NEXPOINT DIVERSIFIED REAL ESTATE TRUST
For the period ended Sep 30, 2025. Filed Nov 13, 2025.
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Sep 30, 2025 · Filed Nov 13, 2025
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Defaults Upon Senior Securities
- Consolidated Real Estate Investments
As of September 30, 2025, the major components of the Company’s investments in real estate held by SPEs the Company consolidates, which are included in "Consolidated Real Estate Investments" on the Consolidated Balance Sheets, were as follows (in thousands):
| Operating Properties | Land | Buildings and Improvements | Intangible Lease Assets | Intangible Lease Liabilities | Right of use assets | Construction in Progress | Furniture, Fixtures, and Equipment | Totals |
|---|---|---|---|---|---|---|---|---|
| White Rock Center | $1,315 | $10,597 | $1,921 | $(101) | $— | $— | $13 | $13,745 |
| 5916 W Loop 289 | 1,081 | 2,938 | — | — | — | — | — | 4,019 |
| Cityplace Tower | 18,813 | 195,416 | 9,058 | (6,669) | — | 19,437 | 356 | 236,411 |
| NexPoint Dominion Land, LLC | 26,500 | — | — | — | — | — | — | 26,500 |
| Dallas Hilton Garden Inn | 4,115 | 24,818 | — | — | — | 81 | 1,548 | 30,562 |
| St. Petersburg Marriott | 5,829 | 33,798 | — | — | — | 4,106 | 2,389 | 46,122 |
| Hyatt Place Park City | 3,737 | 20,296 | — | — | — | 876 | 3,166 | 28,075 |
| Bradenton Hampton Inn & Suites | 837 | 25,637 | — | — | 1,465 | 281 | 2,928 | 31,148 |
| HUB Research Triangle Park | — | — | — | — | 579 | — | — | 579 |
| Accumulated depreciation and amortization | — | (34,636) | (9,014) | 4,436 | (58) | — | (2,528) | (41,800) |
| Total Operating Properties | $62,227 | $278,864 | $1,965 | $(2,334) | $1,986 | $24,781 | $7,872 | $375,361 |
As of December 31, 2024, the major components of the Company’s investments in real estate held by SPEs the Company consolidates, which are included in "Consolidated Real Estate Investments" on the Consolidated Balance Sheets, were as follows (in thousands):
| Operating Properties | Land | Buildings and Improvements | Intangible Lease Assets | Intangible Lease Liabilities | Right of use assets | Construction in Progress | Furniture, Fixtures, and Equipment | Totals |
|---|---|---|---|---|---|---|---|---|
| White Rock Center | $1,315 | $10,568 | $1,921 | $(101) | $— | $— | $13 | $13,716 |
| 5916 W Loop 289 | 1,081 | 2,938 | — | — | — | — | — | 4,019 |
| Cityplace Tower | 18,812 | 195,408 | 9,058 | (6,669) | — | 19,053 | 356 | 236,018 |
| NexPoint Dominion Land, LLC | 26,500 | — | — | — | — | — | — | 26,500 |
| Dallas Hilton Garden Inn | 4,116 | 24,631 | — | — | — | 96 | 1,475 | 30,318 |
| St. Petersburg Marriott | 5,829 | 33,715 | — | — | — | 3,951 | 2,301 | 45,796 |
| Hyatt Place Park City | 3,737 | 19,876 | — | — | — | 877 | 3,146 | 27,636 |
| Bradenton Hampton Inn & Suites | 837 | 25,064 | — | — | 1,465 | 712 | 2,833 | 30,911 |
| HUB Research Triangle Park | — | — | — | — | 711 | — | — | 711 |
| Accumulated depreciation and amortization | — | (25,230) | (8,353) | 3,631 | (29) | — | (1,390) | (31,371) |
| Total Operating Properties | $62,227 | $286,970 | $2,626 | $(3,139) | $2,147 | $24,689 | $8,734 | $384,254 |
| Held for Sale Properties | ||||||||
| Plano Homewood Suites | $2,106 | $5,394 | $— | $— | $— | $28 | $738 | $8,266 |
| Las Colinas Homewood Suites | 2,292 | 10,153 | — | — | — | 313 | 1,004 | 13,762 |
| Addison Property | 2,351 | 4,577 | — | — | — | 518 | 804 | 8,250 |
| Accumulated depreciation and amortization | — | (218) | — | — | — | — | (170) | (388) |
| Total Held for Sale Properties | $6,749 | $19,906 | $— | $— | $— | $859 | $2,376 | $29,890 |
Depreciation expense was $3.5 million and $10.5 million for the three and nine months ended September 30, 2025 and $3.9 million and $9.9 million for the three and nine months ended September 30, 2024. Amortization expense related to the Company’s intangible lease assets was $0.2 million and $0.7 million for the three and nine months ended September 30, 2025 and $0.4 million and $1.0 million for the three and nine months ended September 30, 2024. Amortization expense related to the Company's intangible lease liabilities was $0.3 million and $0.8 million for the three and nine months ended September 30, 2025 and $0.6 million and $1.2 million for the three and nine months ended September 30, 2024. The net amount amortized as an increase to rental revenue for capitalized above and below-market lease intangibles was $0.2 million and $0.7 million for the three and nine months ended September 30, 2025 and $0.6 million and $1.1 million for the three and nine months ended September 30, 2024. Impairment loss consists of $0 million and $1.8 million on real estate held for sale, respectively, for the three and nine months ended September 30, 2025. Fair value was determined based on a signed purchase and sale agreement with an unrelated third-party in an arm’s-length transaction. Because the agreement represents observable market inputs, the resulting valuation was classified within Level 2 of the fair-value hierarchy. Impairment loss consists of $5.1 million relating to Las Colinas Homewood Suites and $1.0 million relating to Plano Homewood Suites, which was classified as held for sale, for the three and nine months ended September 30, 2024.
Acquisitions
There were no acquisitions by the Company for the nine months ended September 30, 2025. During the nine months ended September 30, 2024, as a result of the NHT Acquisition, the Company consolidated the following properties: Dallas Hilton Garden Inn, Addison Property, Plano Homewood Suites, Las Colinas Homewood Suites, St. Petersburg Marriott, Hyatt Place Park City, Bradenton Hampton Inn & Suites.
Dispositions
The Company sold three properties during the nine months ended September 30, 2025 as detailed in the table below (in thousands). The Company didnot sell any properties during the nine months ended September 30, 2024.
| Property Name | Location | Date of Sale | Sales Price | Net Cash Proceeds | Gain (Loss) on Sales of Real Estate |
|---|---|---|---|---|---|
| Plano Homewood Suites | Plano, Texas | January 24, 2025 | $8,300 | $8,154 | $11 |
| Addison Property | Addison, Texas | April 18, 2025 | $6,400 | $6,308 | $(88) |
| Las Colinas HomeWood Suites | Las Colinas, Texas | April 8, 2025 | $14,000 | $13,844 | $114 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.