NEXPOINT DIVERSIFIED REAL ESTATE TRUST
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
NXDT$3.38-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001193125-26-225400
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001193125-26-350420
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 198 previous paragraphs and 242 current paragraphs.
132 unchanged; 55 reworded; 44 added; 11 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 10 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (44)
Current report
The United States government announced a comprehensive set of tariffs in the second quarter of 2025. Following the pause of certain of these tariffs, the majority of the previously announced tariffs were implemented, but such tariffs were determined unconstitutional by the Supreme Court of the United States in a February 2026 ruling. Following such ruling, the current administration immediately imposed a temporary 10% global tariff under a separate statutory provision. On July 24, 2026, the same day the temporary 10% global tariff expired, the United States government imposed new tariffs of 10% or 12.5% on imports from 60 trading partners, subject to certain exceptions. The United States government has indicated that it could impose additional tariffs on particular countries and impose global tariffs on certain goods. Such tariffs could impact our results of operations by increasing the costs of various goods, including construction materials. Management is actively engaged with vendors and business partners to reduce financial risks of tariffs; however, the impact of such tariffs is subject to uncertainties regarding the timing of their implementation, the magnitude of such tariffs and possible exemptions for certain goods, among other uncertainties.
Current report
In addition, the 21st Century ROAD to Housing Act (the “ROAD Act”) was enacted into federal law on July 11, 2026 and will take effect on January 7, 2027. The ROAD Act generally imposes a federal restriction on the ability of large institutional investors to purchase single-family homes, subject to certain exemptions. The ROAD Act and the prospect of other such laws or regulations may adversely impact the value of certain of our investments.
Current report
Loss on extinguishment of debt and modification costs. Loss on extinguishment of debt and modification costs includes prepayment penalties and defeasance costs, the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt related to the early repayment of debt, costs incurred in a debt modification that are not capitalized as deferred financing costs and other costs incurred in a debt extinguishment.
Current report
The three months ended June 30, 2026 as compared to three months ended June 30, 2025
Current report
Room revenue. Room revenue was $4.4 million for the three months ended June 30, 2026, compared to $6.3 million for the three months ended June 30, 2025, which was a decrease of approximately $1.9 million. The decrease between the periods was primarily due to the disposition of Hospitality properties in 2025.
Current report
Interest and dividends. Interest and dividends totaled $10.7 million for the three months ended June 30, 2026, compared to $10.0 million for the three months ended June 30, 2025, which was an increase of approximately $0.7 million. The increase between the periods was attributed to an increase in dividends from preferred stock investments and an increase in interest income from debt investments.
Current report
Property operating expenses. Property operating expenses were $4.6 million for the three months ended June 30, 2026, compared to $5.5 million for the three months ended June 30, 2025, which was a decrease of approximately $0.9 million. The decrease between the periods was primarily due to the disposition of Hospitality properties in 2025.
Current report
Property general and administrative expenses. Property general and administrative expenses were $1.5 million for the three months ended June 30, 2026, compared to $1.6 million for the three months ended June 30, 2025, which was a decrease of approximately $0.1 million. The decrease between the periods is due to the disposition of Hospitality properties in 2025.
Current report
Corporate general and administrative expenses. Corporate general and administrative expenses were $2.7 million for the three months ended June 30, 2026, compared to $1.0 million for the three months ended June 30, 2025, which was an increase of approximately $1.7 million. The increase between periods was primarily due to a write off of accrued payables and expenses in 2025.
Current report
Depreciation and amortization. Depreciation and amortization costs were $3.5 million for the three months ended June 30, 2026, compared to $4.0 million for the three months ended June 30, 2025, which was a decrease of approximately $0.5 million. The decrease between the periods is due to the disposition of Hospitality properties in 2025.
Current report
Loss on extinguishment of debt and modification costs. Loss on extinguishment of debt and modification costs was $0.2 million for the three months ended June 30, 2026, compared to $0.0 million for the three months ended June 30, 2025. The increase between the periods was due to the extinguishment of the previous note due to OSL on White Rock Center in 2026.
Current report
Income tax (expense) benefit. The Company has recorded income tax (expense) benefit of $(0.4) million associated with the TRSs for the three months ended June 30, 2026 and $0.6 million associated with the TRSs for the three months ended June 30, 2025, which was a decrease of approximately $1.0 million. The decrease between periods was primarily due to an increase in taxable income, as well as an increase in the deferred tax asset in the prior period that was not recognized in the current year.
Current report
Realized gains. Realized gains were $0.1 million for the three months ended June 30, 2026, compared to $3.5 million for the three months ended June 30, 2025, which was a decrease of approximately $3.4 million. The decrease was primarily due to the absence of significant gains recognized on the disposition of United Development Funding IV common equity that occurred during 2025.
Current report
The six months ended June 30, 2026 as compared to six months ended June 30, 2025
Current report
The change in our net loss for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily related to a decrease in unrealized losses on investments at fair value, partially offset by lower realized gains, lower dividend income and a loss on sale of real estate recognized in 2026.
Current report
Rental income. Rental income was $5.8 million for the six months ended June 30, 2026, compared to $7.4 million for the six months ended June 30, 2025, which was a decrease of approximately $1.6 million. The decrease between the periods was primarily due to a decrease in occupancy at Cityplace.
Current report
Room revenue. Room revenue was $12.2 million for the six months ended June 30, 2026, compared to $16.6 million for the six months ended June 30, 2025, which was a decrease of approximately $4.4 million. The decrease between the periods was primarily due to the disposition of Hospitality properties in 2025.
Current report
Other income. Other income was approximately $1.1 million for the six months ended June 30, 2026, compared to $0.6 million for the six months ended June 30, 2025, which was an increase of approximately $0.5 million. The increase between the periods was primarily due to a co-development fee of approximately $0.5 million.
Current report
Property operating expenses. Property operating expenses were $10.3 million for the six months ended June 30, 2026, compared to $12.5 million for the six months ended June 30, 2025, which was a decrease of approximately $2.2 million. The decrease between the periods was primarily due to the disposition of Hospitality properties in 2025.
Current report
Property management fees. Property management fees were $0.8 million for the six months ended June 30, 2026, compared to $0.9 million for the six months ended June 30, 2025, which was a decrease of approximately $0.1 million. The decrease between the periods was primarily due to the disposition of Hospitality properties in 2025.
Current report
Advisory and administrative fees. For the six months ended June 30, 2026, the Company incurred administrative fees and advisory fees of $6.0 million, compared to $10.7 million for the six months ended June 30, 2025, which was a decrease of approximately $4.7 million. The decrease between the periods was due to the disposition of Hospitality properties in 2025, a decrease in investments at fair value and a termination fee paid to the former NHT Adviser in connection with the termination of the NHT Advisory Agreement following the NHT Merger in 2025.
Current report
Depreciation and amortization. Depreciation and amortization costs were $7.2 million for the six months ended June 30, 2026, compared to $7.9 million for the six months ended June 30, 2025, which was a decrease of approximately $0.7 million. The decrease between the periods is due to the disposition of Hospitality properties in 2025.
Current report
Loss on extinguishment of debt and modification costs. Loss on extinguishment of debt and modification costs was $0.2 million for the six months ended June 30, 2026, compared to $0.0 million for the six months ended June 30, 2025, which was an increase of $0.2 million. The increase between the periods was due to the extinguishment on of the previous note due to OSL on White Rock Center Note in 2026.
Current report
Equity in (losses) income of unconsolidated ventures. Equity in losses of unconsolidated ventures was $0.9 million for the six months ended June 30, 2026, compared to $0.2 million for the six months ended June 30, 2025, which was an increase of approximately $(0.7) million. The increase between periods was primarily due to an increase in net loss on equity interests in Perilune Aero Equity Holdings One, LLC for the six months ended June 30, 2026.
Current report
Income tax benefit (expense). The Company has recorded income tax expense of $1.3 million associated with the TRSs for the six months ended June 30, 2026 and $0.6 million associated with the TRSs for the six months ended June 30, 2025, which was an increase of approximately $0.7 million. The increase between periods was primarily due to an increase in taxable income, and a decrease in the deferred tax asset recognized in the current year.
Current report
Realized gains. Realized gains were $0.1 million for the six months ended June 30, 2026, compared to $5.0 million for the six months ended June 30, 2025, which was a decrease of approximately $4.9 million. The decrease was primarily due to the absence of significant gains recognized on the disposition of United Development Funding IV common equity that occurred during 2025.
Current report
Rental Income. Rental income was $502.0 thousand for the three months ended June 30, 2026, compared to $449.0 thousand for the three months ended June 30, 2025, which was an increase of approximately $53.0 thousand, or 11.8%. The increase between periods was primarily due to increased rental income from tenant sales-based lease provisions at White Rock Center.
Current report
Property general and administrative expenses. Property general and administrative expenses were $1.0 thousand for the three months ended June 30, 2026, compared to $4.0 thousand for the three months ended June 30, 2025, which was a decrease of approximately $3.0 thousand. The majority of the decrease between the periods is due to professional fees associated with a prospective tenant that were capitalized upon execution of the lease.
Current report
Rental Income. Rental income was $963.0 thousand for the six months ended June 30, 2026, compared to $808.0 thousand for the six months ended June 30, 2025, which was an increase of approximately $155.0 thousand or 19.2%. The increase between periods was primarily due to increased rental income from tenant sales-based lease provisions at White Rock Center.
Current report
Property operating expenses. Property operating expenses were $153.0 thousand for the six months ended June 30, 2026, compared to $122.0 thousand for the six months ended June 30, 2025, which was an increase of approximately $31.0 thousand or 25.4%. The increase between periods was primarily due to an increase in repair and maintenance expenses.
Current report
Real estate taxes and insurance. Real estate taxes and insurance costs were $152.0 thousand for the six months ended June 30, 2026, compared to $140.0 thousand for the six months ended June 30, 2025, which was an increase of approximately $12.0 thousand or 8.6%. The increase between the periods was related to a favorable real estate tax appeal that was recognized in 2025.
Current report
Property management fees. Property management fees were $47.0 thousand for the six months ended June 30, 2026, compared to $41.0 thousand for the six months ended June 30, 2025, which was an increase of approximately $6.0 thousand, or 14.6%. The increase between the periods was primarily due to an increase in rental income, which is the basis of the management fee calculation.
Current report
The six months ended June 30, 2026 as compared to the six months ended June 30, 2025
Current report
AFFO was $(1.3) million for the six months ended June 30, 2026, compared to $5.1 million for the six months ended June 30, 2025, which was a decrease of approximately $6.4 million. The change in our AFFO between the periods is primarily attributable to a $3.5 million termination fee to the former NHT Adviser recognized in the prior-year, and lower equity-based compensation and deferred financing cost amortization, partially offset by a decrease in operating expenses and a decrease in interest expense resulting from debt paydowns and lower interest rates.
Current report
The Company is a guarantor the Citi Loan, with an aggregate principal amount of $750.0 million outstanding as of June 30, 2026, pursuant to the Citi Guaranty. See Note 13 to our consolidated financial statements for additional information.
Current report
The Company is a limited guarantor and an indemnitor on one of its subsidiary's loans with an aggregate principal amount of $35.2 million as of June 30, 2026.See Note 12 to our consolidated financial statements for additional information.
Current report
The Company is a limited guarantor and an indemnitor on with the OSL Loan, which has an aggregate principal amount of $14.1 million outstanding, as of June 30, 2026. See Note 12 to our consolidated financial statements for additional information.
Current report
The Company is a guarantor and an indemnitor on the Cityplace debt, with an aggregate principal amount of $136.4 million outstanding as of June 30, 2026. See Note 12 to our consolidated financial statements for additional information.
Current report
The Company is a guarantor on a loan made by Federal Home Loan Mortgage Corporation to NexPoint WLIF I Borrower, LLC, with an aggregate principal amount of $66.3 million outstanding as of June 30, 2026. See Note 13 to our consolidated financial statements for additional information.
Current report
The OP, together with Calida Holdings III, LP, is a guarantor and an indemnitor on two loans taken by the SPEs that own the Tivoli North Property. See Note 12 to our consolidated financial statements for additional information.
Showing the first 40 of 44 passages. Open the source sections for the rest.
Removed paragraphs (11)
Previous report
Other Income and Expense
Previous report
Room revenue. Room revenue was $7.8 million for the three months ended March 31, 2026, compared to $10.4 million for the three months ended March 31, 2025, which was a decrease of approximately $2.6 million. The decrease between the periods is due to the disposition of Hospitality properties in 2025.
Previous report
Property operating expenses. Property operating expenses were $5.7 million for the three months ended March 31, 2026, compared to $7.0 million for the three months ended March 31, 2025, which was a decrease of approximately $1.3 million. The decrease between the periods is due to the disposition of Hospitality properties in 2025.
Previous report
Property management fees. Property management fees were $0.5 million for the three months ended March 31, 2026, compared to $0.5 million for the three months ended March 31, 2025, which was flat.
Previous report
Other Income and Expense
Previous report
Income tax benefit (expense). The Company has recorded income tax expense of $0.9 million associated with the TRSs for the three months ended March 31, 2026 and $1.2 million associated with the TRSs for the three months ended March 31, 2025. The tax expense for the three months ended March 31, 2026 is increased by the annual change in valuation allowance on a deferred tax asset of $0.1 million and an income tax expense of $0.8 million for a net expense of $0.9 million for the three months ended March 31, 2026, that is recorded on the Consolidated Statements of Operations and Comprehensive Income (Loss).
Previous report
Realized (losses) gains. Realized (losses) gains were $0.0 million for the three months ended March 31, 2026, compared to $1.5 million for the three months ended March 31, 2025, which was a decrease of approximately $1.5 million. There were no material realized gains or losses for the three months ended March 31, 2026. The gains for the three months ended March 31, 2025 were primarily driven by realized gains on United Development Funding IV common equity.
Previous report
Rental Income. Rental income was $0.5 million for the three months ended March 31, 2026, compared to $0.4 million for the three months ended March 31, 2025, which is an increase of approximately $0.1 million or 28.4%. The majority of the increase between the three months ended March 31, 2026 and the three months ended March 31, 2025 is related to an increase in occupancy.
Previous report
The Company is a guarantor on one of NSP’s loans, with an aggregate principal amount of $750.0 million outstanding as of March 31, 2026. The obligations consist of liability for losses suffered by the lender arising out of certain bad acts, such as if the borrower takes actions that are fraudulent or improper or upon certain violations of the related loan agreement. See Note 13 to our consolidated financial statements for additional information.
Previous report
The Company is a limited guarantor and an indemnitor on one of our subsidiary's loans with an aggregate principal amount of $41.6 million as of March 31, 2026. The obligations include a customary environmental indemnity and a so-called "bad boy" guarantee, which is generally only applicable if and when the borrower directly, or indirectly through an agreement with an affiliate, joint venture partner or other third party, voluntarily files for bankruptcy or similar liquidation or reorganization action or takes other actions that are fraudulent or improper. The Company is current on all debt payments and in compliance with all debt compliance provisions.
Previous report
The Company is a guarantor and an indemnitor on one of Cityplace's loans with an aggregate principal amount of $137.0 million as of March 31, 2026. The obligations include guarantees, which are generally only applicable if and when the borrower, which is a subsidiary of the Company, directly, or indirectly through an agreement with an affiliate, joint venture partner or other third party, voluntarily terminates construction services prior to the completion of the project, files for bankruptcy or similar liquidation or reorganization action or takes other actions that are fraudulent or improper. As of March 31, 2026, management does not anticipate any material deviations from schedule or budget related to construction projects currently in process, and Cityplace is current on all debt payments and in compliance with all debt compliance provisions.
Reworded paragraphs (55)
Previous wording
Trust (“HMIT”) pursuant to which the claims asserted in the Bankruptcy Trust Lawsuit were assigned to HMIT. Parties in interest have filed a motion to vacate the HMIT settlement, and the Bankruptcy Trust Lawsuit has been stayed pending a ruling on that motion. In addition, on February 8, 2023, UBS Securities LLC and its affiliate (collectively, “UBS”) filed a lawsuit in the Supreme Court of the State of New York, County of New York against Mr. Dondero and a number of other persons and entities seeking to collect on $1.3 billion in judgments UBS obtained against entities that were managed indirectly by Highland (the “UBS Lawsuit”). On February 26, 2024, the respondents, including Mr. Dondero, filed motions to dismiss the UBS Lawsuit. A hearing was held on July 8, 2024. The court dismissed the claims against one respondent, CLO HoldCo, Ltd., for lack of personal jurisdiction in a July 12, 2024 order. On August 24, 2024, UBS filed a notice of appeal for that dismissal order, but withdrew its appeal on December 31, 2025. On March 26, 2025, the court entered an order denying the remaining motions to dismiss and directed the respondents to file an answer to the UBS Lawsuit within 20 days, which they did. Mr. Dondero and the other remaining respondents are appealing the denial of the motion to dismiss to the Appellate Division of the Supreme Court of the State of New York. The appeal was argued on April 8, 2026. The Supreme Court rescheduled a status conference in the UBS Lawsuit previously set for April 14, 2026 to July 14, 2026. Neither the Bankruptcy Trust Lawsuit nor the UBS Lawsuit include claims related to our business or our assets. Our Sponsor and Mr. Dondero have informed us they believe the Bankruptcy Trust Lawsuit has no merit, and Mr. Dondero has informed us he believes the UBS Lawsuit has no merit; we have been advised that the defendants named in each of the lawsuits intend to vigorously defend against the claims. We do not expect the Bankruptcy Trust Lawsuit or the UBS Lawsuit will have a material effect on our business, results of operations or financial condition.
Current wording
Trust (“HMIT”) pursuant to which the claims asserted in the Bankruptcy Trust Lawsuit were assigned to HMIT. HMIT subsequently filed a motion to lift the stay of the Bankruptcy Trust Lawsuit, which was granted and became effective on July 15, 2026. In addition, on February 8, 2023, UBS Securities LLC and its affiliate (collectively, “UBS”) filed a lawsuit in the Supreme Court of the State of New York, County of New York against Mr. Dondero and a number of other persons and entities seeking to collect on $1.3 billion in judgments UBS obtained against entities that were managed indirectly by Highland (the “UBS Lawsuit”). On February 26, 2024, the respondents, including Mr. Dondero, filed motions to dismiss the UBS Lawsuit. A hearing was held on July 8, 2024. The court dismissed the claims against one respondent, CLO HoldCo, Ltd., for lack of personal jurisdiction in a July 12, 2024 order. On August 24, 2024, UBS filed a notice of appeal for that dismissal order, but withdrew its appeal on December 31, 2025. On March 26, 2025, the court entered an order denying the remaining motions to dismiss and directed the respondents to file an answer to the UBS Lawsuit within 20 days, which they did. Mr. Dondero and the other remaining respondents are appealing the denial of the motion to dismiss to the Appellate Division of the Supreme Court of the State of New York. The appeal was argued on April 8, 2026. The Supreme Court rescheduled a status conference in the UBS Lawsuit previously set for July 14, 2026 to September 15, 2026. Neither the Bankruptcy Trust Lawsuit nor the UBS Lawsuit include claims related to our business or our assets. Our Sponsor and Mr. Dondero have informed us they believe the Bankruptcy Trust Lawsuit has no merit, and Mr. Dondero has informed us he believes the UBS Lawsuit has no merit; we have been advised that the defendants named in each of the lawsuits intend to vigorously defend against the claims. We do not expect the Bankruptcy Trust Lawsuit or the UBS Lawsuit will have a material effect on our business, results of operations or financial condition.
Previous wording
Income Tax Expense. Income tax expense is primarily derived from taxable gains from asset sales and other income earned from investments held in the TRSs in the Diversified segment and former NHT's TRSs.
Current wording
Income Tax (Expense) Benefit. Income tax (expense) benefit is primarily derived from taxable gains from asset sales and other income earned from investments held in the TRSs in the Diversified segment and former NHT's TRSs.
Previous wording
Consolidated Results of Operations for the Three Months Ended March 31, 2026 and 2025
Current wording
Consolidated Results of Operations for the Three and Six Months Ended June 30, 2026 and 2025
Previous wording
The following table sets forth a summary of our operating results for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 (in thousands):
Current wording
The following table sets forth a summary of our operating results for the three months ended June 30, 2026 and 2025 (in thousands):
Previous wording
The net loss for the three months ended March 31, 2026 and 2025 primarily relates to mark-to-market losses on our investments accounted for at fair value partially offset by interest and dividends.
Current wording
The net income for the three months ended June 30, 2026 as compared to the net loss for the three months ended June 30, 2025 primarily relates to mark-to-market gains on our investments accounted for at fair value partially and an increase in operating income.
Previous wording
Rental income. Rental income was $2.9 million for the three months ended March 31, 2026, compared to $3.6 million for the three months ended March 31, 2025, which was a decrease of approximately $0.7 million. The decrease between the periods was primarily due to a decrease in occupancy at Cityplace.
Current wording
Rental income. Rental income was $2.9 million for the three months ended June 30, 2026, compared to $3.7 million for the three months ended June 30, 2025, which was a decrease of approximately $0.8 million. The decrease between the periods was primarily due to a decrease in occupancy at Cityplace.
Previous wording
Food and beverage revenue. F&B revenue was $0.8 million for the three months ended March 31, 2026, compared to $0.9 million for the three months ended March 31, 2025, which was a decrease of approximately $0.1 million. The decrease between the periods is due to the disposition of Hospitality properties in 2025.
Current wording
Food and beverage revenue. F&B revenue was $0.6 million for the three months ended June 30, 2026, compared to $0.8 million for the three months ended June 30, 2025, which was a decrease of approximately $0.2 million. The decrease between the periods was primarily due to the disposition of Hospitality properties in 2025.
Previous wording
Other income. Other income was approximately $0.4 million for the three months ended March 31, 2026, compared to $0.3 million for the three months ended March 31, 2025, which was an increase of approximately $0.1 million. The increase between the periods is due to an escheatment recovery of a prior tax refund and an increase in forfeited guest revenue at the Hospitality properties.
Current wording
Other income. Other income was approximately $0.8 million for the three months ended June 30, 2026, compared to $0.3 million for the three months ended June 30, 2025, which was an increase of approximately $0.5 million. The increase between the periods is due to a co-development fee of approximately $0.5 million.
Previous wording
Property general and administrative expenses. Property general and administrative expenses were $1.7 million for the three months ended March 31, 2026, compared to $2.0 million for the three months ended March 31, 2025, which was a decrease of approximately $0.3 million. The decrease between the periods is due to the disposition of Hospitality properties in 2025.
Current wording
Real estate taxes and insurance. Real estate taxes and insurance costs were $1.7 million for the three months ended June 30, 2026, compared to $1.6 million for the three months ended June 30, 2025, which was an increase of approximately $0.1 million. Real estate taxes and insurance expenses consist primarily of expenses from our investment in Cityplace and our Hospitality properties. The increase between the periods is due to a favorable real estate tax appeal recognized at Cityplace in 2025.
Previous wording
Interest expense. Interest expense was $5.7 million for the three months ended March 31, 2026, compared to $7.3 million for the three months ended March 31, 2025, which was a decrease of approximately $1.6 million. The decrease between periods is primarily attributable to the extinguishment of the PC & B Loan in February 2026, the repayment of the portion of the OSL Loan allocated to the Bradenton Hampton Inn & Suites property in connection with the Bradenton Hampton Inn & Suites property sale in March 2026, and paydowns on other mortgage and note payable balances during the period, as well as a decrease in SOFR compared to the prior year period.
Current wording
Interest expense. Interest expense was $5.3 million for the three months ended June 30, 2026, compared to $6.6 million for the three months ended June 30, 2025, which was a decrease of approximately $1.3 million. The decrease between periods was primarily attributable to the extinguishment of the PC & B Loan in February 2026, the repayment of the portion of the OSL Loan allocated to the Bradenton Hampton Inn & Suites property in connection with the Bradenton Hampton Inn & Suites property sale in March 2026, and paydowns on other mortgage and note payable balances during the period, as well as a decrease in SOFR compared to the prior year period.
Previous wording
Equity in losses of unconsolidated ventures. Equity in losses of unconsolidated ventures was $0.0 million for the three months ended March 31, 2026, compared to $0.4 million for the three months ended March 31, 2025, which was a decrease of approximately $(0.4) million. The decrease between periods was primarily due to an increase in net income at Marriott Uptown for the three months ended March 31, 2026.
Current wording
Equity in (losses) income of unconsolidated ventures. Equity in (losses) income of unconsolidated ventures was $(0.9) million for the three months ended June 30, 2026, compared to $0.2 million for the three months ended June 30, 2025, which was a decrease of approximately $1.1 million. The decrease between periods was primarily due to an increase in net loss on equity interests in Perilune Aero Equity Holdings One, LLC for the three months ended June 30, 2026.
Previous wording
Change in unrealized losses. Unrealized losses from our investments accounted for at fair value was $15.3 million for the three months ended March 31, 2026, compared to $33.3 million for the three months ended March 31, 2025, which was an increase of approximately $18.0 million. The losses for the three months ended March 31, 2026 were largely driven by mark-to-market losses on VineBrook Homes Operating Partnership, L.P. common units of $5.0 million, NexPoint SFR Operating Partnership, L.P. partnership units of $5.0 million, NREF OP common units of $2.5 million, NREF common shares of $1.8 million and MidWave Wireless common shares of $1.4 million. The losses for the three months ended March 31, 2025 were largely driven by mark-to-market losses on common units of VineBrook of $9.7 million, IQHQ, LP interests of $5.8 million and United Development Funding IV common equity of $5.2 million.
Current wording
Change in unrealized gains (losses). Unrealized gains from our investments accounted for at fair value was $6.5 million for the three months ended June 30, 2026, compared to $(41.6) million for the three months ended June 30, 2025, which was an increase of approximately $48.1 million. The gains for the three months ended June 30, 2026 were largely driven by mark-to-market gains on NREF OP common units of $8.2 million and NREF common stock of $6.0 million, offset by mark-to-market losses on MidWave Wireless, Inc. common stock of $2.8 million, VineBrook Homes Operating Partnership, L.P. common units of $2.6 million and NexPoint SFR Operating Partnership, L.P. partnership units of $3.3 million. The losses for the three months ended June 30, 2025 were largely driven by mark-to-market losses on NSP common equity of $16.0 million, NREF OP common units of $7.3 million, IQHQ LP interests of $5.2 million and NREF common stock of $3.2 million.
Previous wording
Depreciation and amortization. Depreciation and amortization costs were $3.7 million for the three months ended March 31, 2026, compared to $3.9 million for the three months ended March 31, 2025, which was a decrease of approximately $0.2 million. The decrease between the periods is due to the disposition of Hospitality properties in 2025.
Current wording
Food and beverage revenue. F&B revenue was $1.4 million for the six months ended June 30, 2026, compared to $1.6 million for the six months ended June 30, 2025, which was a decrease of approximately $0.2 million. The decrease between the periods was primarily due to the disposition of Hospitality properties in 2025.
Previous wording
Interest and dividends. Interest and dividends totaled $11.1 million for the three months ended March 31, 2026, compared to $13.9 million for the three months ended March 31, 2025, which was a decrease of approximately $2.8 million. The decrease between the periods was attributed to a decrease in dividends from equity investments, offset by an increase in interest income.
Current wording
Interest and dividends. Interest and dividends totaled $21.7 million for the six months ended June 30, 2026, compared to $23.9 million for the six months ended June 30, 2025, which was a decrease of approximately $2.2 million. The decrease between the periods was attributed to a decrease in dividends from equity investments, offset by an increase in interest income.
Previous wording
Real estate taxes and insurance. Real estate taxes and insurance costs were $1.4 million for the three months ended March 31, 2026, compared to $1.8 million for the three months ended March 31, 2025, which was a decrease of approximately $0.4 million. Real estate taxes and insurance expenses consist primarily of expenses from our investment in Cityplace and our hospitality properties. The decrease between the periods is due to the disposition of Hospitality properties in 2025.
Current wording
Real estate taxes and insurance. Real estate taxes and insurance costs were $3.1 million for the six months ended June 30, 2026, compared to $3.4 million for the six months ended June 30, 2025, which was a decrease of approximately $0.3 million. Real estate taxes and insurance expenses consist primarily of expenses from our investment in Cityplace and our Hospitality properties. The decrease between the periods was primarily due to the disposition of Hospitality properties in 2025.
Previous wording
Advisory and administrative fees. For the three months ended March 31, 2026, the Company incurred administrative fees and advisory fees of $3.1 million, compared to $3.6 million for the three months ended March 31, 2025, which was a decrease of approximately $0.5 million. The decrease between the periods is due to the disposition of Hospitality properties in 2025.
Current wording
Property general and administrative expenses. Property general and administrative expenses were $3.1 million for the six months ended June 30, 2026, compared to $3.6 million for the six months ended June 30, 2025, which was a decrease of approximately $0.5 million. The decrease between the periods is due to the disposition of Hospitality properties in 2025.
Previous wording
Corporate general and administrative expenses. Corporate general and administrative expenses were $3.4 million for the three months ended March 31, 2026, compared to $2.9 million for the three months ended March 31, 2025, which was an increase of approximately $0.5 million. The increase between periods was primarily due to an increase in professional fees.
Current wording
Corporate general and administrative expenses. Corporate general and administrative expenses were $6.2 million for the six months ended June 30, 2026, compared to $3.9 million for the six months ended June 30, 2025, which was an increase of approximately $2.3 million. The increase between periods was primarily due to an increase in professional fees and a write off of accrued payables and expenses in 2025.
Previous wording
Impairment loss. Impairment loss was $0.0 million for the three months ended March 31, 2026, compared to $1.8 million for the three months ended March 31, 2025, which was a decrease of approximately $1.8 million. The decrease between the periods was due to a decrease in impairment charges recorded in 2025 in connection with a property classified as held for sale.
Current wording
Impairment loss. There was no impairment loss for the six months ended June 30, 2026, compared to $1.8 million for the six months ended June 30, 2025, which was a decrease of approximately $1.8 million. The decrease between the periods was primarily attributable to impairment losses recognized on properties classified as held for sale in 2025.
Previous wording
Net Operating Income ("NOI") is a non-GAAP financial measure of performance. NOI is used by investors and our management to evaluate and compare the performance of our properties between segments and to other comparable properties, to determine trends in earnings and to compute the fair value of our properties as NOI is calculated by adjusting net income (loss) to add back (1) interest expense, (2) advisory and administrative fees, (3) the impact of depreciation and amortization, (4) corporate general and administrative expenses, (5) income tax (benefit) expenses, (6) non-operating property investment revenue, (7) realized and change in unrealized gains (losses) generated from non-real estate investments, (8) equity in income (losses) of unconsolidated equity method ventures, and (9) impairment loss.
Current wording
Net Operating Income ("NOI") is a non-GAAP financial measure of performance. NOI is used by investors and our management to evaluate and compare the performance of our properties between segments and to other comparable properties, to determine trends in earnings and to compute the fair value of our properties as NOI is calculated by adjusting net income (loss) to add back (1) interest expense, (2) advisory and administrative fees, (3) the impact of: (a) depreciation and amortization expenses and (b) gains or
Previous wording
There are two properties, White Rock Center and 5916 W Loop 289, in our same store pool for the three months ended March 31, 2026 and 2025 (our "Same Store" properties). Our Same Store properties exclude Cityplace as of March 31, 2026 and 2025, because it was not yet stabilized, meaning construction or renovation was not completed. Non-Same Store properties include properties not yet stabilized. Our Same Store properties also exclude the Hospitality segment, as the properties have planned construction, renovation or similar activity expected to commence in the near future that will result in such properties not being stabilized.
Current wording
There are two properties, White Rock Center and 5916 W Loop 289, in our same store pool for the three and six months ended June 30, 2026 and 2025 (our "Same Store" properties). Our Same Store properties exclude Cityplace, the Dallas Hilton Garden Inn & Suites and St. Petersburg Marriott, because such properties were not yet stabilized, meaning construction or renovation was not completed. Non-Same Store properties include properties not yet stabilized. Our Same Store properties also exclude Hyatt Place Park City, as the property has planned construction, renovation or similar activity expected to commence in the near future that will result in the property not being stabilized.
Previous wording
Consolidated NOI and Same Store NOI for the Three Months Ended March 31, 2026 and 2025
Current wording
Consolidated NOI and Same Store NOI for the Three and Six Months Ended June 30, 2026 and 2025
Previous wording
The following table, which has not been adjusted for the effects of noncontrolling interests (“NCI”), reconciles our consolidated NOI for the three months ended March 31, 2026 and 2025 to net income (loss), the most directly comparable GAAP financial measure (in thousands):
Current wording
The following table, which has not been adjusted for the effects of noncontrolling interests (“NCI”), reconciles our consolidated NOI for the three and six months ended June 30, 2026 and 2025 to net income (loss), the most directly comparable GAAP financial measure (in thousands):
Previous wording
The following table, which has not been adjusted for the effects of NCI, reconciles our NOI for each of our segments for the three months ended March 31, 2026 to net income (loss), the most directly comparable GAAP financial measure by reportable segment (in thousands):
Current wording
The following table, which has not been adjusted for the effects of NCI, reconciles our NOI for each of our segments for the three and six months ended June 30, 2026 to net income (loss), the most directly comparable GAAP financial measure by reportable segment (in thousands):
Previous wording
As of March 31, 2026, our Same Store properties were approximately 59.7% leased with a weighted average monthly effective occupied rent per square foot of $1.19, compared to 52.1% leased with a weighted average monthly effective occupied rent per square foot of $1.10 as of March 31, 2025. For our Same Store properties, we recorded the following operating results for the three months ended March 31, 2026 and 2025.
Current wording
As of June 30, 2026, our Same Store properties were approximately 59.7% leased with a weighted average monthly effective occupied rent per square foot of $1.19, compared to 59.7% leased with a weighted average monthly effective occupied rent per square foot of $1.18 as of June 30, 2025. For our Same Store properties, we recorded the following operating results for the three months ended June 30, 2026 and 2025.
Previous wording
Property operating expenses. Property operating expenses were $54.0 thousand for the three months ended March 31, 2026, compared to $64.0 thousand for the three months ended March 31, 2025, which was a decrease of approximately $10.0 thousand or 15.6%. The decrease between the periods is related to a decrease in repair and maintenance fees.
Current wording
Property operating expenses. Property operating expenses were $97.0 thousand for the three months ended June 30, 2026, compared to $58.0 thousand for the three months ended June 30, 2025, which was an increase of approximately $39.0 thousand. The increase between the periods was primarily due to an increase in repair and maintenance fees.
Previous wording
Real estate taxes and insurance. Real estate taxes and insurance costs were $76.0 thousand for the three months ended March 31, 2026, compared to $66.0 thousand for the three months ended March 31, 2025, which was an increase of approximately $10.0 thousand or 15.2%. The increase between the periods is related to a favorable real estate tax appeal that was recognized in 2025 and did not recur in 2026.
Current wording
Real estate taxes and insurance. Real estate taxes and insurance costs were $76.0 thousand for the three months ended June 30, 2026, compared to $74.0 thousand for the three months ended June 30, 2025, which was an increase of approximately $2.0 thousand or 2.7%. The increase between the periods was related to a favorable real estate tax appeal that was recognized in 2025.
Previous wording
Property management fees. Property management fees were $23.0 thousand for the three months ended March 31, 2026, compared to $19.0 thousand for the three months ended March 31, 2025, which was an increase of approximately $4.0 thousand, or 21.1%. The increase between the periods is related to an increase in rental revenue, which the management fee is calculated off of.
Current wording
Property management fees. Property management fees were $24.0 thousand for the three months ended June 30, 2026, compared to $22.0 thousand for the three months ended June 30, 2025, which was an increase of approximately $2.0 thousand, or 9.1%. The increase between the periods was related to an increase in rental revenue, which is the basis of the management fee calculation.
Previous wording
The following table reflects the revenues, property operating expenses and NOI for the three months ended March 31, 2026 and 2025 for our Same Store and Non-Same Store properties (dollars in thousands):
Current wording
The following table reflects the revenues, property operating expenses and NOI for the six months ended June 30, 2026 and 2025 for our Same Store and Non-Same Store properties (dollars in thousands):
Previous wording
Property general and administrative expenses. Property general and administrative expenses were $32.0 thousand for the three months ended March 31, 2026, compared to $6.0 thousand for the three months ended March 31, 2025, which was an increase of approximately $26.0 thousand, which was not material. The majority of the increase between the periods is related to an increase in professional fees.
Current wording
Property general and administrative expenses. Property general and administrative expenses were $31.0 thousand for the six months ended June 30, 2026, compared to $10.0 thousand for the six months ended June 30, 2025, which was an increase of approximately $21.0 thousand. The majority of the increase between the periods was related to an increase in professional fees.
Previous wording
AFFO makes certain adjustments to FFO in order to arrive at a more refined measure of the operating performance of our Portfolio. There is no industry standard definition of AFFO and practice is divergent across the industry. AFFO adjusts FFO to remove items such as equity-based compensation expense and the amortization of deferred financing costs incurred in connection with obtaining long-term debt financing, non-controlling interests (as described above) related to these items, and change in unrealized gains (losses). In addition, we remove the termination fee paid to the former NHT Adviser in connection with the termination of the NHT Advisory Agreement following the NHT Merger as it does not reflect the ongoing operations of the property owners. We believe AFFO is useful to investors as a supplemental gauge of our operating performance and is useful in comparing our operating performance with other REITs that are not as involved in the aforementioned activities.
Current wording
AFFO makes certain adjustments to FFO in order to arrive at a more refined measure of the operating performance of our Portfolio. There is no industry standard definition of AFFO and practice is divergent across the industry. AFFO adjusts FFO to remove items such as gain (loss) on extinguishment of debt and modification costs, equity-based compensation expense and the amortization of deferred financing costs incurred in connection with obtaining long-term debt financing, non-controlling interests (as described above) related to these items, and change in unrealized gains (losses). In addition, we remove the termination fee paid to the former NHT Adviser in connection with the termination of the NHT Advisory Agreement following the NHT Merger as it does not reflect the ongoing operations of the property owners. We believe AFFO is useful to investors as a supplemental gauge of our operating performance and is useful in comparing our operating performance with other REITs that are not as involved in the aforementioned activities.
Previous wording
The following table reconciles our calculations of FFO and AFFO to net income (loss), the most directly comparable GAAP financial measure, for the three months ended March 31, 2026 and 2025 (in thousands, except per share amounts):
Current wording
The following table reconciles our calculations of FFO and AFFO to net income (loss), the most directly comparable GAAP financial measure, for the three and six months ended June 30, 2026 and 2025 (in thousands, except per share amounts):
Previous wording
Represents the percentage change for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Current wording
Represents the percentage change for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Previous wording
AFFO was $0.2 million for the three months ended March 31, 2026, compared to $2.8 million for the three months ended March 31, 2025, which was a decrease of approximately $2.6 million. The change in our AFFO between the periods is primarily attributable to a decrease in dividend income, partially offset by a decrease in interest expense resulting from debt paydowns and lower interest rates and a decrease in operating expenses.
Current wording
AFFO was $(1.4) million for the three months ended June 30, 2026, compared to $2.3 million for the three months ended June 30, 2025, which was a decrease of approximately $3.7 million. The change in our AFFO between the periods is primarily attributable to a $3.5 million termination fee to the former NHT Adviser recognized in the prior-year, and lower equity-based compensation and deferred financing cost amortization, partially offset by a decrease in operating expenses and a decrease in interest expense resulting from debt paydowns and lower interest rates.
Previous wording
FFO was $(14.8) million for the three months ended March 31, 2026, compared to $(30.3) million for the three months ended March 31, 2025, which was an increase of approximately $15.5 million. The change in FFO between the periods was primarily attributable to a decrease in unrealized losses on the mark-to-market of our investments held at fair value, a decrease in operating expenses, a decrease in interest expense resulting from debt paydowns and lower interest rates, and partially offset by a decrease in dividend income.
Current wording
FFO was $(9.4) million for the six months ended June 30, 2026, compared to $(73.9) million for the six months ended June 30, 2025, which was an increase of approximately $64.5 million. The change in FFO between the periods was primarily attributable to a decrease in unrealized losses on the mark-to-market of our investments held at fair value, a decrease in operating expenses, a decrease in interest expense resulting from debt paydowns and lower interest rates, and partially offset by a decrease in dividend income.
Previous wording
Represents the liquidation preference, net of approximately $2.9 million issuance costs, from the issuance of the Company’s Series B Preferred Shares.
Current wording
Represents the liquidation preference, net of approximately $4.3 million issuance costs, from the issuance of the Company’s Series B Preferred Shares.
Previous wording
We expect to meet our short-term liquidity requirements generally through our investment income, existing cash balance, the Series B Preferred Offering and, if necessary, future debt or equity issuances. As of March 31, 2026, we had $9.4 million of cash available to meet our short-term liquidity requirements. As of March 31, 2026, we also had $30.9 million of restricted cash held in reserve by the lender on the Cityplace debt. These reserves include escrows for property taxes and insurance, reserves for tenant improvements as well as required excess collateral. As of March 31, 2026, we also had $0.7 million of restricted cash held in reserve by the lender on the NexBank Revolver (as defined below). These reserves are to be used for future interest payments on the debt facility. As of March 31, 2026, we also had $8.1 million of restricted cash reserves associated with the Hospitality segment for brand-mandated Performance Improvement Plans and furniture, fixtures and equipment upgrades arising from the execution of the Company’s franchise agreement and future insurance and property tax expenses.
Current wording
We expect to meet our short-term liquidity requirements generally through our investment income, existing cash balance, the Series B Preferred Offering and, if necessary, future debt or equity issuances. As of June 30, 2026, we had $11.7 million of cash available to meet our short-term liquidity requirements. As of June 30, 2026, we also had $32.1 million of restricted cash held in reserve by the lender on the Cityplace debt. These reserves include escrows for property taxes and insurance, reserves for tenant improvements as well as required excess collateral. As of June 30, 2026, we also had $0.7 million of restricted cash held in reserve by the lender on the White Rock Center debt. These reserves include a lender-held reserve for tenant improvements, leasing commissions and capital expenditures related to the property. As of June 30, 2026, we also had $0.9 million of restricted cash held in reserve by the lender on the NexBank Revolver (as defined below). These reserves are to be used for future interest payments on the debt facility. As of June 30, 2026, we also had $6.2 million of restricted cash reserves associated with the Hospitality segment for brand-mandated performance improvement plans and furniture, fixtures and equipment upgrades arising from the execution of the Company’s franchise agreement and future insurance and property tax expenses.
Previous wording
On January 30, 2025, the Company announced the launch of a continuous public offering of up to 16,000,000 shares of its newly designated Series B Preferred Shares at a price to the public of $25.00 per share, for gross proceeds of up to $400.0 million. The Series B Preferred Shares are convertible at the option of the holder thereof into our common shares beginning on the first day of the month following the third anniversary of the date of original issuance of the shares to be converted if the 5-day volume weighted average price of our common shares on the NYSE ending on the trading day immediately preceding the date the holder delivers a duly completed conversion notice to the Company (such 5-day VWAP, the “Market Price”) represents a 15.0% premium to the estimated fair market NAV of the Company per common share as most recently published by the Company at the time of issuance of the applicable Series B Preferred Share (the “Minimum Market Price Trigger”). If the Minimum Market Price Trigger is satisfied, the Series B Preferred Shares will be convertible at a 6%, 10% or 12% discount to the Market Price beginning on the first day of the month following the third, fourth and fifth anniversary of the date of original issuance of the shares to be converted, respectively. Beginning on the first day of the calendar month following the date of original issuance, the Series B Preferred Shares are redeemable at the option of the holder at a redemption price per share equal to the stated value of $25.00 per share, plus all accrued but unpaid cash distributions and less certain redemption fees. After the first day of the first quarter following the second anniversary of the date of original issuance, the Company also has the option to redeem, in whole or in part, subject to certain restrictions in the Company’s agreement and declaration of trust and the statement of preferences setting forth the terms of the Series B Preferred Shares, at a redemption price per share equal to the stated value of $25.00 per share, plus any accrued but unpaid cash distributions. In all optional redemptions, the Company has the right, in its sole discretion, to pay the redemption in cash or in equal value of the Company’s common shares for so long as the common shares are listed or admitted to trading on the NYSE or another national securities exchange or automated quotation system. NexPoint Securities, Inc., an affiliate of the Adviser, serves as the Dealer Manager in connection with the offering. The Dealer Manager uses its reasonable best efforts to sell the Series B Preferred Shares offered in the offering, and the Company pays the Dealer Manager, subject to the discounts and other special circumstances described or referenced therein, (i) Selling Commissions of 7.0% of the aggregate gross proceeds from sales of Series B Preferred Shares in the offering and (ii) a Dealer Manager Fee of 3.0% of the gross proceeds from sales of Series B Preferred Shares in the offering. The…
Excerpt shortened here; the source contains the full paragraph.
Current wording
On January 30, 2025, the Company announced the launch of a continuous public offering of up to 16,000,000 shares of its newly designated Series B Preferred Shares at a price to the public of $25.00 per share, for gross proceeds of up to $400.0 million. The Series B Preferred Shares are convertible at the option of the holder thereof into our common shares beginning on the first day of the month following the third anniversary of the date of original issuance of the shares to be converted if the 5-day volume weighted average price of our common shares on the NYSE ending on the trading day immediately preceding the date the holder delivers a duly completed conversion notice to the Company (such 5-day VWAP, the “Market Price”) represents a 15.0% premium to the estimated fair market NAV of the Company per common share as most recently published by the Company at the time of issuance of the applicable Series B Preferred Share (the “Minimum Market Price Trigger”). If the Minimum Market Price Trigger is satisfied, the Series B Preferred Shares will be convertible at a 6%, 10% or 12% discount to the Market Price beginning on the first day of the month following the third, fourth and fifth anniversary of the date of original issuance of the shares to be converted, respectively. Beginning on the first day of the calendar month following the date of original issuance, the Series B Preferred Shares are redeemable at the option of the holder at a redemption price per share equal to the stated value of $25.00 per share, plus all accrued but unpaid cash distributions and less certain redemption fees. After the first day of the first quarter following the second anniversary of the date of original issuance, the Company also has the option to redeem, in whole or in part, subject to certain restrictions in the Company’s agreement and declaration of trust and the statement of preferences setting forth the terms of the Series B Preferred Shares, at a redemption price per share equal to the stated value of $25.00 per share, plus any accrued but unpaid cash distributions. In all optional redemptions, the Company has the right, in its sole discretion, to pay the redemption in cash or in equal value of the Company’s common shares for so long as the common shares are listed or admitted to trading on the NYSE or another national securities exchange or automated quotation system. NexPoint Securities, Inc., an affiliate of the Adviser, serves as the Dealer Manager in connection with the offering. The Dealer Manager uses its reasonable best efforts to sell the Series B Preferred Shares offered in the offering, and the Company pays the Dealer Manager, subject to the discounts and other special circumstances described or referenced therein, (i) Selling Commissions of 7.0% of the aggregate gross proceeds from sales of Series B Preferred Shares in the offering and (ii) a Dealer Manager Fee of 3.0% of the gross proceeds from sales of Series B Preferred Shares in the offering. The…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
The following table presents selected data from our consolidated statements of cash flows for the three months ended March 31, 2026 and 2025 (in thousands):
Current wording
The following table presents selected data from our consolidated statements of cash flows for the six months ended June 30, 2026 and 2025 (in thousands):
Previous wording
Cash flows from operating activities. During the three months ended March 31, 2026, net cash used in operating activities was $0.5 million, compared to net cash provided by operating activities of $7.1 million for the three months ended March 31, 2025. The change in cash flows from operating activities was mainly attributable to a decrease in revenues and unfavorable changes in operating assets and liabilities, partially offset by a decrease in operating expenses and lower interest expense.
Current wording
Cash flows from operating activities. During the six months ended June 30, 2026, net cash used in operating activities was $5.1 million, compared to net cash provided by operating activities of $7.2 million for the six months ended June 30, 2025. The change in cash flows from operating activities was mainly attributable to a decrease in revenues, unfavorable changes in operating assets and liabilities, and a decrease in distributions of earnings received from unconsolidated ventures, partially offset by a decrease in operating expenses, lower interest expense, and an increase in realized gains.
Previous wording
Cash flows from investing activities. During the three months ended March 31, 2026, net cash provided by investing activities was $26.2 million, compared to net cash provided by investing activities of $9.5 million for the three months ended March 31, 2025. The change in cash flows from investing activities was mainly attributable to proceeds of properties sold of $26.2 million.
Current wording
Cash flows from investing activities. During the six months ended June 30, 2026, net cash provided by investing activities was $25.3 million, compared to net cash provided by investing activities of $34.9 million for the six months ended June 30, 2025. The change in cash flows from investing activities was mainly attributable to a decrease in proceeds from asset redemptions and a decrease in proceeds from return of investment, partially offset by a decrease in cash used for purchases of investments.
Showing the first 40 of 55 pairs. Open the source sections for the rest.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
Property management fees. Property management fees were $0.3 million for the three months ended June 30, 2026, compared to $0.4 million for the three months ended June 30, 2025, which was a decrease of approximately $0.1 million. The decrease between the periods was primarily due to the disposition of Hospitality properties in 2025.
Current report — wording carried from elsewhere
Advisory and administrative fees. For the three months ended June 30, 2026, the Company incurred administrative fees and advisory fees of $2.9 million, compared to $7.0 million for the three months ended June 30, 2025, which was a decrease of approximately $4.1 million. The decrease between the periods was due to a termination fee paid to the former NHT Adviser in connection with the termination of the NHT Advisory Agreement following the NHT Merger in 2025.
Current report — wording carried from elsewhere
The following table sets forth a summary of our operating results for the six months ended June 30, 2026 and 2025 (in thousands):
Current report — wording carried from elsewhere
Interest expense. Interest expense was $11.0 million for the six months ended June 30, 2026, compared to $13.9 million for the six months ended June 30, 2025, which was a decrease of approximately $2.9 million. The decrease between periods is primarily attributable to the extinguishment of the PC & B Loan in February 2026, the repayment of the portion of the OSL Loan allocated to the Bradenton Hampton Inn & Suites property in connection with the Bradenton Hampton Inn & Suites property sale in March 2026, and paydowns on other mortgage and note payable balances during the period, as well as a decrease in SOFR compared to the prior year period.
Current report — wording carried from elsewhere
Change in unrealized losses. Unrealized losses from our investments accounted for at fair value was $8.8 million for the six months ended June 30, 2026, compared to $75.0 million for the six months ended June 30, 2025, which was a decrease of approximately $66.2 million. The losses for the six months ended June 30, 2026 were largely driven by mark-to-market losses on VineBrook Homes Operating Partnership, L.P. common units of $7.6 million, NexPoint SFR Operating Partnership, L.P. partnership units of $8.3 million and MidWave Wireless, Inc. common stock of $4.2 million, offset by mark-to-market gains on NREF OP common units of $5.7 million and NREF common stock of $4.2 million. The losses for the six months ended June 30, 2025 were largely driven by mark-to-market losses on NSP common stock of $19.8 million, NREF OP Units of $9.3 million, IQHQ LP interests of $5.8 million and NREF common stock of $4.0 million.
Current report — wording carried from elsewhere
losses from the sale of operating real estate assets that are included in net income (loss) computed in accordance with GAAP, (4) corporate general and administrative expenses, (5) income tax (benefit) expenses, (6) non-operating property investment revenue, (7) realized and change in unrealized gains (losses) generated from non-real estate investments, (8) equity in income (losses) of unconsolidated equity method ventures, (9) impairment loss, and (10) loss on extinguishment of debt and modification costs.
Current report — wording carried from elsewhere
Consolidated NOI for Our Same Store and Non-Same Store Properties for the Six Months Ended June 30, 2026 and 2025
Current report — wording carried from elsewhere
See reconciliation of net income (loss) to NOI above under “NOI and Same Store NOI for the Three Months Ended June 30, 2026 and 2025.”
Current report — wording carried from elsewhere
Consolidated Same Store Results of Operations for the Six Months Ended June 30, 2026 and 2025
Current report — wording carried from elsewhere
As of June 30, 2026, our Same Store properties were approximately 59.7% leased with a weighted average monthly effective occupied rent per square foot of $1.19, compared to 59.7% leased with a weighted average monthly effective occupied rent per square foot of $1.18 as of June 30, 2025. For our Same Store properties, we recorded the following operating results for the six months ended June 30, 2026 and 2025.
Current report — wording carried from elsewhere
FFO was $5.4 million for the three months ended June 30, 2026, compared to $(43.5) million for the three months ended June 30, 2025, which was an increase of approximately $48.9 million. The change in FFO between the periods was primarily attributable to a decrease in unrealized losses on the mark-to-market of our investments held at fair value, a decrease in operating expenses, a decrease in interest expense resulting from debt paydowns and lower interest rates.