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 December 31, 2025, to shareholders of record on November 21, 2025.

The board capped the cash component at 20% of the distribution in the aggregate, with the balance payable in common shares to help preserve REIT qualification and retain capital for financial flexibility. Shareholders may elect all cash or all shares under IRS Revenue Procedure 2017-45; cash elections will be prorated if aggregate cash elections exceed 20%.

Share issuance will be based on the VWAP of NXDT common shares on December 18, 19 and 22, 2025. Election forms will be mailed after the record date; completed forms must be received by Equiniti Trust Company by 5:00 p.m. ET on December 17, 2025. NXDT expects the distribution to be taxable to shareholders.

Positive

• Declared distribution of $0.15 per common share
• Board capped cash at 20% to retain capital
• Share issuance method uses VWAP on Dec 18, 19 and 22, 2025

Negative

• Majority of distribution payable in shares, creating dilution risk
• Cash elections prorated if aggregate cash exceeds 20%
• Company expects the distribution to be taxable to shareholders

Insights

Dividend Strategist

Quarterly distribution of $0.15 set, mostly paid in shares with up to 20% cash; record and pay dates specified.

The board declared a $0.15 per-share quarterly distribution payable on December 31, 2025 to holders of record on November 21, 2025. The payout will be a mix of cash and common shares with the cash component capped at 20% in the aggregate, and shareholders may elect all-cash or all-shares under IRS Revenue Procedure 2017-45; excess cash elections will be prorated.

This structure preserves liquidity by issuing shares for the majority of the distribution while meeting REIT qualification and tax rules; it also creates dilution for continuing shareholders receiving shares and reduces immediate cash outflow. Key mechanics to note are the VWAP calculation dates (December 18, 19 and 22, 2025), the election deadline of December 17, 2025 (5:00 p.m. ET), and the transfer agent processing through Equiniti Trust Company.

Watch for the mailed election form after the record date, investor election participation rates by the December 17, 2025 deadline, and the resulting cash proration if aggregate cash elections exceed 20%. These items will determine near-term cash use and the magnitude of share issuance on December 31, 2025.

DALLAS, Oct. 28, 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 December 31, 2025, to shareholders of record on November 21, 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 December 18, 19 and 22, 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 December 17, 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 distribution did NXDT declare for December 31, 2025?

NXDT declared a quarterly distribution of $0.15 per common share, payable December 31, 2025.

What is the NXDT record date and payment date for the distribution?

The record date is November 21, 2025 and the payment date is December 31, 2025.

How much cash will NXDT pay per distribution versus shares for NXDT (NYSE: NXDT)?

The board capped the aggregate cash component at 20%; the balance will be paid in common shares.

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

Shares will be calculated using the volume-weighted average price (VWAP) on December 18, 19 and 22, 2025.

What is the deadline to elect cash or shares for the NXDT distribution?

Completed election forms must be received by Equiniti Trust Company by 5:00 p.m. ET on December 17, 2025.

Will the NXDT distribution be taxable to shareholders?

NXDT expects the distribution to be taxable to shareholders regardless of cash or share form.

What happens if more than 20% of shareholders elect to receive cash for NXDT?

If aggregate cash elections exceed 20%, the cash portion will be prorated among electing shareholders.