NexPoint Diversified Real Estate Trust Announces 2024 Dividend Income Tax Treatment

NexPoint Diversified Real Estate Trust (NXDT) has released its final income allocations for 2024 dividend distributions for both common and preferred shares.

Rhea-AI Summary

NexPoint Diversified Real Estate Trust (NXDT) has released its final income allocations for 2024 dividend distributions for both common and preferred shares. For common shares, the company distributed quarterly dividends of $0.15 per share, totaling $0.60 for the year. Preferred shareholders received $0.34375 per share quarterly, amounting to $1.71875 annually.

Notably, 100% of both common and preferred share distributions were classified as return of capital, with no portions allocated to taxable ordinary income, capital gain distributions, Section 199A dividends, or qualified dividend income.

Positive

• 100% return of capital distribution benefits shareholders' tax efficiency
• Consistent quarterly dividend payments maintained throughout 2024
• Higher dividend rate for preferred shareholders at $0.34375 quarterly

Negative

• No qualified dividend income or capital gains distributions
• Return of capital may indicate earnings did not cover dividend payments

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DALLAS, Feb. 7, 2025 /PRNewswire/ -- NexPoint Diversified Real Estate Trust ("NXDT") (NYSE: NXDT) announced today the final income allocations of the Company's 2024 dividend distributions on its common shares and preferred shares. The final income allocations as they will be reported on Form 1099-DIV are set forth in the following table:

Common Shares (CUSIP # 65340G205)

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
2/15/2024	2/16/2024	3/28/2024	$0.15000	$0.00000	$0.00000	$0.15000	$0.00000	$0.00000
5/14/2024	5/15/2024	6/28/2024	$0.15000	$0.00000	$0.00000	$0.15000	$0.00000	$0.00000
8/15/2024	8/15/2024	9/30/2024	$0.15000	$0.00000	$0.00000	$0.15000	$0.00000	$0.00000
11/15/2024	11/15/2024	12/31/2024	$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)

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
12/21/2023	12/22/2023	1/2/2024	$0.34375	$0.00000	$0.00000	$0.34375	$0.00000	$0.00000
3/22/2024	3/25/2024	4/1/2024	$0.34375	$0.00000	$0.00000	$0.34375	$0.00000	$0.00000
6/24/2024	6/24/2024	7/1/2024	$0.34375	$0.00000	$0.00000	$0.34375	$0.00000	$0.00000
9/23/2024	9/23/2024	9/30/2024	$0.34375	$0.00000	$0.00000	$0.34375	$0.00000	$0.00000
12/23/2024	12/23/2024	12/31/2024	$0.34375	$0.00000	$0.00000	$0.34375	$0.00000	$0.00000
		Totals	$1.71875	$0.00000	$0.00000	$1.71875	$0.00000	$0.00000
			100.00 %	0.00 %	0.00 %	100.00 %

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 Griffith
IR@nexpoint.com

Media Relations
Comms@nexpoint.com

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SOURCE NexPoint Diversified Real Estate Trust

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the total dividend distribution for NXDT common shares in 2024?

NXDT common shares received total dividend distributions of $0.60 per share in 2024, paid in four quarterly installments of $0.15 per share.

How much dividend did NXDT preferred shareholders receive in 2024?

NXDT preferred shareholders received total dividend distributions of $1.71875 per share in 2024, paid in five quarterly installments of $0.34375 per share.

What is the tax treatment of NXDT's 2024 dividend distributions?

100% of NXDT's 2024 dividend distributions for both common and preferred shares were classified as return of capital, with no portion treated as taxable ordinary income or capital gains.

When were NXDT's common share dividends paid in 2024?

NXDT's common share dividends were paid on March 28, June 28, September 30, and December 31, 2024.

What is the significance of NXDT's 100% return of capital classification?

The 100% return of capital classification means shareholders may need to adjust their cost basis rather than pay immediate taxes on the distributions, potentially providing tax advantages.