Ben Graman

Ben Graman asked about NexPoint Real Estate Finance's dividend sustainability, the factors influencing the board's decision on the current $0.50 dividend, and the timeline for consistent dividend coverage by Earnings Available for Distribution (EAD) versus Cash Available for Distribution (CAD). He also inquired about the most exciting portfolio areas and the potential impact of new administration regulations on real estate mortgage and single-family affordability.

Answer

Paul Richards, Executive Vice President and Chief Financial Officer, explained that CAD is considered a better indicator for dividend sustainability, citing confidence from the Renwick transaction, Series C preferred stock raise, and net interest margin growth. Matt McGraner, Executive Vice President and Chief Investment Officer, added that NREF has consistently out-earned its dividend since inception, maintaining stable book value. McGraner expressed excitement for build-to-rent (BTR) and multifamily new construction, particularly in the stretch senior and B-note segments. Regarding regulations, he noted it's early to tell but highlighted NREF's focus on BTR assets that add to housing stock, seeing potential opportunities in providing capital for scattered site SFR if traditional lending tightens.