Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 407

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 407
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     |      |                                (2,257 | ) |
| Income tax expense                                       |     |      |                         (2,731 | ) |     |      |                                (9,975 | ) |
| Change in unrealized gains (losses)                      |     |      |                       (108,249 | ) |     |      |                               (92,031 | ) |
| Realized gains (losses)                                  |     |      |                         (1,634 | ) |     |      |                                (2,323 | ) |
| Net income (loss)                                        |     |      |                       (117,241 | ) |     |      |                               (81,573 | ) |
| Net (income) loss attributable to preferred shareholders |     |      |                         (4,619 | ) |     |      |                                (2,310 | ) |
| Net income (loss) attributable to common shareholders    |     | $    |                       (121,860 | ) |     | $    |                               (83,883 | ) |

The net loss for the year ended December 31, 2023 and the six months ended December 31, 2022 primarily relates to mark-to-market losses on our investments accounted for at fair value partially offset by interest and dividends.

Revenues

Rental income. Rental income was $20.3 million for the year ended December 31, 2023, and $10.1 million for the six months ended December 31, 2022. Rental income primarily consists of lease revenue from our investment in Cityplace Tower.

Interest and dividends. Interest and dividends totaled $42.7 million for the year ended December 31, 2023, and $45.0 million for the six months ended December 31, 2022. For the year ended December 31, 2023, interest and dividends consists primarily of dividends from CLO equity investments of $17.4 million, NexPoint Real Estate Finance Operating Partnership, L.P. ("NREF OP") distributions of $8.9 million and NREF dividends of $3.6 million. For the six months ended December 31, 2022, interest and dividends consisted primarily of dividends from CLO equity investments of $29.1 million, NREF OP distributions of $7.0 million and VB OP distributions of $2.8 million.

Other income. Other income was approximately $0.3 million for the year ended December 31, 2023,