Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1679

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1679
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 2023, which was an increase of approximately $91.8 million. The gains for the nine months ended September 30, 2024 were largely driven by redemptions of the legacy CLO positions, which generated realized losses and a positive change in unrealized, mark-to-market gains on NSP common equity of $5.3 million, VB OP Units of $2.4 million, offset by mark-to-market losses on IQHQ LP interests of $22.2 million. The losses for the nine months ended September 30, 2023 were primarily driven by mark-to-market losses on common units of NSP common equity of $34.2 million, mark-to-market losses on NHT common stock of $18.8 million, and losses on VB OP Units of $26.1 million.

Realized gains (losses). Realized gains (losses) were $(21.9) million for the nine months ended September 30, 2024, compared to $(0.7) million for the nine months ended September 30, 2023, which was a decrease of approximately $(21.2) million. The losses for the nine months ended September 30, 2024 were primarily driven by realized losses on the legacy CLOs of $22.8 million. The losses for the nine months ended September 30, 2023 were primarily driven by realized losses on the sale of equities 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) of unconsolidated equity method ventures, and (10) impairment loss.

The cost of funds is eliminated from net income (loss) because it is specific to our particular