Dondero & NexPoint Maintain 11.8% Stake in NexPoint Residential Trust

TL;DR

**Dondero and NexPoint still own 11.8% of NexPoint Residential Trust, signaling strong insider conviction.**

AI Summary

James D. Dondero, along with NexPoint Advisors, L.P. and NexPoint Asset Management, L.P., filed an Amendment No. 15 to their Schedule 13D, disclosing a beneficial ownership of 3,033,444.71 shares of NexPoint Residential Trust, Inc. common stock as of September 30, 2023. This represents 11.8% of the company's outstanding shares. This filing indicates a continued significant stake by Dondero and his affiliated entities, which matters to investors as it signals strong insider confidence or potential influence over the company's strategic direction.

Why It Matters

This filing shows that a key insider, James D. Dondero, and his associated firms continue to hold a substantial portion of the company, which can influence corporate decisions and signal long-term commitment.

Risk Assessment

Risk Level: low — The filing indicates a stable, significant insider ownership, which generally reduces risk by aligning management's interests with shareholders.

Analyst Insight

Investors should note the continued significant insider ownership by James D. Dondero and his affiliates, which suggests a stable, long-term interest in NexPoint Residential Trust, Inc. This could be a positive signal for long-term holders, but it doesn't indicate any immediate catalysts for price movement.

Key Numbers

• 3,033,444.71 — Aggregate Shares Beneficially Owned (Total shares held by James D. Dondero and the reporting group as of September 30, 2023.)
• 11.8% — Percent of Class Represented (The percentage of NexPoint Residential Trust, Inc. common stock beneficially owned by the reporting group.)
• $0.01 — Par Value per Share (The stated par value of NexPoint Residential Trust, Inc. common stock.)
• 82,012.81 — Sole Voting Power Shares (Shares over which James D. Dondero has sole voting and dispositive power.)
• 2,951,431.90 — Shared Voting Power Shares (Shares over which James D. Dondero has shared voting and dispositive power with the group members.)

Key Players & Entities

• James D. Dondero (person) — Reporting Person and beneficial owner
• NexPoint Residential Trust, Inc. (company) — Issuer of the securities
• NexPoint Advisors, L.P. (company) — Group member and affiliated entity of James D. Dondero
• NexPoint Asset Management, L.P. (company) — Group member and affiliated entity of James D. Dondero
• Stephanie Vitiello (person) — Chief Compliance Officer of NexPoint Advisors, L.P., authorized to receive notices

Forward-Looking Statements

• James D. Dondero and his affiliated entities will maintain a significant ownership stake in NexPoint Residential Trust, Inc. (James D. Dondero) — high confidence, target: 2025-01-29
• The substantial insider ownership will continue to provide a degree of stability and potential influence over the company's strategic decisions. (NexPoint Residential Trust, Inc.) — medium confidence, target: 2025-01-29

FAQ

Key Financial Figures

• $0.01 — me of Issuer) Common Stock, par value $0.01 per share (Title of Class of Securiti

Filing Documents

• jdond20240126_sc13da.htm (SC 13D/A) — 87KB
• 0001437749-24-002460.txt ( ) — 89KB

Interest in Securities of the Issuer

Item 5. Interest in Securities of the Issuer. (a) As of December 31, 2023, (i) James D. Dondero may be deemed to beneficially own 3,033,444.71 shares of Common Stock, par value $0.01 per share ("Common Stock"), which represents approximately 11.8% of the outstanding Common Stock, (ii) NexPoint Advisors may be deemed to beneficially own 153,037.00 shares of Common Stock, which represents approximately 0.6% of the outstanding Common Stock, (iii) NAMLP may be deemed to beneficially own 373,137.00 shares of Common Stock, which represents approximately 1.5% of the outstanding Common Stock and (iv) Nancy Marie Dondero, in her capacity as trustee of a trust and through direct ownership in a shared account, may be deemed to beneficially own 2,056,178.57 shares of Common Stock, which represents approximately 8.0% of the outstanding Common Stock. James D. Dondero has the right to acquire beneficial ownership of 1,961,056.57 shares of Common Stock owned by the trust referred to in the preceding sentence. (b) Name of Reporting Person Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power James D. Dondero (1) 82,012.81 (2) 2,951,431.90 82,012.81 (2) 2,951,431.90 NexPoint Advisors, L.P. (3) 0 153,037.00 0 153,037.00 NexPoint Asset Management, L.P. (4) 0 373,137.00 0 373,137.00 Nancy Marie Dondero (5) 1,961,056.57 95,122.00 1,961,056.57 95,122.00 (1) These shares are held by Mr. Dondero both directly and indirectly through NexPoint Advisors and NAMLP (as described in footnotes (3)-(4) below), accounts advised by other affiliated investment advisors, an employee benefit plan and a trust. Also includes shares that Mr. Dondero has the right to acquire beneficial ownership of that are held by the trust referred to in Item 5(a), for which he does not serve as trustee. Mr. Dondero is the sole member of NexPoint Advisors' general partner, and may be deemed to be an indirect beneficial owner of the s