NexPoint REIT Reports $12.9B Assets, $16.0B Liabilities in Q3

TL;DR

NexPoint REIT Q3: $12.9B assets, $16.0B liabilities, $985M net loss YTD. Equity at $4.8B.

AI Summary

NexPoint Diversified Real Estate Trust filed its 10-Q for the period ending September 30, 2024. The company reported total assets of $12,947 million and total liabilities of $16,047 million. Net loss for the nine months ended September 30, 2024, was $985 million, compared to a net loss of $1,585 million for the same period in 2023. The company's total equity was $4,847 million as of September 30, 2024.

Why It Matters

This filing provides a snapshot of NexPoint Diversified Real Estate Trust's financial health, including its asset base, debt levels, and profitability, which are crucial for investors to assess its stability and performance.

Risk Assessment

Risk Level: high — The company reported a significant net loss and liabilities exceeding assets, indicating potential financial distress.

Key Numbers

• $12.9B — Total Assets (As of September 30, 2024)
• $16.0B — Total Liabilities (As of September 30, 2024)
• $4.8B — Total Equity (As of September 30, 2024)
• $985M — Net Loss (YTD) (For the nine months ended September 30, 2024)

Key Players & Entities

• NexPoint Diversified Real Estate Trust (company) — Filer
• 20240930 (date) — Reporting Period End Date
• $12,947 million (dollar_amount) — Total Assets
• $16,047 million (dollar_amount) — Total Liabilities
• $985 million (dollar_amount) — Net Loss for nine months ended 2024
• $1,585 million (dollar_amount) — Net Loss for nine months ended 2023
• $4,847 million (dollar_amount) — Total Equity

FAQ

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-20240930.htm (10-Q) — 3029KB
• nxdt-20231231xexx311111.htm (EX-31.1) — 10KB
• nxdt-20231231xexx312111.htm (EX-31.2) — 10KB
• nxdt-20231231xexx321111.htm (EX-32.1) — 5KB
• 0001356115-24-000022.txt ( ) — 15517KB
• nxdt-20240930.xsd (EX-101.SCH) — 104KB
• nxdt-20240930_cal.xml (EX-101.CAL) — 102KB
• nxdt-20240930_def.xml (EX-101.DEF) — 592KB
• nxdt-20240930_lab.xml (EX-101.LAB) — 909KB
• nxdt-20240930_pre.xml (EX-101.PRE) — 762KB
• nxdt-20240930_htm.xml (XML) — 3141KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 1 Consolidated Unaudited Statements of Operations and Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023 2 Consolidated Unaudited Statements of Shareholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023 3 Consolidated Unaudited Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 7 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 49 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 76 Item 4.

Controls and Procedures

Controls and Procedures 76

— OTHER INFORMATION

PART II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 77 Item 1A.

Risk Factors

Risk Factors 77 Item 2. Unregistered Sale of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 83 Item 3. Defaults Upon Senior Securities 83 Item 4. Mine Safety Disclosures 83 Item 5. Other Information 83 Item 6. Exhibits 84

Signatures

Signatures 85 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 September 30, 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, April 11, 2023 and July 22, 2024 (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

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View this 10-Q filing on SEC EDGAR