NexPoint Diversified Real Estate Trust Announces 2022 Dividend Income Tax Treatment

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NexPoint Diversified Real Estate Trust (NXDT) announced the final income allocations for its 2022 dividend distributions. Notably, the total distribution per share for common stock amounts to $0.60000, while the preferred stock distributions total $1.03125. The dividends are categorized into ordinary income and return of capital. Key dates include an ex-dividend date of December 14, 2022 for preferred shares, with a payable date on January 3, 2023. The press release emphasized the importance of consulting tax advisors regarding federal and local income tax implications of these distributions.

Positive

• Common stock total distribution of $0.60000 per share.
• Preferred stock total distribution of $1.03125 per share.

Negative

• None.

DALLAS, Feb. 23, 2023 /PRNewswire/ -- NexPoint Diversified Real Estate Trust ("NXDT") (NYSE: NXDT) announced today the final income allocations of the Company's 2022 dividend distributions on its common stock and preferred stock. The final income allocations as they will be reported on Form 1099-DIV are set forth in the following table:

Common Shares (CUSIP # 65340G205, NYSE Ticker: NXDT)

Ex Dividend Date	Record Date	Payable Date	Distribution Per Share	Taxable Ordinary Income Per Share	Taxable Capital Gain Distr. Per Share	Return of Capital Per Share	Section 199A Dividends Per Share	Qualified Dividend Income Per Share
1/21/2022	1/24/2022	1/31/2022	$0.05000	$0.00000	$0.00000	$0.05000	$0.00000	$0.00000
2/17/2022	2/18/2022	2/28/2022	$0.05000	$0.00000	$0.00000	$0.05000	$0.00000	$0.00000
3/23/2022	3/24/2022	3/31/2022	$0.05000	$0.00000	$0.00000	$0.05000	$0.00000	$0.00000
4/21/2022	4/22/2022	4/29/2022	$0.05000	$0.00000	$0.00000	$0.05000	$0.00000	$0.00000
5/23/2022	5/24/2022	5/31/2022	$0.05000	$0.00000	$0.00000	$0.05000	$0.00000	$0.00000
6/22/2022	6/23/2022	6/30/2022	$0.05000	$0.00000	$0.00000	$0.05000	$0.00000	$0.00000
7/21/2022	7/22/2022	8/1/2022	$0.05000	$0.00000	$0.00000	$0.05000	$0.00000	$0.00000
8/23/2022	8/24/2022	8/31/2022	$0.05000	$0.00000	$0.00000	$0.05000	$0.00000	$0.00000
9/16/2022	9/19/2022	9/30/2022	$0.05000	$0.00000	$0.00000	$0.05000	$0.00000	$0.00000
12/14/2022	12/15/2022	12/30/2022	$0.15000	$0.00000	$0.00000	$0.15000	$0.00000	$0.00000
		Totals	$0.60000	$0.00000	$0.00000	$0.60000	$0.00000	$0.00000
			100.00 %	0.00 %	0.00 %	100.00 %

Preferred Shares (CUSIP # 65340G304), NYSE Ticker: NXDT PRA)¹

Ex Dividend Date	Record Date	Payable Date	Distribution Per Share	Taxable Ordinary Income Per Share	Capital Gain Distributions Per Share	Return of Capital Per Share	Section 199A Dividends Per Share	Qualified Dividend Income Per Share
3/23/2022	3/24/2022	3/31/2022	$0.34375	$0.00000	$0.00000	$0.34375	$0.00000	$0.00000
6/22/2022	6/23/2022	6/30/2022	$0.34375	$0.00000	$0.00000	$0.34375	$0.00000	$0.00000
9/22/2022	9/23/2022	9/30/2022	$0.34375	$0.00000	$0.00000	$0.34375	$0.00000	$0.00000
		Totals	$1.03125	$0.00000	$0.00000	$1.03125	$0.00000	$0.00000
			100.00 %	0.00 %	0.00 %	100.00 %

¹Pursuant to Section 857(b)(9) of the Internal Revenue Code of 1986 (the "IRC"), cash distributions made on January 3, 2023, with a record date of December 23, 2022, are treated as received by stockholders on December 31, 2022, to the extent of 2022 earnings and profits. As NXDT's 2022 cash distributions exceeded its 2022 earnings and profits, the January 2023 cash distribution declared in the fourth quarter of 2022 will be treated as a 2023 distribution for federal income tax purposes and not included on the 2022 Form 1099. If you were a stockholder of record as of December 23, 2022, the $0.34375 dividend payable on January 3, 2023, will be reported on your 2023 Form 1099.

Components may not sum to the totals due to rounding differences. The information above presents final income allocations.

The Company encourages shareholders to consult with their own tax advisors with respect to the federal, state, and local income tax effects of these dividends.

About NexPoint Diversified Real Estate Trust

NexPoint Diversified Real Estate Trust is an externally advised, publicly traded, diversified real estate investment trust (REIT) focused on the acquisition, development, and management of opportunistic and value-add investments throughout the United States across multiple sectors where NexPoint and its affiliates have operational expertise. NXDT is externally advised by NexPoint Real Estate Advisors X, L.P. For more information, please visit nxdt.nexpoint.com.

CONTACTS

Investor Relations
Kristen Thomas
IR@nexpoint.com

Media Relations
Prosek Partners for NexPoint
pro-nexpoint@prosek.com

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SOURCE NexPoint Diversified Real Estate Trust

FAQ

What are the dividend details for NXDT common stock in 2022?

The total dividend distribution for NXDT common stock in 2022 is $0.60000 per share.

When is the ex-dividend date for NXDT preferred stock?

The ex-dividend date for NXDT preferred stock is December 14, 2022.

What are the tax implications of NXDT's dividend distributions?

Shareholders are advised to consult tax advisors regarding federal, state, and local income tax effects of the dividends.

What is the payable date for NXDT's preferred stock dividend?

The payable date for NXDT's preferred stock dividend is January 3, 2023.

Is there a return of capital in NXDT's dividend distributions?

Yes, a portion of the dividends for both common and preferred shares is categorized as return of capital.