Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
NexPoint Real Estate Finance's 5-Year RORE % for the quarter that ended in Mar. 2026 was 32.38%.
NREF's 5-Year RORE % is ranked better than 67.42% of 755
companies
in the REITs industry
Industry Median: 8.58
vs NREF: 32.38
NexPoint Real Estate Finance (NYSE:NREF) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
NexPoint Real Estate Finance 5-Year RORE % Related Terms
NexPoint Real Estate Finance 5-Year RORE % 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 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs REITs Industry
For the REITs industry and Real Estate sector, NexPoint Real Estate Finance's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where NexPoint Real Estate Finance's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
NexPoint Real Estate Finance (NREF) has a 5-Year RORE % of 32.38 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on NexPoint Real Estate Finance and its competitors. According to the industry distribution chart, NexPoint Real Estate Finance ranks #246 out of 755 companies in the REITs industry, placing it in the top 32.6%.
Is NexPoint Real Estate Finance's 5-Year RORE % too high?
NexPoint Real Estate Finance's current 5-Year RORE % is 32.38. The REITs industry median 5-Year RORE % is 8.58. NexPoint Real Estate Finance's value of 32.38 is 277.4% above this industry median. Based on the distribution chart, NexPoint Real Estate Finance ranks #246 out of 755 companies in the REITs industry, which is above 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 5-Year RORE % compare to RC and MITT?
According to the REITs industry distribution chart, NexPoint Real Estate Finance ranks #246 out of 755 companies for 5-Year RORE %. This puts NexPoint Real Estate Finance in the upper half of its industry. The industry median 5-Year RORE % is 8.58. NexPoint Real Estate Finance's value of 32.38 is 277.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for a REITs company?
The median 5-Year RORE % among REITs companies is 8.58, based on 755 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NexPoint Real Estate Finance's current 5-Year RORE % of 32.38 is 277.4% above 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on NexPoint Real Estate Finance and its competitors. For the REITs industry, the median 5-Year RORE % is 8.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NexPoint Real Estate Finance's current 5-Year RORE % is 32.38. 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 5-Year RORE % of 32.38. The current 5-Year RORE % is 32.38 and 277.4% above the REITs industry median of 8.58. NexPoint Real Estate Finance's overall GF Score™ is 44/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For NexPoint Real Estate Finance (NREF), the current 5-Year RORE % is 32.38 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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