NexPoint Diversified Real Estate Trust Declares Regular Monthly Distribution | National
DALLAS, Dec. 01, 2021 (GLOBE NEWSWIRE) – NexPoint Diversified Real Estate Trust (NYSE: NXDT) (“NXDT” or the “Company”) today announced its regular monthly dividend of $ 0.05 per share on its common stock. The distribution will be payable on December 31, 2021 to the shareholders of record as of the close of business on December 23, 2021.
About the NexPoint Diversified Real Estate Trust (NXDT)
NexPoint Diversified Real Estate Trust (NYSE: NXDT) is a closed-end fund managed by NexPoint Advisors, LP that is in the process of being converted into a diversified REIT. On August 28, 2020, shareholders approved the conversion proposal and changed the company’s basic investment guidelines and restrictions to allow the company to pursue its new business. The Company is realigning its portfolio so that it is no longer an “investment company” under the Investment Company Act of 1940 (the “1940 Act”). On March 31, 2021, the Company filed an application with the Securities and Exchange Commission (the “SEC”) for an order under the 1940 Act declaring that the Company is no longer an investment company ( the “cancellation order”). On September 13, 2021, the Company submitted an amendment to the deregistration request that contains 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 the deregistration order is received; however, the company has repositioned its portfolio sufficiently to achieve REIT tax status and is operating through its 2021 tax year so it can qualify for taxation as a REIT.
Effective November 8, 2021, NHF has changed its name to NexPoint Diversified Real Estate Trust and is traded on the New York Stock Exchange under the ticker NXDT.
You can find more information at www.nexpoint.com/nexpoint-strategic-opportunities-fund/.
About NexPoint Advisors, LP
NexPoint Advisors, LP is a SEC registered advisor on NexPoint’s alternative investment platform. It serves as an advisor to a number of funds and investment vehicles including closed-end funds, interval funds, business development companies (“BDC”) and various real estate vehicles. More information is available at www.nexpoint.com.
Risks and Disclosures
Investors should carefully consider the investment objectives, risks, fees and costs of NexPoint Diversified Real Estate Trust before investing. This and other information can be found in the Company’s prospectus, available by phone at 1-866-351-4440 or at www.nexpoint.com/nexpoint-strategic-opportunities-fund. Please read the prospectus carefully before investing.
Closed-end investment company stocks often trade at a discount to their net asset value. The price of the company’s shares is determined by a number of factors, some of which are beyond the control of the company. As a result, 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 can include a capital repayment. Please refer to the Source of Distribution on the NexPoint Advisors website for guidance on Section 19 which contains estimated amounts and sources of the Company’s distributions which should not be relied on for tax purposes.
Although NexPoint is committed to the REIT conversion, it is still pending regulatory approval and the ability to reconfigure NXDT’s portfolio to achieve REIT status and de-register as an investment company. The time it would take to reconfigure the company’s portfolio could include the COVID-19 pandemic and associated market volatility, the company’s determination to preserve capital, the company’s ability to identify and execute desirable investments, and applicable regulatory agencies , Lenders and governance are influenced as needed. The conversion process can take up to 24 months; and there can be no guarantee that the conversion of NXDT to REIT status will improve its performance or reduce the discount to NAV. In addition, the SEC may decide not to grant the Company’s request for deregistration, which would materially change the Company’s plans for its businesses and investments.
In addition, these measures can adversely affect the company’s financial condition, return on investment, operating results, cash flow, the trading price of its common stock per share, and its ability to meet debt servicing obligations and cash distributions to shareholders, if any. Whether the Company remains a registered investment company or is converted into a REIT, its common stock, like an investment in any other public company, is subject to investment risk, including possible loss of investment. For a discussion of certain other risks associated with the proposed REIT conversion, see “Implementation of Proposed Business Change and Risks Associated” in the Power of Attorney.
No assurance can be given that the Company will achieve its investment objectives.
Further risks and information can be found at www.nexpoint.com/nexpoint/disclosures/closed-end-fund-disclosures/
1-866-351-4440 [email protected]
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