Company: NXDT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001356115-25-000021
Chunk: 126

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 6
Chunk 126
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 thousand for the six months ended June 30, 2024, which was an increase of approximately $34.0 thousand or 38.6%. The majority of the increase between the six months ended June 30, 2025 and the six months ended June 30, 2024 is related to an increase in repair and maintenance fees.

Real estate taxes and insurance. Real estate taxes and insurance costs were $140.0 thousand for the six months ended June 30, 2025, compared to $145.9 thousand for the six months ended June 30, 2024, which was a decrease of approximately $5.9 thousand or 4.1%. The majority of the decrease between the six months ended June 30, 2025 and the six months ended June 30, 2024 is related to a decrease in the property tax budget.

Property management fees. Property management fees were $41.0 thousand for the six months ended June 30, 2025, compared to $37.5 thousand for the six months ended June 30, 2024, which was an increase of approximately $3.5 thousand, or 7.9%. The increase between the six months ended June 30, 2025 and the six months ended June 30, 2024 is related to an increase in rental revenue, which the management fee is calculated off of. 

Property general and administrative expenses. Property general and administrative expenses were $10.0 thousand for the six months ended June 30, 2025, compared to $16.8 thousand for the six months ended June 30, 2024, which was a decrease of approximately $6.8 thousand, which was not a material change. The majority of the decrease between the six months ended June 30, 2025 and the six months ended June 30, 2024 is related to a decrease in professional fees.

Consolidated FFO and AFFO

We believe that net income (loss), as defined by GAAP, is the most appropriate earnings measure. We also believe that funds from operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and adjusted funds from operations (“AFFO”) are important non-GAAP supplemental measures of operating performance for a REIT.

Since the historical cost accounting convention used for real estate assets requires depreciation except on land, such accounting presentation implies that the value of real estate assets diminishes predictably over time.