Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 418

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 418
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 and renovation to remain competitive. We estimate an additional $190 million to $210 million of capital expenditures to complete the Cityplace renovation. Also, acquisitions, redevelopments, or expansions of our properties will require

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significant capital outlays. Long-term, we may not be able to fund such capital improvements solely from net cash provided by operations because we must distribute annually at least 90% of our REIT taxable income, determined without regard to the deductions for dividends paid and excluding net capital gains, to qualify and maintain our qualification as a REIT, and we are subject to tax on any retained income and gains. As a result, our ability to fund capital expenditures, acquisitions, or redevelopment through retained earnings long-term is limited. Consequently, we expect to rely heavily upon the availability of debt or equity capital for these purposes. If we are unable to obtain the necessary capital on favorable terms, or at all, our financial condition, liquidity, results of operations, and prospects could be materially and adversely affected.

We believe that our available cash, expected operating cash flows, and potential debt or equity financings will provide sufficient funds for our operations, anticipated scheduled debt service payments and dividend requirements for the twelve-month period following December 31, 2023.

Cash Flows

The following table presents selected data from our consolidated statements of cash flows for the year ended December 31, 2023 and the six months ended December 31, 2022 (in thousands):

|                                                                 |     | 2023 | For the Year Ended December 31 |   |     | 2022 | For the Six Months Ended December 31 |   |
|:----------------------------------------------------------------|:----|:-----|-------------------------------:|:--|:----|:-----|-------------------------------------:|:--|
| Net cash provided by (used in) operating activities             |     | $    |                        (24,266 | ) |     | $    |                               31,431 |   |
| Net cash provided by (used in) investing activities             |     |      |                         21,990 |   |     |      |                              (14,418 | ) |
| Net cash provided by (used in) used in financing activities     |     |      |                          6,796 |   |     |      |                              (19,140 | ) |
| Net decrease in cash, cash equivalents and restricted cash      |     |      |                          4,520 |