NexPoint Diversified Real Estate Trust Announces Quarterly Distribution and $20 Million Share Repurchase Program
NexPoint Diversified Real Estate Trust (NXDT) has announced two significant updates: a quarterly distribution of $0.15 per common share and a new $20 million share repurchase program. The distribution, payable on December 31, 2024, will be a combination of cash and NXDT shares, with the cash component not exceeding 20%. Shareholders can elect to receive all cash or all shares, though cash elections may be prorated. The share repurchase program, effective until October 28, 2026, authorizes the repurchase of both common shares and 5.50% Series A Cumulative Preferred Shares.
NexPoint Diversified Real Estate Trust (NXDT) ha annunciato due importanti novit脿: una distribuzione trimestrale di $0,15 per ogni azione comune e un nuovo programma di riacquisto di azioni da $20 milioni. La distribuzione, che sar脿 pagata il 31 dicembre 2024, sar脿 una combinazione di contante e azioni NXDT, con la componente in contante che non superer脿 il 20%. Gli azionisti possono scegliere di ricevere tutto in contante o tutte azioni, anche se le elezioni in contante potrebbero essere prorate. Il programma di riacquisto di azioni, valido fino al 28 ottobre 2026, autorizza il riacquisto sia di azioni comuni sia di azioni privilegiate cumulative di serie A al 5,50%.
NexPoint Diversified Real Estate Trust (NXDT) ha anunciado dos actualizaciones significativas: una distribuci贸n trimestral de $0.15 por acci贸n com煤n y un nuevo programa de recompra de acciones de $20 millones. La distribuci贸n, que se pagar谩 el 31 de diciembre de 2024, ser谩 una combinaci贸n de efectivo y acciones de NXDT, con la parte en efectivo que no exceder谩 el 20%. Los accionistas pueden optar por recibir todo en efectivo o todas acciones, aunque las elecciones en efectivo pueden ser prorrateadas. El programa de recompra de acciones, vigente hasta el 28 de octubre de 2026, autoriza la recompra tanto de acciones comunes como de acciones preferentes acumulativas de serie A al 5.50%.
NexPoint Diversified Real Estate Trust (NXDT)臧� 霊� 臧�歆� 欷戩殧頃� 鞐呺嵃鞚错姼毳� 氚滍憸頄堨姷雼堧嫟: 氤错喌欤� 1欤茧嫻 $0.15鞚� 攵勱赴 氚半嫻旮堦臣 $2000毵� 攴滊鞚� 鞁犼窚 鞛愳偓欤� 毵れ瀰 頂勲攴鸽灗鞛呺媹雼�. 2024雲� 12鞗� 31鞚检棎 歆�旮夒悹 氚半嫻旮堨潃 順勱笀瓿� NXDT 欤检嫕鞚� 臁绊暕鞙茧, 順勱笀 牍勳湪鞚� 20%毳� 雱橃 鞎婌姷雼堧嫟. 欤检＜霌れ潃 鞝勳暋 順勱笀 霕愲姅 鞝勳暋 欤检嫕鞙茧 氚涭潉 靾� 鞛堧姅 靹犿儩甓岇澊 鞛堨姷雼堧嫟, 頃橃毵� 順勱笀 靹犿儩鞚� 牍勲 氚半秳霅� 靾� 鞛堨姷雼堧嫟. 2026雲� 10鞗� 28鞚缄箤歆� 鞙犿毃頃� 鞛愳偓欤� 毵れ瀰 頂勲攴鸽灗鞚� 氤错喌欤检檧 5.50% A 鞁滊Μ歃� 雸勳爜 鞖办劆欤� 氇憪鞚� 毵れ瀰鞚� 項堦皜頃╇媹雼�.
NexPoint Diversified Real Estate Trust (NXDT) a annonc茅 deux mises 脿 jour importantes : une distribution trimestrielle de 0,15 $ par action ordinaire et un nouveau programme de rachat d'actions de 20 millions de dollars. La distribution, qui sera vers茅e le 31 d茅cembre 2024, sera une combinaison de liquidit茅s et d'actions NXDT, le composant liquidit茅s ne d茅passant pas 20 %. Les actionnaires peuvent choisir de recevoir soit tout en esp猫ces, soit toutes des actions, bien que les choix en esp猫ces puissent 锚tre proratis茅s. Le programme de rachat d'actions, valable jusqu'au 28 octobre 2026, autorise le rachat d'actions ordinaires ainsi que d'actions pr茅f茅rentielles cumulatives de s茅rie A 脿 5,50 %.
NexPoint Diversified Real Estate Trust (NXDT) hat zwei bedeutende Updates bekannt gegeben: Eine viertelj盲hrliche Aussch眉ttung von $0,15 pro Stammaktie und ein neues Aktienr眉ckkaufprogramm 眉ber $20 Millionen. Die Aussch眉ttung, die am 31. Dezember 2024 f盲llig ist, wird eine Kombination aus Bargeld und NXDT-Aktien sein, wobei der Bargeldanteil 20% nicht 眉berschreiten darf. Aktion盲re k枚nnen w盲hlen, ob sie alles in Bargeld oder alles in Aktien erhalten m枚chten, jedoch k枚nnen Bargeldwahlen anteilig ausgeglichen werden. Das R眉ckkaufprogramm, das bis zum 28. Oktober 2026 g眉ltig ist, erlaubt den R眉ckkauf sowohl von Stammaktien als auch von 5,50% kumulierten Vorzugsaktien der Serie A.
- Authorization of $20 million share repurchase program potentially supporting stock price
- Quarterly distribution maintained at $0.15 per share
- Flexible distribution structure allowing REIT to retain capital while maintaining shareholder returns
- Cash component of distribution to 20%, forcing shareholders to accept mostly stock
- Potential share dilution from stock-based distribution payments
Insights
This dual announcement carries significant implications for NXDT shareholders. The $0.15 quarterly distribution with an 80/20 stock/cash split structure helps preserve capital while maintaining REIT status. The unique distribution mechanism, allowing shareholders to elect between cash and shares, provides flexibility but effectively functions as a partial dividend reinvestment program.
The new
The distribution structure is strategically designed to maintain REIT qualification requirements while optimizing tax efficiency. The 80/20 split helps NXDT meet distribution requirements without depleting cash reserves. Despite the stock component, shareholders should note this remains a taxable dividend, potentially creating tax obligations without corresponding cash distributions for those receiving shares. The flexibility to pay future dividends entirely in cash provides important optionality for future tax planning.
Quarterly Distribution
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
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
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 December 13, 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.
Share Repurchase Program
NXDT also announced today that its board of trustees has authorized the repurchase of up to
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
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 the timing and amount of repurchases of our shares, if any, and the possibility that the repurchase program may be suspended or discontinued as well as 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) Griffith
IR@nexpoint.com
Media Relations
Prosek Partners for NexPoint
pro-nexpoint@prosek.com
View original content to download multimedia:
SOURCE NexPoint Diversified Real Estate Trust
FAQ
What is the amount of NXDT's quarterly distribution for Q4 2024?
How much is NXDT's new share repurchase program worth?
What is the cash component limit for NXDT's Q4 2024 distribution?
When is the deadline for NXDT shareholders to elect their distribution preference?
