Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 412

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 412
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NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income (loss) as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income (loss) computed in accordance with GAAP and discussions elsewhere in “—Results of Operations” regarding the components of net income (loss) that are eliminated in the calculation of NOI.

Other companies may use different methods for calculating NOI or similarly entitled measures and, accordingly, our NOI may not be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as we do.

We define “Same Store NOI” as NOI for our properties that are comparable between periods and that are stabilized. Please see below for a discussion of properties included as Same Store (defined below). We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions from the beginning of the compared period to the end of the current period.

NOI and Same Store NOI for the Year Ended December 31, 2023 and the Six Months Ended December 31, 2022

The following table, reconciles our NOI for the year ended December 31, 2023 and for the six months ended December 31, 2022 to net income (loss), the most directly comparable GAAP financial measure (in thousands):

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|                                                                      |    | 2023 | For the Year Ended December 31 |   |     | 2022 | For the Six Months Ended December 31 |   |
|:---------------------------------------------------------------------|---:|:-----|-------------------------------:|:--|:----|:-----|-------------------------------------:|:--|
| Net loss                                                             |    | $    |                       (117,241 | ) |     | $    |                              (81,573 | ) |
| Adjustments to reconcile net loss to NOI:                            |    |      |                                |   |     |      |                                      |   |
| Advisory and administrative fees                                     |    |      |                         11,740 |   |     |      |                                5,514 |   |
| Corporate general and administrative expenses                        |    |      |                          7,981 |   |     |      |                                3,080 |   |