Highland Opportunities and Income Fund Announces the Regular Monthly Distribution

Rhea-AI Summary

Highland Opportunities and Income Fund (NYSE: HFRO) declared a regular monthly distribution of $0.0385 per share on its common stock. The distribution is payable on December 31, 2025 to shareholders of record at the close of business on December 24, 2025.

The Fund is a closed-end fund that seeks growth of capital and income by investing directly and indirectly in real estate-related securities, fixed-rate and floating-rate loans, distressed and mezzanine securities, structured products, convertibles, preferreds, equities, and derivatives. The Fund declares and pays distributions on a monthly basis.

Positive

• Monthly distribution of $0.0385 per share
• Payable date set for December 31, 2025 with record date December 24, 2025
• Monthly payout policy confirms regular income cadence for shareholders

Negative

• None.

News Market Reaction – HFRO

-0.33%

1 alert

-0.33% News Effect

On the day this news was published, HFRO declined 0.33%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Monthly distribution: $0.0385 per share Payable date: December 31, 2025 Record date: December 24, 2025

3 metrics

Monthly distribution $0.0385 per share Regular monthly distribution on common stock

Payable date December 31, 2025 Distribution payment date

Record date December 24, 2025 Shareholders of record eligible for distribution

Market Reality Check

Price: $6.17 Vol: Volume 153,577 is close t...

normal vol

$6.17 Last Close

Volume Volume 153,577 is close to the 20-day average of 150,038, indicating typical trading activity before this distribution announcement. normal

Technical Shares traded above the 200-day MA, with the MA at 5.67 and the last price at 6.15, suggesting a price level above longer-term trend before the news.

Peers on Argus

Pre-news, HFRO was down 0.49%, while selected closed-end peers showed mixed move...

Pre-news, HFRO was down 0.49%, while selected closed-end peers showed mixed moves: ASG up 0.19%, FOF up 0.31%, ARDC down 0.67%, AWP down 0.52%, and SOR down 1.22%, indicating stock-specific rather than broad sector-driven action.

Historical Context

5 past events · Latest: Dec 01 (Neutral)

5 events

Date	Event	Sentiment	Move	Catalyst
Dec 01	Monthly distribution	Neutral	-0.3%	Declared regular monthly distribution of $0.0385 per share payable year-end.
Nov 06	Investor call update	Neutral	-0.6%	Announced investor update call to discuss portfolio and performance.
Nov 03	Monthly distribution	Neutral	+0.8%	Announced regular monthly distribution of $0.0385 per common share.
Oct 01	Monthly distribution	Neutral	-0.9%	Declared regular monthly distribution of $0.0385 per share.
Sep 09	Mgmt team change	Neutral	+1.5%	Added Brad Heiss as portfolio manager alongside existing managers.

Recent Company History

Over the past several months, HFRO has repeatedly announced a regular monthly distribution of $0.0385 per share, with distributions paid at month-end to shareholders of record roughly a week earlier. Other recent news included an investor update call scheduled for December 11, 2025 and the addition of portfolio manager Brad Heiss, who brings over 20 years of investment experience. Price reactions to these items have been modestly positive and negative, suggesting limited but observable sensitivity to routine fund announcements.

Market Pulse Summary

This announcement reiterates HFRO’s regular monthly distribution of $0.0385 per share, payable on De...

Analysis

This announcement reiterates HFRO’s regular monthly distribution of $0.0385 per share, payable on December 31, 2025 to holders of record on December 24, 2025. The fund continues to pursue growth of capital and income through a mix of real estate-related securities, loans, structured products, convertibles, preferreds, equities, and derivatives. Investors may monitor future distribution levels, portfolio updates, and any additional regulatory filings to assess how the strategy evolves over time.

Key Terms

closed-end fund, real estate investment trusts, REITs, mezzanine debt, +4 more

8 terms

closed-end fund financial

"The Fund is a closed-end fund that seeks to provide growth of capital..."

A closed-end fund is a pool of money collected from many investors to buy a diversified mix of stocks, bonds, or other assets, and it is managed by professionals. Unlike some investment options, its shares are bought and sold on stock exchanges at prices determined by supply and demand, which can be above or below the fund's actual value. This structure allows investors to buy or sell shares easily, but the value may fluctuate based on market conditions.

real estate investment trusts financial

"secured by real estate, including real estate investment trusts ("REITs")..."

Real estate investment trusts are companies that own and manage income-producing properties — such as apartments, offices, shopping centers or warehouses — and are required to distribute most of their rental income to shareholders as dividends. They let investors buy a piece of real estate without owning buildings directly, offering regular income, diversification and exposure to property values and rents; like a mutual fund for property that pays out cash from rents and is sensitive to market cycles and interest rates.

REITs financial

"secured by real estate, including real estate investment trusts ("REITs")..."

REITs, or real estate investment trusts, are companies that own and operate income-producing properties—like apartments, shopping centers, offices, warehouses, or cell towers—and share the rental profits with investors in the form of dividends. Think of a REIT as a mutual fund for real estate: it lets investors buy a small piece of many properties without managing buildings themselves, providing regular income, portfolio diversification, and an easier way to invest in property through public markets.

mezzanine debt financial

"preferred equity, securities convertible into equity securities and mezzanine debt;"

Mezzanine debt is a hybrid loan that sits between a company’s senior bank debt and equity ownership: it pays higher interest than regular loans because it takes on more risk, and often includes an option to convert into shares or warrants. Investors care because it offers higher potential returns than plain debt while carrying greater chance of loss or equity dilution if the company struggles, making it a middle-ground choice for yield and upside.

collateralized loan obligations financial

"structured products (including but not limited to mortgage-backed securities, collateralized loan obligations..."

A collateralized loan obligation is a financial product that pools many corporate loans and repackages them into slices sold to investors, with some slices offering steady, lower returns and others offering higher returns but more risk. Like splitting a pizza into pieces for different tastes, CLOs let investors pick their preferred risk level and help banks fund lending, so changes in CLO performance influence credit availability and can move markets.

asset-backed securities financial

"structured products (including but not limited to mortgage-backed securities, collateralized loan obligations and asset-backed securities)..."

A type of investment created by pooling many similar cash‑flowing assets — like mortgages, car loans, or credit card receivables — and selling slices of that bundle to investors who then receive the payments those assets generate. Think of it as a fruit basket where buyers earn the fruit sales: investors get steady income but also take on the risk that the underlying loans stop performing or are paid off early. Investors care because these securities can provide predictable yield, portfolio diversification, and varying levels of credit and liquidity risk depending on the quality of the underlying assets.

futures and options financial

"equities (public and private), and futures and options; and (iii) floating rate loans..."

Futures and options are standardized contracts traded on exchanges that let investors lock in or gain the right to trade an asset at a set price on or before a future date. A futures contract is like agreeing today to buy or sell something later at a fixed price, while an option is like buying a reservation that gives you the right, but not the obligation, to make that trade. Investors use them to protect against price swings, make directional bets with less upfront cash, and help discover market expectations.

derivatives financial

"investing directly and indirectly (e.g., through derivatives that are the economic equivalent..."

Derivatives are financial contracts whose value depends on the price or performance of another asset, such as a stock, bond, commodity, currency or interest rate. Investors use them to hedge against risk, to speculate on future price moves, or to gain exposure without owning the asset — like buying insurance or placing a leveraged bet — so they can both protect portfolios and magnify gains or losses, affecting risk and market liquidity.

AI-generated analysis. Not financial advice.

DALLAS, Dec. 1, 2025 /PRNewswire/ -- The Highland Opportunities and Income Fund (NYSE: HFRO) ("HFRO" or the "Fund") today announced its regular monthly distribution on its common stock of $0.0385 per share. The distribution will be payable on December 31, 2025, to shareholders of record at the close of business December 24, 2025.

The Fund is a closed-end fund that seeks to provide growth of capital along with income in a registered fund format. The Fund pursues its investment objective by investing directly and indirectly (e.g., through derivatives that are the economic equivalent of direct investments) in the following categories of securities and instruments: (i) investments in securities or other instruments directly or indirectly secured by real estate, including real estate investment trusts ("REITs"), preferred equity, securities convertible into equity securities and mezzanine debt; (ii) other instruments, including, but not limited to, secured and unsecured fixed-rate loans and corporate bonds, distressed securities, mezzanine securities, structured products (including but not limited to mortgage-backed securities, collateralized loan obligations and asset-backed securities), convertible and preferred securities, equities (public and private), and futures and options; and (iii) floating rate loans and other securities deemed to be floating rate investments.

The Fund declares and pays distributions monthly.

About the Highland Opportunities and Income Fund

The Highland Opportunities and Income Fund (NYSE: HFRO) is a closed-end fund managed by NexPoint Asset Management, L.P. For more information visit nexpointassetmgmt.com/opportunities-income-fund.

Effective June 15, 2023, the Fund changed its name to the Highland Opportunities and Income Fund to reflect a new investment objective. Under the modified investment objective, the Fund will pursue growth of capital along with income. More information can be found in the press release announcing the changes, issued on May 16, 2023.

About NexPoint Asset Management, L.P.

NexPoint Asset Management, L.P. is an SEC-registered investment adviser on the NexPoint investment platform. It is the adviser to a suite of registered open-end and close-end funds. For more information visit nexpointassetmgmt.com.

Investors should consider the investment objectives, risks, charges, and expenses of the Highland Opportunities and Income Fund carefully before investing. This and other information can be found in the Fund's prospectus, which may be obtained by calling 1-800-357-9167 or visiting nexpointassetmgmt.com. Please read the prospectus carefully before you invest.

The distribution may include a return of capital. Please refer to the 19(a)-1 Source of Distribution Notice on the NexPoint Asset Management website for Section 19 notices that provide estimated amounts and sources of the Fund's distributions, which should not be relied upon for tax reporting purposes.

No assurance can be given that the Fund will achieve its investment objectives.

Shares of closed-end investment companies frequently trade at a discount to net asset value. The price of the Fund's shares is determined by a number of factors, several of which are beyond the control of the Fund. Therefore, the Fund cannot predict whether its shares will trade at, below or above net asset value. Past performance does not guarantee future results.

Closed-End Fund Risk. The Fund is a closed-end investment company designed primarily for long-term investors and not as a trading vehicle. No assurance can be given that a shareholder will be able to sell his or her shares on the NYSE when he or she chooses to do so, and no assurance can be given as to the price at which any such sale may be affected.

Credit Risk. The Fund may invest all or substantially all of its assets in Senior Loans or other securities that are rated below investment grade and unrated Senior Loans deemed by NexPoint to be of comparable quality. Securities rated below investment grade are commonly referred to as "high yield securities" or "junk securities." They are regarded as predominantly speculative with respect to the issuing company's continuing ability to meet principal and interest payments. Non-payment of scheduled interest and/or principal would result in a reduction of income to the Fund, a reduction in the value of the Senior Loan experiencing non-payment and a potential decrease in the NAV of the Fund. Investments in high yield Senior Loans and other securities may result in greater NAV fluctuation than if the Fund did not make such investments.

Real Estate Industry Risk: Issuers principally engaged in real estate industry, including real estate investment trusts, may be subject to risks similar to the risks associated with the direct ownership of real estate, including: (i) changes in general economic and market conditions; (ii) changes in the value of real estate properties; (iii) risks related to local economic conditions, overbuilding and increased competition; (iv) increases in property taxes and operating expenses; (v) changes in zoning laws; (vi) casualty and condemnation losses; (vii) variations in rental income, neighborhood values or the appeal of property to tenants; (viii) the availability of financing and (ix) changes in interest rates and leverage.

Illiquidity of Investments Risk. The investments made by the Fund may be illiquid, and consequently the Fund may not be able to sell such investments at prices that reflect the Investment Adviser's assessment of their value or the amount originally paid for such investments by the Fund.

Ongoing Monitoring Risk. On behalf of the several Lenders, the Agent generally will be required to administer and manage the Senior Loans and, with respect to collateralized Senior Loans, to service or monitor the collateral. Financial difficulties of Agents can pose a risk to the Fund.

CONTACTS

Investor Relations
Kristen Griffith
IR@nexpoint.com

Media Relations
comms@nexpoint.com

View original content:https://www.prnewswire.com/news-releases/highland-opportunities-and-income-fund-announces-the-regular-monthly-distribution-302629587.html

SOURCE Highland Opportunities and Income Fund

FAQ

How much is Highland Opportunities and Income Fund (HFRO) paying for the December 2025 distribution?

HFRO declared a $0.0385 per share regular monthly distribution for December 2025.

When is the HFRO distribution payable and what is the record date for December 2025?

The distribution is payable on December 31, 2025 to shareholders of record at the close of business on December 24, 2025.

Does HFRO pay distributions monthly and what does the fund invest in?

Yes; HFRO declares and pays distributions monthly and invests in real estate-related securities, loans, structured products, convertibles, preferreds, equities, and derivatives.

Is the December 2025 distribution from HFRO paid on common stock?

Yes; the announced $0.0385 per share distribution is payable on HFRO common stock.

What type of fund is Highland Opportunities and Income Fund (HFRO)?

HFRO is a closed-end fund that seeks growth of capital along with income through direct and indirect investments across real estate and credit-related instruments.