Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 288

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 288
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 periods was primarily due to the NHT consolidation.

Expenses

Property operating expenses. Property operating expenses were $22.3 million for the year ended December 31, 2024, compared to $7.5 million for the year ended December 31, 2023, which was an increase of approximately $14.8 million. The increase between the periods was primarily due to the NHT consolidation.

Property management fees. Property management fees were $1.5 million for the year ended December 31, 2024, compared to $0.7 million for the year ended December 31, 2023, which was an increase of approximately $0.8 million. The increase between the periods was primarily due to the NHT consolidation.

Real estate taxes and insurance. Real estate taxes and insurance costs were $6.5 million for the year ended December 31, 2024, compared to $4.4 million for the year ended December 31, 2023, which was an increase of 

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approximately $2.1 million. Real estate taxes and insurance expenses consist primarily of expenses from our investment in Cityplace and our hospitality properties. The increase between the periods was primarily due to the consolidation of NHT.

Advisory and administrative fees. For the year ended December 31, 2024, the Company incurred administrative fees and advisory fees of $14.2 million. For the year ended December 31, 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