Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 255

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 255
---
 future;

•our financing strategy and leverage;

•actual or anticipated accounting problems;

•changes in market valuations of similar companies;

•increases in or high interest rates that lead purchasers of our shares to demand a higher yield;

•adverse market reaction to any increased indebtedness we incur in the future;

•additions or departures of key management personnel;

•actions by institutional shareholders;

•speculation in the press or investment community;

•the realization of any of the other risk factors presented in this Annual Report;

•the extent of investor interest in our securities; 

•the general reputation of REITs and the attractiveness of our equity securities in comparison to other equity securities, including securities issued by other real estate-based companies;

•our underlying asset value;

•investor confidence and price and volume fluctuations in the shares and bond markets, generally;

•changes in laws, regulatory policies or tax guidelines, or interpretations thereof, particularly with respect to REITs;

•future equity issuances by us, or share resales by our shareholders, or the perception that such issuances or resales may occur;

•failure to meet income estimates;

•failure to meet and maintain REIT qualifications or exclusion from Investment Company Act regulations or listing on the NYSE; and

•general market and economic conditions.

In the past, class-action litigation has often been instituted against companies following periods of volatility in the price of their common shares. This type of litigation could result in substantial costs and divert our management’s attention and resources, which could have an adverse effect on our financial condition, results of operations, cash flow and trading price of our common shares.

The form, timing and/or amount of dividend distributions on our common shares in future periods may vary and be impacted by economic and other considerations. 

The form, timing and/or amount of dividend distributions on our common shares will be declared at the discretion of our Board and will depend on actual cash from operations, our financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code and other factors as our Board may consider relevant. Our Board may modify our dividend policy from time to time.

56

We may be unable to make distributions on our common shares at expected levels, which could result in a decrease in the market price of our common shares. 

If sufficient cash is not available for distribution from our operations, we may have to fund distributions on our common shares from working capital, borrow to provide funds for such distributions, reduce the amount of such distributions, or issue share dividends or