Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1808

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1808
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 primarily attributed to the NHT consolidation.

Corporate general and administrative expenses. Corporate general and administrative expenses were $6.0 million for the six months ended June 30, 2024, compared to $3.7 million for the six months ended June 30, 2023, which was an increase of approximately $2.3 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 six months ended June 30, 2024, compared to $1.4 million for the six months ended June 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 $6.9 million for the six months ended June 30, 2024, compared to $7.1 million for the six months ended June 30, 2023, which was a decrease of approximately $0.2 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 the Company. This change reset the depreciable basis of our properties as well as caused the recognition of new intangible lease assets. The decrease between the periods was primarily due to the NHT consolidation.

Other Income and Expense

Interest expense. Interest expense was $12.4 million for the six months ended June 30, 2024, compared to $7.2 million for the six months ended June 30, 2023, which was an increase of approximately $5.2 million. The increase between the periods was primarily due to the NHT consolidation.

Equity in income (losses) of unconsolidated ventures. Equity in losses of unconsolidated ventures was $(1.0) million for the six months ended June 30, 2024, compared to $0.3 million for the six months ended June 30, 2023, which was a decrease of approximately $(1.3) million. The decrease between periods was primarily due to a decrease in net income at Marriot Uptown.

Income tax expense. The Company has recorded income tax expense (benefit) of $1.0 million associated with the TRSs for the six months ended June 30, 2024 and $1.