**NexPoint Diversified Real Estate Trust Reports Financial Results for 2025**
NexPoint Diversified Real Estate Trust (NXDT), a publicly traded REIT, reported a net loss attributable to common shareholders of $130.2 million for the year ended December 31, 2025, compared to a net loss of $51.3 million for the year ended December 31, 2024. Total revenues increased to $86.0 million from $83.2 million in the previous year, while total expenses decreased slightly to $87.3 million from $87.4 million. The increase in net loss was primarily attributed to mark-to-market losses on investments accounted for at fair value, partially offset by interest and dividend income.
The company's financial performance was influenced by several key operational developments. Rental income decreased by $4.6 million year-over-year, primarily due to decreased occupancy at Cityplace and an increase in the allowance for bad debt related to certain tenants. Conversely, room revenue increased by $1.4 million, driven by the consolidation of the Hospitality segment, which was not fully consolidated in the prior year. Interest and dividend income also saw an increase of $7.8 million, primarily from equity investments. The company's share repurchase program resulted in the repurchase of approximately $1.9 million of its common shares during 2025.
Strategic developments during the year included the completion of the NexPoint Hospitality Trust (NHT) merger, bringing the hospitality portfolio under NXDT's sole ownership. The company also invested $16.3 million in AMS C-Store JV, LLC, a real estate development platform focused on convenience store projects in Texas. Additionally, Marriott Uptown completed a $95 million refinancing, generating $18.2 million in cash distributions to NXDT. The company launched a continuous public offering of Series B Preferred Shares, raising approximately $22.4 million in gross proceeds during the year.
Looking ahead, NXDT plans to refocus its asset allocation towards sectors with extensive sponsor experience, such as residential, self-storage, and life sciences. This strategy involves the opportunistic sale of $100 million to $150 million in assets to free up capital for reinvestment. The company anticipates that a more favorable capital market environment will facilitate this process. The company's leverage is expected to remain below a ratio of 3-to-1, with leverage primarily existing at the asset level.
About NEXPOINT DIVERSIFIED REAL ESTATE TRUST
NexPoint Diversified Real Estate Trust is a publicly traded REIT engaged in acquiring, managing, developing, and disposing of opportunistic, value-add commercial real estate across the U.S. It invests in various property types, including residential, hospitality, self-storage, life sciences, and office, using equity, debt, and credit strategies. Managed by an external adviser, it aims to generate current income and capital appreciation through diversified real estate and structured investments.
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