Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 933

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9C
Chunk 933
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 $6.2 million, offset by mark-to-market losses on IQHQ, LP (“IQHQ LP”) interests of $22.2 million, NXHT common equity of $13.9 million, and NSP common equity of $5.5 million, and NexPoint Storage Partners 

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Operating Company, LLC (“NSP OC”) common units of $2.9 million. The losses for the year ended December 31, 2023 were primarily driven by mark-to-market losses on NSP common equity of $35.5 million and VB OP Units of $27.5 million, NSP OC common units of $19.3 million offset by mark-to-market gains on and mark-to-market gains on our IQHQ Holdings, LP. Class A-1 limited partnership units of $3.4 million. 

Realized gains (losses). Realized gains (losses) were $(21.5) million for the year ended December 31, 2024, compared to $(1.6) million for the year ended December 31, 2023, which was a decrease of approximately $(19.9) million. The losses for the year ended December 31, 2024 were primarily driven by realized losses on the legacy CLOs of $22.8 million. The losses for the year ended December 31, 2023 were primarily driven by realized losses on common stock of Elme Communities of $0.8 million, Whitestone REIT of $1.1 million, and realized losses on Specialty Financial Products, Ltd. (“SFP”) of $1.3 million. 

Non-GAAP Measurements

Consolidated Net Operating Income and Same Store Net Operating Income

Net Operating Income ("NOI") is a non-GAAP financial measure of performance. NOI is used by investors and our management to evaluate and compare the performance of our properties between segments and to other comparable properties, to determine trends in earnings and to compute the fair value of our properties as NOI is calculated by adjusting net income (loss) to add back (1) interest expense, (2) advisory fees and administrative fees, (3) the impact of depreciation and amortization, (4) corporate general and administrative expenses, (5) income tax expenses, (6) conversion expenses, (7) non-operating property investment revenue, (8) realized and change in unrealized gains (losses) generated from non-real estate investments, (9) equity in income (losses)