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NexPoint Diversified Real Estate Trust (NXDT-4.45%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements for the year, reporting total revenues of $83.2 million, an increase from $63.3 million in the previous year. This increase is attributed to the consolidation of NexPoint Hospitality Trust (NHT) and higher rental income.
Total expenses rose to $87.4 million from $51.7 million, primarily due to increased property operating expenses and property management fees following the NHT consolidation.
The company reported a net loss of $56.6 million, an improvement from the $117.2 million loss in the previous year, largely due to a decrease in unrealized losses on investments.
Interest expense increased to $28.4 million from $15.9 million, attributed to the consolidation of NHT and increased borrowing costs.
NexPoint Diversified Real Estate Trust's portfolio includes investments in single-family rental, self-storage, office, hospitality, life science, and multifamily sectors. The company continues to focus on repositioning its portfolio into sectors where management has extensive expertise.
The company's primary investment objective is to provide both current income and capital appreciation through a diversified investment approach.
The filing details the company's financing strategy, including its use of leverage and plans to refinance existing debt. As of December 31, 2024, the company had $362.1 million of indebtedness outstanding.
The report also addresses potential risks, including economic conditions, interest rate fluctuations, and competition in the real estate market.
NexPoint Diversified Real Estate Trust has elected to be taxed as a REIT and intends to maintain this status. The company acknowledges the complexity of REIT qualification and the potential tax implications of failing to qualify.
The filing includes a discussion on the company's cybersecurity measures and the importance of maintaining secure information systems to protect against potential threats.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the NexPoint Diversified Real Estate Trust annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.