Highland Opportunities and Income Fund Announces the Regular Monthly Distribution

Rhea-AI Summary

The 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 June 30, 2026, to shareholders of record as of the close of business on June 23, 2026.

The closed-end fund seeks capital growth and income by investing directly and indirectly in real estate-related securities, loans, bonds, structured products, equities, and floating rate investments, and it declares and pays distributions monthly.

Positive

• Regular monthly distribution of $0.0385 per share declared
• Distribution payable on June 30, 2026 to shareholders of record June 23, 2026
• Fund maintains a policy to declare and pay distributions monthly

Negative

• None.

News Market Reaction – HFRO

+1.36%

+1.36% Session close to close

In the Jun 2 session, HFRO gained 1.36%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

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

Analysis

This announcement reiterates HFRO’s regular monthly distribution of $0.0385 per share, payable on June 30, 2026 to holders of record on June 23, 2026. Recent history shows similar monthly declarations at the same level, underscoring a consistent income policy. The fund invests across real estate-related securities, credit, and structured products, so investors may watch future distribution notices and portfolio updates for any change in payout level or asset mix that could signal a strategic shift.

Key Figures

Monthly distribution: $0.0385 per share Payable date: June 30, 2026 Record date: June 23, 2026

3 metrics

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

Payable date June 30, 2026 Distribution payable date

Record date June 23, 2026 Shareholders of record eligibility date

Historical Context

5 past events · Latest: May 01 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 01	Monthly distribution	Neutral	-0.3%	Regular $0.0385 monthly distribution with late-May pay date.
Apr 01	Monthly distribution	Neutral	-1.4%	Declared $0.0385 monthly distribution payable April 30.
Mar 11	Investor update call	Neutral	-0.7%	Announcement of March 25 investor update conference call.
Mar 02	Monthly distribution	Neutral	-2.7%	Regular $0.0385 distribution with March 31 pay date.
Feb 02	Monthly distribution	Neutral	-0.3%	Declared $0.0385 monthly distribution payable February 27.

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

Pattern Detected

Monthly distribution announcements of $0.0385 have repeatedly coincided with small negative next-day moves, suggesting a recurring mild divergence from the neutral income-focused news.

Recent Company History

Over the past several months, HFRO has consistently declared a regular monthly distribution of $0.0385 per share, with payments scheduled near month-end and record dates roughly a week prior. An investor update call on March 25, 2026 provided portfolio and performance commentary. Despite the routine and income-oriented nature of these updates, the stock showed modest negative 24-hour reactions after each event, indicating a pattern of slightly weaker trading around otherwise neutral communications.

Key Terms

real estate investment trusts, derivatives, mezzanine debt, structured products, +4 more

8 terms

real estate investment trusts financial

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

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.

derivatives financial

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

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.

View in glossary

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.

structured products financial

"mezzanine securities, structured products (including but not limited to mortgage-backed"

Structured products are custom-made investment packages that combine familiar assets (like stocks or bonds) with contracts whose payouts depend on specific market outcomes, creating a tailored payoff profile — for example extra upside if an index rises or partial protection if it falls. They matter to investors because they can offer bespoke risk-return tradeoffs or capital protection, but carry issuer credit risk, added fees and complexity, and can be hard to value or sell quickly.

mortgage-backed securities financial

"structured products (including but not limited to mortgage-backed securities,"

A mortgage-backed security is an investment made by pooling many home loans and selling the right to the borrowers’ monthly payments to investors, so you receive a stream of principal and interest much like collecting payments on a bundle of IOUs. It matters to investors because it provides regular income but carries risks from homeowners missing payments or paying off loans early, and its value moves with interest rates and housing market conditions.

collateralized loan obligations financial

"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"

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.

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.

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DALLAS, June 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 June 30, 2026, to shareholders of record at the close of business June 23, 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.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-302787535.html

SOURCE Highland Opportunities and Income Fund

FAQ

What is Highland Opportunities and Income Fund's (NYSE: HFRO) June 2026 monthly distribution?

Highland Opportunities and Income Fund declared a June 2026 monthly distribution of $0.0385 per share. According to HFRO, this regular monthly distribution applies to its common stock and reflects the fund’s ongoing income-focused payout policy for shareholders.

When are the record date and payment date for HFRO's June 2026 distribution?

HFRO's June 2026 distribution is payable on June 30, 2026 to shareholders of record on June 23, 2026. According to HFRO, investors must own shares by the record date close of business to receive this monthly payment.

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

Highland Opportunities and Income Fund declares and pays distributions monthly. According to HFRO, this regular schedule provides investors with frequent income payments, aligning with the fund’s objective of delivering income alongside potential capital growth in a closed-end fund structure.

What is the investment objective of Highland Opportunities and Income Fund (NYSE: HFRO)?

Highland Opportunities and Income Fund seeks to provide growth of capital along with income. According to HFRO, the fund pursues this objective within a registered closed-end fund format, combining capital appreciation goals with regular income distributions to shareholders.

What types of securities does HFRO invest in to support its distributions?

HFRO invests in real estate-related securities, loans, bonds, structured products, equities, and floating rate investments. According to HFRO, the portfolio includes REITs, preferred and convertible securities, mezzanine debt, distressed securities, mortgage-backed securities, CLOs, asset-backed securities, and fixed-rate and floating rate loans.

Is HFRO's June 2026 payout described as a special or regular distribution?

The June 2026 payout is described as a regular monthly distribution. According to HFRO, the fund declares and pays distributions on a monthly basis, indicating this payment continues its established income distribution pattern rather than representing a one-time special dividend.