NexPoint Diversified Real Estate Trust - NXDT STOCK NEWS

NexPoint Real Estate Opportunities announced it will not attend or vote at UDF IV's Annual Meeting on December 10, 2024, citing concerns about the recently announced merger with Ready Capital (NYSE:RC). NexPoint criticizes the timing of the merger announcement, made just eight days before the Annual Meeting, and the lack of proper disclosures for shareholders to evaluate the transaction.

The company calls for the meeting's adjournment until full disclosure is provided, arguing that UDF IV is manipulating shareholders by suggesting that voting for NexPoint's nominees equals voting against the merger. Both Glass Lewis and Egan-Jones proxy advisory firms recommend voting 'FOR' all NexPoint nominees, expressing concerns about the merger's timing and transparency.

NexPoint Real Estate Opportunities announced a video call scheduled for December 6, 2024, at 11:00 a.m. CST to update UDF IV shareholders on two key matters: the proposed acquisition by Ready Capital and the upcoming Board of Trustees election at the Annual Meeting.

The call aims to provide shareholders, financial advisors, and representatives with comprehensive information needed for informed voting at the upcoming Annual Meeting. Participants can register at udfaccountability.com/dec-6-update and submit questions in advance either through the registration link or via email at ir@nexpoint.com.

NexPoint Real Estate Opportunities has commented on the proposed acquisition of UDF IV by Ready Capital . The deal offers a potential $5.89 per share, which includes up to $75 million in contingent cash distributions, significantly below UDF IV's reported book value of $9.47 per share.

NexPoint expresses concerns about the transaction's terms and the current Board's transparency, particularly regarding withheld Disclosure Schedules material to the merger agreement. The company continues to advocate for shareholders to support NexPoint's nominees at the upcoming December 10, 2024 annual meeting, which represents the first court-ordered election of independent Trustees in over eight years.

NexPoint Hospitality Trust (NHT) announced its acquisition by NexPoint Diversified Real Estate Trust (NXDT) through a definitive merger agreement signed on November 22, 2024. Under the deal, NHT unitholders will receive either US$0.36 cash per unit or NXDT common shares equivalent to US$0.36. The transaction price represents a 2300% premium to NHT's 30-day volume weighted average price. The deal, expected to close in Q1 2025, requires approval from two-thirds of unitholders and majority of minority shareholders. NXDT currently owns approximately 82.86% of NHT's outstanding units.

NexPoint Real Estate Opportunities has issued a critical mailing to shareholders of United Development Funding IV (UDF IV) ahead of the Annual Meeting of Shareholders. The mailing highlights serious concerns about the current Board's actions, including failing to hold annual meetings for eight years, avoiding financial transparency, and using shareholder funds to pay for former executives' legal issues. NexPoint criticizes the Board for allowing the loan portfolio to become 98% concentrated with a single borrower and permitting over $100 million in loan extensions. The company urges shareholders to vote for NexPoint's nominees using their GREEN proxy materials to implement necessary changes and maximize shareholder value.

NexPoint Real Estate Opportunities provided an update on the United Development Funding IV (UDF IV) Board of Trustees election, highlighting the Board's failure to address critical shareholder concerns. The current Board is accused of using deflection tactics to avoid accountability for past criminal misconduct, disclosure violations, and governance failures. Key unaddressed questions include the Board's inaction after criminal convictions of former executives, continued payments to imprisoned executives through advisory agreements, and lack of plans to maximize shareholder value. NexPoint urges shareholders to vote using the GREEN proxy card to replace current Trustees with their nominees to implement critical changes and recover value.

NexPoint Diversified Real Estate Trust (NYSE: NXDT) has declared a dividend of $0.34375 per share for its 5.50% Series A Cumulative Preferred Shares (NYSE: NXDT PR A). The dividend will be distributed on December 31, 2024, to shareholders recorded as of December 23, 2024.

NexPoint Diversified Real Estate Trust (NXDT) has announced two significant updates: a quarterly distribution of $0.15 per common share and a new $20 million share repurchase program. The distribution, payable on December 31, 2024, will be a combination of cash and NXDT shares, with the cash component not exceeding 20%. Shareholders can elect to receive all cash or all shares, though cash elections may be prorated. The share repurchase program, effective until October 28, 2026, authorizes the repurchase of both common shares and 5.50% Series A Cumulative Preferred Shares.

NexPoint Real Estate Opportunities has filed an emergency motion in Baltimore City Circuit Court to compel United Development Funding IV (UDF IV) to provide comprehensive shareholder information and lists. NexPoint currently has contact information for only 14% of outstanding shares across 13% of accounts. The motion requests UDF IV's Annual Meeting be held between December 16-31, 2024, allowing NexPoint adequate time to communicate with shareholders. NexPoint criticizes UDF IV's Board for lack of transparency and shareholder communications, noting only one annual meeting held in nine years. The company's delisting and deregistration have made shareholder communication challenging.