Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 931

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9C
Chunk 931
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 2023, the Company incurred administrative fees and advisory fees of $11.7 million, inclusive of $2.0 million in expenses that were waived and cannot be recouped by the Adviser. The Expense Cap expired on June 30, 2023. The increase between the year ended December 31, 2024 and the year ended December 31, 2023, is primarily due to the addition of fees paid to the NHT Adviser pursuant to the NHT Advisory Agreement from the consolidation of NHT and the expiration of the Expense Cap. 

Property general and administrative expenses. Property general and administrative expenses were $7.4 million for the year ended December 31, 2024, compared to $4.3 million for the year ended December 31, 2023, which was an increase of approximately $3.1 million. The increase between the periods is primarily attributed to the NHT consolidation.

Corporate general and administrative expenses. Corporate general and administrative expenses were $12.8 million for the year ended December 31, 2024, compared to $8.0 million for the year ended December 31, 2023, which was an increase of approximately $4.8 million. The increase between periods was primarily due to an increase in accounting and audit fees.

Conversion expenses. Conversion expenses were $0.0 million for the year ended December 31, 2024, compared to $1.2 million for the year ended December 31, 2023, which was a decrease of approximately $1.2 million. The decrease between the periods was primarily due to a decrease in expenses related to the Business Change. 

Depreciation and amortization. Depreciation and amortization costs were $15.6 million for the year ended December 31, 2024, compared to $13.9 million for the year ended December 31, 2023, which was an increase of approximately $1.7 million. This change reset the depreciable basis of our properties as well as caused the recognition of new intangible lease assets. The increase between the periods was primarily due to the NHT consolidation.

Impairment loss. Impairment loss was $7.1 million for the year ended December 31, 2024, compared to $0.0 for the year ended December 31, 2023, which was an increase of approximately $6.1 million.