Below is a summary of the Company’s equity method investments as of December 31, 2025 (dollars in thousands):


Investee Name	Instrument	Asset Type	Percentage Ownership				Investment Basis			Share of Investee's Net Assets (1)			Basis Difference (2)			Share of Earnings (Loss)
Sandstone Pasadena Apartments, LLC	LLC interest	Multifamily		50.0	%		$	8,114		$	(9,590	)	$	17,704		$	(1,741	)
AM Uptown Hotel, LLC	LLC interest	Hospitality		60.0	%	(3)		(4,631	)		339			(4,970	)		57
Las Vegas Land Owner, LLC	LLC interest	Land		77.0	%	(4)		12,324			12,324			—			3
Perilune Aero Equity Holdings One, LLC	LLC interest	Aircraft		16.4	%	(8)		12,650			11,756			894			100
Capital Acquisitions Partners, LLC	LLC interest	Multifamily		20.9	%			700			1,717			(1,017	)		292
							$	29,157		$	16,546		$	12,611		$	(1,289	)

Below is a summary of the Company's investments as of December 31, 2025 that qualify for equity method accounting for which the Company has elected to account for using the fair value option. Amounts are included in "Investments, at fair value" on the Consolidated Balance Sheets.


Investee Name	Instrument	Asset Type	Percentage Ownership				Fair Value
NexPoint Real Estate Finance Operating Partnership, L.P.	LP interest	Mortgage		12.9	%	(6)	$	56,557
NexPoint Real Estate Finance, Inc.	Common stock	Mortgage		15.9	%	(6)		41,568
Claymore Holdings, LLC	LLC interest	N/A		50.0	%	(5)		—
VineBrook Homes Operating Partnership, L.P.	LP interest	Single-family rental		12.3	%	(6)		118,599
NexPoint Storage Partners, Inc.	Common stock	Self-storage		53.0	%	(3)		51,673
NexPoint Storage Partners Operating Company, LLC	LLC interest	Self-storage		33.8	%			34,470
NexPoint SFR Operating Partnership, L.P.	LP interest	Single-family rental		28.0	%			28,573
LLV Holdco, LLC	LLC interest	Land		26.8	%			1,598
AMS C-Store JV, LLC	Preferred stock	Retail		100.0	%	(9)		18,420
							$	351,458

Below is a summary of the Company’s equity method investments as of December 31, 2024 (dollars in thousands):


Investee Name	Instrument	Asset Type	Percentage Ownership				Investment Basis		Share of Investee's Net Assets (1)			Basis Difference (2)			Share of Earnings (Loss)
Sandstone Pasadena Apartments, LLC	LLC interest	Multifamily		50.0	%		$	10,055	$	(9,590	)	$	19,645		$	70
AM Uptown Hotel, LLC	LLC interest	Hospitality		60.0	%	(3)		18,081		14,970			3,111			(155	)
Las Vegas Land Owner, LLC	LLC interest	Land		77.0	%	(4)		12,321		12,321			—			10
Perilune Aero Equity Holdings One, LLC	LLC interest	Aircraft		16.4	%	(8)		13,565		10,488			3,077			1,414
Capital Acquisitions Partners, LLC	LLC interest	Multifamily		20.9	%			407		1,717			(1,310	)		126
							$	54,429	$	29,906		$	24,523		$	1,465

Below is a summary of the Company's investments as of December 31, 2024 that qualify for equity method accounting for which the Company has elected to account for using the fair value option. Amounts are included in "Investments, at fair value" on the Consolidated Balance Sheets.


Investee Name	Instrument	Asset Type	Percentage Ownership				Fair Value
NexPoint Real Estate Finance Operating Partnership, L.P.	LP interest	Mortgage		15.6	%	(6)	$	76,396
NexPoint Real Estate Finance, Inc.	Common stock	Mortgage		12.0	%	(6)		32,949
Claymore Holdings, LLC	LLC interest	N/A		50.0	%	(5)		—
Allenby, LLC	LLC interest	N/A		50.0	%	(5)		—
Haygood, LLC	LLC interest	N/A		31.0	%	(7)		—
LLV Holdco, LLC	LLC interest	Land		26.8	%			2,606
NexPoint Storage Partners, Inc.	Common stock	Self-storage		52.8	%	(3)		62,709
NexPoint Storage Partners Operating Company, LLC	LLC interest	Self-storage		29.5	%			34,172
VineBrook Homes Operating Partnership, L.P.	LP interest	Single-family rental		11.4	%	(6)		151,706
NexPoint SFR Operating Partnership, L.P.	LP interest	Single-family rental		30.8	%			37,953
							$	398,491

(1)

Represents the Company’s percentage share of net assets of the investee per the investee’s books and records.

(2)

Represents the difference between the basis at which the investments in unconsolidated ventures are carried by the Company and the Company's proportionate share of the equity method investee's net assets. To the extent that the Company’s cost basis is different from the basis reflected at the joint venture level, the basis difference is generally amortized over the lives of the related assets and liabilities, and such amortization is included in the Company’s share of equity in earnings of the joint venture.

(3)

The Company owns greater than 50% of the outstanding common equity but is not deemed to be the primary beneficiary or have a controlling financial interest of the investee and as such, accounts for the investee using the equity method.

(4)

The Company owns 100% of Las Vegas Land Owner, LLC which owns 77% of a joint venture that owns an 8.5 acre tract of land (the "Tivoli North Property"). Through a tenants in common arrangement, the Company shares control and as such accounts for this investment using the equity method.

(5)

The Company has a 50% non-controlling interest in Claymore Holdings, LLC (“Claymore”) and Allenby, LLC. The Company has determined it is not the primary beneficiary and does not consolidate these entities.

(6)

The Company owns less than 20% of the investee but has significant influence due to members of the management team serving on the board of the investee or its parent and as such, accounts for the investee using the equity method.

(7)

The Company has a 31% non-controlling interest in Haygood, LLC. The Company has determined it is not the primary beneficiary and does not consolidate this entity.

(8)

The Company owns less than 20% of the investee but has significant influence due to the legal nature of a partnership that implies an inherent right to influence the operating and financial policies of the partnership.

As of December 31, 2025, the Company held an equity method investment in AM Uptown, LLC (“Marriott Uptown”). The Company accounts for this investment under the equity method of accounting, as it has the ability to exercise significant influence over operating and financial policies.

During 2025, the Company received cash distributions that exceeded the Company’s equity method investment balance. Because the Company has continuing obligations to Marriott Uptown, including a guarantee of certain recourse carve-outs, commonly referred to as “bad boy” guarantees, the excess of distributions over the carrying value of the investment was not recognized as a gain. Instead, the Company recorded a liability, which is presented within “Accounts payable and other accrued liabilities” on the Consolidated Balance Sheets.

The Company will continue to evaluate the investment for indications of other-than-temporary impairment and will assess whether its obligations under the guarantee require recognition of additional liabilities.

For its annual reporting, the Company assesses and presents summarized financial information for its significant equity method investments in accordance with Rule 8-03(b)(3) of Regulation S-X. The Company reports the financial information on a three-month lag, to align with the availability of investee financials. NexPoint Real Estate Finance, Inc. ("NREF"), VineBrook Homes Trust, Inc. ("VineBrook") and NexPoint Storage Partners, Inc. (“NSP”) do not prepare standalone financials for their operating companies as all operations and investments are owned through their operating companies and are consolidated by the corporate entities.

The table below presents summarized statement of operations for the nine months ended September 30, 2025 for the Company’s equity method investments (dollars in thousands):


	NREF			VineBrook			NSP			Other			Total
Revenues
Rental income	$	6,401		$	270,645		$	91,114		$	8,784		$	376,944
Net interest income		36,075			—			1,092			—			37,167
Other income		88,926			10,349			4,088			21,700			125,063
Total revenues	$	131,402		$	280,994		$	96,294		$	30,484		$	539,174

Expenses
Total expenses	$	25,906		$	433,577		$	80,884		$	19,562		$	559,929
														—
Gain (loss) on sales and impairment of real estate		3,718			2,963			—			—			6,681
Other income (expense)		(10,119	)		140			(55,392	)		(11,955	)		(77,326	)
Unrealized gain (loss) on derivatives		—			(12,495	)		—			—			(12,495	)
Total comprehensive income (loss)	$	99,095		$	(161,975	)	$	(39,982	)	$	(1,033	)	$	(103,895	)

The table below presents the summarized statement of operations for the nine months ended September 30, 2024 for the Company’s significant equity method investments (dollars in thousands):


	NREF		VineBrook			NSP			Other			Total
Revenues
Rental income	$	6,316	$	268,115		$	89,686		$	8,422		$	372,539
Net interest income		6,444		—			1,477			3,344			11,265
Other income		728		4,571			4,687			48,066			58,052
Total revenues	$	13,488	$	272,686		$	95,850		$	59,832		$	441,856

Expenses
Total expenses	$	27,664	$	393,196		$	99,135		$	20,263		$	540,258

Gain (loss) on sales and impairment of real estate		—		(19,773	)		621			—			(19,152	)
Other income (expense)		34,982		1,485			(81,743	)		(17,872	)		(63,148	)
Unrealized gain (loss) on derivatives		—		(18,055	)		—			—			(18,055	)
Total comprehensive income (loss)	$	20,806	$	(156,853	)	$	(84,407	)	$	21,697		$	(198,757	)