NexPoint Diversified Real Estate Trust Declares Regular Monthly Distribution

Rhea-AI Summary

NexPoint Diversified Real Estate Trust (NYSE: NXDT) announced a regular monthly distribution of $0.05 per share, payable on January 31, 2022, to shareholders of record by January 24, 2022. The company is transitioning to a diversified REIT and has secured shareholder approval for this conversion. Although the transition aims to reposition the portfolio for REIT tax status, it remains contingent on regulatory approvals. Potential impacts from the COVID-19 pandemic and market conditions may affect the timeline and success of the REIT conversion.

Positive

• Declared a monthly distribution of $0.05 per share, enhancing investor confidence.
• Received shareholder approval for conversion to a diversified REIT, positioning NXDT for long-term growth.

Negative

• REIT conversion is contingent on regulatory approval and restructuring of the portfolio.
• Potential impacts from the COVID-19 pandemic may delay the conversion process.
• No guarantee that conversion will improve performance or reduce discount to NAV.

DALLAS, Jan. 03, 2022 (GLOBE NEWSWIRE) -- NexPoint Diversified Real Estate Trust (NYSE: NXDT) (“NXDT” or the “Company”) today announced its regular monthly distribution on its common stock of $0.05 per share. The distribution will be payable on January 31, 2022 to shareholders of record at the close of business January 24, 2022.

About the NexPoint Diversified Real Estate Trust (NXDT)

The NexPoint Diversified Real Estate Trust (NYSE: NXDT) is a closed-end fund managed by NexPoint Advisors, L.P. that is in the process of converting to a diversified REIT. On August 28, 2020, shareholders approved the conversion proposal and amended the Company’s fundamental investment policies and restrictions to permit the Company to pursue its new business. The Company is realigning its portfolio so that it is no longer an “investment company” under the Investment Company Act of 1940 (the “1940 Act”). On March 31, 2021, the Company filed an application (the “Deregistration Application”) with the Securities and Exchange Commission (the “SEC”) for an order under the 1940 Act declaring that the Company is no longer an investment company (the “Deregistration Order”). On September 13, 2021, the Company filed an amendment to the Deregistration Application, which provides additional information regarding the realignment of the Company’s portfolio. The Company will continue to be structured as a registered closed-end investment company until it receives the Deregistration Order; however, the Company has repositioned its portfolio sufficient to achieve REIT tax status and is operating during its 2021 taxable year so that it may qualify for taxation as a REIT.

Effective November 8, 2021, NHF changed its name to NexPoint Diversified Real Estate Trust and is traded on the New York Stock Exchange under the ticker NXDT.

For more information visit www.nexpoint.com/nexpoint-strategic-opportunities-fund/.

About 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 (“BDC”), and various real estate vehicles. For more information visit www.nexpoint.com. 

Risks and Disclosures

Investors should consider the investment objectives, risks, charges and expenses of the NexPoint Diversified Real Estate Trust carefully before investing. This and other information can be found in the Company's prospectus, which may be obtained by calling 1-866-351-4440 or visiting www.nexpoint.com/nexpoint-strategic-opportunities-fund. Please read the prospectus carefully before you invest.

Shares of closed-end investment companies frequently trade at a discount to net asset value. The price of the Company’s shares is determined by a number of factors, several of which are beyond the control of the Company. Therefore, the Company cannot predict whether its shares will trade at, below or above net asset value. Past performance does not guarantee future results.

The distribution may include a return of capital. Please refer to the Source of Distribution on the NexPoint Advisors website for Section 19 notices that provide estimated amounts and sources of the Company’s distributions, which should not be relied upon for tax reporting purposes.

While NexPoint is committed to the REIT conversion, it is still contingent upon regulatory approval and the ability to reconfigure NXDT’s portfolio to attain REIT status and deregister as an investment company. The time required to reconfigure the Company’s portfolio could be impacted by, among other things, the COVID-19 pandemic and related market volatility, determinations to preserve capital, the Company’s ability to identify and execute on desirable investments, and applicable regulatory, lender and governance requirements.  The conversion process could take up to 24 months; and there can be no assurance that conversion of NXDT to REIT status will improve its performance or reduce the discount to NAV. Further, the SEC may determine not to grant the Company’s request for the Deregistration Order, which would materially change the Company’s plans for its business and investments.

In addition, these actions may adversely affect the Company's financial condition, yield on investment, results of operations, cash flow, per share trading price of its common shares, and ability to satisfy debt service obligations, if any, and to make cash distributions to shareholders. Whether the Company remains a registered investment company or converts to a REIT, its common shares, like an investment in any other public company, are subject to investment risk, including the possible loss of investment. For a discussion of certain other risks relating to the proposed conversion to a REIT, see "Implementation of the Business Change Proposal and Related Risks" in the proxy statement.

No assurance can be given that the Company will achieve its investment objectives.

Please see additional risks and disclosures at www.nexpoint.com/nexpoint/disclosures/closed-end-fund-disclosures/

FAQ

What is the distribution amount for NXDT in January 2022?

NexPoint Diversified Real Estate Trust (NXDT) announced a distribution of $0.05 per share for January 2022.

When will the NXDT distribution be payable?

The NXDT distribution will be payable on January 31, 2022.

What date is the record for NXDT shareholders?

Shareholders of NXDT must be on record by January 24, 2022, to receive the distribution.

Is NXDT converting to a REIT?

Yes, NXDT is in the process of converting to a diversified REIT, subject to regulatory approvals.

What factors could affect NXDT's REIT conversion?

The conversion may be affected by the COVID-19 pandemic, market volatility, and the company's ability to meet regulatory requirements.