Company: NXDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001356115-25-000014
Chunk: 119

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1A
Chunk 119
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 and other special circumstances described or referenced therein, (i) selling commissions of 7.0% of the aggregate gross proceeds from sales of Series B Preferred Shares in the offering (“Selling Commissions”) and (ii) a dealer manager fee of 3.0% of the gross proceeds from sales of Series B Preferred Shares in the offering (the “Dealer Manager Fee”). The Dealer Manager, subject to federal and state securities laws, will reallow all or any portion of the Selling Commissions and may reallow a portion of the Dealer Manager Fee to other securities dealers that the Dealer Manager may retain who sold the Series B Preferred Shares as is described more fully in the agreements between such dealers and the Dealer Manager. The Company expects that the offering will terminate on the earlier of the date the Company sells all 16,000,000 Series B Preferred Shares in the offering or August 1, 2027 (which is the third anniversary of the effective date of the Company’s registration statement), which may be extended by the Board in its sole discretion. The Board may elect to terminate this offering at any time. As of March 31, 2025, the Company has sold 12,700 shares of the Series B Preferred Shares for total gross proceeds of $0.3 million.

Cash Flows

The following table presents selected data from our consolidated statements of cash flows for the three months ended March 31, 2025 and 2024 (in thousands):

For the Three Months Ended March 3120252024Net cash provided by (used in) operating activities$7,076$(2,555)Net cash provided by investing activities9,526 7,436 Net cash used in financing activities(14,584)(4,361)Net decrease in cash, cash equivalents and restricted cash2,018 520 Cash, cash equivalents and restricted cash, beginning of period48,901 53,169 Cash, cash equivalents and restricted cash, end of period$50,919$53,689

Cash flows from operating activities. During the three months ended March 31, 2025, net cash provided by (used in) operating activities was $7.1 million, compared to net cash provided by operating activities of $(2.6) million for the three months ended March 31, 2024. The change in cash flows from operating activities was mainly due to an increase in dividend income from equity securities.

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Cash flows from investing activities. During the three months ended March 31