DALLAS, May 2, 2022 /PRNewswire/ — NexPoint Diversified Real Estate Trust (NYSE: NXDT) (“NXDT” or the “Company”) today announced its regular monthly distribution on its common stock of $0.05 per share. The distribution will be payable on May 31, 2022 to shareholders of record at the close of business May 24, 2022.
About NexPoint Diversified Real Estate Trust (NXDT)
The NexPoint Diversified Real Estate Trust (NYSE: NXDT) is a closed-end fund managed by NexPoint Advisors, LP that is in the process of converting to a diversified REIT. On August 28, 2020, shareholders approved the conversion proposal and amended the Company’s fundamental investment policies and restrictions to allow the Company to continue its new business. The Company is realigning its portfolio so that it is no longer an “investment company” within the meaning of the Investment Company Act of 1940 (the “1940 Act”). On March 31, 2021, the Company has filed an application (the “Delisting Application”) with the Securities and Exchange Commission (the “SEC”) for an order under the 1940 Act declaring that the Company is no longer a investment (the “Expungement Order”). On September 13, 2021, November 5, 2021and December 2, 2021, the Company has filed amendments to the Delisting Application, which provide additional information regarding the realignment of the Company’s portfolio. The Company will continue to be structured as a registered closed-end investment company until it receives the Debarment Order; however, the Company has repositioned its portfolio sufficiently to obtain REIT tax status and has been operating as such since its 2021 tax year so that it may continue to qualify for taxation as a REIT.
Efficient November 8, 2021NHF changed its name to NexPoint Diversified Real Estate Trust and is listed on the New York Stock Exchange under the symbol NXDT.
For more information, visit www.nexpoint.com/nexpoint-strategic-opportunities-fund/.
About NexPoint Advisors, LP
NexPoint Advisors, LP is an SEC-registered adviser on the NexPoint alternative investment platform. He acts as an advisor to a suite of funds and investment vehicles, including a closed-end fund, an interval fund, a business development company (“BDC”) and various real estate vehicles. For more information, visit www.nexpoint.com.
Risks and Disclosures
Investors should carefully consider the investment objectives, risks, charges and expenses of NexPoint Diversified Real Estate Trust before investing. This and other information can be found in the Company’s prospectus, which can be obtained by calling 1-866-351-4440 or by visiting www.nexpoint.com/nexpoint-strategic-opportunities-fund. Please read the prospectus carefully before investing.
Shares of closed-end investment companies often trade at a price below net asset value. The price of the Company’s shares is determined by a number of factors, many of which are beyond the Company’s control. Accordingly, the Company cannot predict whether its shares will trade at, below, or above net asset value. Past performance does not guarantee future results.
The distribution may include a return of capital. Please refer to the distribution source on the NexPoint Advisors website for Section 19 notices that provide estimated amounts and sources of company distributions, which should not be relied upon for tax reporting purposes.
Although NexPoint is committed to converting to a REIT, this is still dependent on regulatory approval and the ability to reconfigure NXDT’s portfolio to achieve REIT status and de-register as an investment company. The time required to reconfigure the Company’s portfolio could be affected by, among other things, the COVID-19 pandemic and associated market volatility, determinations to preserve capital, the Company’s ability to identify and execute desirable investments; and applicable regulations, lenders and governance. terms. The conversion process can take up to 24 months; and there can be no assurance that NXDT’s conversion to REIT status will improve its performance or reduce the discount to NAV. Additionally, the SEC may decide not to grant the company’s request for a deregistration order, which would significantly alter the company’s plans for its business and investments.
In addition, these actions could adversely affect the Company’s financial condition, investment performance, results of operations, cash flows, the price per share of its common shares and its ability to meet its debt service obligations, if any, and to pay cash distributions to shareholders. Whether the Company remains a registered investment company or converts to a REIT, its common stock, like an investment in any other public company, is subject to investment risk, including possible investment loss. For a discussion of certain other risks associated with the proposed REIT conversion, see “Implementation of the Corporate Change Proposal and Related Risks” in the Proxy Circular.
No assurance can be given that the Company will achieve its investment objectives.
Please review the risks and additional information on www.nexpoint.com/nexpoint/disclosures/closed-end-fund-disclosures/
SOURCE NexPoint Diversified Real Estate Trust