Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Next Point Real Estate Finance Q3 2025 earning call. All lines have been placed on you to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I would now like to turn the call over to Kristen Griffith, Investor Relations. Please go ahead.

Thank you. Good day, everyone, and welcome to Next Point Real Estate Finance conference call to review the company's results for the third quarter ended September 30, 2025. On the call today are Paul Richards, Executive Vice President and Chief Financial Officer, and Matt McGriner, Executive Vice President and Chief Investment Officer. As a reminder, this call is named webcast through the company's website at nrec.nextpoint.com. Before we begin, I would like to remind everyone that this conference call contains forward-looking statements within the meanings of the Private Security Litigation Reform Act of 1995 that are based on management's current expectations, assumptions, and beliefs. Listeners should not place undue reliance on any forward-looking statements and are encouraged to view the company's annual report on Form 10-K and the company's other filings with the SEC for a more complete discussion of risks and other factors that could affect the forward-looking statements. The statements made during this conference call speak only as of state date and accept as required by law. Interrep does not undertake any obligation to publicly update or revise any forward-looking statements. This conference call also includes an analysis of non-GAAP financial measures. For a more complete discussion of these non-GAAP financial measures, see the company's presentation that was filed earlier today. I would now like to turn the call over to Paul Richards. Please go ahead, Paul.

Thanks, Kristen, and welcome everyone joining us this morning. I'm going to briefly discuss our quarterly results, move to our balance sheet, and lastly provide guidance for the next quarter before turning it over to Matt for a detailed commentary on the portfolio and the macro lending environment. Third quarter results are as follows. For the third quarter, we reported a net income of $1.12 per diluted share compared to net income of $0.74 per diluted share for the third quarter 2024. The increase in net income for the quarter was due to an increase in unrealized gains on preferred stock and stock warrant investments between the third quarter 2025 and the third quarter 2024. Earnings available for distribution was $0.51 per diluted share in Q3 compared to $0.75 cents per diluted share in the same period of 2024 cash available for distribution was 53 cents per diluted share in q3 compared to 67 cents per diluted share in the same period of 2024. we paid a regular dividend 50 cents per share in the third quarter and the board has declared a dividend of 50 cents per share payable for the fourth quarter of 2025. our dividend in the third quarter was 1.06 times covered by cash available for distribution book value per share increased 8% from Q2 2025 to $18.79 per diluted share, with an increase being primarily due to unrealized gain on our preferred stock investment and stock warrants. During the quarter, we funded $42.5 million on a life science preferred. During the quarter, the company funded $6.5 million on the loan that paid the monthly coupon of SOFR plus 900 basis points. The company sold a multifamily property for $60 million that resulted in a $3.7 million gain and raised $65.7 million in gross proceeds from the Series B preferred stock raise. On October 27, 2025, NRF announced a fourth-quarter dividend of $0.50 per common share. Moving toward the portfolio and balance sheet. Our portfolio is comprised of 88 investments with a total outstanding balance of $1.1 billion. Our investments are allocated across sectors as follows—47.3% multifamily, 33.9% life sciences, 15.9% single-family rental, 1.8% storage, and 1.1% marina. Our fixed income portfolio is allocated across investments as follows. 27% CMBSB pieces, 26.5% NES loans, 18.6% preferred equity investments, 12.4% revolving credit facilities, 10% senior loans, 4.2% IO strips, and 1.3% promissory notes. The assets collateralizing our investments are allocated geographically at falls 28.1 percent massachusetts 15.5 texas 8 georgia 5.3 california 4.2 maryland 4.4 florida with the remainder across states with less than 4 exposure reflecting our heavy preference for sunbelt markets with massachusetts and california exposure heavily weighted towards life science the collateral on our portfolio is 87.4 stabilized with 54.9% loan-to-value and a weighted average DSDR of 1.41 times. We have $720.9 million of debt outstanding with a weighted average cost of 5.3%. Our debt is collateralized by $633.2 million of collateral with a weighted average maturity of 3.9 years and a debt-to-equity ratio of 0.93 times. After the quarter, we paid off our $36.5 million senior unsecured notes with the new senior unsecured note offering of 45 million dollars the coupon on the new notes is 7.875 percent a slight increase in the 7.5 percent notes we issued in october of 2020 when interest rates were near zero percent the new notes carry a term of two years with the prepayment options providing flexibility in this declining rate environment we're pleased with this execution and look forward to terming out the remaining senior unsecured notes in the first half and 26. Lastly, we have been making great strides in our Series B preferred race, which has almost hit the $400 million offering limit. Given the heightened demand, we are now in the process of launching a Series C preferred, which will be a $200 million offering at an 8% coupon, where we will continue to deploy capital at 400 basis points plus spreads at the cost of this capital, moving to guidance for the fourth quarter. We are guiding and earnings available for distribution and cash available for distribution as follows. Earnings available for distribution of $0.48 per diluted share at a midpoint with a range of $0.43 on the low end and $0.53 on the high end. Cash available for distribution of $0.50 per diluted share at the midpoint with a range of $0.45 on the low end and $0.55 on the high end. Now I would like to turn it over to Matt for a detailed discussion of the portfolio and markets.

Thank you, Paul. I appreciate all the team's hard work here on the asset management and sourcing front as we close out another successful quarter. I'd like to spend a few minutes discussing what we're seeing in our key verticals and then talk about our pipeline. On the residential front, we're close to the end of a record national new multifamily supply cycle. CoStar sees annual net deliveries having peaked at 695,000 units in the trailing 12-month period ending fourth quarter of 2024. This compares to annual net delivered units of 351,000 units on average in the prior five years from 2014 to 2019 and then 282,000 units on average since 2001. CoStar forecast net deliveries reached 697,000 units in 2024 and expected to be 508,000 units in 2025 before falling significantly year-over-year in 2026 by 49% and then another 20% in 2027. Q325 deliveries are down 17% quarter over quarter and is the last quarter with more than 100,000 units delivered. An increased expectation for the third quarter deliveries is followed by a significant drop off to Q4 2025 that is now forecasted at just 69,000 units, down 52% year-over-year and 41% quarter over quarter. This ushers in a start of a lengthy period where deliveries are expected to be below the long-run national average. For 2027 and 2028, delivery forecasts have also fallen. Coast Star now expects 27 deliveries of 234,000 units, which compares to a forecast from December of last year of 283,000 units, or a revision down by 17%. And then 230,000 units for 2028, and that compares to a prior forecast of 308,000 units, which is down 27%. On the whole, cautious optimism best fits our rental market outlook and believe 2026 will assure in a positive revenue for the first time in several years. On the storage front, second quarter earnings for the REITs were consistent with guidance and more or less in line with sell-side estimates. Expectation is that Q3 same-store revenue will be flat year-over-year and same-store NOI will be slightly down. That is the expectation for the full year for the sector. Flattest revenue and 50 to 150 basis points decline in NOI. The peak leasing season was, again, a little shorter and choppier than in the pre-COVID era. April and May were great months, and June and July were a little less great. As stated in past reports, the sector has been negatively impacted by the lack of movement in the housing sector, which is a large demand driver for self-storage. The news is a lot better on the rate front. After eight or so quarters of falling rates, with some rates down as much as 20 percent from COVID-era highs, rates have begun to move up again. John Good, our CEO of our storage platform, attended EXR's Partners Conference last week, during which they informed us that across their 4,000-story universe, rates universally rose in each of June through September. There is a lag effect on rising rates but this trend should provide optimism that 2026 revenue growth will be healthier than 2025 and noi growth should resume supply remains muted facilities under construction according to yardy are less than three percent of existing supply which is the benchmark for equilibrium yardy predicts that deliveries for the next couple of years could be as low as one percent of new supply which should bring pricing power back to the industry and allow revenue and noi growth to return to the 3% to 5% range within which it has traditionally operated. Anecdotally, in talking to experienced developers, bank financing is still very difficult to find and is expensive, as land continues to be expensive also. There's been continued inflation and materials costs, all of which has negatively affected prospective returns and has deterred some developers from moving forward with new supply. Interest rates continue to be much higher than they were during the 2015 to 2020 development cycle again supporting revenue growth into 26. on the life science front our alewife project did land the flagship pioneering backed ai and life science company lila sciences on a long-term lease for 245 000 square feet with options to take more space in the future the lila lease stabilizes the project and gives it a powerful base from which to drive leasing momentum and catalyze a new ai cluster at the broader alewife project this lease creates additional capital market optionality for both in ref and the borrower as is the first of many green shoots we're seeing in our opportunistic based life science investments i'm also very pleased with our pipeline today and menu of capital options available to us to capitalize on these opportunities today the pipeline consists of over 350 million dollars of investments in 120 million of multi-family 75 million of btr 45 million of small bay industrial of storage, and $80 million of life sciences and advanced manufacturing loans. In closing, our underlying credit profile of the portfolio remains very strong atop the commercial mortgage REIT sector. Moreover, we continue to have some of the lowest leverage profile of any commercial mortgage REIT, which allows us a variety of capital options to pursue accretive growth to fund our exciting pipeline of investments. Given our healthy dividend coverage, very low leverage, stable book value, and capital options available to us, you can expect that we will also buy back stock opportunistically while pursuing these new investments. Indeed, we're excited about our growth in particular and cautiously optimistic about the overall market dynamics going into 2026. As always, I want to thank this team for their hard work, and now we'd like to turn the call over to the operator to take your questions.

At this time, I would like to remind everyone in order to ask a question, press star then the number one on your telephone keypad we will pause for just a moment to compile the q a roster your first question comes from the line of jason sabshu with kbw your line is open uh thanks for taking my question and good morning um yeah it would be helpful to hear just just your updated view on the life science sector um you know we're seeing soft tenant demand and oversupply and some markets, and then specifically as it relates to NREP's exposure, just your thoughts there, and if there's any color you can provide on leasing at the asset, that would be helpful.

Yeah, you bet. I think that the good news about our life sciences book is we didn't start making life science loans until 2024. Most of the distress within the sector was for projects that were capitalized, you know, shortly after COVID and during the, you know, the extreme liquidity that was there and all the rage, you know, where you do see weakness, like, for example, in Alexandria's reports is more or less in their, and they said this, their core, or excuse me, their B assets and their non-core markets, where they are showing strength in leasing and having good tenant demand is in the gateway markets of San Diego, San francisco and their and their master plan communities or uh campuses in cambridge and boston and and that's where our exposure is um we're highly focused on uh first to fill assets including the ally project um which which again is a is roughly a 30 loan to cost um and and that's the majority of our lives of our life sciences exposure um the good news is is this uh this first lease with lila um backed by you know mag seven style investors um uh is going to create uh the cluster if you will uh at the project we're already getting more looks um you know at the project releasing and as uh the project stabilized being two-thirds now um you know occupied in in the tenant taking space uh towards the end of the year um we can do a number of things to to take advantage of the the liquidity that the lease provides we could a note it we can be refried out and we could sell the loan given that it's you know so for 900 which is mispriced now the stabilized life science project so I think this this lease just solidifies you know our precision based investments taking advantage opportunity opportunistically at a time when there was no liquidity in the space and very very proud to see that you know the first of uh you know kind of one of the first investments that we made in life science is bearing fruit for the for the company and the shareholders great thank you um and then just to shift to

multi-family you know pretty clear from your remarks that um you know you see the supply backdrop as improving so um but at the same time we have seen some pressure in the bridge lending space um so i guess as it turns as it relates to deployment um you know where would you preference deploying capital into senior loans versus mezzanine or preferred versus equity ownership um and kind of just your view on uh some of the softness that we've seen in the bridge space thank you yeah you bet i think um you know most of the most of the softness in the bridge space was the floating rate you know bridge loans that were originated in you know 21 22 with you know two

three-year maturities that you know can't uh can't be refried out today so there's been you know a lot of folks you know extending and pretending um which i think is the right which is the right thing to do uh as my comments my prepared remarks um you know stated you know there is there is light at the end of the tunnel it's not a question of if it's just when um in the recent months August and September across the multifamily sector were a little bit weaker than expected, but there is now new lease growth inflecting across most of the major top 50 MSAs. Particularly, you're starting to see new lease growth inflecting in the markets where supply is always constrained, such as San Francisco, New York, and Chicago. Sunbelt is still tough, but there's you know infinite job growth demand um for uh for multifamily in the in the sunbelt smile um it'll take a little bit longer to work its way through the system into uh you know i think the second quarter third quarter 2026 where uh where we believe we'll start seeing new lease growth inflict higher uh in the sunbelt market so that's that's reason for optimism and if you do have a bridge line you can wait it out um whether you're a borrower or a lender you you want to you want to give yourself the opportunity to take advantage of that new lease growth. So there is a little bit of pressure, but I think it's workable. It's not, you know, this is an office or hotel or anything with, you know, extreme heavy capex. The multifamily and the residential market will correct. It's dramatically undersupplied. And then, you know, once you do see new lease growth, you know, come and inflect next year, capital will follow. Equity cost of capital will become, you know, key again. And I expect transaction volumes to pick up dramatically in 2026. So you're right. It's still a little bit tough, but there are reasons for supreme optimism going forward. Great. Thank you. You bet.

I will now turn the call back to management team for closing remarks.

Thank you all for your participation today and look forward to speaking next quarter. Thanks again here for the team at NextPoint and good day.

Ladies and gentlemen, that concludes today's call. You may not disconnect. Thank you and have a great day.