Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 354

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 354
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outstanding balance of $50.2 million and $24.2 million and effective interest rates of 6.33% and 10.79%, respectively. For the year ended December 31, 2024, NHT paid $2.8 million and $2.2 million in interest on the Note A Loan and the Note B Loan, respectively. On February 15, 2022, in connection with the acquisition of the Park City and Bradenton properties, NHT, through subsidiaries of NHT OP, entered into a borrowing arrangement for a $39.3 million loan (the “PC & B Loan”) with AREEIF Lender, LLC. The PC & B Loan principal amount reflected its fair value on the date of the NHT Acquisition. The outstanding balance on the PC & B Loan as of December 31, 2024 was $37.9 million, with $1.4 million available to draw on for renovation purposes as of December 31, 2024. See Note 18 for a discussion of the extension of the maturity dates of the PC & B Loan.The loan documents, including the guaranty, for the PC & B Loan and the Note A Loan and Note B Loan contain customary representations, warranties, and events of default, which require NHT to comply with affirmative and negative covenants. As of December 31, 2024, NHT OP, the guarantor of certain obligations under the PC & B Loan documents, was not in compliance with the PC & B Loan covenants related to the minimum net worth and the minimum liquid assets. AREEIF Lender, LLC, the lender under the PC & B Loan has not granted a waiver for the covenant violations as of December 31, 2024.Notes Payable, NHT The NHT OP also entered into several convertible notes with affiliates of the NHT Adviser (as defined in Note 14) since January 8, 2019. The fixed rate notes have rates ranging from 2.25% to 7.50% (which were market interest rates at the time of their issuance) while outstanding and mature in 20 years from their date of issuance, with the earliest maturing on February 14, 2027 and the latest maturing on September 30, 2042. For $3.6 million of the notes, the principal and interest is convertible into NHT OP Class B Units (at the option of their respective holder