NexPoint Diversified Real Estate Trust Declares Quarterly Distribution for Shareholders

NexPoint Diversified Real Estate Trust's Quarterly Distribution Announcement

NexPoint Diversified Real Estate Trust, publicly traded on the NYSE under the ticker NXDT, has officially declared its quarterly distribution of $0.15 per share for its common stockholders. This decision, announced on July 29, 2025, reflects the trust's commitment to providing value to its shareholders while ensuring compliance with regulatory requirements.

The quarterly distribution will consist of a mix of cash and common shares, allowing shareholders a choice in how they receive their earnings. The cash component—excluding any amounts paid in lieu of fractional shares—will be capped at 20% of the total distribution. This structure aims to maintain compliance with real estate investment trust (REIT) qualifications under the Internal Revenue Code, fundamentally enabling NexPoint to retain more capital for operational flexibility and future investments.

The distribution is set to be payable on September 30, 2025, to those shareholders of record as of August 14, 2025. This timeline provides ample opportunity for shareholders to evaluate their preferences regarding their distribution options. Shareholders will have the option to elect whether to receive the entirety of their distribution in cash or in shares. In cases where aggregate cash elections exceed the stipulated 20%, the cash will be prorated among the electing shareholders.

For shareholders opting for full cash payments, the minimum distribution they will receive is still subject to the 20% limit, thereby ensuring that a significant portion of the distribution is delivered in common shares. Those who do not submit an election form will automatically receive their distributions entirely in NXDT shares. The count of shares to be issued will be based on the average trading prices of NXDT's common shares on the New York Stock Exchange during the designated trading days leading up to the distribution.

An election notice detailing this process will be mailed to all eligible shareholders following the record date. It is essential for shareholders to understand the election procedure: completed election forms must be submitted to Equiniti Trust Company, NXDT’s transfer agent, before the deadline of 5:00 PM Eastern Time on September 19, 2025. Shareholders holding their stock via a bank or brokerage must communicate their preferred election method directly to their respective institutions.

It's crucial for shareholders to consider the tax implications of this distribution. NexPoint anticipates that this distribution will be treated as taxable income to shareholders, irrespective of the choice made between cash or shares. Therefore, consulting with tax advisers to fully comprehend the tax treatment of the distributions is highly recommended.

In terms of the strategic outlook, NexPoint continues to assert its position as a diversified REIT, concentrating on evaluating and managing investments across various sectors in the U.S. The company is externally advised by NexPoint Real Estate Advisors X, L.P. This relationship provides NexPoint with additional insight and expertise necessary for navigating the complexities inherent in real estate investments.

Overall, with this announcement, NexPoint Diversified Real Estate Trust demonstrates not only its commitment to its shareholder base but also its strategic focus on balancing distribution with prudent capital management. The upcoming distribution marks another step in NexPoint’s evolution, showcasing its adaptability and investor-centric approach in a dynamic financial landscape. For further inquiries or details, shareholders and interested parties can visit the official website at nxdt.nexpoint.com.