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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
NexPoint Real Estate FinanceNREF +0.41%44 ROA % is 1.54% as of Mar. 2026, which is 542% above its 10-year median of 0.24. GuruFocus rates NREF with a GF Score™ of 44/100. The stock has 8 warning signs investors should review. Among 926 REITs companies, NexPoint Real Estate Finance ranks worse than 63.5% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. NexPoint Real Estate Finance's annualizedNet Income for the quarter that ended in Mar. 2026 was $81.1 Mil.
NexPoint Real Estate Finance's average Total Assets over the quarter that ended in Mar. 2026 was $5,277.9 Mil. Therefore, NexPoint Real Estate Finance's annualized ROA % for the quarter that ended in Mar. 2026 was 1.54%.
The historical rank and industry rank for NexPoint Real Estate Finance's ROA % or its related term are showing as below:
NREF'
s ROA % Range Over the Past 10 Years
Min: -4.3 Med: 0.24 Max: 1.96
Current: 1.94
During the past 10 years, NexPoint Real Estate Finance's highest ROA % was 1.96%. The lowest was -4.30%. And the median was 0.24%.
NREF's ROA % is ranked worse than 63.5% of 926
companies
in the REITs industry
Industry Median: 3.24
vs NREF: 1.94
NexPoint Real Estate Finance (NYSE:NREF) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
NexPoint Real Estate Finance ROA % Related Terms
NexPoint Real Estate Finance ROA % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Mortgage subindustry, NexPoint Real Estate Finance's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NexPoint Real Estate Finance ROA % vs REITs Industry
For the REITs industry and Real Estate sector, NexPoint Real Estate Finance's ROA % distribution charts can be found below:
* The bar in red indicates where NexPoint Real Estate Finance's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
NexPoint Real Estate Finance (NREF) has a ROA % of 1.54% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on NexPoint Real Estate Finance and its competitors. This is 542% above median its historical median of 0.24. According to the industry distribution chart, NexPoint Real Estate Finance ranks #588 out of 926 companies in the REITs industry, placing it in the top 63.5%.
Is NexPoint Real Estate Finance's ROA % too high?
NexPoint Real Estate Finance's current ROA % of 1.54% is 542% above median its 10-year median of 0.24. The REITs industry median ROA % is 3.24. NexPoint Real Estate Finance's value of 1.54% is 52.5% below this industry median. Based on the distribution chart, NexPoint Real Estate Finance ranks #588 out of 926 companies in the REITs industry, which is below the industry midpoint. Overall, NexPoint Real Estate Finance has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does NexPoint Real Estate Finance's ROA % compare to CMTG and RC?
According to the REITs industry distribution chart, NexPoint Real Estate Finance ranks #588 out of 926 companies for ROA %. This places NexPoint Real Estate Finance in the lower half of its industry. The industry median ROA % is 3.24. NexPoint Real Estate Finance's value of 1.54% is 52.5% below this benchmark. While the company's 10-year median is 0.24 vs. the industry median of 3.24, NexPoint Real Estate Finance has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a REITs company?
The median ROA % among REITs companies is 3.24, based on 926 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NexPoint Real Estate Finance's current ROA % of 1.54% is 52.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on NexPoint Real Estate Finance and its competitors. For the REITs industry, the median ROA % is 3.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NexPoint Real Estate Finance's current ROA % is 1.54%, which is 542% above median its own 10-year median of 0.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NexPoint Real Estate Finance stock overvalued right now?
NexPoint Real Estate Finance (NREF) has a current ROA % of 1.54%. The current ROA % is 1.54%, which is 542% above median its 10-year median of 0.24 and 52.5% below the REITs industry median of 3.24. NexPoint Real Estate Finance's overall GF Score™ is 44/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For NexPoint Real Estate Finance (NREF), the current ROA % is 1.54% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
NexPoint Real Estate Finance Inc is a commercial mortgage REIT focused on generating attractive, risk-adjusted returns for shareholders over the long term. The company invests mainly in first-lien mortgage loans, mezzanine loans, preferred equity, multifamily properties, and common equity investments, as well as multifamily and single-family rental CMBS securitizations, promissory notes, revolving credit facilities, and stock warrants. It focuses on real estate sectors where its management has operating expertise, including multifamily, single-family rental, self-storage, industrial, and life sciences, mainly in top metropolitan areas.
44GF Score
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