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NexPoint Diversified Real Estate TrustNYSE:NXDT Stock Report

Market Cap US$263.8m
Share Price
US$4.93
US$6.58
25.1% undervalued intrinsic discount
1Y29.1%
7D-4.6%
1D
Portfolio Value
​
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NexPoint Diversified Real Estate Trust

NYSE:NXDT Stock Report

Market Cap: US$263.8m

NexPoint Diversified Real Estate Trust (NXDT) Stock Overview

An externally advised, publicly traded, diversified real estate investment trust. More details

NXDT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance0/6
Financial Health3/6
Dividends2/6

Rewards

Trading at 25.1% below our estimate of its fair value

Risk Analysis

Earnings have declined by 50.4% per year over past 5 years

Dividend of 12.17% is not well covered by earnings or free cash flows


NXDT Community Fair Values

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NexPoint Diversified Real Estate Trust Competitors

Price History & Performance

Summary of share price highs, lows and changes for NexPoint Diversified Real Estate Trust
Historical stock prices
Current Share PriceUS$4.93
52 Week HighUS$5.61
52 Week LowUS$2.55
Beta0.88
1 Month Change-4.46%
3 Month Change10.54%
1 Year Change29.06%
3 Year Change-56.79%
5 Year Change-64.91%
Change since IPO-93.84%

Recent News & Updates

Recent updates

Seeking Alpha • Oct 08

NexPoint Diversified REIT Remains Risky, Despite Its Deep Discount To Its Net Asset Value

Summary NexPoint Diversified REIT trades at a 75% discount to NAV after a 43% plunge, vastly underperforming the S&P 500 and XLRE. NXDT faces severe profitability challenges, excessive debt, and high interest expenses, with recent losses nearly double its current stock price. Despite recent Fed rate cuts, uncertainty around future interest rates and persistent business headwinds keep NXDT's outlook highly risky. Given its weak business model and chronic underperformance, investors should avoid NXDT despite its deep discount to net asset value. Read the full article on Seeking Alpha
Seeking Alpha • Mar 06

Don't Bank On A NexPoint Investment

Summary NexPoint Diversified Real Estate Trust's diversified portfolio and investment strategy have not translated into profitability, with a 67% decline in market value since becoming a REIT in 2022. Despite a 20% annual revenue growth, NexPoint's core profitability has significantly deteriorated, with NOPAT falling from $0.8 million to -$7.2 million. The company's intrinsic value is negative, and the market premium on its share price seems unjustifiably high, posing a high risk for investors. Investors should wait for NXDT to achieve positive intrinsic value and consistent ROIC above WACC before considering investment to avoid capital destruction. Read the full article on Seeking Alpha
Seeking Alpha • Oct 29

NexPoint Diversified REIT: A High Risk, High Reward Turnaround Opportunity

Summary NexPoint Diversified Real Estate Trust is embarking on a strategic turnaround to refocus its portfolio on residential, life science & specialty manufacturing, and self-storage assets. Operational performance has been poor so far in 2024 and the REIT is loss-making even adjusted for depreciation or valuation losses. The company trades at a steep discount to both book value and management's estimate of net asset value. The common shares offer the most upside but come with substantial risks, while the preferred shares are an attractive option for income-oriented investors. Key risks to consider include negative earnings, related party investments, and fewer Fed rate cuts. Read the full article on Seeking Alpha
Seeking Alpha • May 14

NexPoint Diversified: A Look-Through Approach To NAV Reveals Concerns

Summary NexPoint Diversified Real Estate Trust common equity is down 27% since our previous coverage and more pain may be ahead due to its structure and complexity. Two key assets, VineBrook Homes and Citiyplace Tower, make up 30% of NXDT's NAV and are at high risk of being wiped out. Investors should avoid long positions and limit exposure to NXDT due to the potential for asset disposals at a loss and pressure on common equity. Read the full article on Seeking Alpha
Seeking Alpha • Oct 16

NexPoint Diversified REIT: Hunting For Value With Their Preferreds

Summary 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. Read the full article on Seeking Alpha
Seeking Alpha • Jul 06

NexPoint Diversified Real Estate: Don't Be Too Quick At Buying The 57% Discount

Summary NXDT is a diversified REIT currently trading at a steep discount relative to its NAV. We think this discount is justified and attributed to mixed past results, complex structure, and skepticism over asset valuations. The company recently proposed a series of motions at an annual meeting, including the issuance of new shares. However, this proposal was met with resistance from shareholders, indicating their dissatisfaction with the company's recent performance. NXDT could offer a good risk/reward opportunity, but changes need to occur for a valuation expansion to take place. We assign a 'HOLD' rating to the stock, pending these changes. Read the full article on Seeking Alpha
Seeking Alpha • Feb 24

NexPoint Diversified Real Estate Trust declares $0.15 dividend

NexPoint Diversified Real Estate Trust (NYSE:NXDT) declares $0.15/share quarterly dividend, in line with previous. Forward yield 4.71% Payable March 31; for shareholders of record March 15; ex-div March 14. See NXDT Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Nov 10

NexPoint Diversified: Common Stock, 9.2% Yielding Preferred Stock - Both Quite Undervalued

Summary NexPoint’s preferred stock (NXDT.PA) looks like a great value given its 9.2% yield, very low leverage and high total return potential as it sells 40% below its $25 par (liquidation). NexPoint Diversified REIT (NXDT) common stock currently trades at a whopping 55% discount to NAV and a very low PE (price to earnings ratio). NXDT and NXDT.PA are both very undervalued relative to sister company Highland Income Fund (HFRO) with similar investments, management and leverage. Now that NXDT is a REIT, it must pay out 90% of its earnings in dividends. This should result in a much higher yield in the future. The manager of NXDT has been scooping up NXDT common stock at a rapid pace which should also provide reassurance to preferred stockholders. NexPoint Diversified REIT NexPoint Diversified REIT (NXDT) was formerly a closed-end fund, but 2 years ago their shareholders approved a switch to a Real Estate Investment Trust ((REIT)) structure. Very recently they received SEC approval to become a REIT. The reason given for the conversion to a REIT was to unlock value. NXDT was trading at a deep discount to NAV and management felt that as a REIT they would get more analyst coverage, be included in REIT indexes, and there would be demand for their stock by REIT ETFs and REIT funds. Although it’s been a very short time since they have been a REIT, the huge discount remains. As the name implies, NXDT has investments across many real estate sectors and is also diversified between real property ownership and real estate finance. It is also geographically diverse. Investor Presentation As you can see from the above chart, their $1.03 billion in assets is divided up among various sectors of real estate with the heaviest weighting in single family rentals, self storage, multi family and office properties. The office property is actually one class A property as depicted below. Investor Presentation NXDT is renovating the property, which they call a “trophy property”, to include a 5 star hotel on the first 7 floors, and recently Neiman Marcus announced that this building will be their new headquarters. This property is likely to increase the earnings of NXDT in the future. And below shows the geographic diversification. Investor Presentation NXDT Is Selling For A Large 55% Discount to NAV The net asset value ((NAV)) of NXDT is around $27.70 per share. Thus, the stock is selling at less than half of NAV. You don’t see too many REITs selling that cheaply. In fact, maybe there are none. And James Dondero, who runs NXDT, certainly believes the stock is undervalued and that there is money to be made here. He has been buying up NXDT stock relentlessly. And these are not small purchases. In fact, in the last 2 years he has bought about 2 million shares of NXDT and has a significant position in NXDT’s stock. It seems that he believes the stock is very undervalued and his large stock position also now aligns him better with the company. Openinsider.com Additionally, NXDT along with sister company Highland Income Fund (HFRO) won a large lawsuit against Credit Suisse. The result of the appeal should be known soon, and although the lion’s share of the proceeds will go to HFRO, this could be a catalyst to get NXDT’s stock price moving higher. NXDT’s sister company, Highland Income Fund ((HFRO)), also tried to convert to a REIT but could not get shareholder approval. But HFRO is a very good comparison to NXDT. HFRO has similar management, virtually identical leverage and similar investments. In fact, some of their investments are identical. But NXDT currently sells at twice the NAV discount as HFRO again underscoring just how discounted is the current price of NXDT. NXDT has actually performed very well of late. I looked at their NAV at the beginning of 2020 and it was $21.23. 2.5 years later it is now $27.70 for a 30% rise in NAV. And during this same period of great performance, NXDT’s stock price has actually fallen from $18 to $12.42 or 31%. So with a 30% rise in NAV combined with a 30% drop in the stock price, it is no wonder Dondero is buying up shares. The disconnect between NXDT’s performance and stock price has been quite large. This article was written at the close on 11/7/2022 and reflects those prices. The article was first seen by Conservative Income Portfolio subscribers. Common Dividends Could Be Very Large and the PE Multiple Is Very Low Currently NXDT is paying shareholders $0.15 quarterly in dividends for an annual yield of 5.6%. In my talks with the company, this distribution has been based on being a CEF or RIC (registered Investment company). But as a REIT, they must pay out 90% of their income in dividends. Net income before one time items was around $82 million or $2.21 per share in 2021. In the first half of 2022, it is even better, with NXDT having net income of $1.81 per share which annualizes to $3.60 per share. But even if normalized earnings are only $2.30 per share, the dividend should be at least $2.07 per share (90% of earnings). That would put the yield of NXDT at a very generous 13.7%, very high for a diversified REIT preferred stock. And as a REIT, U.S. taxpayers would get 20% of that dividend tax free. And if you look at the type of earnings they’ve shown over the last 18 months, the PE multiple looks to be a mere 5 times earnings. That PE is much lower than the PE multiple on similar HFRO. NXDT Preferred Stock NXDT has one preferred stock outstanding with symbol NXDT.PA (NXDT.PA). Here are the details: Current Price $15.10 Current Yield 9.2% Call Date 12/15/2023 Cumulative Yes Liquidation Value $25 Fixed-Rate NXDT’s 9.2% Yield and Total Return Potential Is Very High Relative to Its Safety As I wrote, NXDT’s sister company, HFRO, is very similar to NXDT – same leverage, similar management, and similar to identical investments. The primary difference between the 2 companies is that NXDT converted to a REIT and HFRO failed in its attempt to convert to a REIT. HFRO is currently “A1” rated by Moodys. If NXDT had remained a CEF, presumably it would also carry an A1 rating. Part of the reasons CEF preferred stocks get high credit ratings are due to their diversification as well as legal leverage limits that they must adhere to. Although, theoretically, NXDT is now allowed to take on more leverage, it has had 2 years to do so since they received shareholder approval to convert to a REIT. But it has not. In fact, as a CEF, it could have taken leverage up to 50% but instead it has chosen to operate at much lower leverage – around 10%. So NXDT still retains the same safety that it had when it was a CEF. Of course, like every investment, leverage levels should be monitored. Here is NXDT’s balance sheet from their 2nd quarter SEC filing. SEC Filing As you can see from the balance sheet, NXDT has $1137 million in assets and only $25 million in liabilities. If we add the $83 million in preferred stock to that, we get $108 million of liabilities which amounts to less than 10% of assets. Some of their investments are in funds which may contain some leverage, but that is also true of “A1” rated HFRO and other “A1” rated preferred stocks.
Seeking Alpha • Oct 25

NexPoint Diversified Real Estate Trust declares $0.15 dividend

NexPoint Diversified Real Estate Trust (NYSE:NXDT) declares $0.15/share quarterly dividend. Forward yield 4.72% Payable Dec. 30; for shareholders of record Dec. 15; ex-div Dec. 14. See NXDT Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Oct 10

NexPoint Diversified REIT: Cheap Valuation With Multiple Catalysts

Summary NexPoint Diversified's transition from closed end fund to REIT is complete. Multiple catalysts for value improvement going forward. Large insider holdings. Trading ~3x FFO. Background/History NexPoint Diversified Real Estate Trust's (NXDT) journey to today began in 2006 when it was listed as NexPoint Holdings ((NHF)) - a closed end fund holding a range of investments including real estate, CLOs, distressed debt, and equities. NHF began investing larger amounts of capital into private real estate and in 2015 spun out NexPoint Residential (NXRT) which owns multifamily properties. NHF began trading at a substantial discount to the stated Net Asset Value starting in early 2020. Subsequently, management determined that a move to a REIT structure would allow the company to trade closer to fair value - this transition was recently approved by the SEC this summer. NXDT plans to report their first quarter as a REIT covering the third quarter of 2022 in November. Experience With Real Estate NexPoint as a company is James Dondero's second major foray in the investment space after Highland Capital. Highland was a sizable leveraged loan and CLO manager over the past 30 years but ran into issues from the Great Financial Crisis. Dondero has increasingly focused on real estate over time, beginning with the spinoff of NexPoint Residential Trust and other subsequent investment vehicles. Currently, NexPoint manages $14 billion in real estate assets across public and private vehicles. NXDT Current Portfolio As stated in the company name - NexPoint Diversified Trust, the company has real estate holdings across RE verticals (office, single family rentals, and self-storage), geographies (across the US), and capital structure (debt and equity). Company Presentation The company's single family rental assets are on both the debt (through NexPoint Real Estate Finance) and equity side (through VineBrook and NexPoint Homes). Self-storage is largely equity through NexPoint Storage Partners and SAFStor. The office exposure is through an equity investment in Cityplace - a 42-story office tower just outside downtown Dallas. NexPoint purchased the asset in 2018 with a plan to improve the asset through needed improvements with a plan to subsequently move rents higher. Neiman Marcus recently announced a new lease at Cityplace and Intercontinental plans a hotel opening early 2024. Capital Structure Looking at NXDT vs. other diversified REITs suggests they are somewhat underlevered vs. others in the space. Financials (Author estimates) The provides more financial flexibility going forward to take on new assets or buy back shares to achieve comparable leverage. Additionally, NXDT has been distributing only 15% of net investment income vs. a 79% distribution rate for its peers. I would expect them to increase their dividend moving forward. Earnings As the company has morphed from a closed end fund to a REIT, its portfolio has changed as well. As a closed end fund they were required to file twice/year reports and I believe the most recent two (second half of 2021 and first half of 2022) are fairly indicative of the economics they will report going forward. The key figure I look at in these reports is "Net Investment Income." This figure shows the operating cash flow coming from the properties - I view it similarly to Funds From Operations. While they have also generated realized and unrealized gains, both of these are sort of unstable and one-time in nature. Net Investment Income available to common stock (which is Net Investment Income less the dividend they owe to preferred equity holders) has averaged in the range of $70mm for each of the last two half-year reporting periods. If we project that going forward (which I think is quite conservative), then FFO will approximate $140mm/year ($3.77/share). Over the next several years, I believe FFO will grow above $5/share due to growth in profitability at Cityplace, ongoing rental increases in their single family and self-storage portfolios, and contribution from the use of excess cash flow. Valuation In their presentation to investors back in August, the company named [[GOOD]], [[AHH]], and [[CTO]] as comparables. Recently those were trading around a 9.2x FFO multiple. On that basis, NXDT is worth $34.70/share ($3.77/share in FFO x 9.2 multiple). Catalysts/Other Consideration As a closed end fund, NXDT suffered from lack of inclusion in most equity indices as well as a lack of equity analyst coverage. By the company's estimates, they will be eligible for certain REIT indices over the next few months and broad market indices over the next year. These will eventually comprise ~10-15% of outstanding shares. Said another way, there will be forced buyers of NXDT shares over the next year - regardless of price.
Seeking Alpha • Sep 15

NexPoint Diversified Real Estate Trust goes ex-dividend tomorrow

NexPoint Diversified Real Estate Trust (NYSE:NXDT) had declared $0.05/share monthly dividend, in line with previous. Payable Sept. 30; for shareholders of record Sept. 19; ex-div Sept. 16. Additionally, starting October 1, 2022, NXDT will begin declaring dividends on a quarterly basis, in line with the majority of publicly traded REITs. See NXDT Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Aug 02

NexPoint Diversified Real Estate Trust declares $0.05 dividend

NexPoint Diversified Real Estate Trust (NYSE:NXDT) declares $0.05/share monthly dividend, in line with previous. Forward yield 3.85% Payable Aug. 31; for shareholders of record Aug. 24; ex-div Aug. 23. See NXDT Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Jul 07

NexPoint Diversified Real Estate Trust declares $0.05 dividend

NexPoint Diversified Real Estate Trust (NYSE:NXDT) declares $0.05/share monthly dividend, in line with previous. Forward yield 3.72% Payable Aug. 1; for shareholders of record July 22; ex-div July 21. See NXDT Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Jan 10

NXDT: Pick Up This Orphaned Asset Mid-Transition At 60% NAV And 4.4% Yield

NXDT trades at an alluring 60% of (growing) NAV and you get paid a 4.4% yield to wait for the discount to close. Once the transition is complete, it will be eligible for index inclusion, appeal to a wider investor base, and be valued against comparable REIT multiples. The CEO has been buying shares and owns ~14% of the company.

Shareholder Returns

NXDTUS REITsUS Market
7D-4.6%2.3%0.8%
1Y29.1%10.9%24.2%

Return vs Industry: NXDT exceeded the US REITs industry which returned 9.1% over the past year.

Return vs Market: NXDT exceeded the US Market which returned 21.5% over the past year.

Price Volatility

Is NXDT's price volatile compared to industry and market?
NXDT volatility
NXDT Average Weekly Movement7.8%
REITs Industry Average Movement3.3%
Market Average Movement7.2%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.1%

Stable Share Price: NXDT has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: NXDT's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006n/an/anxdt.nexpoint.com

NexPoint Diversified Real Estate Trust is an externally advised, publicly traded, diversified real estate investment trust. It focuses on the acquisition, development, and management of opportunistic and value-add investments throughout the United States across multiple sectors where NexPoint and its affiliates have operational expertise. NXDT is externally advised by NexPoint Real Estate Advisors X, L.P.

NexPoint Diversified Real Estate Trust Fundamentals Summary

How do NexPoint Diversified Real Estate Trust's earnings and revenue compare to its market cap?
NXDT fundamental statistics
Market capUS$263.79m
Earnings (TTM)-US$118.84m
Revenue (TTM)US$78.83m
3.2x
P/S Ratio
-2.1x
P/E Ratio

Is NXDT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
NXDT income statement (TTM)
RevenueUS$78.83m
Cost of RevenueUS$29.80m
Gross ProfitUS$49.03m
Other ExpensesUS$167.88m
Earnings-US$118.84m

Last Reported Earnings

Mar 31, 2026

Next Earnings Date

n/a

Earnings per share (EPS)-2.30
Gross Margin62.20%
Net Profit Margin-150.77%
Debt/Equity Ratio39.6%

How did NXDT perform over the long term?

See historical performance and comparison

Dividends

12.2%
Current Dividend Yield
-12%
Payout Ratio

Does NXDT pay a reliable dividends?

See NXDT dividend history and benchmarks
When do you need to buy NXDT by to receive an upcoming dividend?
NexPoint Diversified Real Estate Trust dividend dates
Ex Dividend DateMay 22 2026
Dividend Pay DateJun 30 2026
Days until Ex dividend22 days
Days until Dividend pay date17 days

Does NXDT pay a reliable dividends?

See NXDT dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/12 07:16
End of Day Share Price 2026/06/12 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

NexPoint Diversified Real Estate Trust is covered by 0 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.