NEXPOINT DIVERSIFIED REAL ESTATE TRUST
For the period ended Sep 30, 2024. Filed Nov 8, 2024.
View on SEC.govAbout this filing
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.
Sep 30, 2024 · Filed Nov 8, 2024
NXDT$3.30-3.5%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. Financial Statements
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and par value amounts)
| September 30, 2024 (Unaudited) | December 31, 2023 | |
|---|---|---|
| ASSETS | ||
| Consolidated Real Estate Investments | ||
| Land | $67,138 | $47,708 |
| Buildings and improvements | 327,007 | 206,213 |
| Intangible lease assets | 10,979 | 10,979 |
| Construction in progress | 25,020 | 19,177 |
| Furniture, fixtures, and equipment | 11,944 | 362 |
| Right-of-use assets | 1,465 | — |
| Total Gross Consolidated Real Estate Investments | 443,553 | 284,439 |
| Accumulated depreciation and amortization | (30,998) | (20,525) |
| Total Net Consolidated Real Estate Investments | 412,555 | 263,914 |
| Real estate held for sale, net of accumulated depreciation of $133 and $0, respectively | 8,134 | — |
| Total Net Real Estate Investments | 420,689 | 263,914 |
| Investments, at fair value ($515,265 and $533,065 with related parties, respectively) | 643,479 | 691,238 |
| Equity method investments ($8,639 and $7,079 with related parties, respectively) | 63,467 | 66,263 |
| Investments in DSTs ($30,559 and $0, with related parties, respectively) | 30,559 | — |
| Cash and cash equivalents | 8,519 | 20,608 |
| Restricted cash | 44,721 | 32,561 |
| Accounts receivable, net | 3,991 | 4,347 |
| Prepaid and other assets | 17,243 | 10,431 |
| Accrued interest and dividends | 4,971 | 6,078 |
| Interest rate caps | 397 | — |
| Deferred tax asset, net | 2,678 | 2,896 |
| Total Assets | $1,240,714 | $1,098,336 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Liabilities: | ||
| Mortgages payable, net ($10,000 and $0 with related party, respectively) | $262,169 | $142,186 |
| Notes payable, net ($68,027 and $20,000 with related party, respectively) | 95,167 | 52,919 |
| Prime brokerage borrowing | 1,412 | 1,782 |
| Accounts payable and other accrued liabilities | 22,125 | 8,633 |
| Income tax payable | — | 356 |
| Accrued real estate taxes payable | 4,386 | 231 |
| Accrued interest payable | 8,157 | 1,398 |
| Security deposit liability | 386 | 422 |
| Prepaid rents | 591 | 768 |
| Intangible lease liabilities, net | 3,407 | 4,567 |
| Total Liabilities | 397,800 | 213,262 |
| Shareholders' Equity: | ||
| Preferred shares, $0.001 par value: 4,800,000 shares authorized; 3,359,593 shares issued and outstanding | 3 | 3 |
| Common shares, $0.001 par value: unlimited shares authorized; 41,674,528 and 38,389,600 shares issued and outstanding, respectively | 42 | 38 |
| Additional paid-in capital | 1,031,915 | 1,011,613 |
| Accumulated earnings (loss) | (187,487) | (126,580) |
| (Noncontrolling interests) | (1,559) | — |
| Total Shareholders' Equity | 842,914 | 885,074 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,240,714 | $1,098,336 |
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share amounts)
| For the Three Months Ended September 30, · For the Nine Months Ended September 30 | ||||||
|---|---|---|---|---|---|---|
| 2024 · 2023 · 2024 · 2023 | ||||||
| Revenues | ||||||
| Rental income | $4,447 | $5,404 | $12,479 | $15,541 | ||
| Rooms | 7,280 | — | 15,480 | — | ||
| Food and beverage | 533 | — | 1,345 | — | ||
| Interest income ($553, $573, $1,619 and $1,890 with related parties, respectively) | 1,653 | 1,863 | 5,043 | 5,632 | ||
| Dividend income ($7,227, $4,853, $21,080 and $17,717 with related parties, respectively) | 7,397 | 5,000 | 21,642 | 19,809 | ||
| Other income | 906 | 97 | 1,306 | 128 | ||
| Total revenues | 22,216 | 12,364 | 57,295 | 41,110 | ||
| Expenses | ||||||
| Property operating expenses | 6,339 | 1,527 | 14,672 | 5,553 | ||
| Property management fees | 664 | 191 | 1,025 | 553 | ||
| Real estate taxes and insurance | 1,639 | 1,360 | 4,653 | 4,057 | ||
| Advisory and administrative fees | 3,976 | 3,469 | 10,665 | 8,707 | ||
| Property general and administrative expenses | 2,057 | 833 | 4,949 | 2,601 | ||
| Corporate general and administrative expenses | 2,843 | 1,685 | 8,873 | 5,433 | ||
| Conversion expenses | — | — | — | 1,444 | ||
| Depreciation and amortization | 4,510 | 3,820 | 11,408 | 10,928 | ||
| Impairment loss | 6,134 | — | 6,134 | — | ||
| Total expenses | 28,162 | 12,885 | 62,379 | 39,276 | ||
| Operating income (loss) | (5,946) | (521) | (5,084) | 1,834 | ||
| Interest expense | (8,288) | (4,173) | (20,670) | (11,397) | ||
| Equity in income (losses) of unconsolidated equity method ventures ($233, $286, $603 and $498 with related parties, respectively) | 400 | (369) | (558) | (23) | ||
| Change in unrealized gains (losses) ($17,142, $(82,240), $4,761 and $(98,248) with related parties, respectively) | (885) | (61,626) | 2,251 | (89,598) | ||
| Realized losses | (1) | (939) | (21,876) | (718) | ||
| Net income (loss) before income taxes | (14,720) | (67,628) | (45,937) | (99,902) | ||
| Income tax expense | (700) | (330) | (1,553) | (1,444) | ||
| Net loss | (15,420) | (67,958) | (47,490) | (101,346) | ||
| Net (income) loss attributable to preferred shareholders | (1,155) | (1,155) | (3,465) | (3,465) | ||
| Net (income) loss attributable to noncontrolling interests | 6,538 | — | 8,432 | — | ||
| Net loss attributable to common shareholders | $(10,037) | $(69,113) | $(42,523) | $(104,811) | ||
| Weighted average common shares outstanding - basic | 40,786 | 37,187 | 39,662 | 37,177 | ||
| Weighted average common shares outstanding - diluted | 40,786 | 37,187 | 39,662 | 37,177 | ||
| Loss per share - basic | $(0.25) | $(1.86) | $(1.07) | $(2.82) | ||
| Loss per share - diluted | $(0.25) | $(1.86) | $(1.07) | $(2.82) | ||
| Preferred Shares · Common Shares · AdditionalPaid-inCapital · AccumulatedEarnings (Loss) · (Noncontrolling Interests) · Total | ||||||||
|---|---|---|---|---|---|---|---|---|
| Three Months Ended September 30, 2024 · Number ofShares · Amount · Number ofShares · Amount | ||||||||
| Balances, June 30, 2024 | 3,359,593 | $3 | 40,650,118 | $41 | $1,025,144 | $(171,101) | $4,979 | $859,066 |
| Stock-based compensation expense | — | — | — | — | 544 | — | — | 544 |
| Shares issued to Adviser for admin and advisory fees | — | — | 239,235 | — | 1,322 | — | — | 1,322 |
| Net loss attributable to common shareholders | — | — | — | — | — | (10,037) | — | (10,037) |
| Net loss attributable to noncontrolling interests | — | — | — | — | — | — | (6,538) | (6,538) |
| Net income attributable to preferred shareholders | — | — | — | — | — | 1,155 | — | 1,155 |
| Common stock dividends declared ($0.15 per share) | — | — | 785,175 | 1 | 4,905 | (6,349) | — | (1,443) |
| Preferred stock dividends declared ($0.34375 per share) | — | — | — | — | — | (1,155) | — | (1,155) |
| Balances, September 30, 2024 | 3,359,593 | $3 | 41,674,528 | $42 | $1,031,915 | $(187,487) | $(1,559) | $842,914 |
| Preferred Shares · Common Shares · AdditionalPaid-inCapital · AccumulatedEarnings (Loss) · (Noncontrolling Interests) · Total | ||||||||
|---|---|---|---|---|---|---|---|---|
| Nine Months Ended September 30, 2024 · Number ofShares · Amount · Number ofShares · Amount | ||||||||
| Balances, December 31, 2023 | 3,359,593 | $3 | 38,389,600 | $38 | $1,011,613 | $(126,580) | $— | $885,074 |
| Noncontrolling interests from NHT Acquisition | — | — | — | — | — | — | 6,873 | 6,873 |
| Stock-based compensation expense | — | — | 145,433 | — | 1,991 | — | — | 1,991 |
| Shares issued to Adviser for admin and advisory fees | — | — | 617,273 | 1 | 4,026 | — | — | 4,027 |
| Net loss attributable to common shareholders | — | — | — | — | — | (42,523) | — | (42,523) |
| Net loss attributable to noncontrolling interests | — | — | — | — | — | — | (8,432) | (8,432) |
| Net income attributable to preferred shareholders | — | — | — | — | — | 3,465 | — | 3,465 |
| Common share dividends declared ($0.45 per share) | — | — | 2,522,222 | 3 | 14,285 | (18,384) | — | (4,096) |
| Preferred share dividends declared ($1.03125 per share) | — | — | — | — | — | (3,465) | — | (3,465) |
| Balances, September 30, 2024 | 3,359,593 | $3 | 41,674,528 | $42 | $1,031,915 | $(187,487) | $(1,559) | $842,914 |
| Preferred Shares · Common Shares · AdditionalPaid-inCapital · AccumulatedEarnings (Loss) · Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended September 30, 2023 · Number ofShares · Amount · Number ofShares · Amount | ||||||||||
| Balances, June 30, 2023 | 3,359,593 | $3 | 37,171,807 | $37 | $1,000,281 | $(28,992) | $971,329 | |||
| Stock-based compensation | — | — | — | — | 477 | — | 477 | |||
| Shares issued to Adviser for admin and advisory fees | — | — | 14,589 | — | 156 | — | 156 | |||
| Net loss attributable to common shareholders | — | — | — | — | — | (69,113) | (69,113) | |||
| Net income attributable to preferred shareholders | — | — | — | — | — | 1,155 | 1,155 | |||
| Common share dividends declared ($0.15 per share) | — | — | 496,303 | 1 | 4,450 | (5,670) | (1,219) | |||
| Preferred share dividends declared ($0.34375 per share) | — | — | — | — | — | (1,155) | (1,155) | |||
| Balances, September 30, 2023 | 3,359,593 | $3 | 37,682,699 | $38 | $1,005,364 | $(103,775) | $901,630 | |||
| Preferred Shares · Common Shares · AdditionalPaid-inCapital · AccumulatedEarnings (Loss) · Total | |||||||
|---|---|---|---|---|---|---|---|
| Nine Months Ended September 30, 2023 · Number ofShares · Amount · Number ofShares · Amount | |||||||
| Balances, December 31, 2022 | 3,359,593 | $3 | 37,171,807 | $37 | $999,845 | $17,947 | $1,017,832 |
| Stock-based compensation | — | — | — | — | 913 | — | 913 |
| Shares issued to Adviser for admin and advisory fees | — | — | 14,589 | — | 156 | — | 156 |
| Net loss attributable to common shareholders | — | — | — | — | — | (104,811) | (104,811) |
| Net loss attributable to preferred shareholders | — | — | — | — | — | 3,465 | 3,465 |
| Common stock dividends declared ($0.45 per share) | — | — | 496,303 | 1 | 4,450 | (16,911) | (12,460) |
| Preferred stock dividends declared ($1.03125 per share) | — | — | — | — | — | (3,465) | (3,465) |
| Balances, September 30, 2023 | 3,359,593 | $3 | 37,682,699 | $38 | $1,005,364 | $(103,775) | $901,630 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.