Company: NXDT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-052132
Chunk: 101

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1A
Chunk 101
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 30, 2025. 

The loan documents, including the guaranty, for the PC & B Loan and the Note A Loan and Note B Loan contain customary representations, warranties, and events of default, which require a subsidiary of the Company to comply with affirmative and negative covenants. 

Convertible Notes, NHT

A subsidiary of the Company also entered into several convertible notes with affiliates of the NHT Adviser prior to the closing of the NHT Merger since January 8, 2019. The fixed rate notes have rates ranging from 2.25% to 7.50% (which were market interest rates at the time of their issuance) while outstanding and mature in 20 years from their date of issuance. As of September 30, 2025, the net carrying amount of the convertible notes due to affiliates of the former NHT Adviser was $51.5 million.

Promissory Notes Due to Affiliates

In connection with the NHT Merger, on April 17, 2025, several promissory notes with affiliates of the Company were issued due to a limitation on common shares issued to affiliates of the issuer by the New York Stock Exchange. The aggregate principal amount of such promissory notes was $0.8 million, each with an interest rate of 7.334% and maturing on April 15, 2027, with two one-year extension options. As of September 30, 2025, the carrying amount of the promissory notes due to affiliates was $0.8 million.

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Obligations, Commitments and Investment Opportunities

The following table summarizes our contractual obligations and commitments as of September 30, 2025 for the next five calendar years subsequent to September 30, 2025.

Payments Due by Period (in thousands)Total20252026202720282029ThereafterProperty Level DebtPrincipal payments$241,579 $41,583 $189,996 $— $— $10,000 $— Interest expense10,661 4,230 3,842 1,000 1,000 589 — Total$252,240 $45,813 $193,838 $1,000 $1,000 $10,589 $— Prime Brokerage BorrowingPrincipal payments$5,952 $— $— $— $— $— $5