NexPoint Alerts United Development Funding IV (UDF IV) Shareholders to Current Board's Red Flags, Including Track Record of Fraud and Value Destruction
NexPoint Real Estate Opportunities has sent a letter to shareholders of United Development Funding IV (UDF IV) ahead of the company's upcoming Annual Meeting of Shareholders. The letter urges shareholders to consider red flags surrounding UDF IV's current Board of Trustees, citing their track record of overseeing fraud and value destruction. NexPoint encourages shareholders to vote for change by supporting their nominees: Paul S. Broaddus, Edward N. Constantino, John A. Good, and Julie Silcock.
Shareholders can vote using NexPoint's GREEN proxy materials to elect new Trustees who will work to maximize value at UDF IV. NexPoint has set up a website, udfaccountability.com, for shareholders to receive updates about the company and the upcoming Annual Meeting, which must be held on or before December 31, 2024.
NexPoint Real Estate Opportunities ha inviato una lettera agli azionisti di United Development Funding IV (UDF IV) in vista dell'imminente Assemblea Annuale degli Azionisti dell'azienda. La lettera esorta gli azionisti a considerare i segnali di allerta riguardanti l'attuale Consiglio di Amministrazione di UDF IV, citando il loro passato di supervisione di frodi e distruzione di valore. NexPoint incoraggia gli azionisti a votare per un cambiamento supportando i loro candidati: Paul S. Broaddus, Edward N. Constantino, John A. Good e Julie Silcock.
Gli azionisti possono votare utilizzando i materiali di delega VERDI di NexPoint per eleggere nuovi Amministratori che lavoreranno per massimizzare il valore di UDF IV. NexPoint ha creato un sito web, udfaccountability.com, affinché gli azionisti possano ricevere aggiornamenti sull'azienda e sull'imminente Assemblea Annuale, che deve svolgersi entro e non oltre il 31 dicembre 2024.
NexPoint Real Estate Opportunities ha enviado una carta a los accionistas de United Development Funding IV (UDF IV) antes de la próxima Reunión Anual de Accionistas de la empresa. La carta insta a los accionistas a considerar las señales de alerta sobre la actual Junta de Fideicomisarios de UDF IV, citando su historial de supervisión de fraudes y destrucción de valor. NexPoint anima a los accionistas a votar por un cambio apoyando a sus nominados: Paul S. Broaddus, Edward N. Constantino, John A. Good y Julie Silcock.
Los accionistas pueden votar utilizando los materiales de poder VERDES de NexPoint para elegir nuevos Fideicomisarios que trabajen para maximizar el valor en UDF IV. NexPoint ha creado un sitio web, udfaccountability.com, para que los accionistas reciban actualizaciones sobre la empresa y la próxima Reunión Anual, que debe realizarse el 31 de diciembre de 2024 o antes.
NexPoint 부동산 기회는 United Development Funding IV (UDF IV) 주주에게 회사의 다가오는 연례 주주총회를 앞두고 편지를 보냈습니다. 이 편지는 주주들에게 UDF IV 현재 이사회에 대한 위험 신호를 고려할 것을 촉구하며, 이들이 사기와 가치 파괴를 감독한 경과를 인용합니다. NexPoint는 주주들에게 Paul S. Broaddus, Edward N. Constantino, John A. Good, Julie Silcock이라는 후보들을 지지함으로써 변화를 위해 투표할 것을 권장합니다.
주주들은 NexPoint의 GREEN 위임장을 사용하여 UDF IV의 가치를 극대화하기 위해 일할 새로운 이사를 선출할 수 있습니다. NexPoint는 주주들이 회사 및 예정된 연례 회의에 대한 업데이트를 받을 수 있도록 udfaccountability.com이라는 웹사이트를 개설했습니다. 이 회의는 2024년 12월 31일 이전에 개최되어야 합니다.
NexPoint Real Estate Opportunities a envoyé une lettre aux actionnaires de United Development Funding IV (UDF IV) avant la prochaine Assemblée Annuelle des Actionnaires de l'entreprise. La lettre exhorte les actionnaires à considérer les signaux d'alerte concernant l'actuel Conseil d'Administration de UDF IV, citant leur bilan de supervision de fraude et de destruction de valeur. NexPoint encourage les actionnaires à voter pour le changement en soutenant leurs candidats : Paul S. Broaddus, Edward N. Constantino, John A. Good et Julie Silcock.
Les actionnaires peuvent voter en utilisant les documents de procuration VERT de NexPoint pour élire de nouveaux Administrateurs qui travailleront à maximiser la valeur de UDF IV. NexPoint a mis en place un site Web, udfaccountability.com, pour que les actionnaires reçoivent des mises à jour sur l'entreprise et la prochaine Assemblée Annuelle, qui doit avoir lieu au plus tard le 31 décembre 2024.
NexPoint Real Estate Opportunities hat einen Brief an die Aktionäre von United Development Funding IV (UDF IV) vor der bevorstehenden Hauptversammlung der Aktionäre des Unternehmens gesendet. Der Brief fordert die Aktionäre auf, auf die Warnsignale rund um den aktuellen Vorstand von UDF IV zu achten und verweist auf deren Vorgeschichte bei der Überwachung von Betrug und Wertvernichtung. NexPoint ermutigt die Aktionäre, für Veränderungen zu stimmen, indem sie ihre Nominierungen unterstützen: Paul S. Broaddus, Edward N. Constantino, John A. Good und Julie Silcock.
Die Aktionäre können mit den GRÜNEN Stimmunterlagen von NexPoint abstimmen, um neue Treuhänder zu wählen, die daran arbeiten werden, den Wert von UDF IV zu maximieren. NexPoint hat eine Website, udfaccountability.com, eingerichtet, damit die Aktionäre Updates über das Unternehmen und die bevorstehende Hauptversammlung erhalten können, die spätestens am 31. Dezember 2024 stattfinden muss.
- NexPoint is actively engaging shareholders to promote board change
- NexPoint has nominated four new trustee candidates for UDF IV's board
- Current UDF IV Board of Trustees accused of overseeing fraud and value destruction
- UDF IV facing governance issues and potential shareholder dissatisfaction
Insights
The ongoing dispute between NexPoint and UDF IV's current Board raises significant governance concerns. NexPoint's allegations of fraud and value destruction are serious red flags that warrant investor attention. The push for board change suggests deep-rooted issues in UDF IV's management and oversight.
Shareholders should carefully evaluate the track record of the incumbent trustees and compare it with the qualifications of NexPoint's nominees. The upcoming Annual Meeting represents a critical juncture for UDF IV's future direction and potential value recovery. Investors should thoroughly review both sides' arguments and voting materials to make an informed decision.
This situation underscores the importance of active shareholder engagement in corporate governance matters, particularly in cases of alleged mismanagement. The outcome of this proxy contest could have significant implications for UDF IV's strategic direction and shareholder value.
The ongoing conflict at UDF IV highlights the challenges facing the REIT sector, particularly in terms of governance and transparency. The allegations of fraud and value destruction, if proven true, could have far-reaching implications for investor confidence in the broader REIT market.
UDF IV's performance and management practices should be benchmarked against industry peers to assess the validity of NexPoint's claims. Investors should consider the potential impact of board changes on UDF IV's investment strategy, asset management and dividend policy.
The outcome of this proxy contest could set a precedent for activist interventions in underperforming REITs. Shareholders should weigh the potential for value creation under new leadership against the risks of disruption during a board transition. The REIT's underlying asset quality and market conditions will be important factors in determining its future performance, regardless of board composition.
The allegations of fraud against UDF IV's current Board raise significant legal concerns. Shareholders should be aware of potential litigation risks and regulatory scrutiny that may arise from these claims. If substantiated, these allegations could lead to shareholder lawsuits, regulatory investigations and potential financial penalties.
The proxy contest itself carries legal implications. Both NexPoint and the incumbent Board must ensure compliance with securities laws and proxy solicitation rules. Shareholders should scrutinize the disclosures and claims made by both parties for accuracy and completeness.
The outcome of the board election could have legal ramifications for UDF IV's future operations and governance practices. New trustees may initiate internal investigations or legal actions against former board members if wrongdoing is discovered. Investors should monitor for any regulatory filings or legal developments that may impact the company's value and operations.
Urges Shareholders to Vote for Board Change by Supporting NexPoint Nominees
In its letter, NexPoint urges shareholders to consider the numerous red flags around UDF IV's current Board of Trustees before voting in the Trustee election. Given the incumbent Trustees' track record on the Board, which includes presiding over fraud and value destruction, among other offenses, NexPoint encourages shareholders to vote for change by supporting NexPoint nominees: Paul S. Broaddus, Edward N. Constantino, John A. Good, and Julie Silcock.
Shareholders can read the full letter here.
While the Company has not announced an Annual Meeting date, shareholders can vote TODAY using NexPoint's GREEN proxy materials to enact long overdue change and elect Trustees who will work for all shareholders to maximize value at UDF IV.
NexPoint encourages shareholders to visit udfaccountability.com and complete the contact form to receive ongoing updates about the Company and the upcoming Annual Meeting.
Shareholders can also contact NexPoint via email at udfinvestors@nexpoint.com.
About NexPoint
NexPoint Real Estate Opportunities, LLC is a wholly owned subsidiary of NexPoint Diversified Real Estate Trust, Inc. (NYSE: NXDT), an affiliate of NexPoint Advisors, L.P.
NexPoint Advisors, L.P. is an SEC-registered adviser on the NexPoint alternative investment platform. It serves as the adviser to a suite of funds and investment vehicles, including a closed-end fund, interval fund, business development company, and various real estate vehicles. For more information visit www.nexpoint.com
IMPORTANT INFORMATION
NexPoint Real Estate Opportunities, LLC ("NexPoint") intends to deliver a proxy statement with respect to its solicitation of proxies for nominees to be elected to the United Development Funding IV ("UDF IV") Board of Trustees at the Annual Meeting of Shareholders of UDF IV. The date for the Annual Meeting has not yet been set and NexPoint is not soliciting proxies at this time. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE NEXPOINT PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) WHEN AVAILABLE IN ITS ENTIRETY BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT ANY SOLICITATION. Copies of the documents will be made available free of charge from NexPoint by accessing the website www.udfaccountability.com.
NexPoint, its affiliates, their directors and executive officers and other members of management and employees may be participants (collectively "Participants") in the solicitation of proxies by NexPoint. Information about NexPoint's nominees to the UDF IV Board of Trustees and information regarding the direct or indirect interests in UDF IV, by security holdings or otherwise, of NexPoint, the other Participants and NexPoint's nominees will be available in the proxy statement. NexPoint's disclosure of any security holdings will be based on information made available to NexPoint by such Participants and nominees. UDF IV is no longer subject to the reporting requirements of the Securities Exchange Act of 1934, as amended. Consequently, NexPoint's knowledge of significant security holders of UDF IV and as to UDF IV itself is limited.
CONTACT INFORMATION
UDF IV Investor Contacts
Chuck Garske / Jeremy Provost / Theo Caminiti (Okapi Partners):
Email: info@okapipartners.com
Phone: (212) 297-0720
For Additional Information/Updates on UDF IV
Website: www.udfaccountability.com
Email: udfinvestors@nexpoint.com
Media Contacts
Lucy Bannon (NexPoint): lbannon@nexpoint.com
Paul Caminiti/Pamela Greene (Reevemark): nexpointteam@reevemark.com
NexPoint Investor Relations
Kristen Thomas: ir@nexpoint.com
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SOURCE NexPoint Advisors, L.P.
FAQ
When is UDF IV's Annual Meeting of Shareholders scheduled?
Who are NexPoint's nominees for UDF IV's Board of Trustees?
What are the main concerns NexPoint has raised about UDF IV's current Board?
How can shareholders vote for NexPoint's nominees for UDF IV's Board?
