Equity Method Investments (Tables)

6 Months Ended

Jun. 30, 2026

Equity Method Investments and Joint Ventures [Abstract]

Below is a summary of the Company’s equity method investments as of June 30, 2026 (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	%		$	7,750		$	(9,590	)	$	17,340		$	(563	)
AM Uptown Hotel, LLC	LLC interest	Hospitality		60.0	%	(3)		(6,940	)		371			(7,311	)		243
Las Vegas Land Owner, LLC	LLC interest	Multifamily		75.0	%	(4)		10,269			10,269			—			(244	)
Perilune Aero Equity Holdings One, LLC	LLC interest	Aircraft		16.4	%	(7)		12,568			11,756			812			(83	)
Capital Acquisitions Partners, LLC	LLC interest	Multifamily		20.9	%			—			—			—			(226	)
							$	23,647		$	12,806		$	10,841		$	(873	)

Below is a summary of the Company's investments as of June 30, 2026 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)	$	62,261
NexPoint Real Estate Finance, Inc.	Common stock	Mortgage		15.8	%	(6)		45,760
Claymore Holdings, LLC	LLC interest	N/A		50.0	%	(5)		—
VineBrook Homes Operating Partnership, L.P.	LP interest	Single-family rental		12.0	%	(6)		111,015
NexPoint Storage Partners, Inc.	Common stock	Self-storage		54.5	%	(3)		55,441
NexPoint Storage Partners Operating Company, LLC	LLC interest	Self-storage		33.7	%			35,946
NexPoint SFR Operating Partnership, L.P.	LP interest	Single-family rental		28.0	%			21,632
LLV Holdco, LLC	LLC interest	Land		26.8	%			2,201
AMS C-Store JV, LLC	Preferred stock	Retail		100.0	%	(8)		19,131
							$	353,387

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	%	(7)		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	%	(8)		18,420
							$	351,458

(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 (“LVLO”). As of December 31, 2025, LVLO held an undivided 77% interest in an 8.5-acre tract of land (the “Tivoli North Property”), as a tenant in common. The Company shared control through the tenancy in common arrangement and, as such, accounted for this investment using the equity method. Following a reorganization in the second quarter of 2026, the Tivoli North Property is owned by Tivoli North Apartment Venture LLC (the “Venture”) and as of June 30, 2026 LVLO holds 75% of the common membership interests of the Venture but is not the manager of the Venture. The Company accounts for this investment using the equity method as it has significant influence but is not deemed by the Company to be the primary beneficiary (for a VIE) and as such, accounts for the investee using the equity method.

(5)

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

(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 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.

(8)

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.

Equity Method Investments, Statement of Operations Summary

The table below presents the summarized statement of operations for the three months ended March 31, 2026 for the Company’s significant equity method investments (dollars in thousands):


	NREF			VineBrook
Revenues
Rental income	$	2,137		$	78,956
Net interest income		15,299			—
Other income		15,197			8,453
Total revenues	$	32,633		$	87,409

Expenses
Total expenses	$	9,999		$	128,409

Loss on sales and impairment of real estate		(1	)		(2,493	)
Other income (expense)		—			132
Total comprehensive income (loss)	$	22,633		$	(43,361	)

The table below presents the summarized statement of operations for the three months ended March 31, 2025 for the Company’s significant equity method investments (dollars in thousands):


	VineBrook			NSP
Revenues
Rental income	$	90,384		$	29,697
Net interest income		—			403
Other income		2,377			1,277
Total revenues	$	92,761		$	31,377

Expenses
Total expenses	$	130,943		$	27,317
		—			—
Gain (loss) on sales and impairment of real estate		(464	)		—
Other income (expense)		(506	)		(22,392	)
Unrealized gain (loss) on derivatives		—			—
Total comprehensive income (loss)	$	(39,152	)	$	(18,332	)