NexPoint Diversified Real Estate Trust Announces Quarterly Distribution

Rhea-AI Summary

NexPoint Diversified Real Estate Trust (NYSE: NXDT) has declared a quarterly distribution of $0.15 per common share, payable on June 30, 2025, to shareholders of record on May 9, 2025.

The distribution will combine cash and common shares, with the cash portion limited to 20% of the total distribution. Shareholders can elect to receive either all cash or all shares, though cash elections may be prorated if total cash requests exceed the 20% limit. Those who don't make an election will receive shares only.

Share calculations will be based on volume-weighted average trading prices during June 16-18, 2025. Election forms must be submitted to Equiniti Trust Company by June 13, 2025. The distribution is expected to be taxable, and shareholders are advised to consult tax advisers. NXDT maintains the right to pay future distributions entirely in cash.

Positive

• Maintaining quarterly distribution of $0.15 per share, showing commitment to shareholder returns
• Strategic capital retention through share-based distribution helps maintain financial flexibility

Negative

• Cash component limited to 20% of distribution, indicating potential cash conservation needs
• Dilutive effect on shareholders due to majority of distribution being paid in shares
• Mandatory share distribution suggests possible cash flow constraints

News Market Reaction – NXDT

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In the trading session that priced this news, NXDT declined 1.13%, reflecting a mild negative market reaction.

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DALLAS, April 29, 2025 /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 June 30, 2025, to shareholders of record on May 9, 2025.

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 June 16, 17 and 18, 2025.

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 June 13, 2025.

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 is the NXDT quarterly distribution amount for June 30, 2025?

NexPoint Diversified Real Estate Trust (NXDT) declared a quarterly distribution of $0.15 per common share, payable on June 30, 2025, to shareholders of record on May 9, 2025.

How will NXDT shareholders receive their Q2 2025 distribution payment?

Shareholders can elect to receive the distribution all in cash or all in shares. The cash portion is limited to 20% of the total distribution, with the remainder paid in NXDT common shares. Shareholders who don't make an election will receive the distribution entirely in shares.

When is the deadline to elect NXDT distribution payment method for Q2 2025?

Shareholders must submit their completed election form to Equiniti Trust Company by 5:00 p.m. Eastern Time on June 13, 2025, to choose between cash or shares payment method.

How will NXDT calculate the number of shares for the Q2 2025 distribution?

The number of shares will be calculated based on the volume-weighted average trading prices of NXDT's common shares on the NYSE during June 16, 17, and 18, 2025.

Is the NXDT Q2 2025 quarterly distribution taxable?

Yes, NXDT expects the distribution to be taxable to shareholders, regardless of whether received in cash or shares. Shareholders should consult their tax advisers for proper tax treatment.