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 common share. The distribution is payable on February 27, 2026 to shareholders of record at the close of business on February 20, 2026.

The closed-end fund seeks capital growth and income by investing across real estate-related securities, fixed-rate and floating-rate loans, structured products, equities and derivatives. The Fund declares and pays distributions monthly.

Positive

• $0.0385 per share monthly distribution declared
• Payment scheduled for February 27, 2026 to record holders on Feb 20, 2026
• Fund invests across diversified income instruments including REITs, loans, and structured products

Negative

• Per-share distribution of $0.0385 is modest in absolute terms for income-focused investors

News Market Reaction – HFRO

-0.32%

1 alert

-0.32% News Effect

On the day this news was published, HFRO declined 0.32%, 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: February 27, 2026 Record date: February 20, 2026

3 metrics

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

Payable date February 27, 2026 Payment date for the announced distribution

Record date February 20, 2026 Shareholders of record eligible for distribution

Market Reality Check

Price: $6.17 Vol: Volume 86,761 shares vs 2...

low vol

$6.17 Last Close

Volume Volume 86,761 shares vs 20-day average 136,896, indicating lighter-than-usual trading ahead of this announcement. low

Technical Price at $6.34, trading above the 200-day moving average of $5.83 and about 7% below the 52-week high of $6.83.

Peers on Argus

HFRO fell 0.47% while peers were mixed: ASG and SOR were positive, FOF and AWP w...

HFRO fell 0.47% while peers were mixed: ASG and SOR were positive, FOF and AWP were negative, and ARDC was roughly flat. With no peers in the momentum scanner and no same-day peer headlines, the move appears more stock-specific than sector-driven.

Historical Context

5 past events · Latest: Jan 02 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 02	Monthly distribution	Neutral	+0.5%	Announced regular monthly distribution of $0.0385 per share for January.
Dec 01	Monthly distribution	Neutral	-0.3%	Declared regular $0.0385 per share monthly distribution for December.
Nov 06	Investor call	Neutral	-0.6%	Scheduled investor update call to discuss portfolio and performance.
Nov 03	Monthly distribution	Neutral	+0.8%	Announced regular $0.0385 per share monthly distribution for November.
Oct 01	Monthly distribution	Neutral	-0.9%	Declared regular monthly distribution of $0.0385 per share for October.

Pattern Detected

Regular monthly distribution announcements have typically led to small, mixed price reactions, suggesting these events are largely anticipated by the market.

Recent Company History

Over the past several months, HFRO has repeatedly announced a regular monthly distribution of $0.0385 per share, with payments at month-end to shareholders of record roughly a week earlier. These recurring updates, along with an investor update call in December 2025, show a consistent focus on income and communication. Price reactions around the monthly distribution headlines have been modest, with slight moves both up and down, indicating that the market generally views them as routine.

Market Pulse Summary

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

Analysis

This announcement reiterates HFRO’s regular monthly distribution of $0.0385 per share, payable on February 27, 2026 to holders of record on February 20, 2026. The fund continues to target capital growth and income through real estate–linked instruments, loans, structured products, and equities. Historically, similar monthly distribution updates have produced only modest price changes, so investors may focus more on portfolio composition, governance filings, and future performance updates when assessing risk and return.

Key Terms

closed-end fund, real estate investment trusts, mezzanine debt, collateralized loan obligations, +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.

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 and asset-backed securities)"

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

"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.

convertible securities financial

"including but not limited to ... convertible and preferred securities, equities (public and private)"

Convertible securities are bonds or preferred shares that can be exchanged for a company’s common stock at a predetermined price or under specified conditions. They matter because they combine the steadiness of a loan or fixed dividend with the potential upside of ownership; like a safety‑net that carries a one‑time ticket to become a shareholder, they affect expected returns and can dilute existing stock if converted.

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.

floating rate loans financial

"and (iii) floating rate loans and other securities deemed to be floating rate investments."

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. Not financial advice.

DALLAS, Feb. 2, 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 February 27, 2026, to shareholders of record at the close of business February 20, 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-302676756.html

SOURCE Highland Opportunities and Income Fund

FAQ

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

The Fund announced a monthly distribution of $0.0385 per common share. According to the company, the distribution is payable February 27, 2026 to holders of record as of February 20, 2026.

When will HFRO shareholders receive the February 2026 distribution and who is eligible?

The distribution will be paid on February 27, 2026 to shareholders of record at close of business on February 20, 2026. According to the company, only shareholders on the record date are eligible.

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

HFRO declares and pays distributions monthly. According to the company, the Fund maintains a monthly payout schedule and funds the distribution from its regular operations and investment income.

What types of investments support HFRO's ability to pay monthly distributions?

The Fund invests in REITs, preferred and convertible securities, loans, bonds, structured products, equities, and derivatives. According to the company, this diversified income mix supports its goal of capital growth and regular distributions.

Does the February 2026 distribution from HFRO indicate a change in policy or frequency?

No, the February distribution follows the Fund's existing policy of monthly payouts. According to the company, the distribution is a regular monthly declaration and not presented as a change to distribution frequency.