Nexpoint Diversified Real Estate Trust - NXDT STOCK NEWS

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.

NexPoint Real Estate Opportunities hosted an informational webinar for United Development Funding IV (UDF IV) shareholders ahead of the company's upcoming Annual Meeting of Shareholders. The webinar, titled 'UDF IV Board of Trustees Election: A Critical Vote for Your Investment', is available for replay at udfaccountability.com/webinar.

NexPoint urges shareholders to vote for change by supporting its four nominees to UDF IV's Board of Trustees: Paul S. Broaddus, Edward N. Constantino, John A. Good, and Julie Silcock. The current Board is criticized for supporting former management involved in fraud. NexPoint's plan aims to maximize shareholder value and create liquidity for UDF IV shareholders.

Shareholders can vote using NexPoint's GREEN proxy materials and visit udfaccountability.com for updates on the upcoming Annual Meeting.

NexPoint cautions United Development Funding IV (UDF IV) shareholders against being misled by the company's recent attempts to distract from the current Board's failures. UDF IV issued a letter to shareholders raising concerns about NexPoint's leadership, which NexPoint claims contains false statements and rehashes previous attacks. NexPoint argues that UDF IV is trying to divert attention from the Board's mismanagement, which has resulted in significant value and liquidity loss.

NexPoint highlights that UDF IV's current Board of Trustees oversaw years of fraud by former executives, who were convicted and are serving prison sentences. The Board also authorized using shareholder funds to defend these executives legally. NexPoint, with $14.5 billion in real estate assets under management, is nominating four independent Trustee candidates to replace the current Board, aiming to enforce loan agreements, pursue defaulting borrowers, manage expenses, and maximize asset value for shareholders.