NexPoint Diversified Real Estate Trust Announces Quarterly Distribution

Rhea-AI Summary

NexPoint Diversified Real Estate Trust (NYSE: NXDT) declared a quarterly distribution of $0.15 per common share, payable March 31, 2026 to holders of record on February 20, 2026. The distribution will be paid in a combination of cash and common shares, with cash not to exceed 20% of the aggregate.

Shareholders may elect to receive all cash or all shares under IRS Revenue Procedure 2017-45; cash elections above the 20% cap will be prorated. Election forms must be received by Equiniti Trust Company by 5:00 p.m. ET on March 18, 2026. The share issuance will use VWAP for March 19, 20, and 23, 2026.

Positive

• Declared distribution of $0.15 per common share
• Cash component capped at 20%, preserving company liquidity
• Share election framework uses VWAP on Mar 19, 20, 23, 2026

Negative

• Majority of distribution payable in common shares, causing potential dilution
• Cash limit of 20% may disappoint cash-seeking shareholders
• Distribution expected to be taxable to shareholders regardless of form

Key Figures

Quarterly distribution: $0.15 per common share Cash component cap: 20% of distribution Minimum cash to electors: 20% of distribution +5 more

8 metrics

Quarterly distribution $0.15 per common share Declared by board for upcoming quarterly payout

Cash component cap 20% of distribution Maximum aggregate cash portion; remainder in common shares

Minimum cash to electors 20% of distribution Shareholders electing cash receive at least this portion in cash

Payment date March 31, 2026 Scheduled date distribution will be paid

Record date February 20, 2026 Shareholders of record on this date qualify for distribution

Election deadline time 5:00 p.m. Eastern Time Cutoff for Equiniti Trust to receive election forms on March 18, 2026

Election deadline date March 18, 2026 Last date to elect cash or share distribution with transfer agent

VWAP pricing dates March 19, 20, and 23, 2026 Dates used to compute VWAP for share distribution pricing

Market Reality Check

Price: $4.70 Vol: Volume 267,347 vs 20-day ...

normal vol

$4.70 Last Close

Volume Volume 267,347 vs 20-day average 321,137, indicating activity near typical levels ahead of the announcement. normal

Technical Shares trade above the 200-day MA of 3.84 with a pre-news price of 4.70, showing recovery from prior lows.

Peers on Argus

NXDT was down 1.47% pre-news, while peers were mixed: FVR -2.82%, CTO -0.81%, OL...

NXDT was down 1.47% pre-news, while peers were mixed: FVR -2.82%, CTO -0.81%, OLP flat, GOOD slightly positive at 0.09%, and GNL up 1.87%, suggesting a stock-specific setup rather than a clear sector move.

Historical Context

5 past events · Latest: Jan 30 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 30	Dividend tax treatment	Neutral	-1.2%	Outlined 2025 dividend income allocations and return-of-capital treatment.
Nov 17	Investor update call	Positive	+8.5%	Announced investor call to discuss portfolio updates and performance.
Oct 28	Quarterly distribution	Neutral	-3.8%	Declared $0.15 distribution with 20% cash cap and stock election feature.
Oct 28	Preferred distribution	Neutral	-3.8%	Announced $0.34375 per share distribution on Series A preferred stock.
Oct 28	Correction notice	Neutral	-3.8%	Corrected dates and details for the Series A preferred distribution.

Pattern Detected

Recent dividend and tax-related announcements have often been followed by modest negative price reactions, even when the news was routine or neutral in tone.

Recent Company History

Over the last several months, NXDT has repeatedly highlighted distributions of $0.15 per common share and the use of stock-based payments to preserve capital and maintain REIT status. The October 28, 2025 quarterly distribution, structured with a 20% cash cap and share elections, saw a -3.83% move afterward. A January 2026 tax treatment update and preferred share distribution notices were also followed by mild declines. An investor update call on Dec 9, 2025 coincided with an 8.48% gain, showing selective positive reactions to broader strategic updates.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-08-22

An S-3 filed on 2025-08-22 registers up to 6,000,000 common shares for resale by an affiliated selling shareholder tied to advisory fee payments. The company will not receive any proceeds from these resale transactions, as cash goes to the selling shareholder rather than NXDT.

Market Pulse Summary

This announcement details a quarterly $0.15 distribution structured with a 20% cash cap and the bala...

Analysis

This announcement details a quarterly $0.15 distribution structured with a 20% cash cap and the balance in NXDT shares, using VWAP over specified March dates to set issuance levels. The design supports REIT qualification and capital retention, echoing prior stock-based distribution practices. Investors may contextualize this alongside the existing registration for up to 6,000,000 resale shares by an affiliated adviser and recent routine dividend and tax disclosures when evaluating overall equity supply and flexibility.

Key Terms

real estate investment trust, volume-weighted average trading prices

2 terms

real estate investment trust regulatory

"This will allow NXDT to comply with the real estate investment trust ("REIT") qualification"

A real estate investment trust (REIT) is a company that owns and manages income-producing properties—like apartment buildings, shopping centers, offices, or warehouses—and is required to pass most of its rental income to shareholders as dividends. Think of it as a shared property owner: instead of buying a whole building, investors buy a slice of a portfolio that pays regular income and can offer exposure to property values and rental markets without direct management. REITs matter to investors for predictable income, diversification, and liquidity compared with owning physical real estate.

volume-weighted average trading prices technical

"calculated based on the volume-weighted average trading prices of NXDT's common shares"

An average price for a stock over a specified period that gives larger trades more influence by weighting each trade price by the number of shares exchanged, producing one representative price for that timeframe. Investors use it as a practical yardstick to judge execution quality and market fairness — like checking whether you paid more or less than what most buyers paid during the same period — and to spot whether price movement is backed by real trading activity.

AI-generated analysis. Not financial advice.

DALLAS, Feb. 10, 2026 /PRNewswire/ -- NexPoint Diversified Real Estate Trust ("NXDT") (NYSE: NXDT) announced today that its board of trustees has declared a quarterly distribution of $0.15 per common share of NXDT, consisting of a combination of cash and common shares of NXDT.  The distribution will be payable on March 31, 2026, to shareholders of record on February 20, 2026.

The board of trustees has determined that the cash component of the distribution (other than cash paid in lieu of fractional shares) will not exceed 20% in the aggregate, with the balance payable in common shares of NXDT. This will allow NXDT to comply with the real estate investment trust ("REIT") qualification requirements under the Internal Revenue Code, while retaining capital and enhancing NXDT's financial flexibility.

In accordance with the provisions of IRS Revenue Procedure 2017-45, shareholders will be asked to make an election to receive the distribution all in cash or all in shares. To the extent that more than 20% of cash is elected in the aggregate, the cash portion will be prorated. Shareholders who elect to receive the distribution in cash will receive at least 20% of the distribution in cash. Shareholders who do not make an election will receive the distribution entirely in common shares of NXDT. The number of shares issued as a result of the distribution will be calculated based on the volume-weighted average trading prices of NXDT's common shares on the New York Stock Exchange on March 19, 20, and 23, 2026.

An election notice and election form will be mailed to shareholders of record after the record date. The properly completed election form to receive cash or common shares must be received by Equiniti Trust Company, NXDT's transfer agent, prior to 5:00 p.m. Eastern Time on March 18, 2026.

Shareholders who hold their shares through a bank or broker should inform the bank or broker of their election. NXDT expects the distribution to be a taxable distribution to shareholders, regardless of whether a particular shareholder receives the distribution in the form of cash or shares. Shareholders are urged to consult with their tax advisers for proper tax treatment of NXDT's distributions. NXDT reserves the right to pay future distributions entirely in cash.

About NexPoint Diversified Real Estate Trust (NYSE: NXDT)

NexPoint Diversified Real Estate Trust is an externally advised, publicly traded, diversified 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.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. In particular, statements relating to the tax status of the distribution, and NXDT's capital retention and financial flexibility contain forward-looking statements. We caution investors that any forward-looking statements presented in this press release are based on management's current beliefs and assumptions made by, and information currently available to, management. When used, the words "will," "retain," "expect" and "enhance," the negative version of these words and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions.

Forward-looking statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control, including those described in greater detail in our filings with the Securities and Exchange Commission (the "SEC") particularly those described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements and encourage you to review our other filings with the SEC for a more complete discussion of risks and other factors that could affect any forward-looking statement.

CONTACTS

Investor Relations
Kristen Griffith
IR@nexpoint.com

Media Relations
Comms@nexpoint.com

 

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SOURCE NexPoint Diversified Real Estate Trust

FAQ

What distribution did NexPoint Diversified Real Estate Trust (NXDT) declare for March 2026?

NXDT declared a quarterly distribution of $0.15 per common share. According to NexPoint Diversified Real Estate Trust, the payout will be a mix of cash and common shares with cash limited to 20% aggregate.

When is the NXDT distribution record date and payment date for the $0.15 payout?

The record date is February 20, 2026 and the payment date is March 31, 2026. According to NexPoint Diversified Real Estate Trust, shareholders of record on Feb 20 will receive the March 31 distribution.

How can NXDT shareholders elect cash or shares for the March 2026 distribution?

Shareholders can elect all cash or all shares per IRS Revenue Procedure 2017-45 by returning the election form. According to NexPoint Diversified Real Estate Trust, completed forms must be received by Equiniti by 5:00 p.m. ET on March 18, 2026.

What happens if more than 20% of NXDT shareholders elect cash for the distribution?

If aggregate cash elections exceed 20%, the cash portion will be prorated and reduced. According to NexPoint Diversified Real Estate Trust, the company will allocate at least 20% cash where possible and issue remaining value in shares.

How will NXDT calculate the number of shares issued for the distribution?

The share issuance will be based on the volume-weighted average price (VWAP) of NXDT common shares. According to NexPoint Diversified Real Estate Trust, VWAP will be measured on March 19, 20, and 23, 2026.