Quarterly Distribution
DALLAS, Oct. 29,
2024 /PRNewswire/ -- NexPoint Diversified Real Estate
Trust ("NXDT") (NYSE: NXDT) announced today that its board of
trustees has declared a quarterly distribution of $0.15 per common share of NXDT, consisting of a
combination of cash and common shares of NXDT. The distribution
will be payable on December 31, 2024,
to shareholders of record on November 15,
2024.
The board of trustees has determined that the cash component of
the distribution (other than cash paid in lieu of fractional
shares) will not exceed 20% in the aggregate, with the balance
payable in common shares of NXDT. This will allow NXDT to comply
with the real estate investment trust ("REIT") qualification
requirements under the Internal Revenue Code, while retaining
capital and enhancing NXDT's financial flexibility.
In accordance with the provisions of IRS Revenue Procedure
2017-45, shareholders will be asked to make an election to receive
the distribution all in cash or all in shares. To the extent that
more than 20% of cash is elected in the aggregate, the cash portion
will be prorated. Shareholders who elect to receive the
distribution in cash will receive at least 20% of the distribution
in cash. Shareholders who do not make an election will receive the
distribution entirely in common shares of NXDT. The number of
shares issued as a result of the distribution will be calculated
based on the volume weighted average trading prices of NXDT's
common shares on the New York Stock Exchange on December 16, 17 and 18, 2024.
An election notice and election form will be mailed to
shareholders of record after the record date. The properly
completed election form to receive cash or common shares must be
received by Equiniti Trust Company, NXDT's transfer agent, prior to
5:00 p.m. Eastern Time on
December 13, 2024.
Shareholders who hold their shares through a bank or broker
should inform the bank or broker of their election. NXDT expects
the dividend to be a taxable dividend to shareholders, regardless
of whether a particular shareholder receives the dividend in the
form of cash or shares. Shareholders are urged to consult with
their tax advisers for proper tax treatment of NXDT's
distributions. NXDT reserves the right to pay future dividends
entirely in cash.
Share Repurchase Program
NXDT also announced today that its board of trustees has
authorized the repurchase of up to $20
million of its common shares and its 5.50% Series A
Cumulative Preferred Shares. This authorization expires on
October 28, 2026, and it replaces
NXDT's previous share repurchase program that expired on
October 24, 2024. NXDT may utilize
various methods to effect the repurchases, and the timing and
extent of the repurchases will depend upon several factors,
including market and business conditions, regulatory requirements
and other corporate considerations. Repurchases under this program
may be discontinued at any time.
About NexPoint Diversified Real Estate Trust (NYSE:
NXDT)
NexPoint Diversified Real Estate Trust is an externally advised,
publicly traded, diversified REIT focused on the acquisition,
development, and management of opportunistic and value-add
investments throughout the United
States across multiple sectors where NexPoint and its
affiliates have operational expertise. NXDT is externally advised
by NexPoint Real Estate Advisors X, L.P. For more information,
please visit nxdt.nexpoint.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release 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 the tax status of the distribution, and
NXDT's capital retention and financial flexibility contain
forward-looking statements. We caution investors that any
forward-looking statements presented in this press release are
based on management's current beliefs and assumptions made by, and
information currently available to, management. When used, the
words "will," "retain," "expect" and "enhance," 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,
including the timing and amount of repurchases of our shares, if
any, and the possibility that the repurchase program may be
suspended or discontinued as well as those described in greater
detail in our filings with the Securities and Exchange Commission
(the "SEC") particularly those described in our Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q. 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 and encourage you to review our other filings with the
SEC for a more complete discussion of risks and other factors that
could affect any forward-looking statement.
CONTACTS
Investor Relations
Kristen
(Thomas) Griffith
IR@nexpoint.com
Media Relations
Prosek Partners for NexPoint
pro-nexpoint@prosek.com
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SOURCE NexPoint Diversified Real Estate Trust