. Common Stock Self-storage Fair Value 25.7 % VIE Resmark Forney Gateway Holdings, LLC Common Equity Multifamily Equity Method 98.0 % VIE Resmark the Brook, LLC Common Equity Multifamily Equity Method 98.0 % VIE Private REIT Common Equity Ground lease Fair Value 6.4 % VIE |
CMBS Structured Pass Through _2
CMBS Structured Pass Through Certificates, MSCR Notes and Mortgage Backed Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022, respectively (in thousands, except share amounts): Investment Investment Property Type Shares Fair Value December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Common Stock NexPoint Storage Partners 11/6/2020 Self-storage 41,963 41,963 $ 33,129 $ 50,380 Private REIT 4/14/2022 Ground lease 1,394,213 1,394,213 28,400 27,884 The following table presents the CMBS I/O Strips, MSCR Notes and mortgage backed securities as of December 31, 2023 (dollars in thousands): Investment Investment Carrying Value Property Type Interest Rate Current Yield (1) Maturity Date CMBS I/O Strips CMBS I/O Strip 5/18/2020 $ 1,622 Multifamily 2.02 % 14.64 % 9/25/2046 CMBS I/O Strip 8/6/2020 16,601 Multifamily 2.98 % 17.98 % 6/25/2030 CMBS I/O Strip 4/28/2021 (2) 5,022 Multifamily 1.59 % 17.68 % 1/25/2030 CMBS I/O Strip 5/27/2021 3,436 Multifamily 3.39 % 17.79 % 5/25/2030 CMBS I/O Strip 6/7/2021 395 Multifamily 2.31 % 22.31 % 11/25/2028 CMBS I/O Strip 6/11/2021 (3) 2,643 Multifamily 1.18 % 14.57 % 5/25/2029 CMBS I/O Strip 6/21/2021 833 Multifamily 1.17 % 18.07 % 5/25/2030 CMBS I/O Strip 8/10/2021 2,255 Multifamily 1.89 % 17.98 % 4/25/2030 CMBS I/O Strip 8/11/2021 1,241 Multifamily 3.10 % 15.24 % 7/25/2031 CMBS I/O Strip 8/24/2021 229 Multifamily 2.61 % 16.15 % 1/25/2031 CMBS I/O Strip 9/1/2021 3,390 Multifamily 1.92 % 17.01 % 6/25/2030 CMBS I/O Strip 9/11/2021 3,545 Multifamily 2.95 % 15.14 % 9/25/2031 Total $ 41,212 2.50 % 17.21 % MSCR Notes MSCR Notes 5/25/2022 $ 4,020 Multifamily 14.83 % 14.83 % 5/25/2052 MSCR Notes 5/25/2022 5,000 Multifamily 11.83 % 11.83 % 5/25/2052 MSCR Notes 9/23/2022 1,358 Multifamily 12.18 % 13.38 % 11/25/2051 Total $ 10,378 13.04 % 13.20 % Mortgage Backed Securities Mortgage Backed Securities 6/1/2022 $ 9,924 Single-Family 8.64 % 8.91 % 4/17/2026 Mortgage Backed Securities 6/1/2022 9,369 Single-Family 4.87 % 5.01 % 11/19/2025 Mortgage Backed Securities 7/28/2022 538 Single-Family 6.23 % 6.31 % 10/17/2027 Mortgage Backed Securities 7/28/2022 856 Single-Family 3.60 % 4.12 % 6/20/2028 Mortgage Backed Securities 9/12/2022 3,881 Multifamily 11.57 % 11.55 % 1/25/2031 Mortgage Backed Securities 9/29/2022 7,960 Self Storage 11.10 % 11.12 % 9/15/2027 Mortgage Backed Securities 3/10/2023 5,742 Multifamily 13.93 % 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. (2) The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively. (3) The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively. The following table presents the CMBS I/O Strips, MSCR Notes and Mortgage Backed Securities as of December 31, 2022 (dollars in thousands): Investment Investment Carrying Value Property Type Interest Rate Current Yield (1) Maturity Date CMBS I/O Strips CMBS I/O Strip 5/18/2020 $ 1,807 Multifamily 2.02 % 14.56 % 9/25/2046 CMBS I/O Strip 8/6/2020 18,364 Multifamily 2.98 % 15.98 % 6/25/2030 CMBS I/O Strip 4/28/2021 (2) 5,676 Multifamily 1.59 % 15.52 % 1/25/2030 CMBS I/O Strip 5/27/2021 3,693 Multifamily 3.39 % 15.73 % 5/25/2030 CMBS I/O Strip 6/7/2021 455 Multifamily 2.31 % 18.91 % 11/25/2028 CMBS I/O Strip 6/11/2021 (3) 4,188 Multifamily 1.19 % 13.34 % 5/25/2029 CMBS I/O Strip 6/21/2021 1,117 Multifamily 1.18 % 16.77 % 5/25/2030 CMBS I/O Strip 8/10/2021 2,445 Multifamily 1.89 % 15.87 % 4/25/2030 CMBS I/O Strip 8/11/2021 1,333 Multifamily 3.10 % 13.74 % 7/25/2031 CMBS I/O Strip 8/24/2021 250 Multifamily 2.61 % 14.44 % 1/25/2031 CMBS I/O Strip 9/1/2021 3,726 Multifamily 1.92 % 15.03 % 6/25/2030 CMBS I/O Strip 9/11/2021 3,822 Multifamily 2.95 % 13.70 % 9/25/2031 Total $ 46,876 2.46 % 15.32 % MSCR Notes MSCR Notes 5/25/2022 $ 4,019 Multifamily 13.02 % 13.02 % 5/25/2052 MSCR Notes 5/25/2022 4,988 Multifamily 10.02 % 10.02 % 5/25/2052 MSCR Notes 9/23/2022 1,306 Multifamily 10.37 % 11.40 % 11/25/2051 Total $ 10,313 11.23 % 11.36 % Mortgage Backed Securities Mortgage Backed Securities 6/1/2022 $ 9,638 Single-Family 7.08 % 7.39 % 4/17/2026 Mortgage Backed Securities 6/1/2022 8,966 Single-Family 4.87 % 5.08 % 11/19/2025 Mortgage Backed Securities 7/28/2022 526 Single-Family 6.23 % 6.33 % 10/17/2027 Mortgage Backed Securities 7/28/2022 819 Single-Family 3.60 % 4.23 % 6/20/2028 Mortgage Backed Securities 9/12/2022 4,473 Multifamily 9.29 % 9.27 % 1/25/2031 Mortgage Backed Securities 9/29/2022 7,906 Self Storage 9.57 % 9.59 % 9/15/2027 Total $ 32,328 7.28 % 7.45 % (1) Current yield is the annualized income earned divided by the cost basis of the investment. (2) The Company, through the Subsidiary OPs, purchased approximately $50.0 million and $15.0 million aggregate notional amount of the X1 interest-only tranche of the FHMS K-107 CMBS I/O Strip on April 28, 2021 and May 4, 2021, respectively. (3) The Company, through the Subsidiary OPs, purchased approximately $80.0 million, $35.0 million, $40.0 million and $50.0 million aggregate notional amount of the X1 interest-only tranche of the FRESB 2019-SB64 CMBS I/O Strip on June 11, 2021, September 29, 2021, February 3, 2022 and March 18, 2022, respectively. |
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, 2023 2022 2021 Net interest earned $ 2,905 $ 5,668 $ 3,052 Change in unrealized gain (loss) on CMBS structured pass-through certificates 1,533 (12,664) (483) Change in unrealized gain (loss) on MSCR notes 65 (53) — Change in unrealized gain (loss) on mortgage backed securities 467 (1,230) — Realized gain on CMBS structured pass-through certificates — — 484 Total $ 4,970 $ (8,279) $ 3,053 |
Real Estate Investments, net (T
Real Estate Investments, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate Investments, Net [Abstract] | |
Schedule of Real Estate Properties | As of December 31, 2023, the components of the Company's investments in multifamily properties was as follows (in thousands): Real Estate Investments, Net Land Buildings and Intangible Lease Construction in Progress Furniture, Totals Hudson Montford $ 10,996 $ 49,912 $ — $ 401 $ 691 $ 62,000 Alexander at the District 7,806 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 As of December 31, 2022, the components of the Company's investments in multifamily properties were as follows (in thousands): Real Estate Investments, Net Land Buildings and Intangible Lease Construction in Progress Furniture, Totals Hudson Montford $ 10,996 $ 49,831 $ — $ 2 $ 602 $ 61,431 Elysian at Hughes 25,590 160,141 — — — 185,731 Accumulated depreciation and amortization — (1,752) — — (188) (1,940) Total Real Estate Investments, Net $ 36,586 $ 208,220 $ — $ 2 $ 414 $ 245,222 |
Schedule of Real Estate Investment Financial Statements, Disclosure | The following table reflects the revenue and expenses for the years ended December 31, 2023 and 2022, for our multifamily properties (in thousands). For the Year Ended December 31, 2023 2022 Revenues Rental income $ 4,962 $ 11,116 Other income 182 1,286 Total revenues 5,144 12,402 Expenses Interest expense 3,984 4,183 Real estate taxes and insurance 862 1,493 Property operating expenses 1,145 2,548 Property general and administrative expenses 257 366 Property management fees 158 301 Depreciation and amortization 2,465 2,895 Rate cap (income) expense (2,045) (1,014) Debt service bridge — 626 Casualty (gain) loss (148) — Total expenses 6,678 11,398 Net income (loss) from consolidated real estate owned $ (1,534) $ 1,004 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | The following table summarizes the Company’s financing arrangements in place as of December 31, 2023 (dollars in thousands): December 31, 2023 Facility Collateral Date issued Outstanding Carrying value Final stated Weighted Weighted Outstanding Amortized cost Carrying value Weighted 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 Mac 7/12/2019 590,306 590,306 7/12/2029 2.34 % 4.5 645,277 676,420 676,420 4.5 Mezzanine loans Freddie Mac 10/20/2020 59,252 59,252 8/1/2031 0.30 % 6.3 96,817 98,839 98,839 6.3 Multifamily properties CBRE 12/31/2021 32,366 32,157 6/1/2028 (6) 8.05 % 4.4 N/A 64,697 64,697 4.4 Various 10/10/2023 63,500 63,500 11/6/2024 (7) 8.84 % 0.9 N/A 61,854 61,854 0.9 Unsecured Financing Various 10/15/2020 36,500 35,852 10/25/2025 7.50 % 1.8 N/A N/A N/A N/A Various 4/20/2021 180,000 177,131 5/1/2026 5.75 % 2.3 N/A N/A N/A N/A Various 10/18/2022 6,500 6,500 10/18/2027 7.50 % 3.8 N/A N/A N/A N/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 Securities ("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. The following table summarizes the Company’s financing arrangements in place as of December 31, 2022 (dollars in thousands): December 31, 2022 Facility Collateral Date issued Outstanding Carrying Maximum Final stated Weighted Weighted Outstanding Carrying Weighted Master Repurchase Agreements CMBS Mizuho(4) 4/15/2020 $ 331,020 $ 331,020 N/A (5) 5.83 % 0.2 $ 974,440 $ 543,919 $ 539,736 7.0 Asset Specific Financing Single Family Rental loans Freddie Mac 7/12/2019 628,633 628,633 7/12/2029 2.35 % 5.4 688,046 726,531 726,531 5.4 Mezzanine loans Freddie Mac 10/20/2020 59,252 59,252 8/1/2031 0.30 % 7.3 105,817 108,390 108,390 7.3 Multifamily properties CBRE 12/31/2021 32,480 32,176 6/1/2028 (6) 5.80 % 5.4 N/A 59,491 59,491 5.4 CBRE 2/1/2022 89,634 89,060 2/1/2032 3.52 % 9.1 N/A 185,731 185,731 9.1 Unsecured Financing Various 10/15/2020 36,500 35,530 10/25/2025 7.50 % 2.8 N/A N/A N/A N/A Various 4/20/2021 165,000 162,930 5/1/2026 5.75 % 3.3 N/A N/A N/A N/A Various 10/18/2022 6,500 6,500 10/18/2027 7.50 % 4.8 N/A N/A N/A N/A Total/weighted average $ 1,349,019 $ 1,345,101 3.85 % 4.1 $ 1,768,303 $ 1,624,062 $ 1,619,879 6.4 (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. |
Schedule of Debt | As of December 31, 2023, the outstanding principal balances related to the SFR Loans and levered Mezzanine Loans consisted of the following (dollars in thousands): Investment Investment Date Outstanding Principal Balance (1) Location Property Type Interest Type Interest Rate Maturity Date SFR Loans Senior loan 2/11/2020 $ 465,690 Various Single-family Fixed 2.24 % 9/1/2028 Senior loan 2/11/2020 31,416 Various Single-family Fixed 2.14 % 10/1/2025 Senior loan 2/11/2020 33,967 Various Single-family Fixed 2.70 % 11/1/2028 Senior loan 2/11/2020 9,156 Various Single-family Fixed 2.79 % 9/1/2028 Senior loan 2/11/2020 9,284 Various Single-family Fixed 2.45 % 3/1/2026 Senior loan 2/11/2020 8,111 Various Single-family Fixed 3.51 % 2/1/2028 Senior loan 2/11/2020 8,787 Various Single-family Fixed 3.30 % 10/1/2028 Senior loan 2/11/2020 7,881 Various Single-family Fixed 3.14 % 1/1/2029 Senior loan 2/11/2020 5,848 Various Single-family Fixed 2.99 % 3/1/2029 Senior loan 2/11/2020 5,240 Various Single-family Fixed 3.14 % 12/1/2028 Senior loan 2/11/2020 4,926 Various Single-family Fixed 2.64 % 10/1/2028 Total $ 590,306 2.34 % Mezzanine Loans Senior loan 10/20/2020 $ 8,723 Wilmington, DE Multifamily Fixed 0.30 % 6/1/2029 Senior loan 10/20/2020 7,344 White Marsh, MD Multifamily Fixed 0.30 % 4/1/2031 Senior loan 10/20/2020 6,353 Philadelphia, PA Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 5,881 Daytona Beach, FL Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 4,523 Laurel, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 4,179 Temple Hills, MD Multifamily Fixed 0.30 % 1/1/2029 Senior loan 10/20/2020 3,390 Temple Hills, MD Multifamily Fixed 0.30 % 5/1/2029 Senior loan 10/20/2020 3,348 Lakewood, NJ Multifamily Fixed 0.30 % 5/1/2029 Senior loan 10/20/2020 2,454 North Aurora, IL Multifamily Fixed 0.30 % 11/1/2028 Senior loan 10/20/2020 2,264 Rosedale, MD Multifamily Fixed 0.30 % 10/1/2028 Senior loan 10/20/2020 2,215 Cockeysville, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 2,026 Laurel, MD Multifamily Fixed 0.30 % 7/1/2029 Senior loan 10/20/2020 1,836 Vancouver, WA Multifamily Fixed 0.30 % 8/1/2031 Senior loan 10/20/2020 1,763 Tyler, TX Multifamily Fixed 0.30 % 11/1/2028 Senior loan 10/20/2020 1,307 Las Vegas, NV Multifamily Fixed 0.30 % 10/1/2028 Senior loan 10/20/2020 918 Atlanta, GA Multifamily Fixed 0.30 % 8/1/2031 Senior loan 10/20/2020 728 Des Moines, IA Multifamily Fixed 0.30 % 3/1/2029 Total $ 59,252 0.30 % Outstanding principal balance represents the total repurchase agreement balance outstanding as of December 31, 2023. As of December 31, 2022, the outstanding principal balances related to the SFR Loans and levered Mezzanine Loans consisted of the following (dollars in thousands): Investment Investment Date Outstanding Principal Balance (1) Location Property Type Interest Type Interest Rate Maturity Date SFR Loans Senior loan 2/11/2020 $ 465,690 Various Single-family Fixed 2.24 % 9/1/2028 Senior loan 2/11/2020 46,094 Various Single-family Fixed 2.14 % 10/1/2025 Senior loan 2/11/2020 34,528 Various Single-family Fixed 2.70 % 11/1/2028 Senior loan 2/11/2020 9,293 Various Single-family Fixed 2.79 % 9/1/2028 Senior loan 2/11/2020 9,284 Various Single-family Fixed 2.45 % 3/1/2026 Senior loan 2/11/2020 8,828 Various Single-family Fixed 3.51 % 2/1/2028 Senior loan 2/11/2020 8,805 Various Single-family Fixed 3.30 % 10/1/2028 Senior loan 2/11/2020 8,007 Various Single-family Fixed 3.14 % 1/1/2029 Senior loan 2/11/2020 6,778 Various Single-family Fixed 2.98 % 2/1/2029 Senior loan 2/11/2020 5,947 Various Single-family Fixed 2.99 % 3/1/2029 Senior loan 2/11/2020 5,513 Various Single-family Fixed 2.40 % 2/1/2024 Senior loan 2/11/2020 5,346 Various Single-family Fixed 3.14 % 12/1/2028 Senior loan 2/11/2020 5,015 Various Single-family Fixed 2.64 % 10/1/2028 Senior loan 2/11/2020 4,770 Various Single-family Fixed 2.48 % 8/1/2023 Senior loan 2/11/2020 4,735 Various Single-family Fixed 2.97 % 1/1/2029 Total $ 628,633 2.35 % Mezzanine Loans Senior loan 10/20/2020 $ 8,723 Wilmington, DE Multifamily Fixed 0.30 % 6/1/2029 Senior loan 10/20/2020 7,344 White Marsh, MD Multifamily Fixed 0.30 % 4/1/2031 Senior loan 10/20/2020 6,353 Philadelphia, PA Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 5,881 Daytona Beach, FL Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 4,523 Laurel, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 4,179 Temple Hills, MD Multifamily Fixed 0.30 % 1/1/2029 Senior loan 10/20/2020 3,390 Temple Hills, MD Multifamily Fixed 0.30 % 5/1/2029 Senior loan 10/20/2020 3,348 Lakewood, NJ Multifamily Fixed 0.30 % 5/1/2029 Senior loan 10/20/2020 2,454 North Aurora, IL Multifamily Fixed 0.30 % 11/1/2028 Senior loan 10/20/2020 2,264 Rosedale, MD Multifamily Fixed 0.30 % 10/1/2028 Senior loan 10/20/2020 2,215 Cockeysville, MD Multifamily Fixed 0.30 % 7/1/2031 Senior loan 10/20/2020 2,026 Laurel, MD Multifamily Fixed 0.30 % 7/1/2029 Senior loan 10/20/2020 1,836 Vancouver, WA Multifamily Fixed 0.30 % 8/1/2031 Senior loan 10/20/2020 1,763 Tyler, TX Multifamily Fixed 0.30 % 11/1/2028 Senior loan 10/20/2020 1,307 Las Vegas, NV Multifamily Fixed 0.30 % 10/1/2028 Senior loan 10/20/2020 918 Atlanta, GA Multifamily Fixed 0.30 % 8/1/2031 Senior loan 10/20/2020 728 Des Moines, IA Multifamily Fixed 0.30 % 3/1/2029 Total $ 59,252 0.30 % (1) Outstanding principal balance represents the total repurchase agreement balance outstanding as of December 31, 2022. |
Schedule of Line of Credit Facilities | For the years ended December 31, 2023 and 2022, 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, 2023 2022 Balances as of December 31, $ 1,345,101 $ 1,273,355 Decrease in Mortgages Payable in connection with VIE deconsolidation (89,012) — Increase in Mortgages Payable in connection with VIE consolidation 63,500 — Principal borrowings 55,239 260,937 Principal repayments (121,094) (185,200) Unsecured notes offering 13,557 — Repurchase of unsecured notes — (4,829) Accretion of discounts 966 790 Amortization of deferred financing costs (45) 48 Balances as of December 31, $ 1,268,212 $ 1,345,101 |
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, 2023 are as follows (in thousands): Year Recourse Non-recourse Total 2024(1) $ 63,500 $ 303,514 $ 367,014 2025 36,500 31,416 67,916 2026 180,000 9,284 189,284 2027 6,500 — 6,500 2028 32,366 543,665 576,031 Thereafter — 65,193 65,193 $ 318,866 $ 953,072 $ 1,271,938 (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. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 (in thousands): Fair Value Carrying Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 13,824 $ 13,824 $ — $ — $ 13,824 Restricted cash 2,825 2,825 — — 2,825 Loans, held-for-investment, net 328,460 — — 337,110 337,110 Preferred stock investments, at fair value 14,776 — — 14,776 14,776 Common stock investments, at fair value 61,529 — — 61,529 61,529 Mortgage loans, held-for-investment, net 676,420 — — 663,866 663,866 Accrued interest 22,033 22,033 — — 22,033 Mortgage loans held in variable interest entities, at fair value 5,677,763 — 5,677,763 — 5,677,763 CMBS structured pass-through certificates, at fair value 41,212 — 41,212 — 41,212 MSCR notes, at fair value 10,378 — 10,378 — 10,378 Mortgage backed securities, at fair value 38,270 — 38,270 — 38,270 Accounts receivable and other assets 4,312 1,560 2,752 — 4,312 $ 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 agreements 303,514 — — 303,514 303,514 Unsecured notes, net 219,483 — 199,859 — 199,859 Mortgages payable, net 95,657 — — 95,470 95,470 Accounts payable and other accrued liabilities 6,428 6,428 — — 6,428 Accrued interest payable 8,209 8,209 — — 8,209 Bonds payable held in variable interest entities, at fair value 5,289,997 — 5,289,997 — 5,289,997 $ 6,572,846 $ 14,637 $ 5,489,856 $ 1,065,407 $ 6,569,900 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, 2022 (in thousands): Fair Value Carrying Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 20,048 $ 20,048 $ — $ — $ 20,048 Restricted cash 299 299 — — 299 Loans, held-for-investment, net 256,147 — — 255,254 255,254 Common stock investment, at fair value 78,264 — — 78,264 78,264 Mortgage loans, held-for-investment, net 726,531 — — 727,533 727,533 Accrued interest 15,665 15,665 — — 15,665 Mortgage loans held in variable interest entities, at fair value 6,720,246 — 6,720,246 — 6,720,246 CMBS structured pass-through certificates, at fair value 46,876 — 46,876 — 46,876 MSCR notes, at fair value 10,313 — 10,313 — 10,313 Mortgage backed securities, at fair value 32,328 — 32,328 — 32,328 Accounts receivable and other assets 2,197 1,120 1,077 — 2,197 $ 7,908,914 $ 37,132 $ 6,810,840 $ 1,061,051 $ 7,909,023 Liabilities Secured financing agreements, net $ 687,885 $ — $ — $ 713,253 $ 713,253 Master repurchase agreements 331,020 — — 331,020 331,020 Unsecured notes, net 204,960 — 175,560 — 175,560 Mortgages payable, net 121,236 — — 121,236 121,236 Accounts payable and other accrued liabilities 6,231 6,236 — — 6,236 Accrued interest payable 7,986 7,986 — — 7,986 Bonds payable held in variable interest entities, at fair value 6,249,804 — 6,249,804 — 6,249,804 $ 7,609,122 $ 14,222 $ 6,425,364 $ 1,165,509 $ 7,605,095 |
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, 2023 (dollars in thousands): Carrying Valuation Technique Unobservable Inputs Range Weighted Average (1) NexPoint Storage Partners $ 33,129 Discounted cash flow Terminal cap rate 5.00% - 5.50% 5.25 % Discount rate 7.50% - 9.50% 8.50 % IQHQ Inc. $ 14,776 Discounted cash flow Discount rate 11.00% - 12.00% 11.50 % Private REIT $ 28,400 Market approach NAV per share multiple 1.00 - 1.20x 1.10x (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, 2022 (dollars in thousands): Carrying Valuation Technique Unobservable Inputs Range Weighted Average (1) NexPoint Storage Partners $ 50,380 Discounted cash flow Terminal cap rate 5.13% - 5.63% 5.38 % Discount rate 7.75% - 9.75% 8.75 % Private REIT $ 27,884 Recent transaction Yield 3.35% - 5.00% 3.81 % (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, 2023: Balance as of 12/31/22 Additions Change in Unrealized Gains/(Losses) Balance as of 12/31/23 NexPoint Storage Partners $ 50,380 $ — $ (17,251) $ 33,129 Private REIT $ 27,884 $ — $ 516 $ 28,400 IQHQ Inc. $ — $ 14,510 $ 266 $ 14,776 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, 2022: Balance as of 12/31/21 Additions Change in Unrealized Gains /(Losses) Balance as of 12/31/22 NexPoint Storage Partners $ 58,460 $ — $ (8,080) $ 50,380 Private REIT $ — $ 27,884 $ — $ 27,884 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023: 2023 Number of Units Weighted Average Outstanding December 31, 2022 577,360 $ 17.88 Granted 440,055 15.14 Vested (201,678) (1) 17.27 Forfeited (44,066) 16.81 Outstanding December 31, 2023 771,671 $ 16.70 (1) Certain key employees of the Manager elected to net the taxes owed upon vesting against the shares issued resulting in 151,970 shares being issued as shown on the consolidated statements of stockholders' equity. The vesting schedule for restricted stock units as of December 31, 2023, is as follows: Shares Vesting February April May Total 2024 120,640 126,042 68,564 315,246 2025 116,998 102,201 — 219,199 2026 54,893 91,166 — 146,059 2027 — 91,167 — 91,167 Total 292,531 410,576 68,564 771,671 |
Schedule of Sale of Stock | The following table contains summary information of the 2022 ATM Program since its inception through December 31, 2023: Gross Proceeds $ 12,575,493 Shares of Common Stock Issued 531,728 Gross Average Sale Price per Share of Common Stock $ 23.65 Sales Commissions $ 188,655 Offering Costs 888,249 Net Proceeds $ 11,498,589 Average Price Per Share, net $ 21.62 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 Net income (loss) attributable to common stockholders $ 10,399 $ 3,234 $ 39,577 Earnings for basic computations Net income attributable to redeemable noncontrolling interests 4,765 4,969 40,387 Net income for diluted computations $ 15,164 $ 8,203 $ 79,964 Weighted-average common shares outstanding Average number of common shares outstanding - basic 17,199 14,686 6,601 Average number of common shares from assumed vesting of unvested restricted stock units 740 571 444 Average number of common shares from assumed conversion of OP Units 5,038 7,218 13,321 Average number of common shares from assumed conversion of Series B Preferred Stock 24 — — Average number of common shares outstanding - diluted 23,001 22,475 20,366 Earnings per weighted average common share: Basic $ 0.60 $ 0.22 $ 6.00 Diluted (1) $ 0.60 $ 0.22 $ 3.93 (1) Diluted EPS calculations were higher than basic EPS and thus anti-dilutive for the years ended December 31, 2023 and 2022, respectively. As such, the Company is presenting diluted EPS as equal to basic EPS. |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022, and 2021 (in thousands): For the Year Ended December 31, 2023 2022 2021 Redeemable noncontrolling interests in the OP, January 1, $ 96,501 $ 261,423 $ 275,670 Adjustment to redeemable noncontrolling interest in the OP on deconsolidation of real estate 297 — — Net income attributable to redeemable noncontrolling interests in the OP 4,765 4,969 40,387 Redemption of redeemable noncontrolling interests in the OP — (155,614) (32,393) Distributions to redeemable noncontrolling interests in the OP (12,092) (14,277) (22,241) Redeemable noncontrolling interests in the OP, December 31, $ 89,471 $ 96,501 $ 261,423 |
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 End Common Shares Outstanding OP Units Held by NCI Combined Outstanding December 31, 2023 17,231,913 5,038,382 22,270,295 Period End Common Shares OP Units Held by Combined December 31, 2022 17,079,943 5,038,382 22,118,325 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and December 31, 2022 (in thousands): Investment Type December 31, 2023 December 31, 2022 Unfunded Commitments Unfunded Commitments Preferred Equity $ 34,966 $ 33,704 Common Equity 6,600 — $ 41,566 $ 33,704 |
Organization and Description _2
Organization and Description of Business (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
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% |
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% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) loan unit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2023 USD ($) | Sep. 08, 2021 | Dec. 31, 2020 USD ($) | |
Variable Interest Entity [Line Items] | ||||||
Allowance for loan and lease losses reserve | $ 700 | |||||
Current expected credit loss reserve | $ 2,100 | $ 2,300 | ||||
Cumulative effect of adoption of ASU 2016-13 | (347,437) | (448,513) | $ (245,283) | $ (128,243) | ||
Provision for credit losses | $ 4,299 | 169 | 189 | |||
Number of classes of OP units | unit | 3 | |||||
Class B OP Units | ||||||
Variable Interest Entity [Line Items] | ||||||
Limited liability units, voting power, percent per share | 50% | 50% | ||||
Class A OP Units | ||||||
Variable Interest Entity [Line Items] | ||||||
Limited liability units, voting power, percent per share | 50% | |||||
Retained Earnings Less Dividends | ||||||
Variable Interest Entity [Line Items] | ||||||
Cumulative effect of adoption of ASU 2016-13 | $ 35,821 | (4,435) | $ (28,367) | $ (3,485) | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Variable Interest Entity [Line Items] | ||||||
Cumulative effect of adoption of ASU 2016-13 | 1,624 | |||||
Provision for credit losses | $ 4,300 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings Less Dividends | ||||||
Variable Interest Entity [Line Items] | ||||||
Cumulative effect of adoption of ASU 2016-13 | $ 1,624 | |||||
Financial Asset Acquired with Credit Deterioration | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of loans acquired | loan | 0 | |||||
One Security | Variable Interest Entity, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Variable interest entity, qualitative or quantitative information, ownership percentage | 100% | |||||
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% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives (Details) | Dec. 31, 2023 |
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 |
Loans Held for Investment, Ne_2
Loans Held for Investment, Net - Summary of Loans Held for Investment (Details) $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 loan | Dec. 31, 2023 | Dec. 31, 2023 unit | Dec. 31, 2022 loan | Dec. 31, 2022 | Dec. 31, 2022 unit | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Outstanding Face Amount | $ 973,876 | $ 942,449 | ||||||
Carrying Value | $ 1,004,880 | $ 982,678 | ||||||
Loan Count | 48 | 48 | 48 | 48 | ||||
Weighted average, fixed rate | 84.82% | 90.64% | ||||||
Weighted average, coupon | 6.94% | 6.43% | ||||||
Weighted average, life (years) | 4 years 1 month 24 days | 5 years 1 month 9 days | ||||||
Mortgage loans, held-for-investment | ||||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Outstanding Face Amount | $ 645,277 | $ 688,046 | ||||||
Carrying Value | $ 676,420 | $ 726,531 | ||||||
Loan Count | loan | 11 | 15 | ||||||
Weighted average, fixed rate | 100% | 100% | ||||||
Weighted average, coupon | 4.79% | 4.81% | ||||||
Weighted average, life (years) | 4 years 5 months 26 days | 5 years 4 months 9 days | ||||||
Mezzanine loans, held-for-investment | ||||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Outstanding Face Amount | $ 133,207 | $ 163,021 | ||||||
Carrying Value | $ 135,069 | $ 165,182 | ||||||
Loan Count | loan | 22 | 23 | ||||||
Weighted average, fixed rate | 78.31% | 63.99% | ||||||
Weighted average, coupon | 9.61% | 10.42% | ||||||
Weighted average, life (years) | 5 years 4 months 9 days | 5 years 4 months 20 days | ||||||
Preferred equity, held-for-investment | ||||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Outstanding Face Amount | $ 195,392 | $ 91,382 | ||||||
Carrying Value | $ 193,391 | $ 90,965 | ||||||
Loan Count | loan | 15 | 10 | ||||||
Weighted average, fixed rate | 39.12% | 67.69% | ||||||
Weighted average, coupon | 12.20% | 11.51% | ||||||
Weighted average, life (years) | 2 years 2 months 19 days | 2 years 9 months 3 days |
Loans Held for Investment, Ne_3
Loans Held for Investment, Net - Loan and Preferred Equity Portfolio Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Roll Forward] | |||
Beginning balance | $ 982,678 | ||
Originations | 92,701 | $ 110,502 | $ 117,727 |
Reversal of specific reserve of credit losses | 4,502 | 0 | |
Ending balance | 1,004,880 | 982,678 | |
Loans Receivable, Held for Investment | |||
Accounts, Notes, Loans and Financing Receivable [Roll Forward] | |||
Beginning balance | 982,678 | 1,088,881 | |
Recognition of retained preferred equity investment upon deconsolidation of real estate (Note 14) | 36,022 | 0 | |
Conversion of convertible bonds to common stock | 0 | (25,000) | |
Originations | 110,502 | ||
Decrease in loans, held for investment, net on consolidation of real estate | (9,685) | 0 | |
Proceeds from principal repayments | (97,259) | (178,990) | |
PIK distribution reinvested in Preferred Units | 8,990 | 715 | |
Amortization of loan premium, net | (13,261) | ||
(Provision for) reversal of credit losses | (4,299) | (169) | |
Ending balance | 1,004,880 | 982,678 | 1,088,881 |
Loans Receivable, Held for Investment | Cumulative Effect, Period of Adoption, Adjustment | |||
Accounts, Notes, Loans and Financing Receivable [Roll Forward] | |||
Beginning balance | $ (1,624) | 0 | |
Ending balance | $ (1,624) | $ 0 |
Loans Held for Investment, Ne_4
Loans Held for Investment, Net - Additional Information (Details) $ in Millions | Dec. 31, 2023 loan | Dec. 31, 2023 USD ($) | Dec. 31, 2023 | Dec. 31, 2023 unit | Dec. 31, 2022 loan | Dec. 31, 2022 USD ($) | Dec. 31, 2022 | Dec. 31, 2022 unit |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||||||||
Financing receivable, unamortized purchase premium (discount) | $ 33.1 | $ 40.9 | ||||||
Loans and leases receivable, number of loans | 48 | 48 | 48 | 48 | ||||
Weighted average risk rating | 3 | 3 |
Loans Held for Investment, Ne_5
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, 2023 loan | Dec. 31, 2023 USD ($) | Dec. 31, 2023 | Dec. 31, 2023 unit | Dec. 31, 2022 loan | Dec. 31, 2022 USD ($) | Dec. 31, 2022 | Dec. 31, 2022 unit |
Financing Receivable, Nonaccrual [Line Items] | ||||||||
Loan Count | 48 | 48 | 48 | 48 | ||||
Carrying Value | $ 1,004,880 | $ 982,678 | ||||||
% of Loan Portfolio | 1 | 1 | ||||||
Risk Rating 1 | ||||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||||
Loan Count | 0 | 0 | 0 | 0 | ||||
Carrying Value | 0 | 0 | ||||||
% of Loan Portfolio | 0 | 0 | ||||||
Risk Rating 2 | ||||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||||
Loan Count | 0 | 0 | 0 | 0 | ||||
Carrying Value | 0 | 0 | ||||||
% of Loan Portfolio | 0 | 0 | ||||||
Risk Rating 3 | ||||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||||
Loan Count | 46 | 46 | 48 | 48 | ||||
Carrying Value | 992,751 | 982,678 | ||||||
% of Loan Portfolio | 0.9879 | 1 | ||||||
Risk Rating 4 | ||||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||||
Loan Count | 2 | 2 | 0 | 0 | ||||
Carrying Value | 12,129 | 0 | ||||||
% of Loan Portfolio | 0.0121 | 0 | ||||||
Risk Rating 5 | ||||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||||
Loan Count | 0 | 0 | 0 | 0 | ||||
Carrying Value | $ 0 | $ 0 | ||||||
% of Loan Portfolio | 0 | 0 |
Loans Held for Investment, Ne_6
Loans Held for Investment, Net - Summary of Loans by Origination (Details) $ in Thousands | Dec. 31, 2023 loan | Dec. 31, 2023 unit | Dec. 31, 2023 USD ($) | Dec. 31, 2022 loan | Dec. 31, 2022 unit | Dec. 31, 2022 USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Loans and leases receivable, number of loans | 48 | 48 | 48 | 48 | ||
Outstanding Face Amount | $ 973,876 | $ 999,080 | ||||
2023 | 82,879 | 72,606 | ||||
2022 | 82,087 | 98,129 | ||||
2021 | 40,981 | 17,500 | ||||
2020 | 19,158 | 774,381 | ||||
2019 | 759,828 | 20,062 | ||||
Prior | 19,947 | 0 | ||||
Loans and leases receivable, gross | 1,004,880 | 982,678 | ||||
Risk Rating 1 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Loans and leases receivable, number of loans | 0 | 0 | 0 | 0 | ||
Outstanding Face Amount | 0 | 0 | ||||
2023 | 0 | 0 | ||||
2022 | 0 | 0 | ||||
2021 | 0 | 0 | ||||
2020 | 0 | 0 | ||||
2019 | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans and leases receivable, gross | 0 | 0 | ||||
Risk Rating 2 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Loans and leases receivable, number of loans | 0 | 0 | 0 | 0 | ||
Outstanding Face Amount | 0 | 0 | ||||
2023 | 0 | 0 | ||||
2022 | 0 | 0 | ||||
2021 | 0 | 0 | ||||
2020 | 0 | 0 | ||||
2019 | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans and leases receivable, gross | 0 | 0 | ||||
Risk Rating 3 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Loans and leases receivable, number of loans | 46 | 46 | 48 | 48 | ||
Outstanding Face Amount | 961,756 | 999,080 | ||||
2023 | 82,879 | 72,606 | ||||
2022 | 69,958 | 98,129 | ||||
2021 | 40,981 | 17,500 | ||||
2020 | 19,158 | 774,381 | ||||
2019 | 759,828 | 20,062 | ||||
Prior | 19,947 | 0 | ||||
Loans and leases receivable, gross | 992,751 | 982,678 | ||||
Risk Rating 4 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Loans and leases receivable, number of loans | 2 | 2 | 0 | 0 | ||
Outstanding Face Amount | 12,120 | 0 | ||||
2023 | 0 | 0 | ||||
2022 | 12,129 | 0 | ||||
2021 | 0 | 0 | ||||
2020 | 0 | 0 | ||||
2019 | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans and leases receivable, gross | 12,129 | 0 | ||||
Risk Rating 5 | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Loans and leases receivable, number of loans | 0 | 0 | 0 | 0 | ||
Outstanding Face Amount | 0 | 0 | ||||
2023 | 0 | 0 | ||||
2022 | 0 | 0 | ||||
2021 | 0 | 0 | ||||
2020 | 0 | 0 | ||||
2019 | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans and leases receivable, gross | $ 0 | $ 0 |
Loans Held for Investment, Ne_7
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, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 1 | 1 |
Single Family Rental | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.6994 | 0.7226 |
Multifamily | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.2199 | 0.2311 |
Life Science | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.0633 | 0.0285 |
Self-Storage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.0175 | 0.0179 |
Georgia | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.3050 | 0.3404 |
Florida | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.1840 | 0.1934 |
Texas | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.1387 | 0.1121 |
Nevada | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.0146 | |
Maryland | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.0547 | 0.0559 |
Minnesota | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.0731 | 0.0697 |
California | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.0492 | 0.0466 |
Alabama | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.0351 | 0.0381 |
North Carolina | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.0278 | 0.0265 |
Virginia | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.0265 | |
Arkansas | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.0137 | 0.0142 |
Other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
% of loan portfolio | 0.0776 | 0.1031 |
CMBS Trusts - Schedule of Recog
CMBS Trusts - Schedule of Recognized Trusts Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Bonds payable held in variable interest entities, at fair value | $ (1,271,938) | |
Variable Interest Entity, Primary Beneficiary | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans held in variable interest entities, at fair value | 5,677,763 | $ 6,720,246 |
Accrued interest receivable | 3,902 | 4,029 |
Bonds payable held in variable interest entities, at fair value | (5,289,997) | (6,249,804) |
Accrued interest payable | $ (3,220) | $ (3,207) |
CMBS Trusts - Schedule of Chang
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Securitization or Asset-Backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Net interest earned | $ 40,627 | $ 35,866 | $ 27,780 |
Debt securities, trading, unrealized gain (loss) | (2,414) | (25,627) | 29,838 |
Change in net assets related to consolidated CMBS variable interest entities | $ 38,213 | $ 10,239 | $ 57,618 |
CMBS Trusts - Schedule of Geogr
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, 2023 | Dec. 31, 2022 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 100% | 100% |
Multifamily | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 97.45% | 98.45% |
Manufactured Housing | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 2.55% | 1.55% |
Texas | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 15.85% | 17.95% |
Florida | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 14.07% | 13.82% |
Arizona | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 4.05% | 6.98% |
California | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 8.69% | 9.28% |
Georgia | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 4% | 4.68% |
Washington | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 7.75% | 6.88% |
New Jersey | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 4.02% | 3.97% |
Nevada | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 2.49% | 1.99% |
Pennsylvania | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 1.27% | 1.01% |
Colorado | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 7.74% | 6.21% |
Connecticut | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 2.04% | 3.64% |
North Carolina | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 4.17% | 3.53% |
New York | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 3.37% | 2.76% |
Ohio | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 2.48% | 2% |
Virginia | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 2.03% | 1.62% |
Indiana | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 2.13% | 1.69% |
Illinois | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 1.65% | 1.37% |
Michigan | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 1.38% | 1.11% |
Maryland | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 1.18% | |
Missouri | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 1.56% | 1.25% |
Other | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Percentage of collateral unpaid principal balance | 8.08% | 8.26% |
Common and Preferred Stock In_3
Common and Preferred Stock Investments - Additional Information (Details) $ / shares in Units, $ in Millions | Apr. 14, 2022 USD ($) convertible_note shares | Dec. 31, 2023 $ / shares | Dec. 31, 2022 $ / shares |
Discount rate | 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 | 6.40% | ||
IQHQ Inc. | Variable Interest Entity, Primary Beneficiary | |||
Schedule of Equity Method Investments [Line Items] | |||
Effective ownership | 9.50% | ||
Private REIT | |||
Schedule of Equity Method Investments [Line Items] | |||
Private offering price per share (in usd per share) | $ 20.37 | $ 19.33 | |
Convertible Note | |||
Schedule of Equity Method Investments [Line Items] | |||
Debt instrument, convertible, conversion price (in usd per share) | $ 17.50 | ||
Number of convertible notes | convertible_note | 2 | ||
Stock issued during period, conversion of convertible securities (in shares) | shares | 1,394,213 | ||
Conversion of convertible bonds to common stock | $ | $ 25 | ||
NexPoint Storage Partners, Inc. (“NSP”) | VIE | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 25.70% |
Common and Preferred Stock In_4
Common and Preferred Stock Investments - Schedule of Common Stock Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Common stock investments, at fair value | $ 61,529 | $ 78,264 |
NexPoint Storage Partners | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment owned, balance (in shares) | 41,963 | 41,963 |
Common stock investments, at fair value | $ 33,129 | $ 50,380 |
Private REIT | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment owned, balance (in shares) | 1,394,213 | 1,394,213 |
Common stock investments, at fair value | $ 28,400 | $ 27,884 |
Common and Preferred Stock In_5
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Change in unrealized gain (loss) on common stock investments | $ (16,736) | $ (5,196) | $ 13,834 |
NexPoint Storage Partners | |||
Schedule of Equity Method Investments [Line Items] | |||
Change in unrealized gain (loss) on common stock investments | (17,251) | (8,080) | 13,834 |
Private REIT | |||
Schedule of Equity Method Investments [Line Items] | |||
Change in unrealized gain (loss) on common stock investments | $ 515 | $ 2,884 | $ 0 |
Unconsolidated Variable Inter_3
Unconsolidated Variable Interest Entities - Schedule of Variable Interest Entities (Details) - VIE | Dec. 31, 2023 |
NexPoint Storage Partners, Inc. (“NSP”) | |
Variable Interest Entity [Line Items] | |
Equity method investment, ownership percentage | 25.70% |
Resmark Forney Gateway Holdings, LLC | |
Variable Interest Entity [Line Items] | |
Effective ownership | 98% |
Resmark the Brook, LLC | |
Variable Interest Entity [Line Items] | |
Effective ownership | 98% |
Private REIT | |
Variable Interest Entity [Line Items] | |
Effective ownership | 6.40% |
Unconsolidated Variable Inter_4
Unconsolidated Variable Interest Entities - Additional Information (Details) - USD ($) $ in Millions | 2 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2023 | |
NexPoint Storage Partners, Inc. | ||
Variable Interest Entity [Line Items] | ||
Maximum loss exposure | $ 33.1 | |
RFGH and RTB | ||
Variable Interest Entity [Line Items] | ||
Maximum loss exposure | $ 1 | |
Purchase of common equity, amount unfunded | $ 2.8 |
CMBS Structured Pass Through _3
CMBS Structured Pass Through Certificates, MSCR Notes and Mortgage Backed Securities - Summary of CMBS I/O Strips (Details) $ in Thousands | 12 Months Ended | |||||||
Mar. 18, 2022 USD ($) | Feb. 03, 2022 USD ($) | Sep. 29, 2021 USD ($) | Jun. 11, 2021 USD ($) | May 04, 2021 USD ($) | Apr. 28, 2021 USD ($) | Dec. 31, 2023 USD ($) strip security note | Dec. 31, 2022 USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Number of CMBS I/O Strips | strip | 12 | |||||||
Number of MSCR Notes | note | 3 | |||||||
Number of mortgage backed securities | security | 7 | |||||||
MSCR Notes | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 10,378 | $ 10,313 | ||||||
Collateralized Mortgage-Backed Securities | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 38,270 | $ 32,328 | ||||||
Interest Rate | 9.17% | 7.28% | ||||||
Current Yield | 9.30% | 7.45% | ||||||
Multifamily | CMBS I/O Strip, One | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 1,622 | $ 1,807 | ||||||
Interest Rate | 2.02% | 2.02% | ||||||
Current Yield | 14.64% | 14.56% | ||||||
Multifamily | CMBS I/O Strip, Two | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 16,601 | $ 18,364 | ||||||
Interest Rate | 2.98% | 2.98% | ||||||
Current Yield | 17.98% | 15.98% | ||||||
Multifamily | CMBS I/O Strip, Three | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 5,022 | $ 5,676 | ||||||
Interest Rate | 1.59% | 1.59% | ||||||
Current Yield | 17.68% | 15.52% | ||||||
Payments for purchase of securities | $ 15,000 | $ 50,000 | ||||||
Multifamily | CMBS I/O Strip, Four | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 3,436 | $ 3,693 | ||||||
Interest Rate | 3.39% | 3.39% | ||||||
Current Yield | 17.79% | 15.73% | ||||||
Multifamily | CMBS I/O Strip, Five | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 395 | $ 455 | ||||||
Interest Rate | 2.31% | 2.31% | ||||||
Current Yield | 22.31% | 18.91% | ||||||
Multifamily | CMBS I/O Strip, Six | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 2,643 | $ 4,188 | ||||||
Interest Rate | 1.18% | 1.19% | ||||||
Current Yield | 14.57% | 13.34% | ||||||
Payments for purchase of securities | $ 50,000 | $ 40,000 | $ 35,000 | $ 80,000 | ||||
Multifamily | CMBS IO Strip Seven | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 833 | $ 1,117 | ||||||
Interest Rate | 1.17% | 1.18% | ||||||
Current Yield | 18.07% | 16.77% | ||||||
Multifamily | CMBS IO Strip Eight | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 2,255 | $ 2,445 | ||||||
Interest Rate | 1.89% | 1.89% | ||||||
Current Yield | 17.98% | 15.87% | ||||||
Multifamily | CMBS I/O Strip, Nine | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 1,241 | $ 1,333 | ||||||
Interest Rate | 3.10% | 3.10% | ||||||
Current Yield | 15.24% | 13.74% | ||||||
Multifamily | CMBS I/O Strip, Ten | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 229 | $ 250 | ||||||
Interest Rate | 2.61% | 2.61% | ||||||
Current Yield | 16.15% | 14.44% | ||||||
Multifamily | CMBS I/O Strip, Eleven | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 3,390 | $ 3,726 | ||||||
Interest Rate | 1.92% | 1.92% | ||||||
Current Yield | 17.01% | 15.03% | ||||||
Multifamily | CMBS I/O Strip, Twelve | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 3,545 | $ 3,822 | ||||||
Interest Rate | 2.95% | 2.95% | ||||||
Current Yield | 15.14% | 13.70% | ||||||
Multifamily | CMBS I/O Strips | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 41,212 | $ 46,876 | ||||||
Interest Rate | 2.50% | 2.46% | ||||||
Current Yield | 17.21% | 15.32% | ||||||
Multifamily | MSCR Notes One | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 4,020 | $ 4,019 | ||||||
Interest Rate | 14.83% | 13.02% | ||||||
Current Yield | 14.83% | 13.02% | ||||||
Multifamily | MSCR Notes Two | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 5,000 | $ 4,988 | ||||||
Interest Rate | 11.83% | 10.02% | ||||||
Current Yield | 11.83% | 10.02% | ||||||
Multifamily | MSCR Notes Three | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 1,358 | $ 1,306 | ||||||
Interest Rate | 12.18% | 10.37% | ||||||
Current Yield | 13.38% | 11.40% | ||||||
Multifamily | MSCR Notes | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 10,378 | $ 10,313 | ||||||
Interest Rate | 13.04% | 11.23% | ||||||
Current Yield | 13.20% | 11.36% | ||||||
Multifamily | Mortgage Backed Securities 5 | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 3,881 | $ 4,473 | ||||||
Interest Rate | 11.57% | 9.29% | ||||||
Current Yield | 11.55% | 9.27% | ||||||
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 | $ 9,638 | ||||||
Interest Rate | 8.64% | 7.08% | ||||||
Current Yield | 8.91% | 7.39% | ||||||
Single-Family | Mortgage Backed Securities 2 | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 9,369 | $ 8,966 | ||||||
Interest Rate | 4.87% | 4.87% | ||||||
Current Yield | 5.01% | 5.08% | ||||||
Single-Family | Mortgage Backed Securities 3 | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 538 | $ 526 | ||||||
Interest Rate | 6.23% | 6.23% | ||||||
Current Yield | 6.31% | 6.33% | ||||||
Single-Family | Mortgage Backed Securities 4 | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 856 | $ 819 | ||||||
Interest Rate | 3.60% | 3.60% | ||||||
Current Yield | 4.12% | 4.23% | ||||||
Self Storage | Mortgage Backed Securities 6 | ||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||
Carrying Value | $ 7,960 | $ 7,906 | ||||||
Interest Rate | 11.10% | 9.57% | ||||||
Current Yield | 11.12% | 9.59% |
CMBS Structured Pass Through _4
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Realized gain on CMBS structured pass-through certificates | $ 0 | $ 0 | $ 484 |
Total | 4,970 | (8,279) | 3,053 |
Commercial Mortgage-Backed Securities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Net interest earned | 2,905 | 5,668 | 3,052 |
Debt securities, trading, unrealized gain (loss) | 1,533 | (12,664) | (483) |
MSCR Notes | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, trading, unrealized gain (loss) | 65 | (53) | 0 |
Collateralized Mortgage-Backed Securities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, trading, unrealized gain (loss) | 467 | (1,230) | 0 |
Change in unrealized gain (loss) on mortgage backed securities | $ 467 | $ (1,230) | $ 0 |
Real Estate Investments, net -
Real Estate Investments, net - Additional Information (Details) - unit | Oct. 10, 2023 | Feb. 01, 2022 | Dec. 31, 2021 |
Real Estate Properties [Line Items] | |||
Number of units in multifamily property | 368 | ||
Charlotte, NC | |||
Real Estate Properties [Line Items] | |||
Number of units in multifamily property | 204 | ||
Las Vegas, NV | |||
Real Estate Properties [Line Items] | |||
Number of units in multifamily property | 368 | ||
Atlanta, GA | |||
Real Estate Properties [Line Items] | |||
Number of units in multifamily property | 280 |
Real Estate Investments, net _2
Real Estate Investments, net - Investments in Properties (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Real Estate Properties [Line Items] | ||
Accumulated depreciation and amortization | $ (4,404) | $ (1,940) |
Real estate investment property, net | 126,551 | 245,222 |
Land | ||
Real Estate Properties [Line Items] | ||
Accumulated depreciation and amortization | 0 | 0 |
Real estate investment property, net | 18,802 | 36,586 |
Buildings and Improvements | ||
Real Estate Properties [Line Items] | ||
Accumulated depreciation and amortization | (3,948) | (1,752) |
Real estate investment property, net | 105,126 | 208,220 |
Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Accumulated depreciation and amortization | 0 | 0 |
Real estate investment property, net | 1,271 | 0 |
Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Accumulated depreciation and amortization | 0 | 0 |
Real estate investment property, net | 401 | 2 |
Furniture, Fixtures and Equipment | ||
Real Estate Properties [Line Items] | ||
Accumulated depreciation and amortization | (456) | (188) |
Real estate investment property, net | 951 | 414 |
Hudson Montford | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | 62,000 | 61,431 |
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 | 49,912 | 49,831 |
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 | 401 | 2 |
Hudson Montford | Furniture, Fixtures and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | 691 | 602 |
Elysian at Hughes | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | 185,731 | |
Elysian at Hughes | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | 25,590 | |
Elysian at Hughes | Buildings and Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | 160,141 | |
Elysian at Hughes | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | 0 | |
Elysian at Hughes | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | 0 | |
Elysian at Hughes | Furniture, Fixtures and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | $ 0 | |
Alexander at the District | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | 68,955 | |
Alexander at the District | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | 7,806 | |
Alexander at the District | Buildings and Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | 59,162 | |
Alexander at the District | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | 1,271 | |
Alexander at the District | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | 0 | |
Alexander at the District | Furniture, Fixtures and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment property, at cost | $ 716 |
Real Estate Investments, net _3
Real Estate Investments, net - Revenue and Expenses of Property (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate Properties [Line Items] | |||
Interest expense | $ 51,560 | $ 40,255 | $ 29,772 |
Property general and administrative expenses | 9,204 | 7,243 | 6,371 |
Depreciation and amortization | 2,465 | 2,895 | $ 0 |
Total expenses | 6,678 | 11,398 | |
Multifamily Property | |||
Real Estate Properties [Line Items] | |||
Other Income | 182 | 1,286 | |
Total revenues | 5,144 | 12,402 | |
Interest expense | 3,984 | 4,183 | |
Real estate taxes and insurance | 862 | 1,493 | |
Property operating expenses | 1,145 | 2,548 | |
Property general and administrative expenses | 257 | 366 | |
Property management fees | 158 | 301 | |
Depreciation and amortization | 2,465 | 2,895 | |
Rate cap (income) expense | (2,045) | (1,014) | |
Debt service bridge | 0 | 626 | |
Casualty (gain) loss | (148) | 0 | |
Net income (loss) from consolidated real estate owned | (1,534) | 1,004 | |
Multifamily Property | Rental Income | |||
Real Estate Properties [Line Items] | |||
Rental income | $ 4,962 | $ 11,116 |
Debt - Summary of Financing Arr
Debt - Summary of Financing Arrangements (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | 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 | $ 1,271,938 | $ 1,349,019 | |||
Carrying value | $ 1,268,212 | $ 1,345,101 | |||
Weighted average interest rate | 4.55% | 3.85% | |||
Weighted average life (years) | 2 years 10 months 24 days | 4 years 1 month 6 days | |||
Collateral | |||||
Debt Instrument [Line Items] | |||||
Weighted average life (years) | 5 years 7 months 6 days | 6 years 4 months 24 days | |||
Collateral outstanding face amount | $ 676,420 | $ 1,768,303 | |||
Collateral amortized cost basis | 1,372,571 | 1,624,062 | |||
Collateral carrying value | 1,366,698 | 1,619,879 | |||
Master Repurchase Agreements | Mizuho | Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding face amount | 303,514 | 331,020 | |||
Carrying value | $ 303,514 | $ 331,020 | |||
Weighted average interest rate | 7.26% | 5.83% | |||
Weighted average life (years) | 0 years | 2 months 12 days | |||
Master Repurchase Agreements | Mizuho | Collateral | |||||
Debt Instrument [Line Items] | |||||
Weighted average life (years) | 6 years 4 months 24 days | 7 years | |||
Collateral outstanding face amount | $ 931,296 | $ 974,440 | |||
Collateral amortized cost basis | 470,761 | 543,919 | |||
Collateral carrying value | 464,888 | 539,736 | |||
Asset Specific Financing | Freddie Mac | Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding face amount | 590,306 | 628,633 | |||
Carrying value | $ 590,306 | $ 628,633 | |||
Weighted average interest rate | 2.34% | 2.35% | |||
Weighted average life (years) | 4 years 6 months | 5 years 4 months 24 days | |||
Asset Specific Financing | Freddie Mac | Collateral | |||||
Debt Instrument [Line Items] | |||||
Weighted average life (years) | 4 years 6 months | 5 years 4 months 24 days | |||
Collateral outstanding face amount | $ 645,277 | $ 688,046 | |||
Collateral amortized cost basis | 676,420 | 726,531 | |||
Collateral carrying value | 676,420 | 726,531 | |||
Mezzanine loans | Freddie Mac | Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding face amount | 59,252 | 59,252 | |||
Carrying value | $ 59,252 | $ 59,252 | |||
Weighted average interest rate | 0.30% | 0.30% | |||
Weighted average life (years) | 6 years 3 months 18 days | 7 years 3 months 18 days | |||
Mezzanine loans | Freddie Mac | Collateral | |||||
Debt Instrument [Line Items] | |||||
Weighted average life (years) | 6 years 3 months 18 days | 7 years 3 months 18 days | |||
Collateral outstanding face amount | $ 96,817 | $ 105,817 | |||
Collateral amortized cost basis | 98,839 | 108,390 | |||
Collateral carrying value | $ 98,839 | $ 108,390 | |||
Multifamily Property Debt Due 2028 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, repayment premium, percent | 1% | 1% | |||
Multifamily Property Debt Due 2028 | Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding face amount | $ 32,366 | $ 32,480 | |||
Carrying value | $ 32,157 | $ 32,176 | |||
Weighted average interest rate | 8.05% | 5.80% | |||
Weighted average life (years) | 4 years 4 months 24 days | 5 years 4 months 24 days | |||
Multifamily Property Debt Due 2028 | Collateral | |||||
Debt Instrument [Line Items] | |||||
Weighted average life (years) | 4 years 4 months 24 days | 5 years 4 months 24 days | |||
Collateral amortized cost basis | $ 64,697 | $ 59,491 | |||
Collateral carrying value | 64,697 | 59,491 | |||
Multifamily Property Debt Due 2024 | Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding face amount | 63,500 | ||||
Carrying value | $ 63,500 | ||||
Weighted average interest rate | 8.84% | ||||
Multifamily Property Debt Due 2024 | Collateral | |||||
Debt Instrument [Line Items] | |||||
Weighted average life (years) | 10 months 24 days | ||||
Collateral amortized cost basis | $ 61,854 | ||||
Collateral carrying value | 61,854 | ||||
Multifamily Property Debt Due 2032 | Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding face amount | 89,634 | ||||
Carrying value | $ 89,060 | ||||
Weighted average interest rate | 3.52% | ||||
Weighted average life (years) | 9 years 1 month 6 days | ||||
Multifamily Property Debt Due 2032 | Collateral | |||||
Debt Instrument [Line Items] | |||||
Weighted average life (years) | 9 years 1 month 6 days | ||||
Collateral amortized cost basis | $ 185,731 | ||||
Collateral carrying value | 185,731 | ||||
The 7.50 Percent Senior Notes Due 2025 | Unsecured Debt | Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding face amount | 36,500 | 36,500 | |||
Carrying value | $ 35,852 | $ 35,530 | |||
Weighted average interest rate | 7.50% | 7.50% | |||
Weighted average life (years) | 1 year 9 months 18 days | 2 years 9 months 18 days | |||
The 5.75 Percent Senior Notes Due 2026 | Unsecured Debt | Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding face amount | $ 180,000 | $ 165,000 | |||
Carrying value | $ 177,131 | $ 162,930 | |||
Weighted average interest rate | 5.75% | 5.75% | |||
Weighted average life (years) | 2 years 3 months 18 days | 3 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) | 3 years 9 months 18 days | 4 years 9 months 18 days |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Nov. 15, 2023 | Jul. 12, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 11, 2020 |
Debt Instrument [Line Items] | |||||
Secured financing agreements, net | $ 649,558,000 | $ 687,885,000 | |||
Facility | |||||
Debt Instrument [Line Items] | |||||
Carrying value | 1,268,212,000 | 1,345,101,000 | |||
Outstanding face amount | 1,271,938,000 | 1,349,019,000 | |||
Collateral | |||||
Debt Instrument [Line Items] | |||||
Collateral outstanding face amount | 676,420,000 | 1,768,303,000 | |||
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 | Facility | |||||
Debt Instrument [Line Items] | |||||
Carrying value | 303,514,000 | 331,020,000 | |||
Outstanding face amount | 303,514,000 | 331,020,000 | |||
Master Repurchase Agreements | Mizuho | Collateral | |||||
Debt Instrument [Line Items] | |||||
Collateral outstanding face amount | 931,296,000 | 974,440,000 | |||
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% | ||||
Proceeds from issuance of debt | $ 13,600,000 | ||||
Asset Specific Financing | Freddie Mac | Facility | |||||
Debt Instrument [Line Items] | |||||
Carrying value | 590,306,000 | 628,633,000 | |||
Outstanding face amount | 590,306,000 | 628,633,000 | |||
Asset Specific Financing | Freddie Mac | Collateral | |||||
Debt Instrument [Line Items] | |||||
Collateral outstanding face amount | $ 645,277,000 | $ 688,046,000 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Principal Balances Related to SFR Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 649,558 | $ 687,885 |
Senior Loan | Single Family Rental | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 590,306 | $ 628,633 |
Interest Rate | 2.34% | 2.35% |
Senior Loan | Single Family Rental | Debt Instrument One | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 465,690 | $ 465,690 |
Interest Rate | 2.24% | 2.24% |
Senior Loan | Single Family Rental | Debt Instrument Two | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 31,416 | $ 46,094 |
Interest Rate | 2.14% | 2.14% |
Senior Loan | Single Family Rental | Debt Instrument Three | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 33,967 | $ 34,528 |
Interest Rate | 2.70% | 2.70% |
Senior Loan | Single Family Rental | Debt Instrument Four | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 9,156 | $ 9,293 |
Interest Rate | 2.79% | 2.79% |
Senior Loan | Single Family Rental | Debt Instrument Five | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 9,284 | $ 9,284 |
Interest Rate | 2.45% | 2.45% |
Senior Loan | Single Family Rental | Debt Instrument Six | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 8,111 | $ 8,828 |
Interest Rate | 3.51% | 3.51% |
Senior Loan | Single Family Rental | Debt Instrument Seven | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 8,787 | $ 8,805 |
Interest Rate | 3.30% | 3.30% |
Senior Loan | Single Family Rental | Debt Instrument Eight | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 7,881 | $ 8,007 |
Interest Rate | 3.14% | 3.14% |
Senior Loan | Single Family Rental | Debt Instrument Nine | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 5,848 | $ 6,778 |
Interest Rate | 2.99% | 2.98% |
Senior Loan | Single Family Rental | Debt Instrument Ten | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 5,240 | $ 5,947 |
Interest Rate | 3.14% | 2.99% |
Senior Loan | Single Family Rental | Debt Instrument Eleven | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 4,926 | $ 5,513 |
Interest Rate | 2.64% | 2.40% |
Senior Loan | Single Family Rental | Debt Instrument Twelve | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 5,346 | |
Interest Rate | 3.14% | |
Senior Loan | Single Family Rental | Debt Instrument Thirteen | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 5,015 | |
Interest Rate | 2.64% | |
Senior Loan | Single Family Rental | Debt Instrument Fourteen | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 4,770 | |
Interest Rate | 2.48% | |
Senior Loan | Single Family Rental | Debt Instrument Fifteen | ||
Debt Instrument [Line Items] | ||
Secured financing agreements, net | $ 4,735 | |
Interest Rate | 2.97% | |
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% |
Debt - Activity Related to Carr
Debt - Activity Related to Carrying Value of Secured Financing Agreements and Master Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Line Of Credit Facility [Roll Forward] | |||
Repurchase of unsecured notes | $ 0 | $ (4,829) | $ (304) |
Amortization of deferred financing costs | (45) | 48 | 0 |
Secured Financing Agreements and Master Repurchase Agreements | |||
Line Of Credit Facility [Roll Forward] | |||
Balances as of December 31, | 1,345,101 | 1,273,355 | |
Decrease in Mortgages Payable in connection with VIE deconsolidation | (89,012) | 0 | |
Increase in Mortgages Payable in connection with VIE consolidation | 63,500 | 0 | |
Principal borrowings | 55,239 | 260,937 | |
Principal repayments | (121,094) | (185,200) | |
Unsecured notes offering | 13,557 | 0 | |
Repurchase of unsecured notes | 0 | (4,829) | |
Accretion of discounts | 966 | 790 | |
Amortization of deferred financing costs | (45) | 48 | |
Balances as of December 31, | $ 1,268,212 | $ 1,345,101 | $ 1,273,355 |
Debt - Summary of Aggregate Sch
Debt - Summary of Aggregate Scheduled Maturities of Total Debt (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 367,014 |
2025 | 67,916 |
2026 | 189,284 |
2027 | 6,500 |
2028 | 576,031 |
Thereafter | 65,193 |
Total long-term debt | 1,271,938 |
Recourse | |
Debt Instrument [Line Items] | |
2024 | 63,500 |
2025 | 36,500 |
2026 | 180,000 |
2027 | 6,500 |
2028 | 32,366 |
Thereafter | 0 |
Total long-term debt | 318,866 |
Non-recourse | |
Debt Instrument [Line Items] | |
2024 | 303,514 |
2025 | 31,416 |
2026 | 9,284 |
2027 | 0 |
2028 | 543,665 |
Thereafter | 65,193 |
Total long-term debt | $ 953,072 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Details) - Interest Rate Cap - Designated as Hedging Instrument $ in Millions | Dec. 31, 2023 USD ($) | Oct. 10, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 30, 2021 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative, fair value, net | $ 1 | $ 63.5 | $ 1.1 | $ 32.5 |
Derivative strike price | 0.0229 | |||
Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative strike price | 0.0150 | |||
Accounts Receivable and Other Assets | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Derivative, fair value, net | $ 1.8 |
Fair Value of Financial Instr_4
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, 2023 | Dec. 31, 2022 |
Assets | ||
Common stock investments, at fair value | $ 61,529 | $ 78,264 |
CMBS Structured Pass Through Certificates | ||
Assets | ||
Debt securities, trading | 41,212 | 46,876 |
MSCR Notes | ||
Assets | ||
Debt securities, trading | 10,378 | 10,313 |
Collateralized Mortgage-Backed Securities | ||
Assets | ||
Debt securities, trading | 38,270 | 32,328 |
Fair Value, Recurring | ||
Assets | ||
Cash and cash equivalents | 13,824 | 20,048 |
Restricted cash | 2,825 | 299 |
Loans receivable, fair value disclosure | 337,110 | 255,254 |
Common stock investments, at fair value | 78,264 | |
Accrued interest | 22,033 | 15,665 |
Accounts receivable and other assets | 4,312 | 2,197 |
Assets, fair value disclosure | 6,887,898 | 7,909,023 |
Liabilities | ||
Secured financing agreements, net | 666,423 | 713,253 |
Master repurchase agreements | 303,514 | 331,020 |
Unsecured notes, net | 199,859 | 175,560 |
Mortgages payable, net | 95,470 | 121,236 |
Accounts Payable And Other Accrued Liabilities Fair Value Disclosure | 6,428 | 6,236 |
Accrued interest payable | 8,209 | 7,986 |
Financial and nonfinancial liabilities, fair value disclosure | 6,569,900 | 7,605,095 |
Fair Value, Recurring | Preferred stock investments, at fair value | ||
Assets | ||
Common stock investments, at fair value | 14,776 | |
Fair Value, Recurring | Common Stock | ||
Assets | ||
Common stock investments, at fair value | 61,529 | |
Fair Value, Recurring | Mortgages | ||
Assets | ||
Loans receivable, fair value disclosure | 663,866 | 727,533 |
Fair Value, Recurring | CMBS Structured Pass Through Certificates | ||
Assets | ||
Debt securities, trading | 41,212 | 46,876 |
Fair Value, Recurring | MSCR Notes | ||
Assets | ||
Debt securities, trading | 10,378 | 10,313 |
Fair Value, Recurring | Collateralized Mortgage-Backed Securities | ||
Assets | ||
Debt securities, trading | 38,270 | 32,328 |
Fair Value, Recurring | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | ||
Bonds payable held in variable interest entities, at fair value | 5,289,997 | 6,249,804 |
Fair Value, Recurring | Variable Interest Entity, Primary Beneficiary | Mortgages | ||
Assets | ||
Loans receivable, fair value disclosure | 5,677,763 | 6,720,246 |
Fair Value, Recurring | Level 1 | ||
Assets | ||
Cash and cash equivalents | 13,824 | 20,048 |
Restricted cash | 2,825 | 299 |
Loans receivable, fair value disclosure | 0 | 0 |
Common stock investments, at fair value | 0 | |
Accrued interest | 22,033 | 15,665 |
Accounts receivable and other assets | 1,560 | 1,120 |
Assets, fair value disclosure | 40,242 | 37,132 |
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 Fair Value Disclosure | 6,428 | 6,236 |
Accrued interest payable | 8,209 | 7,986 |
Financial and nonfinancial liabilities, fair value disclosure | 14,637 | 14,222 |
Fair Value, Recurring | Level 1 | Preferred stock investments, at fair value | ||
Assets | ||
Common stock investments, at fair value | 0 | |
Fair Value, Recurring | Level 1 | Common Stock | ||
Assets | ||
Common stock investments, at fair value | 0 | |
Fair Value, Recurring | Level 1 | Mortgages | ||
Assets | ||
Loans receivable, fair value disclosure | 0 | 0 |
Fair Value, Recurring | Level 1 | CMBS Structured Pass Through Certificates | ||
Assets | ||
Debt securities, trading | 0 | 0 |
Fair Value, Recurring | Level 1 | MSCR Notes | ||
Assets | ||
Debt securities, trading | 0 | 0 |
Fair Value, Recurring | Level 1 | Collateralized Mortgage-Backed Securities | ||
Assets | ||
Debt securities, trading | 0 | 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 receivable, fair value disclosure | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Loans receivable, fair value disclosure | 0 | 0 |
Common stock investments, at fair value | 0 | |
Accrued interest | 0 | 0 |
Accounts receivable and other assets | 2,752 | 1,077 |
Assets, fair value disclosure | 5,770,375 | 6,810,840 |
Liabilities | ||
Secured financing agreements, net | 0 | 0 |
Master repurchase agreements | 0 | 0 |
Unsecured notes, net | 199,859 | 175,560 |
Mortgages payable, net | 0 | 0 |
Accounts Payable And Other Accrued Liabilities Fair Value Disclosure | 0 | 0 |
Accrued interest payable | 0 | 0 |
Financial and nonfinancial liabilities, fair value disclosure | 5,489,856 | 6,425,364 |
Fair Value, Recurring | Level 2 | Preferred stock investments, at fair value | ||
Assets | ||
Common stock investments, at fair value | 0 | |
Fair Value, Recurring | Level 2 | Common Stock | ||
Assets | ||
Common stock investments, at fair value | 0 | |
Fair Value, Recurring | Level 2 | Mortgages | ||
Assets | ||
Loans receivable, fair value disclosure | 0 | 0 |
Fair Value, Recurring | Level 2 | CMBS Structured Pass Through Certificates | ||
Assets | ||
Debt securities, trading | 41,212 | 46,876 |
Fair Value, Recurring | Level 2 | MSCR Notes | ||
Assets | ||
Debt securities, trading | 10,378 | 10,313 |
Fair Value, Recurring | Level 2 | Collateralized Mortgage-Backed Securities | ||
Assets | ||
Debt securities, trading | 38,270 | 32,328 |
Fair Value, Recurring | Level 2 | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | ||
Bonds payable held in variable interest entities, at fair value | 5,289,997 | 6,249,804 |
Fair Value, Recurring | Level 2 | Variable Interest Entity, Primary Beneficiary | Mortgages | ||
Assets | ||
Loans receivable, fair value disclosure | 5,677,763 | 6,720,246 |
Fair Value, Recurring | Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Loans receivable, fair value disclosure | 337,110 | 255,254 |
Common stock investments, at fair value | 78,264 | |
Accrued interest | 0 | 0 |
Accounts receivable and other assets | 0 | 0 |
Assets, fair value disclosure | 1,077,281 | 1,061,051 |
Liabilities | ||
Secured financing agreements, net | 666,423 | 713,253 |
Master repurchase agreements | 303,514 | 331,020 |
Unsecured notes, net | 0 | 0 |
Mortgages payable, net | 95,470 | 121,236 |
Accounts Payable And Other Accrued Liabilities Fair Value Disclosure | 0 | 0 |
Accrued interest payable | 0 | 0 |
Financial and nonfinancial liabilities, fair value disclosure | 1,065,407 | 1,165,509 |
Fair Value, Recurring | Level 3 | Preferred stock investments, at fair value | ||
Assets | ||
Common stock investments, at fair value | 14,776 | |
Fair Value, Recurring | Level 3 | Common Stock | ||
Assets | ||
Common stock investments, at fair value | 61,529 | |
Fair Value, Recurring | Level 3 | Mortgages | ||
Assets | ||
Loans receivable, fair value disclosure | 663,866 | 727,533 |
Fair Value, Recurring | Level 3 | CMBS Structured Pass Through Certificates | ||
Assets | ||
Debt securities, trading | 0 | 0 |
Fair Value, Recurring | Level 3 | MSCR Notes | ||
Assets | ||
Debt securities, trading | 0 | 0 |
Fair Value, Recurring | Level 3 | Collateralized Mortgage-Backed Securities | ||
Assets | ||
Debt securities, trading | 0 | 0 |
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 receivable, fair value disclosure | 0 | 0 |
Carrying Value | Fair Value, Recurring | ||
Assets | ||
Cash and cash equivalents | 13,824 | 20,048 |
Restricted cash | 2,825 | 299 |
Loans receivable, fair value disclosure | 328,460 | 256,147 |
Common stock investments, at fair value | 78,264 | |
Accrued interest | 22,033 | 15,665 |
Accounts receivable and other assets | 4,312 | 2,197 |
Assets, fair value disclosure | 6,891,802 | 7,908,914 |
Liabilities | ||
Secured financing agreements, net | 649,558 | 687,885 |
Master repurchase agreements | 303,514 | 331,020 |
Unsecured notes, net | 219,483 | 204,960 |
Mortgages payable, net | 95,657 | 121,236 |
Accounts Payable And Other Accrued Liabilities Fair Value Disclosure | 6,428 | 6,231 |
Accrued interest payable | 8,209 | 7,986 |
Financial and nonfinancial liabilities, fair value disclosure | 6,572,846 | 7,609,122 |
Carrying Value | Fair Value, Recurring | Preferred stock investments, at fair value | ||
Assets | ||
Common stock investments, at fair value | 14,776 | |
Carrying Value | Fair Value, Recurring | Common Stock | ||
Assets | ||
Common stock investments, at fair value | 61,529 | |
Carrying Value | Fair Value, Recurring | Mortgages | ||
Assets | ||
Loans receivable, fair value disclosure | 676,420 | 726,531 |
Carrying Value | Fair Value, Recurring | CMBS Structured Pass Through Certificates | ||
Assets | ||
Debt securities, trading | 41,212 | 46,876 |
Carrying Value | Fair Value, Recurring | MSCR Notes | ||
Assets | ||
Debt securities, trading | 10,378 | 10,313 |
Carrying Value | Fair Value, Recurring | Collateralized Mortgage-Backed Securities | ||
Assets | ||
Debt securities, trading | 38,270 | 32,328 |
Carrying Value | Fair Value, Recurring | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | ||
Bonds payable held in variable interest entities, at fair value | 5,289,997 | 6,249,804 |
Carrying Value | Fair Value, Recurring | Variable Interest Entity, Primary Beneficiary | Mortgages | ||
Assets | ||
Loans receivable, fair value disclosure | $ 5,677,763 | $ 6,720,246 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Significant Unobservable Inputs of Level 3 Assets (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 61,529 | $ 78,264 |
Discounted cash flow | Level 3 | NexPoint Storage Partners | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 33,129 | 50,380 |
Discounted cash flow | Level 3 | IQHQ Inc. | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 14,776 | |
Market approach | Level 3 | Private REIT | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 28,400 | $ 27,884 |
Terminal cap rate | Discounted cash flow | Level 3 | Minimum | NexPoint Storage Partners | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 0.0500 | 0.0513 |
Terminal cap rate | Discounted cash flow | Level 3 | Maximum | NexPoint Storage Partners | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 0.0550 | 0.0563 |
Terminal cap rate | Discounted cash flow | Level 3 | Weighted Average | NexPoint Storage Partners | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 0.0525 | 0.0538 |
Discount rate | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 0.115 | |
Discount rate | Discounted cash flow | Level 3 | Minimum | NexPoint Storage Partners | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 0.0750 | 0.0775 |
Discount rate | Discounted cash flow | Level 3 | Minimum | IQHQ Inc. | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 0.1100 | |
Discount rate | Discounted cash flow | Level 3 | Maximum | NexPoint Storage Partners | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 0.0950 | 0.0975 |
Discount rate | Discounted cash flow | Level 3 | Maximum | IQHQ Inc. | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 0.1200 | |
Discount rate | Discounted cash flow | Level 3 | Weighted Average | NexPoint Storage Partners | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 0.0850 | 0.0875 |
Discount rate | Discounted cash flow | Level 3 | Weighted Average | IQHQ Inc. | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 0.1150 | |
NAV per share multiple | Market approach | Level 3 | Minimum | Private REIT | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 1 | 0.0335 |
NAV per share multiple | Market approach | Level 3 | Maximum | Private REIT | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 1.2 | 0.0500 |
NAV per share multiple | Market approach | Level 3 | Weighted Average | Private REIT | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Range | 0.011 | 0.0381 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Changes in Level 3 Assets (Details) - Equity Securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
NexPoint Storage Partners | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 50,380 | $ 58,460 |
Additions | 0 | 0 |
Change in Unrealized Gains/(Losses) | (17,251) | (8,080) |
Ending balance | 33,129 | 50,380 |
Private REIT | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 27,884 | 0 |
Additions | 0 | 27,884 |
Change in Unrealized Gains/(Losses) | 516 | 0 |
Ending balance | 28,400 | 27,884 |
IQHQ Inc. | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | |
Additions | 14,510 | |
Change in Unrealized Gains/(Losses) | 266 | |
Ending balance | $ 14,776 | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 24 Months Ended | |||||||||||||||||||||||
Feb. 28, 2024 | Jan. 26, 2024 | Dec. 31, 2023 | Nov. 09, 2023 | Nov. 02, 2023 | Apr. 04, 2023 | Feb. 22, 2023 | Feb. 21, 2022 | Nov. 08, 2021 | Apr. 01, 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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 09, 2022 | Mar. 15, 2022 | Sep. 08, 2021 | Dec. 31, 2020 | |
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 | $ 0.01 | |||||||||||||||||||||
Common stock, issued (in shares) | 17,518,900 | 17,518,900 | 17,366,930 | ||||||||||||||||||||||
Common stock, outstanding (in shares) | 17,231,913 | 17,231,913 | 17,079,943 | ||||||||||||||||||||||
Preferred stock, dividend rate, percentage | 10.50% | ||||||||||||||||||||||||
Stock repurchase program, authorized amount | $ 20 | $ 10 | |||||||||||||||||||||||
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 | 286,987 | 286,987 | 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 | 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) | 1,319,734 | ||||||||||||||||||||||||
2020 LTIP | Subsequent Event | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
At-the-market Offering | |||||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||||
Equity distribution agreements, maximum aggregate sales price | $ 100 | ||||||||||||||||||||||||
Series A Preferred Stock | |||||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||||
Issuance of common stock and preferred stock (in shares) | 2,000,000 | ||||||||||||||||||||||||
Preferred stock, dividend rate, percentage | 8.50% | ||||||||||||||||||||||||
Preferred stock, redemption price per share (in dollars per share) | $ 24 | ||||||||||||||||||||||||
Proceeds from issuance of preferred stock | $ 48 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Series A Preferred Stock | Subsequent Event | |||||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||||
Proceeds from issuance of preferred stock | $ 18.1 | ||||||||||||||||||||||||
Series B Preferred Stock | |||||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||||
Issuance of common stock and preferred stock (in shares) | 16,000,000 | 427,218 | |||||||||||||||||||||||
Preferred stock, dividend rate, percentage | 9% | ||||||||||||||||||||||||
Preferred stock, redemption price per share (in dollars per share) | $ 25 | ||||||||||||||||||||||||
Proceeds from issuance of preferred stock | $ 10.5 | ||||||||||||||||||||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ 25 | $ 25 | |||||||||||||||||||||||
Paymentof commissions and dealer manager fees | $ 0.9 | ||||||||||||||||||||||||
Sale of stock, number of shares issued (in shares) | 16,000,000 | ||||||||||||||||||||||||
NREF OP IV REIT | |||||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||||
Sale of stock, number of shares issued (in shares) | 125 | ||||||||||||||||||||||||
Sale of stock, price per share (in dollars per share) | $ 1,000 | ||||||||||||||||||||||||
Sale of stock, consideration received on transaction | $ 0.1 | ||||||||||||||||||||||||
Preferred units, distribution per year rate | 12% | ||||||||||||||||||||||||
Preferred units, purchase price (in dollars per share) | $ 1,000 | ||||||||||||||||||||||||
Preferred units, redemption value per share (in dollars per share) | $ 1,000 | ||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||||
Vesting of stock-based compensation (in shares) | 151,970 | 114,678 | 69,830 | ||||||||||||||||||||||
Common stock, par value per share (in dollars per share) | $ 0.1 | $ 0.1 | |||||||||||||||||||||||
Common stock, outstanding (in shares) | 17,231,913 | 17,231,913 | 17,079,943 | 9,163,934 | 5,022,578 | ||||||||||||||||||||
Conversion of redeemable noncontrolling interests in the OP (in shares) | 7,269,603 | 1,479,132 | |||||||||||||||||||||||
Restricted Stock Units (RSUs) | |||||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||||
Granted (in shares) | 440,055 | ||||||||||||||||||||||||
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) | 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) | 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 |
Stockholders' Equity - Number o
Stockholders' Equity - Number of Restricted Stock Units Granted, Vested, Forfeited and Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||
Apr. 04, 2023 | Feb. 21, 2022 | Nov. 08, 2021 | Feb. 22, 2021 | Nov. 02, 2020 | Jun. 24, 2020 | May 08, 2020 | Dec. 31, 2023 | |
Weighted Average Grant Date Fair Value | ||||||||
Weighted average vesting period | $ 9.8 | |||||||
Restricted Stock Units (RSUs) | ||||||||
Number of Units | ||||||||
Outstanding, beginning balance (in shares) | 577,360 | |||||||
Granted (in shares) | 440,055 | |||||||
Vested (in shares) | (201,678) | |||||||
Forfeited (in shares) | (44,066) | |||||||
Outstanding, ending balance (in shares) | 771,671 | |||||||
Weighted Average Grant Date Fair Value | ||||||||
Outstanding, Weighted Average Grant Date Fair Value, beginning balance (in dollars per share) | $ 17.88 | |||||||
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 15.14 | |||||||
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 17.27 | |||||||
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | 16.81 | |||||||
Outstanding, Weighted Average Grant Date Fair Value, ending balance (in dollars per share) | $ 16.70 | |||||||
Restricted stock unit awards | 1 year 3 months 18 days | |||||||
Restricted Stock Units (RSUs) | Director | 2020 LTIP | ||||||||
Number of Units | ||||||||
Granted (in shares) | 21,370 | 12,464 | 11,832 | 14,739 | ||||
Restricted Stock Units (RSUs) | Officers and Other Employees | 2020 LTIP | ||||||||
Number of Units | ||||||||
Granted (in shares) | 418,685 | 264,476 | 220,352 | 274,274 | ||||
Restricted Stock Units (RSUs) | General Partner of Subsidiary | 2020 LTIP | ||||||||
Number of Units | ||||||||
Granted (in shares) | 1,201 | 1,201 | 1,838 |
Stockholders' Equity - Vesting
Stockholders' Equity - Vesting Schedule (Details) - Restricted Stock Units (RSUs) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
2024 (in shares) | 315,246 | |
2025 (in shares) | 219,199 | |
2026 (in shares) | 146,059 | |
2027 (in shares) | 91,167 | |
Nonvested restricted stock units (in shares) | 771,671 | 577,360 |
February | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
2024 (in shares) | 120,640 | |
2025 (in shares) | 116,998 | |
2026 (in shares) | 54,893 | |
2027 (in shares) | 0 | |
Nonvested restricted stock units (in shares) | 292,531 | |
April | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
2024 (in shares) | 126,042 | |
2025 (in shares) | 102,201 | |
2026 (in shares) | 91,166 | |
2027 (in shares) | 91,167 | |
Nonvested restricted stock units (in shares) | 410,576 | |
May | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
2024 (in shares) | 68,564 | |
2025 (in shares) | 0 | |
2026 (in shares) | 0 | |
2027 (in shares) | 0 | |
Nonvested restricted stock units (in shares) | 68,564 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of ATM Program Sales (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Proceeds from issuance of common stock | $ 0 | $ 156,491,000 | $ 32,393,000 |
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 | ||
Proceeds from issuance of common stock | $ 11,498,589 | ||
Average Price Per Share, net (in usd per share) | $ 21.62 |
Earnings Per Share - Computatio
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income attributable to common stockholders | $ 10,399 | $ 3,234 | $ 39,577 |
Earnings for basic computations | |||
Net income attributable to redeemable noncontrolling interests | 4,765 | 4,969 | 40,387 |
Net income for diluted computations | $ 15,164 | $ 8,203 | $ 79,964 |
Weighted-average common shares outstanding | |||
Average number of common shares outstanding - basic (in shares) | 17,199 | 14,686 | 6,601 |
Average number of common shares from assumed vesting of unvested restricted stock units (in shares) | 740 | 571 | 444 |
Average number of common shares from assumed conversion of OP Units (in shares) | 5,038 | 7,218 | 13,321 |
Average number of common shares from assumed conversion of Series B Preferred Stock Stock (in shares) | 24 | 0 | 0 |
Average number of common shares outstanding - diluted (in shares) | 23,001 | 22,475 | 20,366 |
Earnings per weighted average common share: | |||
Earnings per share outstanding - basic (in dollars per share) | $ 0.60 | $ 0.22 | $ 6 |
Earnings per share outstanding - diluted (in dollars per share) | $ 0.60 | $ 0.22 | $ 3.93 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Sep. 08, 2021 | |
Class A OP Units | ||
Noncontrolling Interest [Line Items] | ||
Limited liability units, voting power, percent per share | 50% | |
Class B OP Units | ||
Noncontrolling Interest [Line Items] | ||
Limited liability units, voting power, percent per share | 50% | 50% |
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% | |
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) | $ 15.75 | |
Weighted average limited partnership units outstanding, basic (in shares) | 5,038,382 | |
Cash payment for redemption of OP units | $ 79.4 |
Noncontrolling Interests - Rede
Noncontrolling Interests - Redeemable Noncontrolling Interests in the OP (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Redeemable noncontrolling interests in the OP, beginning balance | $ 96,501 | $ 261,423 | $ 275,670 |
Adjustment to real estate investments, net on deconsolidation of real estate | 297 | 0 | 0 |
Net income attributable to redeemable noncontrolling interests in the OP | 4,765 | 4,969 | 40,387 |
Redemption of redeemable noncontrolling interests in the OP | 0 | (155,614) | (32,393) |
Distributions to redeemable noncontrolling interests in the OP | (12,092) | (14,277) | (22,241) |
Redeemable noncontrolling interests in the OP, ending balance | $ 89,471 | $ 96,501 | $ 261,423 |
Noncontrolling Interests - Cons
Noncontrolling Interests - Consolidated Common Shares (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Noncontrolling Interest [Line Items] | ||
Common stock, issued (in shares) | 17,518,900 | 17,366,930 |
Common stock, outstanding (in shares) | 17,231,913 | 17,079,943 |
Combined outstanding (in shares) | 22,270,295 | 22,118,325 |
OP Units | Noncontrolling Interest | ||
Noncontrolling Interest [Line Items] | ||
Partners' capital account units (in shares) | 5,038,382 | 5,038,382 |
Related Party Transactions - Eq
Related Party Transactions - Equity Narrative (Details) - USD ($) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2023 | Aug. 16, 2023 | May 25, 2023 | Apr. 04, 2023 | Mar. 28, 2023 | Mar. 06, 2023 | Jan. 09, 2023 | Feb. 21, 2022 | Nov. 08, 2021 | Feb. 22, 2021 | Nov. 02, 2020 | Jun. 24, 2020 | May 29, 2020 | May 08, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 08, 2021 | |
Related Party Transaction [Line Items] | ||||||||||||||||||
Payment for management fee | $ 0 | $ 0 | $ 0 | |||||||||||||||
Stock issuance agreement, number of shares (in shares) | 13,758,906 | |||||||||||||||||
Noncontrolling interest, shares redeemed (in shares) | 8,748,735 | |||||||||||||||||
Conversion of redeemable noncontrolling interests in the OP (in shares) | 8,748,735 | 8,748,735 | ||||||||||||||||
Management fees | $ 3,281,000 | $ 3,151,000 | $ 2,296,000 | |||||||||||||||
Restricted Stock Units (RSUs) | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Granted (in shares) | 440,055 | |||||||||||||||||
Director | Restricted Stock Units (RSUs) | 2020 LTIP | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Granted (in shares) | 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) | 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) | 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) | 233,385 | |||||||||||||||||
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 | 93.80% | 93.80% | ||||||||||||||||
Percentage of preferred equity investment current interest rate | 6.50% | |||||||||||||||||
Percentage of preferred equity investment deferred interest rate | 4.50% | |||||||||||||||||
Percentage of loan to value | 76.10% | |||||||||||||||||
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 | $ 1,700,000 | $ 1,700,000 | $ 1,700,000 | $ 1,700,000 | $ 1,700,000 | $ 10,000,000 | ||||||||||||
Partners' capital account, total sale of units (in shares) | 564,334 | |||||||||||||||||
Book value of common stock per share (in dollars per share) | $ 17.72 |
Related Party Transactions - De
Related Party Transactions - Debt Narrative (Details) $ in Thousands | 12 Months Ended | |||||||||||
Nov. 02, 2023 shares | Jan. 01, 2023 USD ($) | Feb. 01, 2022 USD ($) unit | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 08, 2023 USD ($) | Feb. 15, 2023 USD ($) | Dec. 08, 2022 USD ($) | Oct. 18, 2022 USD ($) | Jul. 26, 2022 USD ($) | Mar. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | ||||||||||||
Number of units in multifamily property | unit | 368 | |||||||||||
Payments to Acquire Real Estate | $ 0 | $ 184,552 | $ 29,789 | |||||||||
Common equity interests transferred | $ 54 | |||||||||||
Preferred equity method investment, guaranteed payment | $ 115,300 | |||||||||||
Preferred equity method investments | 11,400 | $ 65,300 | ||||||||||
Gain on deconsolidation of real estate owned | 1,490 | 0 | $ 0 | |||||||||
Redeemable Preferred Stock | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Stock redeemed during the period | $ 54,000 | |||||||||||
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 and preferred stock (in shares) | shares | 16,000,000 | 427,218 | ||||||||||
Proceeds from issuance of preferred stock | $ 10,500 | |||||||||||
Elysian at Hughes | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Payments to Acquire Real Estate | $ 184,100 | |||||||||||
Facility | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Outstanding face amount | $ 1,271,938 | $ 1,349,019 | ||||||||||
Weighted average interest rate | 4.55% | 3.85% | ||||||||||
Facility | The 7.50 Percent Senior Notes Due 2027 | Unsecured Debt | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Outstanding face amount | $ 6,500 | $ 6,500 | $ 6,500 | |||||||||
Weighted average interest rate | 7.50% | 7.50% | 7.50% | |||||||||
REIT Sub and the Co-Guarantors | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Guarantor obligations, current carrying value | $ 49,200 | $ 64,200 | ||||||||||
Guarantor obligations, maximum exposure | $ 97,600 | |||||||||||
Guarantor obligations, paid down value | $ 49,200 | $ 15,000 | ||||||||||
NexPoint Securities | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Payment to Dealer Manager | $ 600 | |||||||||||
Payment of selling commission | $ 300 | |||||||||||
NexPoint Securities | Series B Preferred Stock | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Selling commissions (as a percent) | 7% | |||||||||||
Dealer manager fee (as a percent) | 3% | |||||||||||
Sale of stock, number of shares issued (in shares) | shares | 16,000,000 | |||||||||||
Proceeds from issuance of preferred stock | $ 10,500 | |||||||||||
Bridge Loan | Prime Rate | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Loans receivable, basis spread on variable rate | 1.50% | |||||||||||
Las Vegas, NV | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Number of units in multifamily property | unit | 368 | |||||||||||
Las Vegas, NV | Bridge Loan | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Financing receivable, after allowance for credit loss, current, total | $ 13,500 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 11 Months Ended | 12 Months Ended | ||||
Mar. 14, 2023 USD ($) | Sep. 29, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Feb. 10, 2023 USD ($) | Jul. 26, 2022 USD ($) | |
Other Commitments [Line Items] | ||||||
Purchase of preferred equity, purchase amount | $ 50,000,000 | |||||
Purchase of preferred equity, purchase amount, option | $ 25,000,000 | $ 3,600,000 | $ 3,600,000 | |||
Preferred units, extension term | 1 year | |||||
Preferred units, distribution rate | 10% | |||||
Preferred equity method investments | 11,400,000 | $ 11,400,000 | $ 65,300,000 | |||
Multiple on invested capital | 1.30 | |||||
Preferred equity investment, placement fee | 0.010 | |||||
Preferred Units | ||||||
Other Commitments [Line Items] | ||||||
Total other commitment | 0 | 0 | ||||
Phoenix, AZ | ||||||
Other Commitments [Line Items] | ||||||
Preferred equity method investments | $ 24,000,000 | |||||
Preferred equity method investments, unfunded | 16,900,000 | $ 16,900,000 | ||||
Multifamily Property | Forney, Texas | ||||||
Other Commitments [Line Items] | ||||||
Purchase of preferred equity, purchase amount | $ 30,300,000 | |||||
Purchase of preferred equity, amount unfunded | 3,400,000 | |||||
Purchase of common equity, purchase amount | 4,300,000 | |||||
Purchase of common equity, amount unfunded | 3,300,000 | |||||
Multifamily Property | Richmond, Virginia | ||||||
Other Commitments [Line Items] | ||||||
Purchase of preferred equity, purchase amount | 30,300,000 | |||||
Purchase of preferred equity, amount unfunded | 11,100,000 | |||||
Purchase of common equity, purchase amount | $ 4,300,000 | |||||
Purchase of common equity, amount unfunded | $ 3,300,000 | |||||
Preferred Equity Investment, Return, Tranche One | ||||||
Other Commitments [Line Items] | ||||||
Internal rate of return | 20% | |||||
Minimum | Prime Rate | ||||||
Other Commitments [Line Items] | ||||||
Preferred equity investment, basis spread on variable rate | 0.050 | |||||
Maximum | Prime Rate | ||||||
Other Commitments [Line Items] | ||||||
Preferred equity investment, basis spread on variable rate | 0.1125 | |||||
NexPoint Real Estate Finance, Inc. | Preferred Equity Investment, Return, Tranche One | ||||||
Other Commitments [Line Items] | ||||||
Preferred equity investment, return | 0 | |||||
NexPoint Real Estate Finance, Inc. | Preferred Equity Investment, Return, Tranche Two | ||||||
Other Commitments [Line Items] | ||||||
Preferred equity investment, return | 0.10 | |||||
Preferred Equity Issuer | Preferred Equity Investment, Return, Tranche One | ||||||
Other Commitments [Line Items] | ||||||
Preferred equity investment, return | 1 | |||||
Preferred Equity Issuer | Preferred Equity Investment, Return, Tranche Two | ||||||
Other Commitments [Line Items] | ||||||
Preferred equity investment, return | 0.90 | |||||
Unstabilized Special Purpose Limited Liability Company | ||||||
Other Commitments [Line Items] | ||||||
Preferred equity, invested capital ratio | 1.25 | 1.25 | ||||
Stabilized Special Purpose Limited Liability Company | ||||||
Other Commitments [Line Items] | ||||||
Preferred equity, invested capital ratio | 1.10 | 1.10 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Purchase Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Commitments [Line Items] | ||
Purchase commitment, unfunded amount | $ 41,566 | $ 33,704 |
Preferred Equity | ||
Other Commitments [Line Items] | ||
Purchase commitment, unfunded amount | 34,966 | 33,704 |
Common Equity | ||
Other Commitments [Line Items] | ||
Purchase commitment, unfunded amount | $ 6,600 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 07, 2024 | Mar. 01, 2024 | Feb. 29, 2024 | Feb. 28, 2024 | Feb. 26, 2024 | Feb. 23, 2024 | Feb. 22, 2024 | Feb. 09, 2024 | Feb. 01, 2024 | Jan. 26, 2024 | Jan. 25, 2024 | Jan. 18, 2024 | Jan. 02, 2024 | Jul. 24, 2020 | Jan. 31, 2020 | Feb. 29, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
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) | $ 2.7400 | $ 2 | $ 1.9000 | ||||||||||||||||
Series A preferred stock, issued (in shares) | 2,000,000 | 2,000,000 | |||||||||||||||||
Amortization of deferred financing costs | $ (45) | $ 48 | $ 0 | ||||||||||||||||
2020 LTIP | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Share-based compensation arrangement by share-based payment award, shares issued in period (in shares) | 1,319,734 | ||||||||||||||||||
Series B Preferred Stock | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Proceeds from issuance of preferred stock | $ 10,500 | ||||||||||||||||||
Series A Preferred Stock | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Proceeds from issuance of preferred stock | $ 48,000 | ||||||||||||||||||
Subsequent Event | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Common stock dividends declared (in usd per share) | $ 0.50 | ||||||||||||||||||
Outstanding face amount | $ 17,200 | $ 10,100 | |||||||||||||||||
Percentage of par value | 90.20% | 85.60% | 96.40% | ||||||||||||||||
Debt instrument (percentage) | 1 | ||||||||||||||||||
Purchase of principal amount of tranche | $ 49,200 | $ 30,900 | |||||||||||||||||
Investment pays a fixed coupon | 6.90% | 5.90% | |||||||||||||||||
Investment, unlevered yield percentage | 9.75% | ||||||||||||||||||
Secured debt, repurchase agreements | $ 35,800 | ||||||||||||||||||
Contributions | $ 700 | ||||||||||||||||||
Subsequent Event | Mezzanine Loan and Security Agreement | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Repayments of debt | $ 15,200 | $ 8,100 | |||||||||||||||||
Subsequent Event | Class A CMBS | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Securities sold under agreements to repurchase, average rate paid | 1% | ||||||||||||||||||
Subsequent Event | Class E1 CMBS | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Securities sold under agreements to repurchase, average rate paid | 1.60% | ||||||||||||||||||
Subsequent Event | Class E2 CMBS | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Securities sold under agreements to repurchase, average rate paid | 1.60% | ||||||||||||||||||
Subsequent Event | 2020 LTIP | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Share-based compensation arrangement by share-based payment award, shares issued in period (in shares) | 2,308,000 | ||||||||||||||||||
Subsequent Event | SOFR | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Debt instrument, interest rate | 2% | ||||||||||||||||||
Subsequent Event | Series B Preferred Stock | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Preferred stock dividends declared (in usd per share) | $ 0.1875 | $ 0.1875 | $ 0.1875 | ||||||||||||||||
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) | 771,477 | ||||||||||||||||||
Proceeds from issuance of preferred stock | $ 18,100 | ||||||||||||||||||
Subsequent Event | IQHQ-Alewife Holdings, LLC | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Guarantor obligations, maximum exposure | $ 218,000 | ||||||||||||||||||
Initial advance made | 20,000 | ||||||||||||||||||
Guarantor obligations, current carrying value | $ 208,000 | ||||||||||||||||||
Subsequent Event | Senior Loan | Single Family Rental | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Repaid principal amount | $ 508,700 | ||||||||||||||||||
Repaid financing | 465,700 | ||||||||||||||||||
Prepayment Income | 8,900 | ||||||||||||||||||
Amortization of deferred financing costs | 25,400 | ||||||||||||||||||
Cash received | $ 52,800 |