#USA #Dallas #NexPoint Real Estate #NYSE NREF #Dividend Income Tax

NexPoint Real Estate Finance Details 2025 Dividend Income Tax Treatment

NexPoint Real Estate Finance, Inc. (NYSE: NREF), a publicly traded Real Estate Investment Trust (REIT), recently announced the tax treatment for its 2025 dividend distributions to shareholders. This comprehensive update highlights the final income allocations for the company’s common stock and preferred shares, detailing how these figures will be reported on Form 1099-DIV.

Overview of Dividend Distributions

Common Stock Dividends

For the ordinary shareholders, NexPoint has set the following dividend schedule:

• - Ex-Dividend Date: March 14, 2025

Record Date: March 14, 2025
Payable Date: March 31, 2025
Distribution Per Share: $0.50000
Taxable Ordinary Income: $0.02966
Return of Capital: $0.47034

This process will repeat for subsequent quarters, with the same amounts allocated for June, September, and December distributions. The total dividend value for the year sums up to $2.00000, with a taxable ordinary income of $0.11864 per share.

Series A Preferred Stock Dividends

The Series A Preferred Shares will also see consistent payouts, structured as follows:

• - Ex-Dividend Date: January 15, April 15, July 15, October 15, 2025

Distribution Per Share: $0.53125 for each quarter, yielding a total of $2.12500 for the year. All of this is listed as taxable ordinary income, meaning shareholders should expect this full amount to be treated as income for tax purposes.

Series B Preferred Stock Dividends

For Series B Preferred Shares, dividends are released across various dates with a distribution rate set at $0.18750 per share monthly from January to November 2025. This adds up to a total of $2.06250 for the entire year, reinforcing the income allocation strategy from NexPoint.

Tax Implications

Investors should note that a significant portion of the taxable ordinary income from these dividends will be categorized as qualified REIT dividends. Specifically, 98.374% of the ordinary income will qualify under Section 199A, providing extra tax advantages to eligible shareholders. Additionally, for corporate entities, 1.626% of taxable income will qualify for the dividends received deduction.

This careful structuring ensures that NexPoint continues to sustain its attractiveness as an investment, offering clear benefits to both individual and corporate investors.

About NexPoint Real Estate Finance, Inc.

Founded with a focus on real estate financing, NexPoint specializes in originating, structuring, and investing primarily in mortgage loans and real estate securities. By remaining transparent about its dividend distributions and tax treatment, NexPoint is positioning itself as a reliable player in the market. For further details, shareholders can visit its information page at nref.nexpoint.com.

In summary, shareholders of NexPoint Real Estate Finance are advised to carefully review these changes and prepare for the 2025 tax year with this updated knowledge on their dividend income allocations. Such strategic investment insights from a noted REIT can significantly enhance their financial planning and outcomes.