Company: NXDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001356115-25-000014
Chunk: 8

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 8
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 statutory rate$(7,118)21.0 %$(4,410)21.0 %Non-taxable REIT income7,652 -22.6 %4,969 -23.7 %Change in valuation allowance678 -2.0 %(9)— %Total provision$1,213 -3.6 %$550 -2.6 %

8

II.Canadian mutual fund statusAs of March 31, 2025, NHT was a mutual fund trust pursuant to the Income Tax Act (Canada) (the “Tax Act”). Under current tax legislation, a mutual fund trust that is not a specified investment flow-through trust (“SIFT”) pursuant to the Tax Act generally is entitled to deduct distributions of taxable income such that it is not liable to pay Canadian income taxes provided that its taxable income is fully distributed to unitholders. As of March 31, 2025, NHT intends to qualify as a mutual fund trust that is not a SIFT and to make distributions not less than the amount necessary to ensure that NHT will not be liable to pay Canadian income taxes.

4. Investments in Real Estate Subsidiaries

The Company conducts its operations through the OP and NHT OP, which collectively own several real estate properties through single asset limited liability companies that are special purpose entities (“SPEs”). The Company consolidates the SPEs that it controls as well as any VIEs where it is the primary beneficiary. All of the properties the SPEs own are consolidated in the Company’s consolidated financial statements. The assets of each entity can only be used to settle obligations of that particular entity, and the creditors of each entity have no recourse to the assets of other entities or the Company.As of March 31, 2025, the Company, through the OP, owned ten properties through SPEs, including four in the NXDT segment, and six in the NHT segment. The following table represents the Company’s ownership in each property by virtue of its consolidation of the SPEs that directly own the title to each property as of March 31, 2025 and December 31, 2024:Effective Ownership Percentage atProperty NameLocationYear AcquiredMarch 31, 2025December 31, 2024White Rock CenterDallas, Texas2013100 %100 %5916 W Loop 289Lubbock, Texas2013100 %100 %CityplaceDallas, Texas2018100