NexPoint Diversified Real Estate TrustNYSE: NXDT

DALLAS , June 20, 2024 /PRNewswire/ -- NexPoint Real Estate Opportunities, LLC (together with its affiliates "NexPoint"), a major shareholder of United Development Funding IV ("UDF IV" or the "Company"), a real estate investment trust ("REIT"), today announced its nomination of four highly qualified, independent candidates for election to the UDF IV Board of Trustees at the Company's upcoming Annual Meeting of Shareholders. Following years of holding no UDF IV shareholder meetings prior to December 2023, or elections of independent trustees, the Circuit Court for Baltimore City, Maryland has ordered UDF IV to conduct an election for four independent Trustees at an Annual Meeting that must be held on or before December 31, 2024.

Large Shareholder to Nominate Four Independent Trustees to Restore Accountability and Transparency Following Criminal Convictions of Members of Former Management Team DALLAS , June 13, 2024 /PRNewswire/ -- NexPoint Real Estate Opportunities, LLC (together with its affiliates "NexPoint") announced today that it has sent a letter to fellow shareholders of United Development Funding IV ("UDF IV" or the "Company"), a real estate investment trust, ahead of the Company's upcoming Annual Meeting of Shareholders. The Circuit Court for Baltimore City, Maryland recently issued an order requiring UDF IV to hold an Annual Meeting on or before December 31, 2024, at which four of the five trustees must stand for election.

DALLAS , June 10, 2024 /PRNewswire/ -- NexPoint Diversified Real Estate Trust ("NXDT") (NYSE: NXDT) released today an investor presentation. The presentation can be found here and on the NXDT website, NexPoint Diversified Real Estate Trust.

NexPoint Diversified Real Estate Trust's common equity has decreased by 27% since our last analysis, and there may be more challenges ahead due to its intricate structure. VineBrook Homes and Cityplace Tower, two crucial assets for NXDT, account for 30% of its NAV and are at significant risk of substantial losses. It is advisable for investors to steer clear of long positions and reduce their exposure to NXDT to avoid potential losses from asset sales and pressure on common equity.

NexPoint Diversified Real Estate is trading at a 70% discount to its NAV, possibly raising doubts about the fair value of its assets. Despite the uncertainty surrounding the common stock, the preferred equity presents a good risk/reward ratio with an attractive 9.7% yield attached. Preferreds can be redeemed starting on December 2023. This may offer the opportunity for sooner-than-expected redemption, and thus a strong squeeze of their YTM.