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NexPoint Diversified Real Estate Trust Announces Quarterly Distribution

On October 28, 2025, NexPoint Diversified Real Estate Trust (NXDT), traded on the NYSE, revealed that its board of trustees has approved a quarterly distribution of $0.15 per common share. This distribution, a mixture of cash and additional shares, is designed to be paid out to shareholders on December 31, 2025. Shareholders of record up until November 21, 2025, will be eligible to receive this payment.

The decision made by the board not only reflects a commitment to shareholder returns but also ensures compliance with real estate investment trust (REIT) qualification under the Internal Revenue Code. According to the announcement, cash distributions, excluding amounts payable for fractional shares, will not exceed 20%. The remainder of the distribution will be issued in common shares of NXDT, allowing the company to preserve capital and maintain financial flexibility.

Under the guidelines set forth by IRS Revenue Procedure 2017-45, shareholders will have the opportunity to opt for either an all-cash distribution or an all-stock distribution. Should a situation arise where the cash election exceeds 20%, the cash portion will be prorated accordingly. Shareholders selecting cash will still receive at least 20% in cash from their overall distribution. In the absence of an election, shareholders will automatically receive their entire distribution in shares of NXDT.

The calculation of the number of shares to be distributed will depend on the volume-weighted average trading prices of NXDT's shares on the NYSE, determined over the three trading days of December 18, 19, and 22, 2025. This democratic election process allows shareholders to make informed decisions regarding their preferred form of compensation.

After the record date, an election notice and form will be sent out to shareholders. To participate, shareholders must ensure that completed forms reach Equiniti Trust Company, the transfer agent for NXDT, no later than 5:00 PM ET on December 17, 2025. Shareholders holding shares via a broker or bank need to communicate their election preference through those institutions.

Importantly, it is noted that the distribution is expected to be taxable, regardless of whether shareholders choose cash or shares. As such, it is highly recommended that shareholders consult their tax advisors to understand the implications of this distribution.

About NexPoint Diversified Real Estate Trust
NexPoint Diversified Real Estate Trust is publicly traded and externally advised, focusing on a diverse portfolio that includes the acquisition, development, and management of opportunistic and value-added investments across various sectors in the United States. Its operational expertise is bolstered by relations with NexPoint Real Estate Advisors X, L.P.

Caution for Investors

As with any forward-looking statements, this announcement includes elements of risk and uncertainty that could impact outcomes as anticipated. Statements regarding tax status and NXDT's financial strategies are subject to factors beyond control, as outlined in filings with the Securities and Exchange Commission (SEC). Investors are encouraged to review these filings for a comprehensive understanding of potential risks.

For further inquiries related to this announcement or the trust itself, you may contact Kristen Griffith from Investor Relations or the Media Relations team via the provided channels.