Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 932

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9C
Chunk 932
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 The increase between the periods was due to an increase in impairment charges relating to the Addison Property, Plano Homewood Suites and Las Colinas Homewood Suites.

Other Income and Expense

Interest expense. Interest expense was $28.4 million for the year ended December 31, 2024, compared to $15.9 million for the year ended December 31, 2023, which was an increase of approximately $12.5 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 $0.1 million for the year ended December 31, 2024, compared to $(0.3) million for the year ended December 31, 2023, which was an increase of approximately $0.4 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 $1.4 million associated with the TRSs for the year ended December 31, 2024 and $2.7 million associated with the TRSs for the year ended December 31, 2023. The tax expense for the year ended December 31, 2024 is partially increased by the annual change in valuation allowance on a deferred tax asset of $(0.3) million, and offset by a return-to-provision adjustment of $0.2 million and an income tax refund of $0.7 million for a net expense of $1.4 million for the year ended December 31, 2024, 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 $(1.3) million for the year ended December 31, 2024, compared to $(108.2) million for the year ended December 31, 2023, which was an increase of approximately $106.9 million. The gains for the year ended December 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 MidWave Wireless, Inc. common equity of $14.5 million, United Development Funding IV common equity of