NexPoint Diversified Real Estate Trust Announces Quarterly Distribution

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NexPoint Diversified Real Estate Trust (NYSE: NXDT) has declared a quarterly distribution of $0.15 per common share, payable on September 30, 2024, to shareholders of record on August 15, 2024. The distribution will be a combination of cash and common shares, with the cash component not exceeding 20% in aggregate. This structure aims to comply with REIT qualification requirements while retaining capital and enhancing financial flexibility.

Shareholders can elect to receive the distribution all in cash or all in shares, with a minimum of 20% in cash for those electing cash. The number of shares issued will be calculated based on the volume-weighted average trading prices on September 18-20, 2024. Election forms must be received by September 17, 2024. NXDT expects the dividend to be taxable, regardless of the form received.

Positive

• Quarterly distribution of $0.15 per common share declared
• Distribution structure allows NXDT to comply with REIT requirements
• Retains capital and enhances financial flexibility

Negative

• Cash component to 20% of the distribution
• Potential share dilution due to stock component of distribution

News Market Reaction

-2.31%

1 alert

-2.31% News Effect

On the day this news was published, NXDT declined 2.31%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

DALLAS, July 31, 2024 /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, 2024, to shareholders of record on August 15, 2024.

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 18, 19 and 20, 2024.

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 17, 2024.

Shareholders who hold their shares through a bank or broker should inform the bank or broker of their election. NXDT expects the dividend to be a taxable dividend to shareholders, regardless of whether a particular shareholder receives the dividend 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 dividends 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 Thomas
IR@nexpoint.com

Media Relations
Prosek Partners for NexPoint
pro-nexpoint@prosek.com

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SOURCE NexPoint Diversified Real Estate Trust

FAQ

What is the quarterly distribution amount for NexPoint Diversified Real Estate Trust (NXDT)?

NexPoint Diversified Real Estate Trust (NXDT) has declared a quarterly distribution of $0.15 per common share.

When is the payment date for NXDT's quarterly distribution?

The quarterly distribution for NXDT will be payable on September 30, 2024.

What is the record date for NXDT's quarterly distribution?

The record date for NXDT's quarterly distribution is August 15, 2024.

How will NXDT's quarterly distribution be paid?

NXDT's quarterly distribution will be paid as a combination of cash and common shares, with the cash component not exceeding 20% in aggregate.

Can shareholders choose how to receive NXDT's distribution?

Yes, shareholders can elect to receive the distribution all in cash or all in shares, with those electing cash receiving at least 20% of the distribution in cash.