| Summary of Equity Method Investments |
Below is a summary of the Company’s equity method investments as of December 31, 2025 (dollars in thousands):
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Investee Name |
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Instrument |
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Asset Type |
|
Percentage
Ownership |
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|
Investment
Basis |
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|
Share of
Investee's
Net Assets (1) |
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|
Basis
Difference (2) |
|
|
Share of
Earnings
(Loss) |
|
Sandstone Pasadena Apartments, LLC |
|
LLC interest |
|
Multifamily |
|
|
50.0 |
% |
|
|
$ |
8,114 |
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|
$ |
(9,590 |
) |
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$ |
17,704 |
|
|
$ |
(1,741 |
) |
AM Uptown Hotel, LLC |
|
LLC interest |
|
Hospitality |
|
|
60.0 |
% |
(3) |
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(4,631 |
) |
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|
339 |
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(4,970 |
) |
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57 |
|
Las Vegas Land Owner, LLC |
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LLC interest |
|
Land |
|
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77.0 |
% |
(4) |
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12,324 |
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12,324 |
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|
— |
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|
3 |
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Perilune Aero Equity Holdings One, LLC |
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LLC interest |
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Aircraft |
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16.4 |
% |
(8) |
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12,650 |
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11,756 |
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894 |
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100 |
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Capital Acquisitions Partners, LLC |
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LLC interest |
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Multifamily |
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20.9 |
% |
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700 |
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1,717 |
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(1,017 |
) |
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292 |
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$ |
29,157 |
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$ |
16,546 |
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$ |
12,611 |
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$ |
(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.
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Investee Name |
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Instrument |
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Asset Type |
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Percentage
Ownership |
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Fair Value |
|
NexPoint Real Estate Finance Operating Partnership, L.P. |
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LP interest |
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Mortgage |
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12.9 |
% |
(6) |
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$ |
56,557 |
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NexPoint Real Estate Finance, Inc. |
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Common stock |
|
Mortgage |
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15.9 |
% |
(6) |
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41,568 |
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Claymore Holdings, LLC |
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LLC interest |
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N/A |
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50.0 |
% |
(5) |
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— |
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VineBrook Homes Operating Partnership, L.P. |
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LP interest |
|
Single-family rental |
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12.3 |
% |
(6) |
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118,599 |
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NexPoint Storage Partners, Inc. |
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Common stock |
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Self-storage |
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53.0 |
% |
(3) |
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51,673 |
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NexPoint Storage Partners Operating Company, LLC |
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LLC interest |
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Self-storage |
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33.8 |
% |
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34,470 |
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NexPoint SFR Operating Partnership, L.P. |
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LP interest |
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Single-family rental |
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28.0 |
% |
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28,573 |
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LLV Holdco, LLC |
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LLC interest |
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Land |
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26.8 |
% |
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1,598 |
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AMS C-Store JV, LLC |
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Preferred stock |
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Retail |
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100.0 |
% |
(9) |
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18,420 |
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$ |
351,458 |
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Below is a summary of the Company’s equity method investments as of December 31, 2024 (dollars in thousands):
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Investee Name |
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Instrument |
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Asset Type |
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Percentage
Ownership |
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|
Investment
Basis |
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Share of
Investee's
Net Assets (1) |
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|
Basis
Difference (2) |
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|
Share of
Earnings
(Loss) |
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Sandstone Pasadena Apartments, LLC |
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LLC interest |
|
Multifamily |
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50.0 |
% |
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$ |
10,055 |
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$ |
(9,590 |
) |
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$ |
19,645 |
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$ |
70 |
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AM Uptown Hotel, LLC |
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LLC interest |
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Hospitality |
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60.0 |
% |
(3) |
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18,081 |
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14,970 |
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3,111 |
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(155 |
) |
Las Vegas Land Owner, LLC |
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LLC interest |
|
Land |
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77.0 |
% |
(4) |
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12,321 |
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12,321 |
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— |
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10 |
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Perilune Aero Equity Holdings One, LLC |
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LLC interest |
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Aircraft |
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16.4 |
% |
(8) |
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13,565 |
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10,488 |
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3,077 |
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1,414 |
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Capital Acquisitions Partners, LLC |
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LLC interest |
|
Multifamily |
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20.9 |
% |
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|
407 |
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1,717 |
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(1,310 |
) |
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126 |
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$ |
54,429 |
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$ |
29,906 |
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$ |
24,523 |
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$ |
1,465 |
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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.
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Investee Name |
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Instrument |
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Asset Type |
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Percentage
Ownership |
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Fair Value |
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NexPoint Real Estate Finance Operating Partnership, L.P. |
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LP interest |
|
Mortgage |
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15.6 |
% |
(6) |
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$ |
76,396 |
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NexPoint Real Estate Finance, Inc. |
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Common stock |
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Mortgage |
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12.0 |
% |
(6) |
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32,949 |
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Claymore Holdings, LLC |
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LLC interest |
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N/A |
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50.0 |
% |
(5) |
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— |
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Allenby, LLC |
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LLC interest |
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N/A |
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50.0 |
% |
(5) |
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— |
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Haygood, LLC |
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LLC interest |
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N/A |
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31.0 |
% |
(7) |
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— |
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LLV Holdco, LLC |
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LLC interest |
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Land |
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26.8 |
% |
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2,606 |
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NexPoint Storage Partners, Inc. |
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Common stock |
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Self-storage |
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52.8 |
% |
(3) |
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62,709 |
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NexPoint Storage Partners Operating Company, LLC |
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LLC interest |
|
Self-storage |
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29.5 |
% |
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34,172 |
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VineBrook Homes Operating Partnership, L.P. |
|
LP interest |
|
Single-family rental |
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11.4 |
% |
(6) |
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151,706 |
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NexPoint SFR Operating Partnership, L.P. |
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LP interest |
|
Single-family rental |
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30.8 |
% |
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37,953 |
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$ |
398,491 |
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(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. (9)The Company owns 100% of the preferred units in AMS C-Store JV, LLC but is not deemed to be the primary beneficiary and does not have a controlling financial interest of the investee and as such, accounts for the investee using the equity method.
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| Equity Method Investments, Statement of Operations Summary |
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):
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NREF |
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VineBrook |
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NSP |
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Other |
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Total |
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Revenues |
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Rental income |
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$ |
6,401 |
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$ |
270,645 |
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$ |
91,114 |
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$ |
8,784 |
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$ |
376,944 |
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Net interest income |
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36,075 |
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— |
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|
1,092 |
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— |
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|
37,167 |
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Other income |
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88,926 |
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10,349 |
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|
4,088 |
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21,700 |
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|
125,063 |
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Total revenues |
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$ |
131,402 |
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$ |
280,994 |
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$ |
96,294 |
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$ |
30,484 |
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$ |
539,174 |
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Expenses |
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Total expenses |
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$ |
25,906 |
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$ |
433,577 |
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$ |
80,884 |
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$ |
19,562 |
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$ |
559,929 |
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— |
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Gain (loss) on sales and impairment of real estate |
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3,718 |
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|
2,963 |
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— |
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|
— |
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|
6,681 |
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Other income (expense) |
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(10,119 |
) |
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|
140 |
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(55,392 |
) |
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(11,955 |
) |
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(77,326 |
) |
Unrealized gain (loss) on derivatives |
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— |
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|
(12,495 |
) |
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|
— |
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|
— |
|
|
|
(12,495 |
) |
Total comprehensive income (loss) |
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$ |
99,095 |
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$ |
(161,975 |
) |
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$ |
(39,982 |
) |
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$ |
(1,033 |
) |
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$ |
(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):
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NREF |
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VineBrook |
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NSP |
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Other |
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Total |
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Revenues |
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Rental income |
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$ |
6,316 |
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$ |
268,115 |
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$ |
89,686 |
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$ |
8,422 |
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$ |
372,539 |
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Net interest income |
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6,444 |
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— |
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|
1,477 |
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|
3,344 |
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|
11,265 |
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Other income |
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|
728 |
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|
4,571 |
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|
4,687 |
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|
48,066 |
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|
58,052 |
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Total revenues |
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$ |
13,488 |
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$ |
272,686 |
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$ |
95,850 |
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$ |
59,832 |
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$ |
441,856 |
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Expenses |
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Total expenses |
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$ |
27,664 |
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$ |
393,196 |
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$ |
99,135 |
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$ |
20,263 |
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$ |
540,258 |
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Gain (loss) on sales and impairment of real estate |
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|
— |
|
|
|
(19,773 |
) |
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|
621 |
|
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|
— |
|
|
|
(19,152 |
) |
Other income (expense) |
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|
34,982 |
|
|
|
1,485 |
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|
|
(81,743 |
) |
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|
(17,872 |
) |
|
|
(63,148 |
) |
Unrealized gain (loss) on derivatives |
|
|
— |
|
|
|
(18,055 |
) |
|
|
— |
|
|
|
— |
|
|
|
(18,055 |
) |
Total comprehensive income (loss) |
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$ |
20,806 |
|
|
$ |
(156,853 |
) |
|
$ |
(84,407 |
) |
|
$ |
21,697 |
|
|
$ |
(198,757 |
) |
|