Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1805

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1805
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 was an increase of approximately $4.1 million. The increase between the periods, was primarily due to the consolidation of NHT.

Equity in income (losses) of unconsolidated ventures. Equity in losses of unconsolidated ventures was $0.2 million for the three months ended June 30, 2024, compared to $0.4 million for the three months ended June 30, 2023, which was a decrease of approximately $0.2 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 $0.5 million associated with the TRSs for the three months ended June 30, 2024, and $0.3 million associated with the TRSs for the three months ended June 30, 2023. The tax expense for the three months ended June 30, 2024 is partially offset by the annual change in valuation allowance on a deferred tax asset of $0.2 million for a net expense of $0.3 million for the three months ended June 30, 2024, that is recorded on the Consolidated Statement of Operations and Comprehensive Income.

Change in unrealized gains (losses). Unrealized gains (losses) from our investments accounted for at fair value was $(3.2) million for the three months ended June 30, 2024, compared to $(9.3) million for the three months ended June 30, 2023, which was an increase of approximately $6.1 million. The gains for the three months ended June 30, 2024 were largely driven by mark-to-market gains on common units of VineBrook Homes Operating Partnership, L.P. ("VB OP") of $9.7 million, offset by IQHQ LP interests of $5.4 million, NREF OP Units of $3.1 million, and NREF common stock of $1.3 million. The losses for the three months ended June 30, 2023 were primarily driven by mark-to-market losses on

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common units of NexPoint SFR Operating Partnership, L.P. ("SFR OP") of $4.8 million, mark-to-market losses on NHT common stock of $4.7 million and losses on VB OP common units of $4.6 million.