Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1677

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1677
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 insurance expenses consist primarily of expenses from our investment in Cityplace Tower. The increase between the periods was primarily due to the consolidation of NHT.

Advisory and administrative fees. For the nine months ended September 30, 2024, the Company incurred administrative fees and advisory fees of $10.7 million. For the nine months ended September 30, 2023, the Company incurred administrative fees and advisory fees of $8.7 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 nine months ended September 30, 2024 and the nine months ended September 30, 2023, is primarily attributed to the addition of fees paid to the NHT Adviser pursuant to the NHT Advisory Agreement from the NHT Acquisition and the expiration of the Expense Cap.

Property general and administrative expenses.Property general and administrative expenses were $4.9 million for the nine months ended September 30, 2024, compared to $2.6 million for the nine months ended September 30, 2023, which was an increase of approximately $2.3 million. The increase between the periods is primarily attributed to the NHT consolidation.

Corporate general and administrative expenses. Corporate general and administrative expenses were $8.9 million for the nine months ended September 30, 2024, compared to $5.4 million for the nine months ended September 30, 2023, which was an increase of approximately $3.4 million. The increase between periods was primarily due to an increase in accounting and audit fees.

Conversion expenses. Conversion expenses were $0.0 million for the nine months ended September 30, 2024, compared to $1.4 million for the nine months ended September 30, 2023, which was a decrease of approximately $1.4 million. The decrease between the periods was primarily due to a decrease in expenses related to the Business Change.

Depreciation and amortization. Depreciation and amortization costs were $11.4 million for the nine months ended September 30, 2024, compared to $10.9 million for the nine months ended September 30, 2023, which was an increase of approximately $0.5 million. Due to the Business Change, the fair value of our real estate properties as of July 1, 2022 became the new cost basis for