Company: NXDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001356115-25-000014
Chunk: 113

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1A
Chunk 113
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 that are not as involved in the aforementioned activities.

We believe that the use of FFO and AFFO, combined with the required GAAP presentations, improves the understanding of operating results of REITs among investors and makes comparisons of operating results among such companies more meaningful. While FFO and AFFO are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income (loss) as defined by GAAP and should not be considered as an alternative or substitute to those measures in evaluating our liquidity or operating performance. FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. Further, our computation of FFO and AFFO may not be comparable to FFO and AFFO reported by other REITs that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define AFFO differently than we do.

The following table reconciles our calculations of FFO and AFFO to net income (loss), the most directly comparable GAAP financial measure, for the three months ended March 31, 2025 and 2024 (in thousands, except per share amounts):

53

For the Three Months Ended March 31For the Three Months Ended March 3120252024% Change  (1)Net income (loss)$(35,106)$(21,548)N/MDepreciation and amortization3,909 2,796 39.8 %Realized (gains) losses(1,519)21,872 N/MImpairment loss1,752 — — %Adjustment for noncontrolling interests615 — — %FFO(30,349)3,120 N/MDistributions to Series A preferred shareholders(1,155)(1,155)— %Distributions to Series B preferred shareholders(2)— — %FFO attributable to common shareholders(31,506)1,965 N/MFFO per share - basic$(0.73)$0.05 N/MFFO per share - diluted$(0.73)$0.05 N/MEquity-based compensation expense 804 547 47.0 %Amortization of deferred financing costs - long term debt143 271 -47.2 %Change in unrealized (gains) losses33,322 (6,290)N/MAFF