Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1804

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1804
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 the three months ended June 30, 2024 and the three months ended June 30, 2023, is primarily attributed to a decrease in total assets used to calculate the administrative and advisory Fees, offset by an addition in fees paid to the NHT Adviser pursuant to the NHT Advisory Agreement from the NHT Acquisition.

Property general and administrative expenses.Property general and administrative expenses were $2.2 million for the three months ended June 30, 2024, compared to $1.0 million for the three months ended June 30, 2023, which was an increase of approximately $1.2 million. The increase between the periods is primarily attributed to the consolidation of NHT. Property general and administrative expenses consist primarily of expenses from our investment in Cityplace Tower and NHT properties.

Corporate general and administrative expenses. Corporate general and administrative expenses were $3.2 million for the three months ended June 30, 2024, compared to $2.3 million for the three months ended June 30, 2023, which was an increase of approximately $0.9 million. The increase between the periods was primarily due to the consolidation of NHT.

Conversion expenses. Conversion expenses were $0.0 million for the three months ended June 30, 2024, compared to $1.3 million for the three months ended June 30, 2023, which was a decrease of approximately $1.3 million. The decrease between the periods was due to the completion of the Business Change, which resulted in a reduction in conversion-related expenses and associated fees.

Depreciation and amortization. Depreciation and amortization costs were $4.1 million for the three months ended June 30, 2024, compared to $3.6 million for the three months ended June 30, 2023, which was an increase of approximately $0.5 million. Due to the Business Change, the fair value of our real estate properties as of July 1, 2022 became the new cost basis for the Company. This change reset the depreciable basis of our properties as well as caused the recognition of new intangible lease assets. The increase between the periods was primarily due to the consolidation of NHT.

Other Income and Expense

Interest expense. Interest expense was $7.9 million for the three months ended June 30, 2024, compared to $3.8 million for the three months ended June 30, 2023, which