Second Quarter 2026
Filed Aug 6, 2026NREF reported second-quarter 2026 net income attributable to common stockholders of $5.4 million, or $0.29 per diluted share, and cash available for distribution of $13.9 million, or $0.58 per diluted common share, while providing third-quarter 2026 CAD guidance of $0.55 per diluted common share at the midpoint.
Cash available for distribution and earnings available for distribution were higher than the prior-year period, but GAAP net income attributable to common stockholders was lower. Third-quarter midpoint CAD guidance indicates 1.10x dividend coverage, while midpoint EAD dividend coverage is 0.86x.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income attributable to common stockholdersGAAP | $5,433 (in thousands) | – | – |
| Net income attributable to common stockholders per diluted shareGAAP | $0.29 per diluted share | – | – |
| Earnings Available for Distributionnon-GAAP | $11,182 (in thousands) | – | – |
| EAD per Diluted Common Sharenon-GAAP | $0.46 | – | – |
| Cash Available for Distributionnon-GAAP | $13,884 (in thousands) | – | – |
| CAD per Diluted Common Sharenon-GAAP | $0.58 | – | – |
| Net income attributable to redeemable noncontrolling interestsGAAP | $1,252 (in thousands) | – | – |
| Amortization of stock-based compensationnon-GAAP | $1,751 (in thousands) | – | – |
| Provision for (reversal of) credit lossesnon-GAAP | $773 (in thousands) | – | – |
| Equity in (income) losses of equity method investmentsnon-GAAP | $705 (in thousands) | – | – |
| Unrealized (gains) or lossesnon-GAAP | $1,268 (in thousands) | – | – |
| Amortization of premiumsnon-GAAP | $2,628 (in thousands) | – | – |
| Accretion of discountsnon-GAAP | $(1,650) (in thousands) | – | – |
| Depreciation and amortization of real estate investmentsnon-GAAP | $1,728 (in thousands) | – | – |
| Amortization of deferred financing costsnon-GAAP | $(4) (in thousands) | – | – |
| Weighted-average common shares outstanding - basicGAAP | 18,844 | – | – |
| Weighted-average common shares outstanding - dilutedGAAP | 53,978 | – | – |
| Shares attributable to potential redemption of Series B Preferredother | (27,442) | – | – |
| Shares attributable to potential redemption of Series C Preferredother | (2,474) | – | – |
| Adjusted weighted-average common shares outstanding - dilutednon-GAAP | 24,062 | – | – |
| Outstanding total portfolioother | $1.1 billion | – | – |
| Investmentsother | 85 investments | – | – |
| Weighted-average loan to value on specified investmentsother | 63.4% | – | – |
| Weighted-average debt service coverage ratio on specified investmentsother | 1.39x | – | – |
For the Three Months Ended September 30, 2026 outlook
- NoteNet income: Low $18,512; Mid $19,694; High $20,876.
- NoteNet (income) loss attributable to Series A preferred stockholders: Low $(874); Mid $(874); High $(874).
- NoteNet (income) loss attributable to Series B preferred stockholders: Low $(8,984); Mid $(8,984); High $(8,984).
- NoteNet (income) loss attributable to Series C preferred stockholders: Low $(1,210); Mid $(1,210); High $(1,210).
- NoteNet income attributable to common stockholders: Low 7,444; Mid 8,626; High 9,808.
- NoteAmortization of stock-based compensation: Low 1,763; Mid 1,763; High 1,763.
- NoteEAD: Low $9,207; Mid $10,389; High $11,571.
- NoteWeighted average common shares outstanding - basic: Low 18,848; Mid 18,848; High 18,848.
- NoteWeighted average common shares outstanding - diluted: Low 55,161; Mid 55,161; High 55,161.
- NoteShares attributable to potential redemption of Series B preferred: Low (27,361); Mid (27,361); High (27,361).
- NoteShares attributable to potential redemption of Series C preferred: Low (3,764); Mid (3,764); High (3,764).
- NoteAdjusted weighted average common shares outstanding - diluted: Low 24,036; Mid 24,036; High 24,036.
- NoteEPS per Weighted Average Share - diluted: Low $0.32; Mid $0.34; High $0.36.
- NoteEAD per diluted common share: Low $0.38; Mid $0.43; High $0.48.
- NoteEPS Dividend Coverage Ratio: Low 0.64 x; Mid 0.68 x; High 0.72 x.
- NoteEAD Dividend Coverage Ratio: Low 0.76 x; Mid 0.86 x; High 0.96 x.
- NoteAmortization of premiums: Low 2,437; Mid 2,437; High 2,437.
- NoteAccretion of discounts: Low (1,584); Mid (1,584); High (1,584).
- NoteAmortization and depreciation: Low 2,012; Mid 2,012; High 2,012.
- NoteCAD: Low $12,072; Mid $13,254; High $14,436.
- NoteCAD per diluted common share: Low $0.50; Mid $0.55; High $0.60.
- NoteCAD Dividend Coverage Ratio: Low 1.00 x; Mid 1.10 x; High 1.20 x.
Capital returns
- On July 27, 2026 NREF announced a third quarter dividend of $0.50 per common share.
- During the quarter, the Company raised $22.6MM in gross proceeds from the Series C preferred stock offering.
What drove it
- Single-family rental represented 15.1% of the Company’s investment portfolio as of June 30, 2026.
- Multifamily represented 37.6% of the Company’s investment portfolio as of June 30, 2026.
- Life sciences represented 39.4% of the Company’s investment portfolio as of June 30, 2026.
- Self-storage represented 4.2%, marinas represented 1.6%, and industrial represented 2.1% of the Company’s investment portfolio as of June 30, 2026.
- Management described the portfolio as built around life sciences, self-storage, multifamily, and industrial sectors selected for structural, cycle-resistant demand.
Concerns
- Net income attributable to common stockholders was $5,433 (in thousands), compared with $12,285 (in thousands) for the three months ended June 30, 2025.
- Third-quarter 2026 EAD dividend coverage guidance is 0.76 x to 0.96 x, including 0.86 x at the midpoint.
- Third-quarter 2026 EPS dividend coverage guidance is 0.64 x to 0.72 x.
- Management cited unsettled broader credit conditions and rate uncertainty.
What to watch
- Third-quarter 2026 CAD per diluted common share guidance of $0.50 to $0.60 and midpoint CAD dividend coverage of 1.10 x.
- Third-quarter 2026 EAD per diluted common share guidance of $0.38 to $0.48 and midpoint EAD dividend coverage of 0.86 x.
- Execution on the loans funded during the quarter, including the $7.3MM loan paying a monthly coupon of SOFR + 900 bps and the $20.2MM and $42.6MM loans each paying a monthly coupon of 14.0%.
- Portfolio exposure to life sciences at 39.4% and multifamily at 37.6% of the investment portfolio as of June 30, 2026.
Balance sheet and cash flow
- Outstanding total portfolio of $1.1 billion, composed of 85 investments as of June 30, 2026.
- During the quarter, the Company funded $7.3MM on a loan that pays a monthly coupon of SOFR + 900 bps.
- The Company funded $20.2MM on a loan that pays a monthly coupon of 14.0%.
- The Company funded $42.6MM on a loan that pays a monthly coupon of 14.0%.
Analysis
NREF reported $5,433 (in thousands) of GAAP net income attributable to common stockholders for the three months ended June 30, 2026, versus $12,285 (in thousands) in the prior-year period. The company reported $0.29 per diluted share. The filing does not provide a prior-year diluted EPS comparison or a prior-quarter comparison.
Non-GAAP distribution measures moved in the other direction. EAD was $11,182 (in thousands), compared with $10,005 (in thousands), and CAD was $13,884 (in thousands), compared with $10,628 (in thousands). EAD per Diluted Common Share was $0.46 versus $0.43, while CAD per Diluted Common Share was $0.58 versus $0.46. The reconciliation includes $773 (in thousands) of provision for credit losses and $1,268 (in thousands) of unrealized gains or losses in the current period.
The $1.1 billion portfolio comprised 85 investments as of June 30, 2026. Life sciences and multifamily were the largest disclosed portfolio concentrations at 39.4% and 37.6%, respectively, followed by single-family rental at 15.1%. The disclosed weighted-average LTV and DSCR for specified senior loans, CMBS, CMBS I/O strips, preferred equity, and mezzanine investments were 63.4% and 1.39x. During the quarter, NREF funded $7.3MM at SOFR + 900 bps and funded $20.2MM and $42.6MM loans that each pay a monthly coupon of 14.0%.
Capital activity included $22.6MM in gross proceeds from the Series C preferred stock offering. NREF announced a third-quarter dividend of $0.50 per common share on July 27, 2026. The third-quarter guidance midpoint calls for net income attributable to common stockholders of 8,626, EAD of $10,389, and CAD of $13,254. At that midpoint, EAD per diluted common share is $0.43 and CAD per diluted common share is $0.55. The guidance indicates 0.86 x EAD dividend coverage and 1.10 x CAD dividend coverage at the midpoint.
The key period contrast is the lower GAAP net income attributable to common stockholders alongside higher EAD and CAD. The forward framework places particular attention on CAD coverage because the guided range is 1.00 x to 1.20 x, while EAD dividend coverage is guided at 0.76 x to 0.96 x. Management attributed its underwriting posture to rate uncertainty causing traditional lenders to pull back and emphasized portfolio exposure to sectors it characterizes as having structural, cycle-resistant demand.
Management, verbatim
NREF's earnings this quarter reaffirm the consistency our investors have come to rely on, even as broader credit conditions remain unsettled. That stability stems from a portfolio built around life sciences, self-storage, multifamily, and industrial — sectors we selected for their structural, cycle-resistant demand rather than short-term momentum. As rate uncertainty causes many traditional lenders to pull back, we are able to underwrite new opportunities from a position of strength, reinforcing the durability of our earnings and the steady growth of book value. Our focus remains on translating that discipline into long-term, transparent value creation for our shareholders,
Matthew McGraner, Chief Investment Officer
Not in the filing
stated, not guessed- Total revenue and revenue growth.
- Segment revenue and segment revenue growth.
- GAAP gross profit, gross margin, operating expenses, operating income, operating margin, total net income, tax expense, and tax rate.
- Prior-year GAAP diluted EPS and all prior-quarter comparisons.
- Operating cash flow and free cash flow.
- Cash, debt, liquidity, book value, and book value per share.
- Share repurchases and common-share repurchase authorization.
- Previous outlook guidance for comparison. No previous outlook section was provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.