DALLAS, Feb. 5, 2024
/PRNewswire/ -- NexPoint Diversified Real Estate Trust ("NXDT")
(NYSE: NXDT) announced today that its board of trustees has
declared a quarterly distribution of $0.15 per common share of NXDT, consisting
of a combination of cash and common shares of NXDT. The
distribution will be payable on March 28,
2024, to shareholders of record on February 16, 2024.
The board of trustees has determined that the cash component of
the distribution (other than cash paid in lieu of fractional
shares) will not exceed 20% in the aggregate, with the balance
payable in common shares of NXDT. This will allow NXDT to comply
with the real estate investment trust ("REIT") qualification
requirements under the Internal Revenue Code, while retaining
capital and enhancing NXDT's financial flexibility.
In accordance with the provisions of IRS Revenue Procedure
2017-45, shareholders will be asked to make an election to receive
the distribution all in cash or all in shares. To the extent that
more than 20% of cash is elected in the aggregate, the cash portion
will be prorated. Shareholders who elect to receive the
distribution in cash will receive at least 20% of the distribution
in cash. Shareholders who do not make an election will receive the
distribution entirely in common shares of NXDT. The number of
shares issued as a result of the distribution will be calculated
based on the volume weighted average trading prices of NXDT's
common shares on the New York Stock Exchange on March 18, 19 and 20, 2024.
An election notice and election form will be mailed to
shareholders of record after the record date. The properly
completed election form to receive cash or common shares must be
received by Equiniti Trust Company, NXDT's transfer agent,
prior to 5:00 p.m. Eastern Time on
March 15, 2024.
Shareholders who hold their shares through a bank or broker
should inform the bank or broker of their election. NXDT expects
the dividend to be a taxable dividend to shareholders, regardless
of whether a particular shareholder receives the dividend in the
form of cash or shares. Shareholders are urged to consult with
their tax advisers for proper tax treatment of NXDT's
distributions. NXDT reserves the right to pay future dividends
entirely in cash.
About NexPoint Diversified Real Estate Trust (NYSE:
NXDT)
NexPoint Diversified Real Estate Trust is an externally advised,
publicly traded, diversified REIT focused on the acquisition,
development, and management of opportunistic and value-add
investments throughout the United
States across multiple sectors where NexPoint and its
affiliates have operational expertise. NXDT is externally advised
by NexPoint Real Estate Advisors X, L.P. For more information,
please visit nxdt.nexpoint.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are subject to risks and uncertainties. In particular,
statements relating to the tax status of the distribution, and
NXDT's capital retention and financial flexibility contain
forward-looking statements. We caution investors that any
forward-looking statements presented in this press release are
based on management's current beliefs and assumptions made by, and
information currently available to, management. When used, the
words "will," "retain," "expect" and "enhance," the negative
version of these words and similar expressions that do not relate
solely to historical matters are intended to identify
forward-looking statements. You can also identify forward-looking
statements by discussions of strategy, plans or intentions.
Forward-looking statements are subject to risks, uncertainties
and assumptions and may be affected by known and unknown risks,
trends, uncertainties and factors that are beyond our control,
including those described in greater detail in our filings with the
Securities and Exchange Commission (the "SEC") particularly those
described in our Annual Report on Form 10-K and Quarterly Reports
on Form 10-Q. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those anticipated,
estimated or projected. We caution you therefore against relying on
any of these forward-looking statements and encourage you to review
our other filings with the SEC for a more complete discussion of
risks and other factors that could affect any forward-looking
statement.
CONTACTS
Investor Relations
Kristen
Thomas
IR@nexpoint.com
Media Relations
Prosek Partners for NexPoint
pro-nexpoint@prosek.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/nexpoint-diversified-real-estate-trust-announces-quarterly-distribution-302053826.html
SOURCE NexPoint Diversified Real Estate Trust