NexPoint Diversified Real Estate Trust Declares Quarterly Distribution and Shareholder Election Notice
On February 18, 2025, NexPoint Diversified Real Estate Trust (NXDT), a publicly traded and externally advised real estate investment trust, announced its quarterly distribution. The board of trustees has set the distribution at $0.15 per common share, which will be payable on March 31, 2025. Shareholders of record as of February 28, 2025, will receive this distribution, which comprises both cash and common shares of NXDT.
In a significant move aimed at maintaining its compliance with REIT regulations under the Internal Revenue Code, the board determined that the combined cash component of the distribution will not exceed 20% in total. This strategy reflects NexPoint’s commitment to not only comply with financial regulations but also to retain capital for increased flexibility in future operations.
According to IRS Revenue Procedure 2017-45, shareholders will have the option to elect whether they want to receive their distributions exclusively in cash or in common shares. Importantly, if more than 20% of shareholders opt for cash, a prorating adjustment will be triggered. For shareholders choosing the cash option, a minimum of 20% of the total distribution will be provided in cash.
For those shareholders who do not submit an election, they can expect to receive the entirety of their distribution in NXDT common shares. The computations for these shares will be based on the volume-weighted average trading prices of NXDT on the New York Stock Exchange for the three days preceding the distribution date (March 17, 18, and 19, 2025).
Shareholders will receive an election notice and a relevant form after the record date. The completed election form must be submitted to Equiniti Trust Company, NXDT's transfer agent, no later than 5 PM Eastern Time on March 14, 2025. For shareholders holding through banks or brokers, it is imperative to communicate their election choice.
It is also important to note that NXDT anticipates the distribution to qualify as a taxable dividend for shareholders, irrespective of whether they receive cash or share distributions. Shareholders are strongly encouraged to consult with tax advisors to seek guidance regarding the tax implications from these distributions. NXDT retains the right to pay future dividends entirely in cash, depending on various circumstances.
NexPoint Diversified Real Estate Trust operates as an externally advised REIT, focusing on the strategic acquisition, development, and management of both opportunistic and value-add investment properties across the United States. Guided by experienced professionals, NexPoint and its affiliates hold operational expertise in various sectors. To find out more about their offerings, please visit nxdt.nexpoint.com.
This announcement includes forward-looking statements as per the Private Securities Litigation Reform Act of 1995. These statements may include details regarding the tax status of the distributions, NXDT’s capital retention practices, and its financial flexibility, all of which carry inherent risks and uncertainties. Any such forward-looking statements are grounded in management's current beliefs, expectations, and available information. Investors are cautioned not to rely solely on these forward-looking statements without considering potential risks detailed in NXDT’s filings with the SEC, particularly within the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
In a significant move aimed at maintaining its compliance with REIT regulations under the Internal Revenue Code, the board determined that the combined cash component of the distribution will not exceed 20% in total. This strategy reflects NexPoint’s commitment to not only comply with financial regulations but also to retain capital for increased flexibility in future operations.
According to IRS Revenue Procedure 2017-45, shareholders will have the option to elect whether they want to receive their distributions exclusively in cash or in common shares. Importantly, if more than 20% of shareholders opt for cash, a prorating adjustment will be triggered. For shareholders choosing the cash option, a minimum of 20% of the total distribution will be provided in cash.
For those shareholders who do not submit an election, they can expect to receive the entirety of their distribution in NXDT common shares. The computations for these shares will be based on the volume-weighted average trading prices of NXDT on the New York Stock Exchange for the three days preceding the distribution date (March 17, 18, and 19, 2025).
Shareholders will receive an election notice and a relevant form after the record date. The completed election form must be submitted to Equiniti Trust Company, NXDT's transfer agent, no later than 5 PM Eastern Time on March 14, 2025. For shareholders holding through banks or brokers, it is imperative to communicate their election choice.
It is also important to note that NXDT anticipates the distribution to qualify as a taxable dividend for shareholders, irrespective of whether they receive cash or share distributions. Shareholders are strongly encouraged to consult with tax advisors to seek guidance regarding the tax implications from these distributions. NXDT retains the right to pay future dividends entirely in cash, depending on various circumstances.
Overview of NexPoint Diversified Real Estate Trust
NexPoint Diversified Real Estate Trust operates as an externally advised REIT, focusing on the strategic acquisition, development, and management of both opportunistic and value-add investment properties across the United States. Guided by experienced professionals, NexPoint and its affiliates hold operational expertise in various sectors. To find out more about their offerings, please visit nxdt.nexpoint.com.
Forward-Looking Statements Warning
This announcement includes forward-looking statements as per the Private Securities Litigation Reform Act of 1995. These statements may include details regarding the tax status of the distributions, NXDT’s capital retention practices, and its financial flexibility, all of which carry inherent risks and uncertainties. Any such forward-looking statements are grounded in management's current beliefs, expectations, and available information. Investors are cautioned not to rely solely on these forward-looking statements without considering potential risks detailed in NXDT’s filings with the SEC, particularly within the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Topics Financial Services & Investing）
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