Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 901

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9B
Chunk 901
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 Notes 1, 2 and 3. The accounting policies of both segments are the same as those described in the Summary of Significant Accounting Policies. The chief operating decision maker primarily assesses performance for the segments and decides how to allocate resources based on segment net income (loss). The measures of segment assets are based on each segment’s total assets. The chief operating decision maker uses segment net income (loss) to evaluate profitability in deciding whether to reinvest profits into new or existing investments or into other parts of the entity, such as for dividend amounts. The Company’s two reportable segments serve different strategic purposes. The NXDT segment primarily consists of activities focused 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 majority of NXDT’s revenue is comprised of Rental income, Dividend income, and Interest income. The NHT segment primarily consists of acquiring additional U.S. located hospitality assets that meet its investment objective and criteria and seeking to own, renovate and operate its portfolio of income-producing hotel properties. The majority of NHT’s revenue is 

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comprised of revenue from renting rooms and selling food and beverages (“F&B”). Therefore, the Company has identified NXDT and NHT as the two operating segments and the two reportable segments. The Company’s chief operating decision maker is the president of the Company.The following table presents measures of the reportable segment measures of profitability, along with significant segment expenses (in thousands):For the Year Ended December 31, 2024For the Year Ended December 31, 2023NexPoint Diversified Real Estate TrustNexPoint Hospitality TrustTotalNexPoint Diversified Real Estate Trust (1)Total Revenues$52,990 $30,232 $83,222 $63,284 Less:Advisory and administrative fees13,28687914,16511,740Corporate general and administrative expenses9,9472,85612,8037,981Real estate taxes and insurance4,8361,7086,5444,377Property operating expense6,51715,73822,2557,489Interest expense17,44310,90928,35215,902Realized (gains) losses from non-real estate investments21,479—21,4791,634Change in unrealized (gains) losses from non-real estate investments1,348—1,348108,249Property