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 September 30, 2025, to shareholders of record as of August 14, 2025.

The distribution will be paid through a combination of cash and NXDT common shares, with the cash component limited to 20% of the total distribution. Shareholders can elect to receive the distribution all in cash (subject to proration) or all in shares. The share price will be calculated based on the volume-weighted average trading prices during September 22-24, 2025.

This structure helps NXDT maintain REIT qualification requirements while preserving capital and financial flexibility.

Positive

• Distribution maintained at $0.15 per share, providing consistent shareholder returns
• Structure allows NXDT to retain capital and enhance financial flexibility
• Shareholders have flexibility to choose between cash and shares

Negative

• Cash portion limited to 20% of total distribution, potentially forcing share dilution
• Cash elections will be prorated if aggregate cash requests exceed 20%

DALLAS, July 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 September 30, 2025, to shareholders of record on August 14, 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 September 22, 23 and 24, 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 September 19, 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

View original content to download multimedia:https://www.prnewswire.com/news-releases/nexpoint-diversified-real-estate-trust-announces-quarterly-distribution-302516332.html

SOURCE NexPoint Diversified Real Estate Trust

FAQ

What is the amount of NXDT's quarterly distribution for Q3 2025?

NXDT declared a quarterly distribution of $0.15 per common share, payable on September 30, 2025.

When is the record date for NXDT's Q3 2025 distribution?

The record date for NXDT's distribution is August 14, 2025.

How will NXDT's Q3 2025 distribution be paid?

The distribution will be paid in a combination of cash and NXDT common shares, with the cash portion limited to 20% of the total distribution.

What options do NXDT shareholders have for receiving the Q3 2025 distribution?

Shareholders can elect to receive the distribution either all in cash (subject to 20% limitation and proration) or all in shares. Without an election, shareholders will receive the distribution entirely in shares.

When is the deadline for NXDT shareholders to make their distribution election?

Shareholders must submit their election to Equiniti Trust Company by 5:00 p.m. Eastern Time on September 19, 2025.