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NexPoint Real Estate Finance (NexPoint Real Estate Finance) Financial Strength : 2 (As of Dec. 2023)


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What is NexPoint Real Estate Finance Financial Strength?

NexPoint Real Estate Finance has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

NexPoint Real Estate Finance Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate NexPoint Real Estate Finance's interest coverage with the available data. NexPoint Real Estate Finance's debt to revenue ratio for the quarter that ended in Dec. 2023 was 532.77. Altman Z-Score does not apply to banks and insurance companies.


NexPoint Real Estate Finance Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

NexPoint Real Estate Finance's Interest Expense for the months ended in Dec. 2023 was $-13.06 Mil. Its Operating Income for the months ended in Dec. 2023 was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $6,254.70 Mil.

NexPoint Real Estate Finance's Interest Coverage for the quarter that ended in Dec. 2023 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

NexPoint Real Estate Finance's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 6254.695) / 11.74
=532.77

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


NexPoint Real Estate Finance  (NYSE:NREF) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

NexPoint Real Estate Finance has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


NexPoint Real Estate Finance Financial Strength Related Terms

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NexPoint Real Estate Finance (NexPoint Real Estate Finance) Business Description

Traded in Other Exchanges
Address
300 Crescent Court, Suite 700, Dallas, TX, USA, 75201
NexPoint Real Estate Finance Inc is a real estate investment trust. It provides structured financing solutions by investing in mid-sized multifamily, storage and select-service, and extended-stay hospitality properties. Its investment objective is to generate attractive, risk-adjusted returns for stockholders over the long term.
Executives
Catherine D Wood director 200 CENTRAL AVENUE, SUITE 1850, ST. PETERSBURG FL 33701
Matt Mcgraner officer: See Remarks 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Brian Mitts director, 10 percent owner, officer: See Remarks 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Nexpoint Diversified Real Estate Trust 10 percent owner 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Nexpoint Real Estate Opportunities, Llc 10 percent owner 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Matthew Goetz officer: See Remarks 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Sauter Dennis Charles Jr officer: General Counsel 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Carol Swain director C/O NEXPOINT RESIDENTIAL TRUST, INC., 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
James D Dondero director, officer: President 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Arthur B Laffer director 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Edward N. Constantino director DLC REALTY TRUST, INC., 580 WHITE PLAINS ROAD, TARRYTOWN NY 10591
Scott F Kavanaugh director 25342 DERBYHILL DR., LAGUNA HILLS CA 92653