Company: NXDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001356115-25-000014
Chunk: 111

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1A
Chunk 111
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 months ended March 31, 2025, compared to $321.6 thousand for the three months ended March 31, 2024, which is an increase of approximately $37.3 thousand or 11.5%. The majority of the increase between the three months ended March 31, 2025 and the three months ended March 31, 2024 is related to a decrease in the amortization of above- and below-market leases. Above-market leases decrease rental income as they are amortized, while below-market leases increase rental income.

Expenses

Property operating expenses. Property operating expenses were $64.4 thousand for the three months ended March 31, 2025, compared to $48.9 thousand for the three months ended March 31, 2024, which was an increase of approximately $15.5 thousand or 30.6%. The majority of the increase between the three months ended March 31, 2025 and the three months ended March 31, 2024 is related to an increase in repair and maintenance fees.

Real estate taxes and insurance. Real estate taxes and insurance costs were $65.5 thousand for the three months ended March 31, 2025, compared to $79.8 thousand for the three months ended March 31, 2024, which was a decrease of approximately $14.3 thousand or 17.5%. The majority of the decrease between the three months ended March 31, 2025 and the three months ended March 31, 2024 is related to a decrease in the property tax budget.

Property management fees. Property management fees were $18.6 thousand for the three months ended March 31, 2025, compared to $17.0 thousand for the three months ended March 31, 2024, which was an increase of approximately $1.6 thousand, or 11.8%. The increase between the three months ended March 31, 2025 and the three months ended March 31, 2024 is related to an increase in rental revenue, which the management fee is calculated off of. 

Property general and administrative expenses. Property general and administrative expenses were $6.4 thousand for the three months ended March 31, 2025, compared to $6.2 thousand for the three months ended March 31, 2024, which was an increase of approximately $0.2 thousand, which was not a material change. The majority of the increase between the