Company: NXDT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001356115-25-000014
Chunk: 21

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 21
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Table of Contents

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the significant unobservable inputs used in the fair valuation of assets categorized within Level 3 of the fair value hierarchy as of March 31, 2025.CategoryValuation TechniqueSignificant Unobservable InputsInput Value(s) (Arithmetic Mean)Fair ValueCommon StockMarket ApproachUnadjusted Price/MHz-PoP$0.10—$0.90$(0.48)$140,857 Discounted Cash FlowDiscount Rate7.00%—14.00%(9.5)%Market Rent (per sqft)$13.00—$42.50$(27.75)NAV ApproachDiscount Rate10.00%NAV per Share$10.08Multiple of EBITDA3.00x—4.25x(3.63)xRecent TransactionImplied Enterprise Value from Transaction Price ($mm)$1,150.00Convertible NotesDiscounted Cash FlowDiscount Rate6.08%—8.08%(7.08)%18,195 LLC InterestDiscounted Cash FlowDiscount Rate7.00%—26.00%(12.5)%48,545 Market Rent (per sqft)$13.00—$42.50$(27.75)Capitalization Rate5.13%LP InterestDirect Capitalization ApproachCapitalization Rate5.13%—5.38%(5.25)%177,108 Market ApproachDiscount to NAV(5.00)%Recent TransactionPrice per Share$14.97Preferred SharesLiquidation AnalysisPar$1,00071,293 Senior LoanDiscounted Cash FlowDiscount Rate13.30%—26.00%(19.65)%44,509 Total$500,507  The following is a summary of the significant unobservable inputs used in the fair valuation of assets categorized within Level 3 of the fair value hierarchy as of December 31, 2024.CategoryValuation TechniqueSignificant Unobservable InputsInput Value(s) (Arithmetic Mean)Fair ValueCommon StockMarket ApproachUnadjusted Price/MHz-PoP$0.10—$0.90$(0.48)$157,828 

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Discounted Cash FlowDiscount Rate7.00%—14.50%(9.63)%Market Rent (per sqft)$13.00—$42.50$(27.75)NAV ApproachDiscount Rate10.