Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 734

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 734
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 related loans using the straight-line method, which approximates the effective interest method. Deferred financing costs, net of amortization, are recorded as a reduction from the related debt on the Company’s Consolidated Balance Sheet. Upon repayment of or in conjunction with a material change in the terms of the underlying debt agreement, any unamortized costs are charged to loss on extinguishment of debt and modification costs.Prime Brokerage BorrowingEffective July 2, 2022, the Company entered a prime brokerage account with Jefferies to hold securities owned by the Company (the "Prime Brokerage"). The Company from time to time borrows against the value of these securities. As of December 31, 2024, the Company had a margin balance of approximately $1.2 million outstanding with Jefferies bearing interest at the Overnight Bank Funding Rate plus 0.50%. Securities with a fair value of approximately $12.7 million are pledged as collateral against this margin balance. This arrangement has no stated maturity date. Due to the short-term nature of the debt, the fair value of the debt is approximately the outstanding balance.Schedule of Debt MaturitiesThe aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to December 31, 2024 are as follows (in thousands):Mortgages PayableCredit FacilitiesNotes PayablePrime Brokerage BorrowingTotal2025$252,167 $27,485 $13,250 $— $292,902 2026— — — — — 2027— — 20,500 — 20,500 2028— — — — — 202910,000 — — — 10,000 Thereafter— — 37,486 1,222 38,708 Total$262,167 $27,485 $71,236 $1,222 $362,110 

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7. Variable Interest Entities

As of December 31, 2024, and 2023, the Company does not consolidate the investments below as it does not have a controlling financial interest in these investments:EntitiesInstrumentAsset TypePercentage Ownership as of December 31, 2024Percentage Ownership as of December 31, 2023Relationship as of December 31, 2024Relationship as of December 31, 2023Unconsolidated Entities:NexPoint Storage