Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1764

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1764
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 (6) | The Company has elected the fair value option with respect to these investments. The basis in these investments is their fair value. |

| (7) | The Company owns less than 20% of the investee but has significant influence due to members of the management team serving on the board of the investee or its parent and as such, accounts for the investee using the equity method. |

| (8) | The Company has a 31% non-controlling interest in Haygood, LLC, (“Haygood”). The Company has determined it is not the primary beneficiary and does not consolidate this entity. |

| (9) | The Company owns less than 20% of the investee but has significant influence due to the legal nature of a partnership that implies an inherent right to influence the operating and financial policies of the partnership. |

Significant Equity Method Investments

For its interim reporting, the Company assesses and presents summarized financial information for its significant equity method investments in accordance with Rule 10-01(b)(1) of Regulation S-X. The following were deemed significant. Beginning with its annual reporting for fiscal year ended December 31, 2023, the Company elected to report the financial information on a three-month lag. NexPoint Real Estate Finance, Inc. ("NREF") and VineBrook Homes Trust, Inc. ("VineBrook") do not prepare standalone financials for their operating companies as all operations and investments are owned through their operating companies and are consolidated by the corporate entities.

The table below presents the summarized statement of operations for the three months ended March 31, 2024 for the Company’s significant equity method investments (dollars in thousands).

| Revenues                                           |     | NREF |         |   |     | VineBrook |         |   |
|:---------------------------------------------------|:----|:-----|--------:|:--|:----|:----------|--------:|:--|
| Rental income                                      |     | $    |   2,087 |   |     | $         |  88,783 |   |
| Net interest income                                |     |      | (12,814 | ) |     |           |       — |   |
| Other income                                       |     |      |     124 |   |     |           |   1,502 |   |
| Total revenues                                     |     |      | (10,603 | ) |     |           |  90,285 |   |
| Expenses