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NexPoint Diversified Real Estate Trust Announces Quarterly Distribution

NexPoint Diversified Real Estate Trust (NYSE: NXDT) has officially declared a quarterly distribution for its shareholders, which is set to be paid on June 30, 2025. Each shareholder will receive a total of $0.15 per common share, which will be distributed in a mix of cash and common shares from NXDT. The date for determining eligible shareholders will be on May 9, 2025.

This distribution is notably structured to comply with the real estate investment trust (REIT) qualification requirements as outlined in the Internal Revenue Code. According to the board of trustees, the cash portion of the distribution will not exceed 20% of the total amount; the remainder will be allocated in the form of common shares of NXDT. This strategic decision aims to maintain adequate capital levels and boost the financial flexibility of NXDT.

In line with IRS Revenue Procedure 2017-45, shareholders are given the option to elect how they wish to receive their distribution—either in full cash or fully in shares. However, should more than 20% of the total distribution be elected in cash, a proration will be implemented. For those choosing the cash option, it is assured that a minimum of 20% will be received in cash. Conversely, any shareholder who does not make an election will automatically receive the entire distribution in common shares of NXDT.

The computation of shares issued during this distribution will rely on the volume-weighted averages of NXDT's common shares trading on the NYSE, specifically on the dates of June 16, 17, and 18, 2025. An election notice along with an election form will be dispatched to shareholders after the record date. Shareholders will need to submit their completed forms to Equiniti Trust Company, NXDT's transfer agent, no later than 5 PM Eastern Time on June 13, 2025.

For those holding shares through a financial institution, it is encouraged to communicate their election directly to their respective bank or broker. It is important to note that regardless of form, the distribution is expected to be subject to taxation for shareholders. Those impacted should seek guidance from their tax advisors to understand the implications of NXDT's distributions fully. Additionally, NXDT maintains the option to execute future distributions solely in cash.

About NexPoint Diversified Real Estate Trust

NexPoint Diversified Real Estate Trust is a publicly traded REIT positioned uniquely to focus on a diverse array of investment opportunities throughout the United States. With an externally advised model led by NexPoint Real Estate Advisors X, L.P., NXDT aims to acquire, develop, and manage value-added investments across various sectors where their affiliates possess significant operational expertise. Interested parties can delve deeper into their initiatives and offerings by visiting their official website at nxdt.nexpoint.com.

Cautionary Note on Forward-Looking Statements

It’s essential for investors and stakeholders to recognize that this press release contains forward-looking statements regarding NXDT's future activities and financial status. Statements that include terms like “will,” “expect,” and “enhance” imply expectations and are contingent upon several market and operational risks that might differ from the projections shared. Investors are advised to exercise caution in their interpretations and stay informed through NXDT's SEC filings for more detailed risk factors and developments.