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Highland Opportunities and Income Fund Announces the Regular Monthly Distribution

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Highland Opportunities and Income Fund (NYSE: HFRO) announced a regular monthly distribution of $0.0385 per share on its common stock.

The distribution is payable on May 29, 2026 to shareholders of record at the close of business on May 22, 2026. The Fund declares and pays distributions monthly and invests across real estate-secured instruments, credit, structured products, equities and floating-rate loans.

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Positive

  • Monthly distribution of $0.0385 per share
  • Payable on May 29, 2026 to recordholders as of May 22, 2026
  • Monthly payout policy confirms ongoing distribution cadence

Negative

  • Announcement provides no coverage or NAV context for the distribution
  • No financial metrics included to show source or sustainability of the payout

News Market Reaction – HFRO

-0.32%
-0.32% Session close to close

In the May 4 session, HFRO declined 0.32%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement continues HFRO’s established pattern of regular monthly distributions of $0.0385 p...
Analysis

This announcement continues HFRO’s established pattern of regular monthly distributions of $0.0385 per share, with payment on May 29, 2026 to holders of record on May 22, 2026. The fund’s strategy spans real estate-backed securities, structured products, loans, and equities, aiming for capital growth and income. Investors may track how recurring payouts interact with recent regulatory filings, portfolio positioning, and any changes in market pricing versus net asset value over time.

Key Figures

Monthly distribution: $0.0385 per share Payment date: May 29, 2026 Record date: May 22, 2026
3 metrics
Monthly distribution $0.0385 per share Regular monthly distribution on common stock
Payment date May 29, 2026 Distribution payable date
Record date May 22, 2026 Shareholders of record eligibility date

Historical Context

5 past events · Latest: Apr 01 (Neutral)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Apr 01 Monthly distribution Neutral -1.4% Announced regular monthly distribution of $0.0385 payable April 30, 2026.
Mar 11 Investor update call Neutral -0.7% Scheduled investor update call to discuss portfolio and recent performance.
Mar 02 Monthly distribution Neutral -2.7% Declared regular monthly $0.0385 distribution payable March 31, 2026.
Feb 02 Monthly distribution Neutral -0.3% Declared regular monthly $0.0385 distribution payable February 27, 2026.
Jan 02 Monthly distribution Neutral +0.5% Announced regular $0.0385 monthly distribution payable January 30, 2026.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recurring monthly distribution announcements of $0.0385 have historically led to modest, mixed price reactions, often slightly negative but within a narrow range.

Recent Company History

Over the last several months, HFRO has consistently declared a regular monthly distribution of $0.0385 per share, with announcements on Jan 2, Feb 2, Mar 2, and Apr 1, 2026. These routine releases produced small price changes between about -3% and +1%. An investor update call on Mar 11, 2026 also saw a minor negative reaction. Today’s distribution continues this established pattern of steady payouts from a diversified, real-estate-linked, income-focused portfolio.

Key Terms

reit, mezzanine debt, collateralized loan obligations, asset-backed securities, +2 more
6 terms
reit financial
"including real estate investment trusts ("REITs"), preferred equity, securities..."
A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate, like shopping centers, apartments, or office buildings. For investors, REITs offer a way to invest in real estate without having to buy property directly, often providing regular income through dividends. They function like a mutual fund for real estate, making it easier for people to add property investments to their portfolio.
mezzanine debt financial
"convertible into equity securities and mezzanine debt; (ii) other instruments..."
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
"collateralized loan obligations and asset-backed securities), convertible and preferred..."
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..."
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.
floating rate loans financial
"and (iii) floating rate loans and other securities deemed to be floating rate..."
Floating rate loans are loans whose interest payments change over time because they are tied to a benchmark interest rate (for example LIBOR or SOFR) plus a fixed margin. For investors, they act like adjustable-rate loans: when market rates rise the income from the loan goes up, and when rates fall the income drops, so they can protect against rising rates but carry credit and refinancing risks that affect returns.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DALLAS, May 1, 2026 /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 May 29, 2026, to shareholders of record at the close of business May 22, 2026.

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.

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.comPlease 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

Cision View original content:https://www.prnewswire.com/news-releases/highland-opportunities-and-income-fund-announces-the-regular-monthly-distribution-302760331.html

SOURCE Highland Opportunities and Income Fund

FAQ

What distribution did Highland Opportunities and Income Fund (HFRO) announce for May 2026?

The Fund announced a $0.0385 per share monthly distribution. According to the company, the payment is payable May 29, 2026 to holders of record May 22, 2026.

When is the HFRO distribution payable and what is the record date?

The distribution is payable on May 29, 2026 with a record date of May 22, 2026. According to the company, shareholders on that record date will receive the payment.

How often does Highland Opportunities and Income Fund (HFRO) pay distributions?

HFRO declares and pays distributions on a monthly basis. According to the company, the Fund maintains a monthly payout cadence for its common stock.

What types of investments does HFRO hold to generate distributions?

HFRO invests in real estate-secured instruments, credit, structured products, equities and floating-rate loans. According to the company, derivatives may be used as economic equivalents of direct investments.

Does the May 2026 HFRO announcement include NAV or earnings coverage details for the distribution?

No, the announcement does not provide NAV or earnings coverage details for the distribution. According to the company, only the per-share amount, payable date, and record date were disclosed.