Company: NXDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001356115-25-000014
Chunk: 28

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 28
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 LTIP, respectively.The following table includes the number of restricted share units granted, vested, forfeited and outstanding as of and for the three months ended March 31, 2025:2025Number of UnitsWeighted AverageGrant Date Fair ValueOutstanding January 1, 20251,438,049 $7.35 Granted— — Vested (300,594)(1)3.90 Forfeited— — Outstanding March 31, 20251,137,455 $8.26 (1)Certain key employees of the Adviser elected to net the taxes owed upon the vesting against the shares issued resulting in 243,569 shares being issued as shown on the Consolidated Statement of Equity.The following table contains information regarding the vesting of restricted share units under the 2023 LTIP as of March 31, 2025:Shares VestingMarchAprilTotal2025— 140,391 140,391 2026242,136 135,328 377,464 2027242,136 135,328 377,464 2028242,136 — 242,136 Total726,408 411,047 1,137,455 

For the three months ended March 31, 2025 and 2024, the Company recognized approximately $0.8 million and $0.5 million, respectively, of equity-based compensation expense related to grants of restricted share units. As of March 31, 2025, the Company had recognized a liability of approximately $0.9 million related to dividends earned on restricted share units that are payable in cash upon vesting. As of March 31, 2025, total unrecognized compensation expense on restricted share units was approximately $7.2 million, and the expense is expected to be recognized over a weighted average vesting period of 1.6 years. As of December 31, 2024, total unrecognized compensation expense on restricted share units was approximately $8.0 million, and the expense is expected to be recognized over a weighted average vesting period of 1.5 years. 

12. Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of the Company’s common shares outstanding and excludes any unvested restricted share units issued pursuant to the 2023 LTIP.

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