NexPoint Diversified Real Estate Trust Files Q1 2024 10-Q

TL;DR

<b>NexPoint Diversified Real Estate Trust has filed its Q1 2024 10-Q report.</b>

AI Summary

NEXPOINT DIVERSIFIED REAL ESTATE TRUST (NXDT-PA) filed a Quarterly Report (10-Q) with the SEC on May 10, 2024. NexPoint Diversified Real Estate Trust filed its Form 10-Q for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on December 31st. The filing was made on May 10, 2024. The company was formerly known as NexPoint Strategic Opportunities Fund.

Why It Matters

For investors and stakeholders tracking NEXPOINT DIVERSIFIED REAL ESTATE TRUST, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational details for NexPoint Diversified Real Estate Trust for the first quarter of 2024. Understanding the details within this report is crucial for assessing the REIT's current financial health, strategic direction, and potential risks and opportunities.

Risk Assessment

Risk Level: low — NEXPOINT DIVERSIFIED REAL ESTATE TRUST shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant negative news or disclosures that would elevate the risk level.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to understand NexPoint's Q1 2024 performance and identify any emerging trends or risks.

Key Numbers

• 2024-03-31 — Period End Date (Conformed Period of Report)
• 2024-05-10 — Filing Date (Filed As Of Date)
• 2024-01-01 — Quarter Start Date (Reporting Period)
• 12/31 — Fiscal Year End (Fiscal Year End)

Key Players & Entities

• NEXPOINT DIVERSIFIED REAL ESTATE TRUST (company) — Filer
• 300 CRESCENT COURT (address) — Business Address
• DALLAS (location) — Business Address City
• TX (location) — Business Address State
• 214-276-6300 (phone) — Business Phone
• NexPoint Strategic Opportunities Fund (company) — Former Company Name
• NexPoint Credit Strategies Fund (company) — Former Company Name
• Pyxis Credit Strategies Fund (company) — Former Company Name

FAQ

Industry Context

NexPoint Diversified Real Estate Trust operates within the Real Estate Investment Trusts (REITs) sector, focusing on diversified real estate investments.

Regulatory Implications

The filing is a standard Form 10-Q, a quarterly report required by the SEC for publicly traded companies to provide updates on their financial condition.

What Investors Should Do

1. Analyze the financial statements within the 10-Q for revenue, net income, and asset values.
2. Review any disclosures regarding debt, equity, and cash flow to assess financial health.
3. Examine management's discussion and analysis (MD&A) for insights into operational performance and future outlook.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-10: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing the initial quarterly financial data for the year.

Key Financial Figures

• $0.001 — ch registered Common Shares, par value $0.001 per share NXDT New York Stock Exchange
• $25.00 — red Shares, par value $0.001 per share ($25.00 liquidation preference per share) NXDT-

Filing Documents

• nxdt-20240331.htm (10-Q) — 2299KB
• cpthirteenamend.htm (EX-10.1) — 48KB
• nxdt-20231231xexx3111.htm (EX-31.1) — 10KB
• nxdt-20231231xexx3121.htm (EX-31.2) — 10KB
• nxdt-20231231xexx3211.htm (EX-32.1) — 5KB
• cpthirteenamend001.jpg (GRAPHIC) — 317KB
• cpthirteenamend002.jpg (GRAPHIC) — 344KB
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• cpthirteenamend008.jpg (GRAPHIC) — 199KB
• cpthirteenamend009.jpg (GRAPHIC) — 27KB
• cpthirteenamend010.jpg (GRAPHIC) — 26KB
• cpthirteenamend011.jpg (GRAPHIC) — 25KB
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• cpthirteenamend014.jpg (GRAPHIC) — 82KB
• cpthirteenamend015.jpg (GRAPHIC) — 274KB
• cpthirteenamend016.jpg (GRAPHIC) — 305KB
• cpthirteenamend017.jpg (GRAPHIC) — 300KB
• cpthirteenamend018.jpg (GRAPHIC) — 271KB
• 0001356115-24-000012.txt (&nbsp;) — 16865KB
• nxdt-20240331.xsd (EX-101.SCH) — 79KB
• nxdt-20240331_cal.xml (EX-101.CAL) — 80KB
• nxdt-20240331_def.xml (EX-101.DEF) — 464KB
• nxdt-20240331_lab.xml (EX-101.LAB) — 720KB
• nxdt-20240331_pre.xml (EX-101.PRE) — 600KB
• nxdt-20240331_htm.xml (XML) — 2449KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 1 Consolidated Unaudited Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023 3 Consolidated Unaudited Statements of Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 4 Consolidated Unaudited Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 6 Notes to Consolidated Unaudited Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 59 Item 4.

Controls and Procedures

Controls and Procedures 59

— OTHER INFORMATION

PART II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 61 Item 1A.

Risk Factors

Risk Factors 61 Item 2. Unregistered Sale of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 61 Item 3. Defaults Upon Senior Securities 61 Item 4. Mine Safety Disclosures 61 Item 5. Other Information 61 Item 6. Exhibits 61

Signatures

Signatures 63 i Table of Contents Cautionary Statement Regarding Forward-Looking Statements This quarterly report (this "Quarterly Report") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. In particular, statements relating to our liquidity and capital resources, our performance and results of operations contain forward-looking statements. Furthermore, all of the statements regarding future financial performance (including market conditions and demographics) are forward-looking statements. We caution investors that any forward-looking statements presented in this Quarterly Report are based on management's current beliefs and assumptions made by, and information currently available to, management. When used, the words "anticipate," "believe," "expect," "intend," "may," "might," "plan," "potential," "estimate," "project," "target," "should," "will," "would," "result," "goal," "could," "future," "continue," "if," the negative version of these words and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements. Some of the risks and uncertainties that may cause our actual results, performance, liquidity or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the follow

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Organization and Description of Business NexPoint Diversified Real Estate Trust (the "Company", "we", "us", or "our") was formed in Delaware and has elected to be taxed as a real estate investment trust (a "REIT"). Substantially all of the Company's business is conducted through NexPoint Diversified Real Estate Trust Operating Partnership, L.P. (the "OP"), the Company's operating partnership. The Company conducts its business (the "Portfolio") through the OP and its wholly owned taxable REIT subsidiaries ("TRSs"). The Company's wholly owned subsidiary, NexPoint Diversified Real Estate Trust OP GP, LLC (the "OP GP"), is the sole general partner of the OP. As of March 31, 2024, there were 2,000 partnership units of the OP (the "OP Units") outstanding, of which 100.0 % were owned by the Company. On July 1, 2022 (the "Deregistration Date"), the Securities and Exchange Commission (the "SEC") issued an order pursuant to Section 8(f) of the Investment Company Act of 1940 (the "Investment Company Act") declaring that the Company has ceased to be an investment company under the Investment Company Act (the "Deregistration Order"). The issuance of the Deregistration Order enabled the Company to proceed with full implementation of its new business mandate to operate as a diversified REIT that focuses primarily on investing in various commercial real estate property types and across the capital structure, including but not limited to equity, mortgage debt, mezzanine debt and preferred equity (the "Business Change"). The Company is externally managed by NexPoint Real Estate Advisors X, L.P. (the "Adviser"), through an agreement dated July 1, 2022, amended on October 25, 2022 and April 11, 2023, (the "Advisory Agreement"), by and among the Company and the Adviser for an initial three-year term that will expire on July 1, 2025 and successive one-year terms thereafter unless earlier terminated. The Adviser manages the day-to-day ope

View Full Filing

View this 10-Q filing on SEC EDGAR