NexPoint Diversified Real Estate Trust reported a net loss of $79.2 million for the six months ended June 30, 2025, compared to a net loss of $32.1 million for the same period in 2024. The significant increase in losses was primarily attributed to unrealized losses on investments, which totaled $74.9 million for the current period. Total revenues for the first half of 2025 reached $50.1 million, a substantial increase from $35.1 million in the prior year, driven by higher room and food and beverage revenues following the consolidation of the NexPoint Hospitality Trust (NHT) in April 2024.
The company’s total assets decreased to $1.11 billion as of June 30, 2025, down from $1.22 billion at the end of 2024. This decline was largely due to the sale of properties and a reduction in the fair value of investments. The company’s liabilities also decreased to $354.8 million from $391.3 million, reflecting a reduction in mortgage and notes payable. The equity attributable to common shareholders fell to $752.7 million from $836.5 million, influenced by the net losses incurred during the period.
In terms of operational developments, NexPoint reported a total of 47.4 million common shares outstanding as of June 30, 2025, an increase from 42.7 million shares at the end of 2024. The company declared a distribution of $0.15 per common share, which was paid on June 30, 2025. Additionally, the company launched a continuous public offering of Series B Preferred Shares, with 145,554 shares issued for gross proceeds of $3.6 million as of the reporting date.
Looking ahead, NexPoint plans to refocus its asset allocation strategy, aiming to sell legacy assets that do not align with its core investment strategy. The company anticipates selling between $100 million to $150 million in assets to reinvest in sectors such as residential, self-storage, and life sciences. Management believes that the current capital market environment will facilitate this transition, although they acknowledge the potential impact of rising interest rates and inflation on their operations and financial condition. The company is also evaluating options to refinance existing debt and secure additional capital to support its growth initiatives.
About NEXPOINT DIVERSIFIED REAL ESTATE TRUST
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