Company: NXDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001356115-25-000014
Chunk: 73

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 73
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,361)Net decrease in cash, cash equivalents and restricted cash2,018 520 Cash, cash equivalents and restricted cash, beginning of period48,901 53,169 Cash, cash equivalents and restricted cash, end of period$50,919$53,689

Cash flows from operating activities. During the three months ended March 31, 2025, net cash provided by (used in) operating activities was $7.1 million, compared to net cash provided by operating activities of $(2.6) million for the three months ended March 31, 2024. The change in cash flows from operating activities was mainly due to an increase in dividend income from equity securities.

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Cash flows from investing activities. During the three months ended March 31, 2025, net cash provided by investing activities was $9.5 million, compared to net cash provided by investing activities of $7.4 million for the three months ended March 31, 2024. The change in cash flows from investing activities was attributed to proceeds from held-for-sale properties of $8.3 million and a return of capital from the Marriott Uptown equity method investment of $15.1 million.

Cash flows from financing activities. During the three months ended March 31, 2025, net cash used in financing activities was $(14.6) million, compared to net cash used in financing activities of $(4.4) million for the three months ended March 31, 2024. The change in cash flows from financing activities was due to paydowns on the mortgage debt with proceeds from the held-for-sale assets.

Debt

Mortgage Debt

As of March 31, 2025, our consolidated subsidiaries had aggregate mortgage debt outstanding to third parties of approximately $243.4 million at a weighted average interest rate of 7.54%. See Note 6 to our consolidated financial statements for additional information.

We intend to invest in additional real estate investments as suitable opportunities arise and adequate sources of equity and debt financing are available. We expect that future investments in properties, including any improvements or renovations of current or newly acquired properties, will depend on and will be financed by, in whole or in part, our existing cash, future borrowings and the proceeds from additional issuances of common shares, Series B Preferred Shares or other securities or investment and property dispositions.

Although we expect to be subject to restrictions on our ability to incur indebtedness, we expect that we will be able to