SCHEDULE: NexPoint Insiders Boost Stake to Over 54%

Key insiders and affiliated entities, including James D. Dondero, significantly increased their beneficial ownership in NexPoint Real Estate Finance, Inc. through OP Unit redemptions and dividend reinvestments.

Summary

• Reporting Persons, including James D. Dondero and affiliated entities, updated their beneficial ownership in NexPoint Real Estate Finance, Inc.
• An aggregate of 852,273 shares of Common Stock were acquired on December 30, 2025, through the redemption of Class C Common Units (OP Units) of the Issuer's operating partnership, valued at $11,897,731.08.
• The redemption price for these shares was $13.96 per share.
• Between November 1, 2025, and January 1, 2026, Nancy Marie Dondero's trust acquired 8,044.89 shares and James D. Dondero acquired 12,012.91 shares through dividend reinvestments, both at $14.08 per share.
• As of January 1, 2026, James D. Dondero beneficially owns 10,034,227.88 shares, representing approximately 54.0% of the outstanding Common Stock.
• Other affiliated entities also hold significant stakes, with NexPoint Advisors at 19.6%, NexPoint Asset Management at 30.7%, Highland Opportunities & Income Fund at 23.5%, and NexPoint Diversified Real Estate Trust at 15.9%.

Sentiment

Score: 7

Explanation: The increased beneficial ownership by key insiders and affiliated entities, particularly James D. Dondero, through both OP Unit redemptions and dividend reinvestments, suggests strong confidence in the company's value and future prospects. This is generally viewed positively by the market as it aligns management and insider interests with those of shareholders.

Positives

• Increased beneficial ownership by key insiders and affiliated entities, including James D. Dondero, signals confidence in the company's future.
• The acquisition of shares through OP Unit redemptions and dividend reinvestments demonstrates continued investment by core stakeholders.

Future Outlook

The filing does not contain any explicit forward-looking statements or guidance regarding the company's future performance or strategic direction.

Industry Context

This filing primarily concerns changes in beneficial ownership by key insiders and affiliated entities, rather than operational or financial performance. As such, it does not directly relate to broader industry trends or competitive dynamics, though increased insider ownership can be interpreted as a positive signal within the real estate finance sector.

Related Party Transactions

• Acquisition of 852,273 shares of Common Stock by Reporting Persons (NexPoint Advisors) through the redemption of OP Units from NexPoint Real Estate Finance Operating Partnership, L.P.
• Acquisition of 8,044.89 shares by a trust of which Nancy Marie Dondero (sister of James D. Dondero) is trustee, through dividend reinvestment.
• Acquisition of 12,012.91 shares by James D. Dondero through dividend reinvestment.

Stakeholder Impact

• Shareholders: The significant increase in beneficial ownership by insiders and affiliated entities, particularly James D. Dondero, could be perceived as a positive signal, potentially increasing investor confidence due to stronger alignment of interests.

Key Dates

Recommendation

The significant increase in beneficial ownership by James D. Dondero and affiliated entities, bringing his total beneficial ownership to 54.0%, signals strong insider confidence in NexPoint Real Estate Finance, Inc. This alignment of interests is generally a positive indicator. However, this filing is an ownership disclosure and does not provide detailed financial performance or strategic updates to warrant a 'buy' recommendation without further fundamental analysis. Therefore, a 'hold' recommendation is appropriate, acknowledging the positive insider sentiment while awaiting more comprehensive financial data.

Keywords

NexPoint Real Estate Finance, NREF, Schedule 13D, Beneficial Ownership, Insider Ownership, Stock Acquisition, OP Units Redemption, Dividend Reinvestment, James D. Dondero, Real Estate Finance