Company: NXDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001356115-25-000014
Chunk: 105

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1A
Chunk 105
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, 2024, which was an increase of approximately $2.8 million. The increase between the periods was primarily due to the NHT consolidation. 

Equity in income (losses) of unconsolidated ventures. Equity in losses of unconsolidated ventures was $(0.4) million for the three months ended March 31, 2025, compared to $(1.2) million for the three months ended March 31, 2024, which was an increase of approximately $0.8 million. The decrease between periods was primarily due to a decrease in net income at Marriott Uptown.

Income tax expense (benefit). The Company has recorded income tax expense (benefit) of $1.2 million associated with the TRSs for the three months ended March 31, 2025 and $0.6 million associated with the TRSs for the three months ended March 31, 2024. The tax expense for the three months ended March 31, 2025 is partially increased by the annual change in valuation allowance on a deferred tax asset of $(2.2) million, and an income tax expense of $0.6 million for a net expense of $2.8 million for the three months ended March 31, 2025 that is recorded on the Consolidated Statements of Operations and Comprehensive Income (Loss).

Change in unrealized gains (losses). Unrealized gains (losses) from our investments accounted for at fair value was $(33.3) million for the three months ended March 31, 2025, compared to $6.3 million for the three months ended March 31, 2024, which was a decrease of approximately $(39.6) million. The losses for the three months ended March 31, 2025 were largely driven by mark-to-market losses on common units of VineBrook of $9.7 million, IQHQ, LP (“IQHQ LP”) interests of $5.8 million and United Development Funding IV common equity of $5.2 million. The gains for the three months ended March 31, 2024 were largely driven by redemptions of the legacy CLO positions, which generated realized losses and a positive change in unrealized, mark-to-market gains on NSP common equity of $1.3 million, offset by NREF OP Units of $6.8 million, and NREF common stock of $2.9 million.