Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 709

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 709
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NHT OP”). On February 21, 2025, NHT’s unitholders voted to approve the NHT Merger. The NHT Merger is expected to close in the second quarter of 2025. The accumulated cost of the acquisition was allocated to the acquired assets and liabilities based on their relative fair values as follows (in thousands): DescriptionLand$22,673 Buildings and improvements128,616 Construction in progress3,613 Furniture, fixtures, and equipment12,722 Investments, at fair value5,000 Cash and cash equivalents38,467 Restricted cash5,065 Prepaid and other assets4,001 Right-of-use asset1,465 Interest-rate cap1,064 Mortgages payable(114,640)Notes payable(70,529)Accounts payable and other accrued liabilities(21,826)Accrued real estate taxes(1,233)Identifiable Net Assets Acquired$14,458 

3. Summary of Significant Accounting Policies

Basis of AccountingThe accompanying consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the consolidated financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared according to the rules and regulations of the SEC.In the opinion of management, all adjustments and eliminations necessary for the fair presentation of the Company’s financial position as of December 31, 2024 and December 31, 2023, and results of operations for the years ended December 31, 2024 and 2023 have been included. Such adjustments are normal and recurring in nature.Principles of ConsolidationUpon the application for the historical cost accounting basis, the Company accounts for partnerships, joint ventures and other similar entities in which it holds an ownership interest in accordance with FASB ASC 810, Consolidation. The Company first evaluates whether each entity is a variable interest entity (“VIE”). Under the VIE model, the Company consolidates an entity when it has control to direct the activities of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the voting model, the Company consolidates an