Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1678

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1678
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 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 NHT consolidation.

Impairment loss.Impairment loss was $6.1 million for the nine months ended September 30, 2024, compared to $0 for the nine months ended September 30, 2023, which was an increase of approximately $6.1 million. The increase between the periods was due to an increase in impairment charges relating to Plano Homewood Suites and Las Colinas Homewood Suites.

Other Income and Expense

Interest expense. Interest expense was $20.7 million for the nine months ended September 30, 2024, compared to $11.4 million for the nine months ended September 30, 2023, which was an increase of approximately $9.3 million. The increase between the periods was primarily due to the NHT consolidation.

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Equity in income (losses) of unconsolidated ventures. Equity in losses of unconsolidated ventures was $(0.6) million for the nine months ended September 30, 2024, compared to $0.0 million for the nine months ended September 30, 2023, which was a decrease of approximately $(0.6) million. The decrease between periods was primarily due to a decrease in net income at Marriot Uptown.

Income tax expense (benefit). The Company has recorded income tax expense (benefit) of $(1.6) million associated with the TRSs for the nine months ended September 30, 2024 and $1.4 million associated with the TRSs for the nine months ended September 30, 2023. The tax expense for the nine months ended September 30, 2024 is partially offset by the annual change in valuation allowance on a deferred tax asset of $0.2 million for a net expense of $1.6 million for the nine months ended September 30, 2024, that is recorded on the Consolidated Statement of Operations and Comprehensive Income.

Change in unrealized gains (losses). Unrealized gains (losses) from our investments accounted for at fair value was $2.3 million for the nine months ended September 30, 2024, compared to $(89.6) million for the nine months ended September 30,