Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 14, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-32921 | |
Entity Registrant Name | NexPoint Diversified Real Estate Trust | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 80-0139099 | |
Entity Address, Address Line One | 300 Crescent Court | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 214 | |
Local Phone Number | 276-6300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37,186,395.75 | |
Entity Central Index Key | 0001356115 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Common stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Shares, par value $0.001 per share | |
Trading Symbol | NXDT | |
Security Exchange Name | NYSE | |
Series A Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.50% Series A Cumulative Preferred Shares, par value$0.001 per share ($25.00 liquidation preference per share) | |
Trading Symbol | NXDT-PA | |
Security Exchange Name | NYSE |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Consolidated Real Estate Investments | ||
Land | $ 47,708 | $ 47,708 |
Buildings and improvements | 181,886 | 174,469 |
Intangible lease assets | 10,979 | 10,979 |
Construction in progress | 39,654 | 39,731 |
Furniture, fixtures, and equipment | 362 | 354 |
Total Gross Consolidated Real Estate Investments | 280,589 | 273,241 |
Accumulated depreciation and amortization | (14,023) | (7,158) |
Total Net Consolidated Real Estate Investments | 266,566 | 266,083 |
Investments, at fair value | 712,657 | 754,910 |
Equity method investments | 69,590 | 70,656 |
Life insurance policies, at fair value | 60,619 | 67,711 |
Cash and cash equivalents | 10,590 | 13,360 |
Restricted cash | 34,201 | 35,289 |
Accounts receivable, net | 1,698 | 1,903 |
Prepaid and other assets | 7,507 | 6,441 |
Accrued interest and dividends | 8,131 | 4,302 |
Deferred tax asset, net | 1,983 | 2,247 |
TOTAL ASSETS | 1,173,542 | 1,222,902 |
Liabilities: | ||
Mortgages payable, net | 143,421 | 144,414 |
Notes payable, net | 37,902 | 24,250 |
Prime brokerage borrowing | 2,118 | 2,624 |
Accounts payable and other accrued liabilities | 8,483 | 13,865 |
Income tax payable | 0 | 10,720 |
Accrued real estate taxes payable | 2,262 | 254 |
Accrued interest payable | 1,286 | 1,115 |
Security deposit liability | 414 | 416 |
Prepaid rents | 931 | 1,273 |
Intangible lease liabilities, net | 5,284 | 6,027 |
Due to affiliates | 112 | 112 |
Total Liabilities | 202,213 | 205,070 |
Shareholders' Equity: | ||
Preferred shares, $0.001 par value: 4,800,000 shares authorized; 3,359,593 shares issued and outstanding | 3 | 3 |
Common shares, $0.001 par value: unlimited shares authorized; 37,171,807 shares issued and outstanding | 37 | 37 |
Additional paid-in capital | 1,000,281 | 999,845 |
Accumulated earnings (loss) | (28,992) | 17,947 |
Total Shareholders' Equity | 971,329 | 1,017,832 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,173,542 | $ 1,222,902 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investments, at fair value | $ 712,657 | $ 754,910 |
Equity method investments | 69,590 | 70,656 |
Notes payable, net | $ 37,902 | $ 24,250 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 4,800,000 | 4,800,000 |
Preferred stock, shares issued (in shares) | 3,359,593 | 3,359,593 |
Preferred stock, shares outstanding (in shares) | 3,359,593 | 3,359,593 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares, issued (in shares) | 37,171,807 | 37,171,807 |
Common stock, shares, outstanding (in shares) | 37,171,807 | 37,171,807 |
Affiliated Entity | ||
Investments, at fair value | $ 552,667 | $ 576,419 |
Equity method investments | 7,306 | 7,272 |
Notes payable, net | $ 20,000 | $ 20,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Revenues | ||
Rental income | $ 5,417 | $ 10,137 |
Interest income | 1,751 | 3,769 |
Dividend income | 6,690 | 14,809 |
Other income | 22 | 31 |
Total revenues | 13,880 | 28,746 |
Expenses | ||
Property operating expenses | 2,520 | 4,026 |
Property management fees | 191 | 362 |
Real estate taxes and insurance | 1,340 | 2,697 |
Advisory and administrative fees | 1,660 | 5,238 |
Conversion expenses | 1,281 | 1,444 |
Depreciation and amortization | 3,584 | 7,108 |
Total expenses | 13,853 | 26,391 |
Operating income | 27 | 2,355 |
Interest expense | (3,762) | (7,224) |
Equity in income (losses) of unconsolidated equity method ventures ($209 and $421 with related parties, respectively) | 422 | 346 |
Change in unrealized gains (losses) | (9,332) | (27,972) |
Realized gains (losses) | (914) | 221 |
Net loss before income taxes | (13,559) | (32,274) |
Income tax expense | (308) | (1,114) |
Net loss | (13,867) | (33,388) |
Net loss attributable to preferred shareholders | (1,155) | (2,310) |
Net loss attributable to common shareholders | $ (15,022) | $ (35,698) |
Weighted average common shares outstanding - basic (in shares) | 37,172 | 37,172 |
Weighted average common shares outstanding - diluted (in shares) | 37,172 | 37,172 |
Loss per share - basic (in dollars per share) | $ (0.40) | $ (0.96) |
Loss per share - diluted (in dollars per share) | $ (0.40) | $ (0.96) |
Operating Segments | ||
Expenses | ||
General and administrative expenses | $ 1,025 | $ 1,768 |
Corporate, Non-Segment | ||
Expenses | ||
General and administrative expenses | $ 2,252 | $ 3,748 |
Consolidated Statement Of Ope_2
Consolidated Statement Of Operations (Predecessor Basis) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Income: | ||
Total income | $ 64,480 | $ 79,196 |
Expenses | ||
Investment advisory | 3,224 | 6,279 |
Income tax expense | 2,000 | 2,000 |
Legal fees | 463 | 987 |
Interest expense and commitment fees | 373 | 696 |
Conversion expenses | 108 | 471 |
Accounting services fees | 171 | 334 |
Insurance | 139 | 185 |
Reports to shareholders | 68 | 136 |
Trustees fees | 41 | 109 |
Audit and tax preparation fees | 39 | 77 |
Transfer agent fees | 42 | 72 |
Pricing fees | 42 | 68 |
Registration fees | 29 | 56 |
Other | 130 | 322 |
Total expenses | 6,869 | 11,792 |
Net investment income | 57,611 | 67,404 |
Preferred dividend expenses | (1,155) | (2,310) |
Realized gain on: | ||
Realized gains (losses) | 1,555 | 29,146 |
Net change in unrealized gain on: | ||
Change in unrealized gains (losses) | 10,546 | 32,594 |
Net realized and unrealized gain on investments | 12,102 | 61,740 |
Total increase in net assets resulting from operations | 68,557 | 126,834 |
Securities Sold, Not yet Purchased | ||
Realized gain on: | ||
Realized gains (losses) | 253 | 253 |
Net change in unrealized gain on: | ||
Change in unrealized gains (losses) | (153) | 0 |
Non-Affiliated Entity | ||
Income: | ||
Dividends from unaffiliated/affiliated issuers | 52,647 | 60,178 |
Interest from unaffiliated/affiliated issuers | 196 | 991 |
Realized gain on: | ||
Realized gains (losses) | 1,302 | 28,893 |
Net change in unrealized gain on: | ||
Unrealized gain (loss) on investments excluding securities sold short | (29,064) | (43,752) |
Change in unrealized gains (losses) | (43,752) | |
Affiliated Entity | ||
Income: | ||
Dividends from unaffiliated/affiliated issuers | 8,778 | 15,025 |
Interest from unaffiliated/affiliated issuers | 2,859 | 3,002 |
Net change in unrealized gain on: | ||
Unrealized gain (loss) on investments excluding securities sold short | $ 39,764 | 76,346 |
Change in unrealized gains (losses) | $ 76,346 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Shares | Common stock | Additional Paid-in Capital | Accumulated Earnings (Loss) |
Beginning of period at Dec. 31, 2021 | $ 911,208 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss attributable to preferred shareholders | 2,310 | ||||
Common share dividends declared | (11,139) | ||||
End of period at Jun. 30, 2022 | 1,029,616 | ||||
Beginning of period at Mar. 31, 2022 | 965,891 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss attributable to preferred shareholders | 1,155 | ||||
Common share dividends declared | (5,573) | ||||
End of period at Jun. 30, 2022 | 1,029,616 | ||||
Beginning balances (in shares) at Dec. 31, 2022 | 3,359,593 | 37,171,807 | |||
Beginning of period at Dec. 31, 2022 | 1,017,832 | $ 3 | $ 37 | $ 999,845 | $ 17,947 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Vesting of stock-based compensation | 436 | 436 | |||
Net loss attributable to common shareholders | (35,698) | (35,698) | |||
Net loss attributable to preferred shareholders | 2,310 | 2,310 | |||
Common share dividends declared | (11,241) | (11,241) | |||
Preferred share dividends declared | (2,310) | (2,310) | |||
Ending balances (in shares) at Jun. 30, 2023 | 3,359,593 | 37,171,807 | |||
End of period at Jun. 30, 2023 | 971,329 | $ 3 | $ 37 | 1,000,281 | (28,992) |
Beginning balances (in shares) at Mar. 31, 2023 | 3,359,593 | 37,171,807 | |||
Beginning of period at Mar. 31, 2023 | 991,581 | $ 3 | $ 37 | 999,845 | (8,304) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Vesting of stock-based compensation | 436 | 436 | |||
Net loss attributable to common shareholders | (15,022) | (15,022) | |||
Net loss attributable to preferred shareholders | 1,155 | 1,155 | |||
Common share dividends declared | (5,666) | (5,666) | |||
Preferred share dividends declared | (1,155) | (1,155) | |||
Ending balances (in shares) at Jun. 30, 2023 | 3,359,593 | 37,171,807 | |||
End of period at Jun. 30, 2023 | $ 971,329 | $ 3 | $ 37 | $ 1,000,281 | $ (28,992) |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividends declared (in dollars per share) | $ 0.15 | $ 0.30 |
Preferred stock dividends declared (in dollars per share) | $ 0.34375 | $ 0.68750 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Net Assets (Predecessor Basis) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Increase (decrease) in net assets operations: | ||
Net investment income | $ 57,611 | $ 67,404 |
Preferred dividend expenses | (1,155) | (2,310) |
Accumulated net realized gain (loss) on investments, securities sold short, written options, futures contracts, and foreign currency transactions | 1,555 | 29,146 |
Net change in unrealized appreciation on investments, securities sold short, written options contracts and translation of assets and liabilities denominated in foreign currency | 10,546 | 32,594 |
Net increase from operations | 68,557 | 126,834 |
Distributions declared to common shareholders: | ||
Distribution | (5,573) | (11,139) |
Total distributions declared to common shareholders: | (5,573) | (11,139) |
Increase in net assets from operations and distributions | 62,984 | 115,695 |
Share transactions: | ||
Proceeds from sale of shares | 0 | 1,288 |
Net decrease from shares transactions | 741 | 2,713 |
Total increase in net assets | 63,725 | 118,408 |
Net assets | ||
Beginning of period | 965,891 | 911,208 |
End of period | $ 1,029,616 | $ 1,029,616 |
Change in Common Shares | ||
Issued for distribution reinvested (in shares) | 46 | 92 |
Net increase in common shares (in shares) | 46 | 92 |
Common stock | ||
Share transactions: | ||
Value of distributions reinvested | $ 741 | $ 1,425 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Cash flows from operating activities | |
Net loss | $ (33,388) |
Adjustments to reconcile net loss to net cash used in operating activities: | |
Depreciation and amortization | 7,108 |
Amortization of intangible lease assets and liabilities | (581) |
Amortization of deferred financing costs | 244 |
Paid-in-kind interest | (1,961) |
Realized (gain) loss | (221) |
Net change in unrealized (gain) loss on investments held at fair value | 27,972 |
Equity in income (losses) of unconsolidated ventures | (346) |
Distributions of earnings from unconsolidated ventures | 1,412 |
Vesting of stock-based compensation | 436 |
Cash paid for life settlement premiums | (2,532) |
Changes in operating assets and liabilities, net of effects of acquisitions: | |
Deferred tax asset | 264 |
Income tax payable | (10,720) |
Real estate taxes payable | 2,008 |
Operating assets | (5,064) |
Operating liabilities | (5,480) |
Net cash used in operating activities: | (20,849) |
Cash flows from investing activities | |
Proceeds from sale of investments | 25,084 |
Purchases of investments | (2,102) |
Additions to consolidated real estate investments | (7,348) |
Purchases of life settlement policies | 2,999 |
Net cash provided by investing activities | 18,633 |
Cash flows from financing activities | |
Proceeds received from notes payable | 20,000 |
Mortgage payments | (1,182) |
Prime brokerage borrowing | 9,922 |
Credit facilities payments | (6,000) |
Prime brokerage payments | (10,428) |
Deferred financing costs paid | (403) |
Dividends paid to preferred shareholders | (2,310) |
Dividends paid to common shareholders | (11,241) |
Net cash used in financing activities: | (1,642) |
Net decrease in cash, cash equivalents and restricted cash | (3,858) |
Cash, cash equivalents and restricted cash, beginning of period (Note 3) | 48,649 |
Cash, cash equivalents and restricted cash, end of period | 44,791 |
Supplemental Disclosure of Cash Flow Information | |
Interest paid | 7,053 |
Income tax paid | 13,700 |
Supplemental Disclosure of Noncash Activities | |
Change in capitalized construction costs included in accounts payable and other accrued liabilities | $ 0 |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows (Predecessor Basis) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Cash flows from operating activities | |
Net increase in net assets resulting from operations | $ 126,834 |
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: | |
Purchases of securities sold short | (177) |
Amortization (accretion) of premiums | (171) |
Net change in unrealized depreciation on investments | (32,594) |
Changes in operating assets and liabilities, net of effects of acquisitions: | |
Dividends and interest receivable | 741 |
Due from custodian | 192 |
Prepaid expenses and other assets | (1,583) |
Reclaim receivable | 1,250 |
Foreign tax reclaim receivable | (1,274) |
Due to broker | (1,695) |
Payable for administrative fees | (11) |
Payable for investment advisory fees | 49 |
Due to custodian | (110) |
Payable for interest expense and commitment fees | 82 |
Accrued expenses and other liabilities | (150) |
Net cash used in operating activities: | 36,336 |
Cash flows from financing activities | |
Payments on notes payable | (26,500) |
Distributions paid in cash | (9,714) |
Proceeds from shares sold | 1,288 |
Proceeds from dividend reinvestment | (44) |
Net cash used in financing activities: | (34,970) |
Net decrease in cash, cash equivalents and restricted cash | 1,366 |
Cash, cash equivalents and restricted cash: | |
Cash, cash equivalents and restricted cash, beginning of period (Note 3) | 2,678 |
Cash, cash equivalents and restricted cash, end of period | 4,044 |
Supplemental Disclosure of Cash Flow Information | |
Reinvestment of distributions | 1,425 |
Cash paid during the period for interest expense and commitment fees | 614 |
Securities Sold, Not yet Purchased | |
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: | |
Net realized (gain)/loss on investments | (253) |
Net change in unrealized depreciation on investments | 0 |
Non-Affiliated Entity | |
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: | |
Purchases of investment securities | (350,369) |
Proceeds from the disposition of investment securities | 428,007 |
Net realized (gain)/loss on investments | (28,893) |
Net change in unrealized depreciation on investments | 43,752 |
Affiliated Entity | |
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: | |
Purchases of investment securities | (105,674) |
Proceeds from the disposition of investment securities | 2,135 |
Net change in unrealized depreciation on investments | $ (76,346) |
Consolidated Statement of Ope_3
Consolidated Statement of Operations And Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Interest income | $ 1,751 | $ 3,769 |
Dividend income | 6,690 | 14,809 |
Equity in income (losses) of unconsolidated equity method ventures | (422) | (346) |
Change in unrealized gains (losses) | (9,332) | (27,972) |
Affiliated Entity | ||
Interest income | 692 | 1,317 |
Dividend income | 6,438 | 12,864 |
Equity in income (losses) of unconsolidated equity method ventures | 209 | 421 |
Change in unrealized gains (losses) | $ (1,303) | $ (17,311) |
Consolidated Statement of Cas_3
Consolidated Statement of Cash Flows (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Net change in unrealized (gain) loss on investments held at fair value | $ 27,972 | |
Equity in income (losses) of unconsolidated ventures | $ (422) | (346) |
Distributions of earnings from unconsolidated ventures | 1,412 | |
Affiliated Entity | ||
Net change in unrealized (gain) loss on investments held at fair value | 17,311 | |
Equity in income (losses) of unconsolidated ventures | $ 209 | 421 |
Distributions of earnings from unconsolidated ventures | $ 386 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business NexPoint Diversified Real Estate Trust (the "Company", "we", "us", or "our") was formed in Delaware and has elected to be taxed as a real estate investment trust (a “REIT”). Substantially all of the Company’s business is conducted through NexPoint Diversified Real Estate Trust Operating Partnership, L.P. (the "OP"), the Company’s operating partnership. The Company conducts its business (the "Portfolio") through the OP and its wholly owned taxable REIT subsidiaries ("TRSs"). The Company's wholly owned subsidiary, NexPoint Diversified Real Estate Trust OP GP, LLC (the "OP GP"), is the sole general partner of the OP. As of June 30, 2023, there were 2,000 partnership units of the OP (the “OP Units”) outstanding, of which 100.0% were owned by the Company. On July 1, 2022 (the “Deregistration Date”), the Securities and Exchange Commission (the “SEC”) issued an order pursuant to Section 8(f) of the Investment Company Act of 1940 (the “Investment Company Act”) declaring that the Company has ceased to be an investment company under the Investment Company Act (the “Deregistration Order”). The issuance of the Deregistration Order enabled the Company to proceed with full implementation of its new business mandate to operate as a diversified REIT that focuses primarily on investing in various commercial real estate property types and across the capital structure, including but not limited to equity, mortgage debt, mezzanine debt and preferred equity (the “Business Change”). The Company is externally managed by NexPoint Real Estate Advisors X, L.P. (the “Adviser”), through an agreement dated July 1, 2022, amended on October 25, 2022 and April 11, 2023, (the “Advisory Agreement”), by and among the Company and the Adviser for an initial three-year term that will expire on July 1, 2025 and successive one-year terms thereafter unless earlier terminated. The Adviser manages the day-to-day operations of the Company and provides investment management services. The Company had no employees as of June 30, 2023 . All of the Company’s investment decisions are made by the Adviser, subject to general oversight by the Adviser’s investment committee and our board of trustees (the “Board”). The Adviser is wholly owned by NexPoint Advisors, L.P. (the “Sponsor” or “NexPoint”). As a diversified REIT, the Company’s primary investment objective is to provide both current income and capital appreciation. The Company seeks to achieve this objective through the Business Change. Target underlying property types primarily include, but are not limited to, single-family rentals, multifamily, self-storage, life science, office, industrial, hospitality, net lease and retail. The Company may, to a limited extent, hold, acquire or transact in certain non-real estate securities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Readers of this Quarterly Report on Form 10-Q ("Quarterly Report") should refer to the audited financial statements and notes to consolidated financial statements of the Company for the year ended December 31, 2022, which are included in our 2022 Annual Report on Form 10-K ( " 2022 Annual Report " ) , filed with the United States Securities and Exchange Commission (SEC) and also available on our website (nxdt.nexpoint.com), since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Summary of Significant Accounting Policies, in the notes to consolidated financial statements in our 2022 Annual Report for further discussion of our significant accounting policies and estimates. Information contained on, or accessible through, our website is not incorporated by reference into and does not constitute a part of this Quarterly Report or any other report or documents we file or furnish with the SEC. Considerations Related to Tightening Monetary Policy The macroeconomic environment remains challenging as central banks have continued to rapidly raise interest rates. The rising rate environment, coupled with large bank failures in early 2023 and ongoing economic uncertainty, has limited credit availability to commercial real estate. Less available and more expensive debt capital has had pronounced effects on the capital markets, making property acquisitions and other investments harder to finance. Similar factors also impact the timing of and proceeds generated from asset sales and our ability to obtain debt capital. Financial Statement Preparation The accompanying consolidated financial statements have been prepared in accordance with the rules applicable to quarterly reports on Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (U.S.), or General Accepted Accounting Principles (GAAP), for annual financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events, such as weakening global macroeconomic conditions and stress in the banking system, including less available and more expensive debt capital. These estimates and the underlying assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Income Taxes As a REIT for U.S. federal income tax purposes, the Company may deduct earnings distributed to stockholders against the income generated by our REIT operations. The Company continues to be subject to income taxes on the income of its taxable REIT subsidiaries. Our consolidated net loss before income taxes was $13.6 million for the three months ended June 30, 2023 and $32.3 million for the six months ended June 30, 2023. Our provision for income taxes was $0.3 million for the three months ended June 30, 2023 and $1.1 million for the six months ended June 30, 2023. The Company’s tax provision for interim periods is determined using an estimate of its annual current and deferred effective tax rates, adjusted for discrete items. Our effective tax rates for the three and six months ended June 30, 2023 were (2.27)% and (3.45)%, respectively. Our effective tax rate differs from the U.S. federal statutory corporate tax rate of 21.0% primarily due to our REIT operations generally not being subject to federal income taxes. |
Business Change
Business Change | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Business Change | Business ChangeAs discussed in Note 1 and Note 2, on the Deregistration Date, the SEC issued an order pursuant to Section 8(f) of the Investment Company Act declaring that the Company has ceased to be an investment company under the Investment Company Act. The issuance of the Deregistration Order enabled the Company to proceed with full implementation of the Business Change. Upon the Deregistration Order, the Company discontinued the use of guidance in FASB ASC 946. To effectuate this change, the fair values of the Company’s investments became the July 1, 2022 cost basis. The change also required the consolidation of several investments that were previously not required to be consolidated under FASB ASC 946. |
Investments in Real Estate Subs
Investments in Real Estate Subsidiaries | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Investments in Real Estate Subsidiaries | Investments in Real Estate SubsidiariesThe Company conducts its operations through the OP, which owns several real estate properties through single asset limited liability companies that are special purpose entities (“SPEs”). The Company consolidates the SPEs that it controls as well as any VIEs where it is the primary beneficiary. All of the properties the SPEs own are consolidated in the Company’s consolidated financial statements. The assets of each entity can only be used to settle obligations of that particular entity, and the creditors of each entity have no recourse to the assets of other entities or the Company. As of June 30, 2023, the Company, through the OP, owned four properties through SPEs. The following table represents the Company’s ownership in each property by virtue of its 100% ownership of the SPEs that directly own the title to each property as of June 30, 2023: Effective Ownership Percentage at Property Name Location Year Acquired June 30, 2023 White Rock Center Dallas, Texas 2013 100 % 5916 W Loop 289 Lubbock, Texas 2013 100 % Cityplace Tower Dallas, Texas 2018 100 % NexPoint Dominion Land, LLC (1) Plano, Texas 2022 100 % (1) NexPoint Dominion Land, LLC owns 100% of 21.5 acres of undeveloped land in Plano, Texas. |
Consolidated Real Estate Invest
Consolidated Real Estate Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Consolidated Real Estate Investments | Consolidated Real Estate Investments As of June 30, 2023, the major components of the Company’s investments in real estate held by SPEs the Company consolidates, which are included in "Consolidated Real Estate Investments" on the Consolidated balance sheet, were as follows (in thousands): Operating Properties Land Buildings and Intangible Lease Assets Intangible Lease Construction in Progress Furniture, Fixtures, and Totals White Rock Center $ 1,315 $ 10,314 $ 1,921 $ (101) $ — $ 5 $ 13,454 5916 W Loop 289 1,081 2,939 — — — — 4,020 Cityplace Tower 18,812 168,633 9,058 (6,669) 39,654 357 229,845 NexPoint Dominion Land, LLC 26,500 — — — — — 26,500 47,708 181,886 10,979 (6,770) 39,654 362 273,819 Accumulated depreciation and amortization — (8,478) (5,335) 1,486 — (210) (12,537) Total Operating Properties $ 47,708 $ 173,408 $ 5,644 $ (5,284) $ 39,654 $ 152 $ 261,282 As of December 31, 2022, the major components of the Company’s investments in real estate held by SPEs the Company consolidates, which are included in "Consolidated Real Estate Investments" on the Consolidated balance sheet, were as follows (in thousands): Operating Properties Land Buildings and Intangible Lease Assets Intangible Lease Construction in Progress Furniture, Fixtures, and Totals White Rock Center $ 1,315 $ 10,314 $ 1,921 $ (101) $ — $ 5 $ 13,454 5916 W Loop 289 1,081 2,939 — — — — 4,020 Cityplace Tower 18,812 161,216 9,058 (6,669) 39,731 349 222,497 NexPoint Dominion Land, LLC 26,500 — — — — — 26,500 47,708 174,469 10,979 (6,770) 39,731 354 266,471 Accumulated depreciation and amortization — (4,114) (2,863) 743 — (181) (6,415) Total Operating Properties $ 47,708 $ 170,355 $ 8,116 $ (6,027) $ 39,731 $ 173 $ 260,056 Depreciation expense was $2.3 million and $4.4 million for the three and six months ended June 30, 2023, respectively. Amortization expense related to the Company’s intangible lease assets was $1.2 million and $2.5 million for the Company’s intangible lease liabilities for the three and six months ended June 30, 2023, respectively. Amortization expense related to the Company's intangible lease liabilities was $0.4 million and $0.7 million for the three and six months ended June 30, 2023, respectively. The net amount amortized as an increase to rental revenue for capitalized above and below-market lease intangibles was $0.4 million and $0.7 million for the three and six months ended June 30, 2023, respectively. Acquisitions There were no acquisitions by the Company for the six months ended June 30, 2023. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Cityplace Debt The Company has debt on its office and hospitality real estate property pursuant a Loan Agreement, originally dated August 15, 2018 and subsequently amended (the “Loan Agreement”). The debt is limited recourse to the Company and encumbers the property. The debt had an original maturity of September 8, 2022, and the Company deferred the maturity date with the lender to May 8, 2023, with the possibility to extend for an additional four months to September 8, 2023 provided certain metrics are met. On May 8, 2023, the lender agreed to defer the maturity of the Cityplace debt by four months to September 8, 2023. Also on May 8, 2023, the parties to the Loan Agreement agreed to convert the index upon which the interest rate is based to the one-month secured overnight financing rate ("SOFR") effective as of the first interest period beginning on or after May 8, 2023. The debt restructuring per the terms of the Eleventh Omnibus Amendment Agreement is considered a debt modification. The purpose of the deferral was to allow for continued discussions around refinancing the debt. Management recognizes that finding an alternative source of funding is necessary to repay the debt by the maturity date. Management is evaluating multiple options to fund the repayment of the $143.5 million principal balance outstanding as of June 30, 2023, including refinancing the debt, securing additional equity or debt financing, selling a portion of the portfolio, or any combination thereof. Management believes that there is sufficient time before the maturity date and that the Company has sufficient access to capital to ensure the Company is able to meet its obligations as they become due. Due to the short term nature of the debt, the fair value of the debt is approximately the outstanding balance. The below table contains summary information related to the mortgages payable (dollars in thousands): Outstanding principal as of Interest Rate Maturity Date Note A-1 $ 101,955 7.50 % 9/8/2023 Note A-2 22,303 11.50 % 9/8/2023 Note B-1 12,835 7.50 % 9/8/2023 Note B-2 3,186 11.50 % 9/8/2023 Mezzanine Note 1 2,807 11.50 % 9/8/2023 Mezzanine Note 2 401 11.50 % 9/8/2023 Mortgages payable 143,487 Deferred financing costs, net (66) Mortgages payable, net $ 143,421 The weighted average interest rate of the Company’s debt related to its Cityplace investment was 8.3% as of June 30, 2023. The Loan Agreement contain customary events of default, including defaults in the payment of principal or interest, defaults in compliance with the covenants contained in the documents evidencing the loan, defaults in payments under any other security instrument covering any part of the property, whether junior or senior to the loan, and bankruptcy or other insolvency events. As of June 30, 2023, the Company believes it is in compliance with all covenants. Notes Payable On August 9, 2022, the Company borrowed approximately $13.3 million from the seller, Gabriel Legacy, LLC to finance its acquisition of 21.5 acres of land in Plano, Texas held through NexPoint Dominion Land, LLC, a wholly owned subsidiary of the OP. Due to the short term nature of the note, the fair value of the note is approximately the outstanding balance. The note bears interest at an annual rate equal to the WSJ Prime Rate and matures on August 8, 2025. Credit Facility On January 8, 2021, the Company entered into a $30.0 million credit facility (the "Credit Facility") with Raymond James Bank, N.A. and drew the full balance. The Credit Facility, as amended, matures on November 6, 2023 and as of June 30, 2023, bore interest at the one-month SOFR plus 4.25%. During the six months ended June 30, 2023, the Company paid down $6.0 million on the Credit Facility. As of June 30, 2023, the Credit Facility had an outstanding balance of $5.0 million. Due to the short term nature of the debt, the fair value of the debt is approximately the outstanding balance. Management believes that the Company has sufficient access to capital to ensure the Company is able to meet its obligations as they become due. Revolving Credit Facility On May 22, 2023, the Company entered into a $20.0 million revolving credit facility (the "NexBank Revolver") with NexBank, in the initial principal balance of $20.0 million, with the option for the Company to receive additional disbursements thereunder up to a maximum of $50.0 million. As of June 30, 2023 , the NexBank Revolver bears interest at one-month SOFR plus 3.50% and matures on May 20, 2024, with the option to extend the maturity by one year, twice. As of June 30, 2023, the NexBank Revolver had an outstanding balance of $20.0 million. Deferred Financing Costs The Company defers costs incurred in obtaining financing and amortizes the costs over the terms of the related loans using the straight-line method, which approximates the effective interest method. Deferred financing costs, net of amortization, are recorded as a reduction from the related debt on the Company’s consolidated balance sheet. Upon repayment of or in conjunction with a material change in the terms of the underlying debt agreement, any unamortized costs are charged to loss on extinguishment of debt and modification costs. Prime Brokerage Borrowing Effective July 2, 2022, the Company entered a prime brokerage account with Jefferies to hold securities owned by the Company. The Company from time to time borrows against the value of these securities. As of June 30, 2023, the Company had a margin balance of approximately $2.1 million outstanding with Jefferies bearing interest at the Overnight Bank Funding Rate plus 0.50%. Securities with a fair value of approximately $10.2 million are pledged as collateral against this margin balance. This arrangement has no stated maturity date. Due to the floating interest rate nature of the debt, the fair value of the debt is approximately the outstanding balance. Schedule of Debt Maturities The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to June 30, 2023 are as follows (in thousands): Mortgages Payable Notes Payable Total 2023 $ 143,487 $ 5,000 $ 148,487 2024 — 20,000 20,000 2025 — 13,250 13,250 2026 — — — 2027 — — — Thereafter — — — Total $ 143,487 $ 38,250 $ 181,737 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities As of June 30, 2023, the Company has accounted for the following investments as unconsolidated VIEs: Entities Instrument Asset Type Percentage Ownership as of June 30, 2023 Relationship as of June 30, 2023 Unconsolidated Entities: NexPoint Real Estate Finance Operating Partnership, L.P. LP interest Mortgage 16.0 % VIE VineBrook Homes Operating Partnership, L.P. LP interest Single-family rental 11.1 % VIE NexPoint SFR Operating Partnership, L.P. LP interest Single-family rental 30.8 % VIE NexPoint Storage Partners Operating Company, LLC LLC interest Self-storage 29.7 % VIE NexPoint Storage Partners, Inc. Common stock Self-storage 53.0 % VIE Perilune Aero Equity Holdings One, LLC LLC interest Aircraft 16.4 % VIE SFR WLIF III, LLC LLC interest Single-family rental 20.0 % VIE IQHQ Holdings, LP LP interest Life science 1.1 % VIE Consolidated VIEs The Company did not have any consolidated VIEs for the period ended June 30, 2023. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments Below is a summary of the Company’s equity method investments as of June 30, 2023 (dollars in thousands): Investee Name Instrument Asset Type NXDT Percentage Ownership Investment Basis Share of Investee's Net Assets (1) Basis Difference (2) Share of Earnings (Loss) Sandstone Pasadena Apartments, LLC LLC interest Multifamily 50.0 % $ 12,169 $ (9,590) $ 21,759 $ (14) AM Uptown Hotel, LLC LLC interest Hospitality 60.0 % (3) 26,216 21,334 4,882 245 SFR WLIF III, LLC LLC interest Single-family rental 20.0 % 7,306 7,466 (160) 386 Las Vegas Land Owner, LLC LLC interest Land 77.0 % (4) 12,312 12,312 — — Perilune Aero Equity Holdings One, LLC LLC interest Aircraft 16.4 % 11,587 9,990 1,597 721 Claymore Holdings, LLC LLC interest N/A 50.0 % (5) — (6) — — — Allenby, LLC LLC interest N/A 50.0 % (5) — (6) — — — $ 69,590 $ 41,512 $ 28,078 $ 1,338 Below is a summary of the Company’s equity method investments as of December 31, 2022 (dollars in thousands): Investee Name Instrument Asset Type NXDT Percentage Ownership Investment Basis Share of Investee's Net Assets (1) Basis Difference (2) Share of Earnings (Loss) Sandstone Pasadena Apartments, LLC LLC interest Multifamily 50.0 % $ 13,013 $ — $ 13,013 $ (217) AM Uptown Hotel, LLC LLC interest Hospitality 60.0 % (3) 27,136 21,334 5,802 (227) SFR WLIF III, LLC LLC interest Single-family rental 20.0 % 7,272 7,466 (194) 280 Las Vegas Land Owner, LLC LLC interest Land 77.0 % (4) 12,312 12,312 — — Perilune Aero Equity Holdings One, LLC LLC interest Aircraft 16.4 % 10,923 8,751 2,172 665 Claymore Holdings, LLC LLC interest N/A 50.0 % (5) — (6) — — — Allenby, LLC LLC interest N/A 50.0 % (5) — (6) — — — $ 70,656 $ 49,863 $ — $ 20,793 $ 501 Below is a summary of the Company's investments as of June 30, 2023 that qualify for equity method accounting for which the Company has elected to account for using the fair value option. Amounts are included in "investments, at fair value" on the consolidated balance sheet. Investee Name Instrument Asset Type NXDT Percentage Ownership Fair Value NexPoint Real Estate Finance Operating Partnership, L.P. LP interest Mortgage 16.0 % (7) $ 75,909 (6) NexPoint Real Estate Finance, Inc. Common stock Mortgage 12.2 % (7) 32,739 (6) VineBrook Homes Operating Partnership, L.P. LP interest Single-family rental 11.1 % (7) 167,305 (6) NexPoint Storage Partners, Inc. Common stock Self-storage 53.0 % (3) 105,006 (6) NexPoint Storage Partners Operating Company, LLC LLC interest Self-storage 29.7 % 57,220 (6) NexPoint SFR Operating Partnership, L.P. LP interest Single-family rental 30.8 % 49,720 (6) NexPoint Hospitality Trust Common stock Hospitality 45.4 % 16,964 (6) LLV Holdco, LLC LLC interest Land 26.8 % 3,373 (6) $ 508,236 (1) Represents the Company’s percentage share of net assets of the investee per the investee’s books and records. (2) Represents the difference between the basis at which the investments in unconsolidated ventures are carried by the Company and the Company's proportionate share of the equity method investee's net assets. To the extent that the Company’s cost basis is different from the basis reflected at the joint venture level, the basis difference is generally amortized over the lives of the related assets and liabilities, and such amortization is included in the Company’s share of equity in earnings of the joint venture. (3) The Company owns greater than 50% of the outstanding common equity but is not deemed by the Company to be the primary beneficiary (for a VIE) or have a controlling financial interest of the investee and as such, accounts for the investee using the equity method. (4) The Company owns 100% of Las Vegas Land Owner, LLC which owns 77% of a joint venture that owns an 8.5 acre tract of land (the "Tivoli North Property") as described below. Through the TIC (as defined below), the Company shares control and as such accounts for this investment using the equity method. (5) The Company has a 50% non-controlling interest in Claymore Holdings, LLC (“Claymore”) and Allenby, LLC, (“Allenby”). The Company has determined it is not the primary beneficiary and does not consolidate these entities. (6) The Company has elected the fair value option with respect to these investments. The basis in these investments is their June 30, 2023 fair value. (7) The Company owns less than 20% of the investee but has significant influence due to members of the management team serving on the board of the investee or its parent and as such, accounts for the investee using the equity method. Sandstone On May 29, 2015, the Company, via a wholly owned subsidiary, invested $12 million in Sandstone Pasadena Apartments, LLC ("Sandstone"), which beneficially owns a 696-unit multifamily property (the “Ashmore”) located in Pasadena, Texas. This contribution by the Company gave it an initial ownership percentage of 83.3%. Sandstone and the Ashmore are managed by Knightvest 2015, LLC (the “Sandstone Manager”). The LLC agreement of Sandstone vests the Sandstone Manager with the exclusive right, power, authority and discretion in conducting the business of Sandstone, subject to certain exceptions. Since the Company does not have a controlling financial interest, it does not consolidate Sandstone and therefore uses the equity method of accounting. Per the Sandstone organizational documents, the Company was entitled to a return on unreturned equity of 10%, which compounded annually. There was a capital event in 2018 which led to a full return of the Company’s and the other member’s equity in Sandstone. This triggered a change in the distribution-sharing percentage, which is now effectively 50% for the Company. The Sandstone Manager determines the monthly distributions at their discretion. As of June 30, 2023, the Company still maintains 50% ownership of Sandstone. Marriott Uptown On June 8, 2018, the Company, through a subsidiary, initially invested amounts in exchange for which it received an approximately 85% interest in AM Uptown Hotel, LLC, (“AM Uptown”) which beneficially owns a 255-key upscale hotel (the “Marriott Uptown”) located in Dallas, Texas. AM Uptown appointed Alamo Manhattan Properties, LLC (“Alamo Manhattan”) as the manager to manage and operate the Marriott Uptown. The management, control and direction of AM Uptown and its operations, business and affairs is vested exclusively in Alamo Manhattan, which has the right, power, and authority, acting solely by itself to carry out all the purposes of AM Uptown. The Company does not participate in the management, control, or direction of AM Uptown’s operations, business, or affairs and has no substantive kickout rights over Alamo Manhattan. Since the Company does not have a controlling financial interest, it does not consolidate AM Uptown and therefore uses the equity method of accounting. As of June 30, 2023, the Company maintains 60% ownership interest of AM Uptown due to previous capital events that triggered a change in the distribution-sharing percentage and ownership percentage. SFR WLIF III On July 11, 2019, the Company initially invested amounts in exchange for which it received an approximately 20% interest in SFR WLIF III, LLC, an SPE designed to hold an investment in debt issued to VineBrook Homes Operating Partnership, L.P. (the "VB OP"), an entity that manages single family rental properties, whose parent is advised by an affiliate of the Adviser. The loan to the VB OP bears interest at 1-month SOFR plus 155 basis points, matures on December 1, 2025, and has an outstanding principal balance of $238.5 million. SFR WLIF III, LLC is managed, directly or indirectly, by an affiliate of the Adviser. As the Company is not the primary beneficiary in this entity, it is accounted for as an equity method investment. Tivoli On March 30, 2022, the Company invested in Las Vegas Land Owner, LLC ("Tivoli"), a joint venture that owns the Tivoli North Property, comprised of an 8.5-acre tract of land, upon which site Tivoli plans to develop a 300-unit multifamily apartment community directly adjacent to Tivoli Village, a high-end mixed-use center in Las Vegas, Clark County, Nevada. On August 8, 2022 the joint venture was restructured to a tenants-in-common arrangement (the "TIC"). Post restructure, the Company owns 100% of Tivoli, and Tivoli owns 77% of the underlying land investment. Members of the TIC must unanimously agree on certain major decisions regarding the underlying investment giving the Company shared control, and as such, the Company accounts for the TIC investment using the equity method. Perilune The Company is a 16.4% member of Perilune Aero Equity Holdings One, LLC ("Perilune"). Perilune is a pooled investment vehicle created to finance, acquire, lease and/or sell two aircraft through subordinated or other lending arrangements and/or direct or indirect equity investments. Due to the timing of the receipt of financial statements from Perilune, the Company applies up to a 90 day lag reporting for this investment. In instances where the timing of the receipt of financial statements exceeds the 90 day window, earnings for the period are estimated. Since Perilune is a partnership-like LLC, and the Company holds more than an insignificant ownership percentage but is not the primary beneficiary, the investment is accounted for using the equity method. Claymore and Allenby The Company owns noncontrolling interests in two LLCs, Claymore and Allenby, created to hold litigation claims. The probability, timing, and potential amount of recovery, if any, are unknown as of June 30, 2023. Since the Company does not have controlling financial interests in these entities, they are accounted for as equity method investments. NexPoint Real Estate Finance Operating Partnership, L.P. In February 2020, the Company contributed assets to certain subsidiaries of the then-newly formed NexPoint Real Estate Finance Operating Partnership, L.P. (the "NREF OP"), the operating partnership of a publicly traded mortgage REIT, in exchange for equity in those subsidiaries. The equity in the subsidiaries owned by the Company, including additional equity received upon receipt of liquidating distributions from other vehicles that contributed to the NREF OP, was subsequently contributed to the Company's wholly owned subsidiary NexPoint Real Estate Opportunities, LLC ("NREO") and redeemed for limited partnership units in the NREF OP. The NREF OP is the operating partnership of NexPoint Real Estate Finance, Inc. ("NREF"), a public mortgage REIT managed by an affiliate of the Adviser. The Company, through NREO, owns approximately 16.0% of the common units of limited partnership of the NREF OP ("NREF OP Units"), and is not considered the primary beneficiary. NexPoint Real Estate Finance, Inc. On December 23, 2022, the Company, through NREO, redeemed 2,100,000 NREF OP Units for 2,100,000 shares of common stock of NREF. The Company, through NREO owns approximately 12.2%, of NREF’s common stock. The Company owns less than 20% of the investee and does not have a controlling financial interest but has significant influence due to members of the management team serving on the board of the investee, and as such, the investment qualifies to be accounted for using the equity method. However, management has elected to account for the investment using the fair value option. VineBrook Homes Operating Partnership, L.P. On November 1, 2018, the Company through NREO contributed $70.7 million to the VB OP in exchange for limited partnership units. The VB OP is the operating partnership of VineBrook Homes Trust, Inc. ("VineBrook"), a private single-family rental REIT managed by an affiliate of the Adviser. The Company owns less than 20% of the investee but has significant influence due to members of the management team serving on the board of VineBrook and as such, the investment qualifies to be accounted for using the equity method. However, management has elected to account for the investment using the fair value option. The Company, through NREO, owns approximately 11.1% of the common units of the VB OP as of June 30, 2023 and is not considered the primary beneficiary. NexPoint Storage Partners, Inc. In November 2020, the Company’s preferred stock investment in Jernigan Capital, Inc. was converted into common shares of NexPoint Storage Partners, Inc. ("NSP") as part of a transaction where affiliates of the Adviser took Jernigan Capital, Inc. private. NSP is a privately owned self-storage REIT. As of June 30, 2023, the Company owns 53.0% of the outstanding common stock of NSP. The Company has determined that it is not the primary beneficiary of NSP. The investment qualifies to be accounted for using the equity method. However, management has elected to account for the investment using the fair value option. NexPoint Storage Partners Operating Company, LLC. On December 8, 2022, the Company, through NREO, contributed all of its interests in the joint ventures (the "SAFStor Ventures") with SAFStor NREA GP – I, LLC, SAFStor NREA GP – II, LLC and NREA GP – III, LLC to NexPoint Storage Partners Operating Company, LLC (the "NSP OC") in exchange for 47,064 newly created Class B Units of the NSP OC. The NSP OC is the operating company of NSP. As of June 30, 2023, the Company owns approximately 29.7% of the outstanding combined classes of common units of the NSP OC (the “NSP OC Common Units") and is not the primary beneficiary, and as such, the investment qualifies to be accounted for using the equity method. However, management has elected to account for the investment using the fair value option. NexPoint SFR Operating Partnership, L.P. On June 8, 2022, the Company, directly or through one or more subsidiaries, contributed $25.0 million to the newly formed NexPoint SFR Operating Partnership, L.P. (the "SFR OP") in exchange for common units of the SFR OP (the “SFR OP Units"). Additionally, on June 8, 2022, the Company, directly or through one or more subsidiaries, loaned $25.0 million to the SFR OP in exchange for $25.0 million of 7.50% convertible notes of the SFR OP (the “SFR OP Convertible Notes") that are interest only during the term and mature on June 30, 2027. The SFR OP is a subsidiary of NexPoint Homes Trust, Inc. ("NXHT"), a single-family rental REIT managed by an affiliate of the Adviser. Subsequent to June 8, 2022 and through December 31, 2022, the Company, directly or through one or more subsidiaries, contributed approximately an additional $27.5 million to the SFR OP in exchange for SFR OP Units. Subsequent to June 8, 2022 and through December 31, 2022, the Company, directly or through one or more subsidiaries, contributed approximately an additional $1.0 million to the SFR OP in exchange for SFR OP Units through distribution reinvestments. Additionally, subsequent to June 8, 2022 and through December 31, 2022, the Company, directly or through one or more subsidiaries, loaned an additional $5.0 million to the SFR OP in exchange for $5.0 million of SFR OP Convertible Notes. On April 18, 2023, the SFR OP paid down approximately $8.5 million of the SFR OP Convertible Notes. Subsequent to January 1, 2023 and through June 30, 2023, the Company received 27,261 SFR OP Units in lieu of cash dividends. On June 30, 2023, the SFR OP Units were reclassified into Class A, Class B and Class C Common Units, with the SFR OP Units held by the Company being reclassified as Class B Common Units. As a result of the reclassification, the Company has 50% of the voting power of the SFR OP Units, including with respect to the election of directors to the board of directors of the SFR OP. As of June 30, 2023, the Company, owns approximately 30.8% of the outstanding units of SFR OP and does not have a controlling financial interest. The investment qualifies to be accounted for using the equity method. However, management has elected to account for the investment using the fair value option. NexPoint Hospitality Trust As of June 30, 2023, the Company owns 45.4% of the outstanding common stock of NexPoint Hospitality Trust ("NHT") and does not have a controlling financial interest. The investment qualifies to be accounted for using the equity method. However, management has elected to account for the investment using the fair value option. NHT is a publicly traded hospitality REIT that owns 10 properties located throughout the United States. NHT is managed by an affiliate of the Adviser. NHT is listed on the TSX Venture Exchange under the ticker NHT.U. LLV Holdco, LLC As of June 30, 2023, the Company owns approximately 26.8% of the series A and B equity units of LLV Holdco, LLC (“LLV”) and does not have a controlling financial interest. The investment qualifies to be accounted for using the equity method. However, management has elected to account for the investment using the fair value option. Additionally, the Company owns $12.4 million par of LLV's senior revolving loan maturing December 31, 2023 and paying interest at a fixed rate of 5% per annum. LLV specializes in managing real estate assets, which are ultimately sold to both residential and commercial developers. LLV owns approximately 300 gross acres of undeveloped land, of which 115 acres are developable near Lake Las Vegas in Henderson, Nevada. Significant Equity Method Investments The table below presents the unaudited summary balance sheets for the Company’s significant equity method investments as of June 30, 2023 (dollars in thousands). NREF, NSP and VineBrook do not prepare standalone financials for their operating companies as all operations and investments are owned through their operating companies and are consolidated by the corporate entities. As such, only the financial information for NREF, NSP and VineBrook are presented below. NREF VineBrook NSP ASSETS Investments $ 7,523,160 $ 2,500 $ — Real estate assets 58,613 3,489,153 1,217,297 Cash and cash equivalents 19,657 62,747 22,208 Other assets 1,805 122,298 210,082 TOTAL ASSETS $ 7,603,235 $ 3,676,698 $ 1,449,587 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Debt $ 1,248,549 $ 2,592,311 $ 904,248 Other liabilities 5,888,498 125,732 417,138 Total Liabilities 7,137,047 2,718,043 1,321,386 Redeemable noncontrolling interests in the operating company 94,545 466,920 205,114 Noncontrolling interests in consolidated VIEs — 12,705 3,970 Total Shareholders' Equity 371,643 479,030 (80,883) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 7,603,235 $ 3,676,698 $ 1,449,587 The table below presents the unaudited summary statement of operations for the six months ended June 30, 2023 for the Company’s significant equity method investments (dollars in thousands). NREF VineBrook NSP Revenues Rental income $ 2,035 $ 171,911 $ 54,418 Net interest income 8,154 — 2,032 Other income — 2,837 3,076 Total revenues 10,189 174,748 59,526 Expenses Total expenses 10,618 243,805 67,903 Gain (loss) on sales of real estate — (30,454) (8,276) Other income (expense) 18,284 (41,910) (62,515) Unrealized gain (loss) on derivatives — 25,852 — Total comprehensive income (loss) $ 17,855 $ (115,569) $ (79,168) |
Fair Value of Derivatives and F
Fair Value of Derivatives and Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivatives and Financial Instruments | Fair Value of Derivatives and Financial Instruments The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The table below summarizes the inputs used to value the Company’s assets carried at fair value on a recurring basis as of June 30, 2023 (in thousands): Fair Value Cost Basis Level 1 Level 2 Level 3 Total Assets Bond $ 17 $ — $ 25 $ — $ 25 CLO 34,958 — 563 4,853 5,416 Common stock 314,498 43,968 — 221,863 265,831 Convertible notes 46,260 — — 43,731 43,731 Life settlement 64,267 — — 60,619 60,619 LLC interest 66,492 — — 60,593 60,593 LP interest 323,054 — 75,909 217,024 292,933 Rights and warrants 3,937 — 3,558 — 3,558 Senior loan 40,399 — 55 40,515 40,570 $ 893,882 $ 43,968 $ 80,110 $ 649,198 $ 773,276 The table below summarizes the inputs used to value the Company’s assets carried at fair value on a recurring basis as of December 31, 2022 (in thousands): Fair Value Cost Basis Level 1 Level 2 Level 3 Total Assets Bond $ 17 $ — $ 20 $ — $ 20 CLO 34,958 — 563 6,412 6,975 Common stock 325,275 53,872 — 234,667 288,539 Convertible notes 54,802 — — 50,828 50,828 Life settlement 64,267 — — 67,711 67,711 LLC interest 66,492 — — 60,836 60,836 LP interest 321,026 — 77,370 223,141 300,511 Rights and warrants 3,947 — 3,794 — 3,794 Senior loan 43,399 — 66 43,341 43,407 $ 914,183 $ 53,872 $ 81,813 $ 686,936 $ 822,621 The table be low sets forth a summary of changes in the Company’s Level 3 assets (assets measured at fair value using significant unobservable inputs) for the six months ended June 30, 2023 (in thousands): December 31, 2022 Contributions/ Paid in- Redemptions/ Return of capital Realized Unrealized gain/(loss) June 30, 2023 CLO $ 6,412 $ — $ — $ — $ — $ — $ (1,559) $ 4,853 Common stock 234,667 — — — — — (12,804) 221,863 Convertible notes 50,828 (8,542) — — — — 1,445 43,731 Life settlement 67,711 2,532 — (2,999) — (502) (6,123) 60,619 LLC interest 60,836 — — — — — (243) 60,593 LP interest 223,141 2,028 — — — — (8,145) 217,024 Senior loan 43,341 — 1,960 (4,971) — 11 174 40,515 Total $ 686,936 $ (3,982) $ 1,960 $ (7,970) $ — $ (491) $ (27,255) $ 649,198 The following is a summary of the significant unobservable inputs used in the fair valuation of assets categorized within Level 3 of the fair value hierarchy as of June 30, 2023. Category Valuation Technique Significant Unobservable Inputs Input Value(s) Fair Value CLO Discounted Net Asset Value Discount 70% $ 4,853 Common Stock Market Approach Unadjusted Price/MHz-PoP $0.09 — $0.90 $(0.50) 221,863 NAV / sh multiple $1.10x — $1.45x $(1.28)x Discounted Cash Flow Discount Rate 7.5% — 11.50% (9.61)% Market Rent (per sqft) $4.48 — $32.55 $(14.00) RevPAR $71.00 — $186.00 $(104.89) Capitalization Rates 5.5% — 9.875% (8.66)% NAV Approach Discount Rate 10.00% Multiples Analysis Multiple of EBITDA 3.25x — 4.25x (3.75)x Recent Transaction Implied Enterprise Value from Transaction Price ($mm) $841.00 N/A $25.31 — $28.00 $(26.655) Offer Price per Share 110.00% Convertible Notes Discounted Cash Flow Discount Rate 7.50% — 9.75% (8.63)% 43,731 Life Settlement Discounted Cash Flow Discount Rate 14% 60,619 Life Expectancy (Months) 22 — 299 71 Months LLC Interest Discounted Cash Flow Discount Rate 7.50% — 30.00% (13.88)% 60,593 Market Rent (per sqft) $4.48 — $32.55 $(14) Capitalization Rate 5.5% LP Interest Discounted Cash Flow Discount Rate 6.60% — 9.20% (7.75)% 217,024 Capitalization Rate 3.7% — 6.8% (5.25)% Recent Transaction Price per Share $22.95 Senior Loan Discounted Cash Flow Discount Rate 12.30% — 20.00% (16.15)% 40,515 Total $ 649,198 |
Life Settlement Portfolio
Life Settlement Portfolio | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Life Settlement Portfolio | Life Settlement Portfolio The Company owns 100% of the outstanding equity and debt of Specialty Financial Products, Ltd. ("SFP"), an Ireland domiciled private company with limited liability and a Designated Activity Company. SFP was formed for the purpose of and at the proposal of NexAnnuity Asset Management, L.P. ("NexAnnuity"), an affiliate of the Adviser, entering into acquisitions of U.S. life settlement policies approved by NexAnnuity and funded by the issuance of debt securities, or the Structured Note purchased by the Company. SFP utilizes proceeds from maturing life settlement contracts to repay the Structured Note and to further invest in life settlement contracts. As the Company owns the outstanding equity of and Structured Note issued by SFP, the Company consolidates SFP in its entirety. SFP’s equity and the Structured Note are eliminated during consolidation and the financial assets held by SFP are measured at fair value. As of June 30, 2023, the Company’s life settlement portfolio consists of the following (dollars in thousands): Number of Policies Face Value (Death Benefit) Acquisition Cost Premium Cost Estimated Fair Value Total Range Total Range Total Range Total Range Total 27 $1,500 -$15,000 $ 139,951 $350 - $3,895 $ 46,222 $0 - $380 $ 2,628 $27 - $6,044 $ 60,619 Remaining Life Expectancy (in years) Number Face Value Fair Value 0 - 1 — $ — $ — 1 - 2 2 5,540 4,341 2 - 3 6 32,413 18,413 3 - 4 5 35,311 19,621 4 - 5 2 9,000 3,610 Thereafter 12 57,687 14,634 Total 27 $ 139,951 $ 60,619 The premiums to be paid for each of the five succeeding calendar years to keep the life settlement contracts in force as of June 30, 2023, assuming no maturities occur in that period, are as follows (dollars in thousands): Year Premiums 2023 $ 2,628 2024 5,554 2025 6,238 2026 7,009 2027 7,672 During the six months ended June 30, 2023, the Company did not purchase any policies, had one policy mature with an aggregate net death benefit of $3.0 million, and paid $2.5 million in premiums to keep the life settlement contracts in force. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Shareholders ’ Equity Common Shares As of June 30, 2023, the Company had 37,171,807 common shares, par value $0.001 per share, issued and outstanding. No shares were issued during the six months ended June 30, 2023. During the six months ended June 30, 2023, the Company paid a distribution of $0.15 per share on its common shares on March 31, 2023 to shareholders of record on March 15, 2023, and June 30, 2023 to shareholders of record on June 15, 2023. Preferred Shares On January 8, 2021, the Company issued 3,359,593 5.50% Series A Cumulative Preferred Shares, par value $0.001 per share, liquidation preference $25.00 per share ("Series A Preferred Shares") with an aggregate liquidation preference of approximately $84.0 million. The Series A Preferred Shares were issued as part of the consideration for an exchange offer for a portion of the Company’s common shares. The Series A Preferred Shares are callable beginning on December 15, 2023 at a price of $25 per share. The Company may exercise its call option at the Company's discretion. As a result, these are included in permanent equity. During the six months ended June 30, 2023, the Company declared distributions on its Series A Preferred Shares in the amount of $0.34375 per share, which was paid to holders of Series A Preferred Shares on March 31, 2023 to shareholders of record on March 24, 2023 and June 30, 2023 to shareholders of record on June 23, 2023. Dividends on the Series A Preferred Shares are cumulative from their original issue date at the annual rate of 5.5% of the $25 per share liquidation preference and are payable quarterly on March 31, June 30, September 30, and December 31 of each year, or in each case on the next succeeding business day. Long Term Incentive Plan On January 30, 2023, the Company’s shareholders approved a long-term incentive plan (the “2023 LTIP”) and the Company subsequently filed a registration statement on Form S-8 registering 2,545,000 common shares, par value $0.001 per share, which the Company may issue pursuant to the 2023 LTIP. The 2023 LTIP authorizes the compensation committee of the Board to provide equity-based compensation in the form of share options, appreciation rights, restricted shares, restricted share units, performance shares, performance units and certain other awards denominated or payable in, or otherwise based on, the Company’s common shares or factors that may influence the value of the Company’s common shares, plus cash incentive awards, for the purpose of providing the Company’s trustees, officers and other key employees (and those of the Adviser and the Company’s subsidiaries), and potentially certain nonemployees who perform employee-type functions, incentives and rewards for performance (the "participants"). Restricted Share Units. Under the 2023 LTIP, restricted share units may be granted to the participants and typically vest over a three the Adviser. The following table includes the number of restricted share units granted, vested, forfeited and outstanding as of June 30, 2023: 2023 Number of Units Weighted Average Outstanding January 1, 2023 — $ — Granted 603,482 10.45 Vested — — Forfeited — — Outstanding June 30, 2023 603,482 $ 10.45 The following table contains information regarding the vesting of restricted share units under the 2023 LTIP for the next five calendar years subsequent to June 30, 2023: Shares Vesting April Total 2023 — — 2024 178,855 178,855 2025 141,542 141,542 2026 141,542 141,542 2027 141,542 141,542 Total 603,482 603,482 As of June 30, 2023, the Company had issued no common shares under the 2023 LTIP. For the three and six months ended June 30, 2023, the Company recognized approximately $0.4 million and $0.4 million, respectively, of equity-based compensation expense related to grants of restricted share units. As of June 30, 2023, the Company had recognized a liability of approximately $0.1 million related to dividends earned on restricted share units that are payable in cash upon vesting. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of the Company’s common shares outstanding and excludes any unvested restricted share units issued pursuant to the 2023 LTIP. Diluted earnings (loss) per share is computed by adjusting basic earnings per share for the dilutive effect of the assumed vesting of restricted share units. During periods of net loss, the assumed vesting of restricted share units is anti-dilutive and is not included in the calculation of earnings (loss) per share. The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share and share amounts): Six Months Ended June 30, Three Months Ended June 30, 2023 2023 Numerator for loss per share: Net loss attributable to common shareholders $ (35,698) $ (15,022) Denominator for loss per share: Weighted average common shares outstanding 37,172 37,172 Denominator for basic and diluted loss per share 37,172 37,172 Weighted average unvested restricted share units 37 38 Denominator for diluted loss per share (1) 37,172 37,172 Loss per weighted average common share: Basic $ (0.96) $ (0.40) Diluted $ (0.96) $ (0.40) (1) For the six and three months ended June 30, 2023, excludes approximately 583,587 and 293,406 shares, related to assumed vesting of RSUs as the effect would be anti-dilutive. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Advisory and Administrative Fees Prior to the Deregistration Date, the Company was party to an investment advisory agreement (the "Former Advisory Agreement") with an affiliate of the Adviser (the "Former Adviser") pursuant to which the Former Adviser provided investment advisory services to the Company and certain of its subsidiaries. The Company's contractual fee under the Former Advisory Agreement was an annual fee, payable monthly, in an amount equal to 1.00% an amount (the "Former Managed Assets”) equal to the total assets of the Company, including any form of investment leverage, minus all accrued expenses incurred in the normal course of operations, but not excluding any liabilities or obligations attributable to investment leverage obtained through (i) indebtedness of any type (including, without limitation, borrowing through a credit facility or the issuance of debt securities), (ii) the issuance of preferred stock or other preference securities, (iii) the reinvestment of collateral received for securities loaned in accordance with the Company’s investment objectives and policies, and/or (iv) any other means. The Former Adviser was permitted to waive a portion of its fees. Prior to the Deregistration Date, the Company was also party to an administration services agreement (the “Administration Services Agreement”) pursuant to which the Former Adviser previously performed administrative functions for us in connection with our operation as a closed-end investment company. For its services, the Former Adviser received an annual fee, payable monthly, in an amount equal to 0.20% of the average weekly value of the Former Managed Assets. In connection with the Business Change and effective on the Deregistration Date, the Company terminated its investment advisory agreement and its administrative services agreement with the Former Adviser and entered into the Advisory Agreement with the Adviser, a subsidiary of NexPoint. The Company also terminated the investment advisory agreements between NexPoint and its wholly owned subsidiaries, NREO and NexPoint Real Estate Capital, LLC, effective on the Deregistration Date. Pursuant to the Advisory Agreement, subject to the overall supervision of our Board, the Adviser manages the day-to-day operations of the Company, and provides investment management services. As of June 30, 2023, as consideration for the Adviser’s services under the Advisory Agreement, we pay our Adviser an annual fee (the "Advisory Fee") of 1.00% of Managed Assets and an annual fee (the "Administrative Fee" and, together with the Advisory Fee, the "Fees") of 0.20% of the Company’s Managed Assets (defined below). On April 11, 2023, we entered into an amendment to the Advisory Agreement whereby the monthly installment of the Fees shall be paid in cash unless the Adviser elects, in its sole discretion, to receive all or a portion of the monthly installment of the Fees in common shares of the Company, subject to certain restrictions including that in no event shall the common shares issued to the Adviser under the Advisory Agreement exceed five percent of the number of common shares or five percent of the voting power of the Company outstanding prior to the first such issuance (the “Share Cap”) and that in no event shall the common shares issued to the Adviser under the Advisory agreement exceed 6,000,000 common shares; provided, however, that the Share Cap will not apply if the Company’s shareholders have approved issuances in excess of the Share Cap. At the Company’s annual meeting of shareholders, the Company’s shareholders did not approve issuances in excess of the Share Cap. Under the Advisory Agreement, “Managed Assets” means an amount equal to the total assets of the Company, including any form of leverage, minus all accrued expenses incurred in the normal course of operations, but not excluding any liabilities or obligations attributable to leverage obtained through (i) indebtedness of any type (including, without limitation, borrowing to purchase or develop real estate or other investments, borrowing through a credit facility, or the issuance of debt securities), (ii) the issuance of preferred shares or other preference securities, (iii) the reinvestment of collateral received for securities loaned in accordance with the Company’s investment objectives and policies, and/or (iv) any other means. In the event the Company holds collateralized mortgage-backed securities ("CMBS") where the Company holds the controlling tranche of the securitization and is required to consolidate under GAAP all assets and liabilities of a specific CMBS trust, the consolidated assets and liabilities of the consolidated trust will be netted to calculate the allowable amount to be included as Managed Assets. In addition, in the event the Company consolidates another entity it does not wholly own as a result of owning a controlling interest in such entity or otherwise, Managed Assets will be calculated without giving effect to such consolidation and instead such entity’s assets, leverage, expenses, liabilities and obligations will, on a pro rata basis consistent with the Company’s percentage ownership, be considered those of the Company for purposes of calculation of Managed Assets. The Adviser computes Managed Assets as of the end of each fiscal quarter and then computes each installment of the Fees as promptly as possible after the end of the month with respect to which such installment is payable. Revolving Credit Facility On May 22, 2023, the Company entered into the NexBank Revolver pursuant to which the Company in the initial principal amount of $20.0 million, with the option for the Company to receive additional disbursements thereunder up to a maximum of $50.0 million, and bears interest at one-month SOFR plus 3.50% and matures on May 20, 2024. The Company drew the $20.0 million on May 22, 2023. The fair value of the revolving credit facility is equal to its carrying value as the Company has the ability to repay the outstanding principal at par value at any time. As of June 30, 2023, the NexBank Revolver had an outstanding balance of $20.0 million. Reimbursement of Expenses; Expense Cap The Company is required to pay directly or reimburse the Adviser for all of the documented “operating expenses” (all out-of-pocket expenses of the Adviser in performing services for us, including but not limited to the expenses incurred by the Adviser in connection with any provision by the Adviser of legal, accounting, financial, due diligence, investor relations or other services performed by the Adviser that outside professionals or outside consultants would otherwise perform and our pro rata share of rent, telephone, utilities, office furniture, equipment, machinery or other office, internal and overhead expenses of the Adviser required for our operations) and any and all expenses (other than underwriters' discounts) paid or to be paid by us in connection with an offering of our securities, including, without limitation, our legal, accounting, printing, mailing and filing fees and other documented offering expenses (collectively, "Offering Expenses"), paid or incurred by the Adviser or its affiliates in connection with the services it provides to us pursuant to the Advisory Agreement. Direct payment of operating expenses by us together with reimbursement of operating expenses to the Adviser, plus compensation expenses relating to equity awards granted under a long-term incentive plan and all other corporate general and administrative expenses of the Company, including the Fees payable under the Advisory Agreement, may not exceed 1.5% (the "Expense Cap") of Managed Assets, calculated as of the end of each quarter, for the twelve-month period following the Company’s receipt of the Deregistration Order; provided, however, that this limitation will not apply to Offering Expenses, legal, accounting, financial, due diligence and other service fees incurred in connection with extraordinary litigation and mergers and acquisitions or other events outside the ordinary course of our business or any out-of-pocket acquisition or due diligence expenses incurred in connection with the acquisition or disposition of certain real estate-related investments; provided, further, in the event the Company consolidates another entity that it does not wholly own as a result of owning a controlling interest in such entity or otherwise, expenses will be calculated without giving effect to such consolidation and instead such entity’s expenses will, on a pro rata basis consistent with the Company’s percentage ownership, be considered those of the Company for purposes of calculation of expenses. On occasion, the Adviser may waive additional fees to the extent assets are invested in certain affiliated investments. The Adviser may, at its discretion and at any time, waive its right to reimbursement for eligible out-of-pocket expenses paid on the Company’s behalf. Once waived, these expenses are considered permanently waived and become non-recoupable in the future. The Advisory Agreement has an initial term of three years that will expire on July 1, 2025, and successive additional one-year terms thereafter unless earlier terminated. We have the right to terminate the Advisory Agreement on 30 days’ written notice upon the occurrence of a cause event (as defined in the Advisory Agreement). The Advisory Agreement can be terminated by us or the Adviser without cause upon the expiration of the then-current term with at least 180 days’ written notice to the other party prior to the expiration of s term. The Adviser may also terminate the agreement with 30 days’ written notice if we have materially breached the agreement and such breach has continued for 30 days before we are given such notice. In addition, the Advisory Agreement will automatically terminate in the event of Advisers Act Assignment (as defined in the Advisory Agreement) unless we provide written consent. A termination fee will be payable to the Adviser by us upon termination of the Advisory Agreement for any reason, including non-renewal, other than a termination by us upon the occurrence of a cause event or due to an Advisers Act Assignment. The termination fee will be equal to three times the Fees earned by the Adviser during the twelve month period immediately preceding the most recently completed calendar quarter prior to the effective termination date; provided, however, if the Advisory Agreement is terminated prior to the one year anniversary of the date of the Advisory Agreement, the Fees earned during such period will be annualized for purposes of calculating the Fees. For the three and six months ended June 30, 2023, the Company incurred Administrative Fees and Advisory Fees of $1.7 million and $5.2 million, which excludes $1.6 million and $2.0 million, respectively, in fees that were waived to comply with the Expense Cap. Should the Fees and expenses and any other items subject to the Expense Cap be less than the 1.5% limit for the twelve-month period subsequent to the Deregistration Date, some or all of the deferred expenses could be recouped by the Adviser up to the Expense Cap. No Advisory Fees were recouped by the Adviser as of June 30, 2023. Guaranties of NexPoint Storage Partners, Inc. Debt On September 14, 2022, the Company entered into guaranties (the “BS Guaranties”) for the benefit of JPMorgan Chase Bank, National Association (“JPM”) and any additional or subsequent lenders from time to time (collectively, “BS Lender”) under a loan agreement (the "BS Loan Agreement"), pursuant to which the Company guaranteed certain obligations of the borrowers (“BS Borrower”) under the BS Loan Agreement. The Company, through its ownership in NSP, owns an indirect interest in BS Borrower and entered into the BS Guaranties as a condition of BS Lender lending to BS Borrower under the BS Loan Agreement. Pursuant to the BS Guaranties, the Company guaranteed certain carrying obligations, including interest payments, of BS Borrower and certain recourse obligations of BS Borrower pertaining to exculpation or indemnification of BS Lender. The BS Guaranties also provide that the Company may be required to repay principal amounts upon the occurrence of certain events, including certain action or inaction by BS Borrower, but does not provide for a full guarantee of repayment in all circumstances. The BS Loan Agreement provides for a single initial advance of the loan in the amount of $221.8 million to BS Borrower on the closing date, and provides BS Borrower the right to request additional advances in connection with subsequently acquired properties. Amounts outstanding under the BS Loan Agreement are due and payable on September 9, 2023 which date may, at the option of BS Borrower, be extended for two successive one-year terms upon the satisfaction of certain terms and conditions. Borrowings outstanding under the BS Loan Agreement are secured by mortgages on real property owned by one or more of the borrowers comprising BS Borrower and bear interest at the one-month SOFR, subject to a floor of 0.5%, plus an applicable spread of approximately 4.0% with respect to approximately $184.9 million of initial principal thereunder and approximately 5.4% with respect to approximately $36.9 million of initial principal thereunder. On December 8, 2022 and in connection with a restructuring of NSP, the Company, together with NREF, Highland Income Fund ("HIF") and NexPoint Real Estate Strategies Fund (collectively, the "Co-Guarantors"), as guarantors, entered into a Sponsor Guaranty Agreement in favor of Extra Space Storage, LP ("Extra Space") pursuant to which the Company and the Co-Guarantors guaranteed obligations of NSP with respect to NSP’s newly created Series D Preferred Stock and two promissory notes in an aggregate principal amount of approximately $64.2 million issued to Extra Space. The guaranties by the Company and the Co-Guarantors are capped at $97.6 million, which cap amount will be reduced as the guaranteed obligations of NSP are paid. Each of the Company and the Co-Guarantors generally guaranteed the foregoing obligations of NSP up to the cap amount on a pro rata basis with respect to its percentage ownership of NSP’s common stock. The maximum liability of the Company under the guaranties is approximately $83.8 million. The Company has not recorded a contingent liability due to NSP being current on all debt and preferred dividend payments and in compliance with all debt compliance provisions of the Sponsor Guaranty Agreement. As of June 30, 2023, the Company owns approximately 53.0% of the total outstanding shares of common stock of NSP. Separately, on September 14, 2022, the Company entered into a Guaranty Agreement (Recourse Obligations), dated September 14, 2022 (the “CMBS Guaranty”) for the benefit of JPM and any additional or subsequent lenders from time to time (collectively, the “CMBS Lender”) under a loan agreement (the "CMBS Loan Agreement"), by and among the borrowers thereunder (collectively, “CMBS Borrower”) and the CMBS Lender. The Company, through its ownership in NSP, owns an indirect interest in CMBS Borrower and entered into the CMBS Guaranty as a condition of CMBS Lender lending to CMBS Borrower under the CMBS Loan Agreement. Pursuant to the CMBS Guaranty, the Company guaranteed certain recourse obligations of CMBS Borrower pertaining to exculpation or indemnification of CMBS Lender. The CMBS Guaranty also provides that the Company may be required to repay principal amounts upon the occurrence of certain events, including certain action or inaction by CMBS Borrower, but does not provide for a full guarantee of repayment in all circumstances. The CMBS Loan Agreement provides for a loan of $356.5 million to CMBS Borrower. Amounts outstanding under the CMBS Loan Agreement are due and payable on September 9, 2024 which date may, at the option of CMBS Borrower, be extended for three successive one-year terms upon the satisfaction of certain terms and conditions. Borrowings outstanding under the CMBS Loan Agreement are secured by mortgages on real property owned by one or more of the borrowers comprising CMBS Borrower and bear interest at one-month SOFR plus a spread of approximately 3.6%, which will increase by 0.1% upon a second extension of the loan maturity and by an additional approximately 0.15% upon a third extension of the loan maturity. Subsidiary Investment Management Agreement SFP is a party to a management agreement (the "SFP IMA") with NexAnnuity pursuant to which NexAnnuity provides investment management services to SFP. Mr. Dondero serves as President of NexAnnuity, which is indirectly owned by a trust of which Mr. Dondero is the primary beneficiary. In exchange for its services, the SFP IMA provides that NexAnnuity will receive a management fee (the "SFP Management Fee") paid monthly in an amount equal to 1.0% of the average weekly value of an amount equal to the total assets of SFP, including any form of leverage, minus all accrued expenses incurred in the normal course of operations, but not excluding any liabilities or obligations attributable to investment leverage obtained through (i) indebtedness of any type (including, without limitation, borrowing through a credit facility or the issuance of debt securities), (ii) the issuance of preferred stock or other preference securities, (iii) the reinvestment of collateral received for securities loaned in accordance with the investment objective, investment guidelines and policies under the SFP IMA, and/or (iv) any other means, plus any value added tax or any other applicable tax, if any, thereon. NexAnnuity may waive all or a portion of the SFP Management Fee. Other Related Party Transactions The Company has in the past, and may in the future, utilize the services of affiliated parties. The Company holds multiple operating accounts at NexBank an affiliate of the Adviser through common beneficial ownership. The Company’s operating properties, other than undeveloped land, are managed by NexVest Realty Advisors, LLC ("NexVest"), an affiliate of the Adviser. For the six months ended June 30, 2023, the Company through its subsidiaries has paid approximately $0.3 million in property management fees to NexVest. The property management agreement with NexVest for the retail property in Lubbock, Texas is dated January 1, 2014 and had a fixed fee of $750 per month. Effective January 1, 2023, the property management agreement was amended and the property management fee was increased to $1,200 per month. The property management agreement with NexVest for Cityplace Tower is dated August 15, 2018, and the management fee is calculated on 3% of gross revenues, with a minimum fee of $20,000 per month. The property management agreement with NexVest for the White Rock Center is dated June 1, 2013, and the management fee is calculated on 4% of gross receipts, payable monthly. The Company is a limited guarantor and an indemnitor on one of NHT's loans with an aggregate principal amount of $77.4 million as of June 30, 2023. The obligations include a customary environmental indemnity and a so-called "bad boy" guarantee, which is generally only applicable if and when the borrower directly, or indirectly through an agreement with an affiliate, joint venture partner or other third party, voluntarily files a bankruptcy or similar liquidation or reorganization action or takes other actions that are fraudulent or improper. The Company has not recorded a contingent liability as NHT is current on all debt payments and in compliance with all debt compliance provisions. On March 31, 2022, the Company, through an unconsolidated subsidiary, borrowed approximately $13.5 million from NREF, an entity advised by an affiliate of the Adviser, to finance its acquisition of a 77.0% interest in Tivoli North Property. The bridge note bore interest at an annual rate equal to the WSJ Prime Rate plus 1.5% and had a maturity date of October 1, 2022. The Company refinanced this bridge note with PNC Bank, N.A ("PNC Bank") on August 8, 2022. The new loan had a principal amount of $13.5 million, matures on August 7, 2023, and bears interest at an annual rate of daily simple SOFR plus 3.5%. Proceeds from the note with PNC Bank were used to repay in full the financing provided by NREF on August 9, 2022. On December 8, 2022, the Company, through NREO, entered into a Contribution Agreement pursuant to which NREO contributed all of its interests in the SAFStor Ventures with SAFStor NREA GP – I, LLC, SAFStor NREA GP – II, LLC and NREA GP – III, LLC to the NSP OC in exchange for approximately 47,064 newly created Class B Units of the NSP OC, representing 14.8% of the NSP OC Common Units immediately after NREO’s acquisition of Class B Units. The NSP OC is the operating company of NSP, of which the Company owns approximately 86,369 shares, or 53.0%, of the outstanding common stock as of June 30, 2023. In connection with the foregoing, the NSP OC acquired all of the other interests in the SAFStor Ventures from affiliates of the Adviser following which they were wholly owned by a subsidiary of the NSP OC. The SAFStor Ventures are invested, through subsidiaries, in various self-storage real estate development projects primarily located on the East Coast of the United States. As of June 30, 2023, the Company owns approximately 47,064 units, or 29.7%, of the outstanding NSP OC Common Units. On December 23, 2022, the Company, through NREO, redeemed 2,100,000 NREF OP Units for 2,100,000 shares of common stock of NREF. The NREF OP is the operating partnership of NREF, a publicly traded mortgage REIT managed by an affiliate of the Adviser. Related Party Investments The Company, from time to time, may invest in entities managed by affiliates of the Adviser. For the six months ended and as of June 30, 2023, the Company has the following investments in entities managed or advised by, or directly or indirectly owned by entities managed or advised by, affiliates of the Adviser (in thousands). Related Party Investment Fair Change in Unrealized Realized Equity in income (loss) Interest and Total Income SFR WLIF III, LLC LLC Units $ 7,306 $ — $ — $ 421 $ — $ 421 NexPoint Residential Trust, Inc. Common Stock 4,075 175 — — 75 250 NexPoint Hospitality Trust Common Stock 16,964 (10,721) — — — (10,721) NexPoint Hospitality Trust Convertible Notes 22,531 1,052 — — 319 1,371 NexPoint Storage Partners, Inc. Common Stock 105,005 1,311 — — — 1,311 NexPoint Storage Partners Operating Company, LLC LLC Units 57,220 714 — — — 714 NexPoint SFR Operating Partnership, L.P. Partnership Units 49,720 (4,361) — — 1,203 (3,158) NexPoint SFR Operating Partnership, L.P. Convertible Notes 21,200 393 — — 998 1,391 Claymore Holdings, LLC LLC Units — — — — — — Allenby, LLC LLC Units — — — — — — NexPoint Real Estate Finance Operating Partnership, L.P. Partnership Units 75,909 (1,461) — — 5,843 4,382 NexPoint Real Estate Finance, Inc. Common Stock 32,739 (630) — — — 2,877 — 2,247 VineBrook Homes Operating Partnership, L.P. Partnership Units 167,305 (3,784) — — — 2,866 — (918) Total $ 559,974 $ (17,312) $ — $ 421 $ 14,181 $ (2,710) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments On December 8, 2022 and in connection with a restructuring of NSP, the Company, together with the Co-Guarantors, as guarantors, entered into a Sponsor Guaranty Agreement in favor of Extra Space pursuant to which the Company and the Co-Guarantors guaranteed obligations of NSP with respect to NSP’s newly created Series D Preferred Stock and two promissory notes in an aggregate principal amount of approximately $64.2 million issued to Extra Space. The guaranties by the Company and the Co-Guarantors are capped at $97.6 million, which cap amount will be reduced as the guaranteed obligations of NSP are paid. Each of the Company and the Co-Guarantors generally guaranteed the foregoing obligations of NSP up to the cap amount on a pro rata basis with respect to its percentage ownership of NSP’s common stock. The maximum liability of the Company under the guaranties is approximately $83.8 million. The Company has not recorded a contingent liability due to NSP being current on all debt and preferred dividend payments and in compliance with all debt compliance provisions of the Sponsor Guaranty Agreement. As of June 30, 2023, the Company owns approximately 53.0% of the total outstanding shares of common stock of NSP. See Note 13 for additional information. The Company is a limited guarantor and an indemnitor on one of NHT's loans with an aggregate principal amount of $77.4 million outstanding, as of June 30, 2023. The obligations include a customary environmental indemnity and a so-called "bad boy" guarantee, which is generally only applicable if and when the borrower directly, or indirectly through an agreement with an affiliate, joint venture partner or other third party, voluntarily files a bankruptcy or similar liquidation or reorganization action or takes other actions that are fraudulent or improper. The Company has not recorded a contingent liability as NHT is current on all debt payments and in compliance with all debt compliance provisions. Contingencies In the normal course of business, the Company is subject to claims, lawsuits, and legal proceedings. While it is not possible to ascertain the ultimate outcome of all such matters, management believes that the aggregate amount of such liabilities, if any, in excess of amounts provided or covered by insurance, will not have a material adverse effect on the consolidated balance sheets or consolidated statements of operations and comprehensive income (loss) of the Company. The Company is not involved in any material litigation nor, to management’s knowledge, is any material litigation currently threatened against the Company or its properties or subsidiaries. Environmental liabilities could have a material adverse effect on the Company’s business, assets, cash flows or results of operations. As of June 30, 2023, the Company was not aware of any environmental liabilities. There can be no assurance that material environmental liabilities do not exist. Claymore and Allenby are engaged in ongoing litigation that could result in a possible gain contingency to the Company. The probability, timing, and potential amount of recovery, if any, are unknown. |
Operating Leases
Operating Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Operating Leases | Operating Leases Lessor Accounting We generate the majority of our revenue by leasing our operating properties to customers under operating lease agreements. The manner in which we recognize these transactions in our financial statements is described in the Income Recognition section of Note 2 to these consolidated financial statements. The following table summarizes the future minimum lease payments to the Company as the lessor under the operating lease obligations at June 30, 2023 (in thousands). These amounts do not reflect future rental revenues from renewal or replacement of existing leases. Reimbursements of operating expenses and variable rent increases are excluded from the table below. Year: Operating Leases 2023 $6,069 2024 9,440 2025 9,130 2026 7,815 2027 7,001 Thereafter 19,601 Total $59,056 The following table lists the tenants where the rental revenue from the tenants during the period presented represented 10% or more of total rental income in the Company’s consolidated statements of operations (in thousands): For the Six Months Ended June 30, Tenant Rental Income Hudson Advisors, LLC $1,424 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividends Declared On July 24, 2023, the Board approved a quarterly dividend of $0.15 per common share, payable on September 29, 2023 to shareholders of record on August 15, 2023. The dividend on the Company’s common shares consist of a combination of cash and shares, with the cash component of the dividend (other than cash paid in lieu of fractional shares) not to exceed 20% in the aggregate, with the balance being paid in the Company’s common shares. Also on July 24, 2023, the Board approved a quarterly dividend of $0.34375 per Series A Preferred Share, payable on October 2, 2023 to shareholders of record on September 25, 2023. Through June 30, 2023, the Company has not generated sufficient cash flow from operations, as disclosed on the Consolidated Statement of Cash Flows, to cover the dividend authorized for payment on September 29, 2023. The purpose of paying the dividend partially in shares and partially in cash is to alleviate the cash outflow to the Company. The Company may revert to paying the dividend in cash at some point in the future when cash flow from operations supports such a cash dividend. However, there can be no assurance that cash flow from operations will be able to support a cash dividend in the future. Issuance of Common Shares to Adviser |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Considerations Related to Tightening Monetary Policy | Considerations Related to Tightening Monetary Policy The macroeconomic environment remains challenging as central banks have continued to rapidly raise interest rates. The rising rate environment, coupled with large bank failures in early 2023 and ongoing economic uncertainty, has limited credit availability to commercial real estate. Less available and more expensive debt capital has had pronounced effects on the capital markets, making property acquisitions and other investments harder to finance. Similar factors also impact the timing of and proceeds generated from asset sales and our ability to obtain debt capital. |
Financial Statement Preparation | Financial Statement Preparation The accompanying consolidated financial statements have been prepared in accordance with the rules applicable to quarterly reports on Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (U.S.), or General Accepted Accounting Principles (GAAP), for annual financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events, such as weakening global macroeconomic conditions and stress in the banking system, including less available and more expensive debt capital. These estimates and the underlying assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Income Taxes | Income Taxes As a REIT for U.S. federal income tax purposes, the Company may deduct earnings distributed to stockholders against the income generated by our REIT operations. The Company continues to be subject to income taxes on the income of its taxable REIT subsidiaries. Our consolidated net loss before income taxes was $13.6 million for the three months ended June 30, 2023 and $32.3 million for the six months ended June 30, 2023. Our provision for income taxes was $0.3 million for the three months ended June 30, 2023 and $1.1 million for the six months ended June 30, 2023. The Company’s tax provision for interim periods is determined using an estimate of its annual current and deferred effective tax rates, adjusted for discrete items. Our effective tax rates for the three and six months ended June 30, 2023 were (2.27)% and (3.45)%, respectively. Our effective tax rate differs from the U.S. federal statutory corporate tax rate of 21.0% primarily due to our REIT operations generally not being subject to federal income taxes. |
Investments in Real Estate Su_2
Investments in Real Estate Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Schedule of Investments in SPE Properties | The following table represents the Company’s ownership in each property by virtue of its 100% ownership of the SPEs that directly own the title to each property as of June 30, 2023: Effective Ownership Percentage at Property Name Location Year Acquired June 30, 2023 White Rock Center Dallas, Texas 2013 100 % 5916 W Loop 289 Lubbock, Texas 2013 100 % Cityplace Tower Dallas, Texas 2018 100 % NexPoint Dominion Land, LLC (1) Plano, Texas 2022 100 % (1) NexPoint Dominion Land, LLC owns 100% of 21.5 acres of undeveloped land in Plano, Texas. |
Consolidated Real Estate Inve_2
Consolidated Real Estate Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Schedule of Real Estate Properties | As of June 30, 2023, the major components of the Company’s investments in real estate held by SPEs the Company consolidates, which are included in "Consolidated Real Estate Investments" on the Consolidated balance sheet, were as follows (in thousands): Operating Properties Land Buildings and Intangible Lease Assets Intangible Lease Construction in Progress Furniture, Fixtures, and Totals White Rock Center $ 1,315 $ 10,314 $ 1,921 $ (101) $ — $ 5 $ 13,454 5916 W Loop 289 1,081 2,939 — — — — 4,020 Cityplace Tower 18,812 168,633 9,058 (6,669) 39,654 357 229,845 NexPoint Dominion Land, LLC 26,500 — — — — — 26,500 47,708 181,886 10,979 (6,770) 39,654 362 273,819 Accumulated depreciation and amortization — (8,478) (5,335) 1,486 — (210) (12,537) Total Operating Properties $ 47,708 $ 173,408 $ 5,644 $ (5,284) $ 39,654 $ 152 $ 261,282 As of December 31, 2022, the major components of the Company’s investments in real estate held by SPEs the Company consolidates, which are included in "Consolidated Real Estate Investments" on the Consolidated balance sheet, were as follows (in thousands): Operating Properties Land Buildings and Intangible Lease Assets Intangible Lease Construction in Progress Furniture, Fixtures, and Totals White Rock Center $ 1,315 $ 10,314 $ 1,921 $ (101) $ — $ 5 $ 13,454 5916 W Loop 289 1,081 2,939 — — — — 4,020 Cityplace Tower 18,812 161,216 9,058 (6,669) 39,731 349 222,497 NexPoint Dominion Land, LLC 26,500 — — — — — 26,500 47,708 174,469 10,979 (6,770) 39,731 354 266,471 Accumulated depreciation and amortization — (4,114) (2,863) 743 — (181) (6,415) Total Operating Properties $ 47,708 $ 170,355 $ 8,116 $ (6,027) $ 39,731 $ 173 $ 260,056 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Real Estate Notes Payable | The below table contains summary information related to the mortgages payable (dollars in thousands): Outstanding principal as of Interest Rate Maturity Date Note A-1 $ 101,955 7.50 % 9/8/2023 Note A-2 22,303 11.50 % 9/8/2023 Note B-1 12,835 7.50 % 9/8/2023 Note B-2 3,186 11.50 % 9/8/2023 Mezzanine Note 1 2,807 11.50 % 9/8/2023 Mezzanine Note 2 401 11.50 % 9/8/2023 Mortgages payable 143,487 Deferred financing costs, net (66) Mortgages payable, net $ 143,421 |
Schedule of Maturities of Long-Term Debt | The aggregate scheduled maturities, including amortizing principal payments, of total debt for the next five calendar years subsequent to June 30, 2023 are as follows (in thousands): Mortgages Payable Notes Payable Total 2023 $ 143,487 $ 5,000 $ 148,487 2024 — 20,000 20,000 2025 — 13,250 13,250 2026 — — — 2027 — — — Thereafter — — — Total $ 143,487 $ 38,250 $ 181,737 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | As of June 30, 2023, the Company has accounted for the following investments as unconsolidated VIEs: Entities Instrument Asset Type Percentage Ownership as of June 30, 2023 Relationship as of June 30, 2023 Unconsolidated Entities: NexPoint Real Estate Finance Operating Partnership, L.P. LP interest Mortgage 16.0 % VIE VineBrook Homes Operating Partnership, L.P. LP interest Single-family rental 11.1 % VIE NexPoint SFR Operating Partnership, L.P. LP interest Single-family rental 30.8 % VIE NexPoint Storage Partners Operating Company, LLC LLC interest Self-storage 29.7 % VIE NexPoint Storage Partners, Inc. Common stock Self-storage 53.0 % VIE Perilune Aero Equity Holdings One, LLC LLC interest Aircraft 16.4 % VIE SFR WLIF III, LLC LLC interest Single-family rental 20.0 % VIE IQHQ Holdings, LP LP interest Life science 1.1 % VIE |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Below is a summary of the Company’s equity method investments as of June 30, 2023 (dollars in thousands): Investee Name Instrument Asset Type NXDT Percentage Ownership Investment Basis Share of Investee's Net Assets (1) Basis Difference (2) Share of Earnings (Loss) Sandstone Pasadena Apartments, LLC LLC interest Multifamily 50.0 % $ 12,169 $ (9,590) $ 21,759 $ (14) AM Uptown Hotel, LLC LLC interest Hospitality 60.0 % (3) 26,216 21,334 4,882 245 SFR WLIF III, LLC LLC interest Single-family rental 20.0 % 7,306 7,466 (160) 386 Las Vegas Land Owner, LLC LLC interest Land 77.0 % (4) 12,312 12,312 — — Perilune Aero Equity Holdings One, LLC LLC interest Aircraft 16.4 % 11,587 9,990 1,597 721 Claymore Holdings, LLC LLC interest N/A 50.0 % (5) — (6) — — — Allenby, LLC LLC interest N/A 50.0 % (5) — (6) — — — $ 69,590 $ 41,512 $ 28,078 $ 1,338 Below is a summary of the Company’s equity method investments as of December 31, 2022 (dollars in thousands): Investee Name Instrument Asset Type NXDT Percentage Ownership Investment Basis Share of Investee's Net Assets (1) Basis Difference (2) Share of Earnings (Loss) Sandstone Pasadena Apartments, LLC LLC interest Multifamily 50.0 % $ 13,013 $ — $ 13,013 $ (217) AM Uptown Hotel, LLC LLC interest Hospitality 60.0 % (3) 27,136 21,334 5,802 (227) SFR WLIF III, LLC LLC interest Single-family rental 20.0 % 7,272 7,466 (194) 280 Las Vegas Land Owner, LLC LLC interest Land 77.0 % (4) 12,312 12,312 — — Perilune Aero Equity Holdings One, LLC LLC interest Aircraft 16.4 % 10,923 8,751 2,172 665 Claymore Holdings, LLC LLC interest N/A 50.0 % (5) — (6) — — — Allenby, LLC LLC interest N/A 50.0 % (5) — (6) — — — $ 70,656 $ 49,863 $ — $ 20,793 $ 501 Below is a summary of the Company's investments as of June 30, 2023 that qualify for equity method accounting for which the Company has elected to account for using the fair value option. Amounts are included in "investments, at fair value" on the consolidated balance sheet. Investee Name Instrument Asset Type NXDT Percentage Ownership Fair Value NexPoint Real Estate Finance Operating Partnership, L.P. LP interest Mortgage 16.0 % (7) $ 75,909 (6) NexPoint Real Estate Finance, Inc. Common stock Mortgage 12.2 % (7) 32,739 (6) VineBrook Homes Operating Partnership, L.P. LP interest Single-family rental 11.1 % (7) 167,305 (6) NexPoint Storage Partners, Inc. Common stock Self-storage 53.0 % (3) 105,006 (6) NexPoint Storage Partners Operating Company, LLC LLC interest Self-storage 29.7 % 57,220 (6) NexPoint SFR Operating Partnership, L.P. LP interest Single-family rental 30.8 % 49,720 (6) NexPoint Hospitality Trust Common stock Hospitality 45.4 % 16,964 (6) LLV Holdco, LLC LLC interest Land 26.8 % 3,373 (6) $ 508,236 (1) Represents the Company’s percentage share of net assets of the investee per the investee’s books and records. (2) Represents the difference between the basis at which the investments in unconsolidated ventures are carried by the Company and the Company's proportionate share of the equity method investee's net assets. To the extent that the Company’s cost basis is different from the basis reflected at the joint venture level, the basis difference is generally amortized over the lives of the related assets and liabilities, and such amortization is included in the Company’s share of equity in earnings of the joint venture. (3) The Company owns greater than 50% of the outstanding common equity but is not deemed by the Company to be the primary beneficiary (for a VIE) or have a controlling financial interest of the investee and as such, accounts for the investee using the equity method. (4) The Company owns 100% of Las Vegas Land Owner, LLC which owns 77% of a joint venture that owns an 8.5 acre tract of land (the "Tivoli North Property") as described below. Through the TIC (as defined below), the Company shares control and as such accounts for this investment using the equity method. (5) The Company has a 50% non-controlling interest in Claymore Holdings, LLC (“Claymore”) and Allenby, LLC, (“Allenby”). The Company has determined it is not the primary beneficiary and does not consolidate these entities. (6) The Company has elected the fair value option with respect to these investments. The basis in these investments is their June 30, 2023 fair value. (7) The Company owns less than 20% of the investee but has significant influence due to members of the management team serving on the board of the investee or its parent and as such, accounts for the investee using the equity method. |
Equity Method Investments, Balance Sheet Summary | As such, only the financial information for NREF, NSP and VineBrook are presented below. NREF VineBrook NSP ASSETS Investments $ 7,523,160 $ 2,500 $ — Real estate assets 58,613 3,489,153 1,217,297 Cash and cash equivalents 19,657 62,747 22,208 Other assets 1,805 122,298 210,082 TOTAL ASSETS $ 7,603,235 $ 3,676,698 $ 1,449,587 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Debt $ 1,248,549 $ 2,592,311 $ 904,248 Other liabilities 5,888,498 125,732 417,138 Total Liabilities 7,137,047 2,718,043 1,321,386 Redeemable noncontrolling interests in the operating company 94,545 466,920 205,114 Noncontrolling interests in consolidated VIEs — 12,705 3,970 Total Shareholders' Equity 371,643 479,030 (80,883) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 7,603,235 $ 3,676,698 $ 1,449,587 |
Equity Method Investment, Statement Of Operations Summary | The table below presents the unaudited summary statement of operations for the six months ended June 30, 2023 for the Company’s significant equity method investments (dollars in thousands). NREF VineBrook NSP Revenues Rental income $ 2,035 $ 171,911 $ 54,418 Net interest income 8,154 — 2,032 Other income — 2,837 3,076 Total revenues 10,189 174,748 59,526 Expenses Total expenses 10,618 243,805 67,903 Gain (loss) on sales of real estate — (30,454) (8,276) Other income (expense) 18,284 (41,910) (62,515) Unrealized gain (loss) on derivatives — 25,852 — Total comprehensive income (loss) $ 17,855 $ (115,569) $ (79,168) |
Fair Value of Derivatives and_2
Fair Value of Derivatives and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Assets at Fair Value on a Recurring Basis | The table below summarizes the inputs used to value the Company’s assets carried at fair value on a recurring basis as of June 30, 2023 (in thousands): Fair Value Cost Basis Level 1 Level 2 Level 3 Total Assets Bond $ 17 $ — $ 25 $ — $ 25 CLO 34,958 — 563 4,853 5,416 Common stock 314,498 43,968 — 221,863 265,831 Convertible notes 46,260 — — 43,731 43,731 Life settlement 64,267 — — 60,619 60,619 LLC interest 66,492 — — 60,593 60,593 LP interest 323,054 — 75,909 217,024 292,933 Rights and warrants 3,937 — 3,558 — 3,558 Senior loan 40,399 — 55 40,515 40,570 $ 893,882 $ 43,968 $ 80,110 $ 649,198 $ 773,276 The table below summarizes the inputs used to value the Company’s assets carried at fair value on a recurring basis as of December 31, 2022 (in thousands): Fair Value Cost Basis Level 1 Level 2 Level 3 Total Assets Bond $ 17 $ — $ 20 $ — $ 20 CLO 34,958 — 563 6,412 6,975 Common stock 325,275 53,872 — 234,667 288,539 Convertible notes 54,802 — — 50,828 50,828 Life settlement 64,267 — — 67,711 67,711 LLC interest 66,492 — — 60,836 60,836 LP interest 321,026 — 77,370 223,141 300,511 Rights and warrants 3,947 — 3,794 — 3,794 Senior loan 43,399 — 66 43,341 43,407 $ 914,183 $ 53,872 $ 81,813 $ 686,936 $ 822,621 |
Summary of Changes in Level 3 Assets | The table be low sets forth a summary of changes in the Company’s Level 3 assets (assets measured at fair value using significant unobservable inputs) for the six months ended June 30, 2023 (in thousands): December 31, 2022 Contributions/ Paid in- Redemptions/ Return of capital Realized Unrealized gain/(loss) June 30, 2023 CLO $ 6,412 $ — $ — $ — $ — $ — $ (1,559) $ 4,853 Common stock 234,667 — — — — — (12,804) 221,863 Convertible notes 50,828 (8,542) — — — — 1,445 43,731 Life settlement 67,711 2,532 — (2,999) — (502) (6,123) 60,619 LLC interest 60,836 — — — — — (243) 60,593 LP interest 223,141 2,028 — — — — (8,145) 217,024 Senior loan 43,341 — 1,960 (4,971) — 11 174 40,515 Total $ 686,936 $ (3,982) $ 1,960 $ (7,970) $ — $ (491) $ (27,255) $ 649,198 |
Schedule of Significant Unobservable Inputs Used in Fair Valuation | The following is a summary of the significant unobservable inputs used in the fair valuation of assets categorized within Level 3 of the fair value hierarchy as of June 30, 2023. Category Valuation Technique Significant Unobservable Inputs Input Value(s) Fair Value CLO Discounted Net Asset Value Discount 70% $ 4,853 Common Stock Market Approach Unadjusted Price/MHz-PoP $0.09 — $0.90 $(0.50) 221,863 NAV / sh multiple $1.10x — $1.45x $(1.28)x Discounted Cash Flow Discount Rate 7.5% — 11.50% (9.61)% Market Rent (per sqft) $4.48 — $32.55 $(14.00) RevPAR $71.00 — $186.00 $(104.89) Capitalization Rates 5.5% — 9.875% (8.66)% NAV Approach Discount Rate 10.00% Multiples Analysis Multiple of EBITDA 3.25x — 4.25x (3.75)x Recent Transaction Implied Enterprise Value from Transaction Price ($mm) $841.00 N/A $25.31 — $28.00 $(26.655) Offer Price per Share 110.00% Convertible Notes Discounted Cash Flow Discount Rate 7.50% — 9.75% (8.63)% 43,731 Life Settlement Discounted Cash Flow Discount Rate 14% 60,619 Life Expectancy (Months) 22 — 299 71 Months LLC Interest Discounted Cash Flow Discount Rate 7.50% — 30.00% (13.88)% 60,593 Market Rent (per sqft) $4.48 — $32.55 $(14) Capitalization Rate 5.5% LP Interest Discounted Cash Flow Discount Rate 6.60% — 9.20% (7.75)% 217,024 Capitalization Rate 3.7% — 6.8% (5.25)% Recent Transaction Price per Share $22.95 Senior Loan Discounted Cash Flow Discount Rate 12.30% — 20.00% (16.15)% 40,515 Total $ 649,198 |
Life Settlement Portfolio (Tabl
Life Settlement Portfolio (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Schedule of Life Settlement Contracts, Fair Value Method | As of June 30, 2023, the Company’s life settlement portfolio consists of the following (dollars in thousands): Number of Policies Face Value (Death Benefit) Acquisition Cost Premium Cost Estimated Fair Value Total Range Total Range Total Range Total Range Total 27 $1,500 -$15,000 $ 139,951 $350 - $3,895 $ 46,222 $0 - $380 $ 2,628 $27 - $6,044 $ 60,619 Remaining Life Expectancy (in years) Number Face Value Fair Value 0 - 1 — $ — $ — 1 - 2 2 5,540 4,341 2 - 3 6 32,413 18,413 3 - 4 5 35,311 19,621 4 - 5 2 9,000 3,610 Thereafter 12 57,687 14,634 Total 27 $ 139,951 $ 60,619 |
Life Settlement Contracts, Future Premiums Payable | The premiums to be paid for each of the five succeeding calendar years to keep the life settlement contracts in force as of June 30, 2023, assuming no maturities occur in that period, are as follows (dollars in thousands): Year Premiums 2023 $ 2,628 2024 5,554 2025 6,238 2026 7,009 2027 7,672 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity | The following table includes the number of restricted share units granted, vested, forfeited and outstanding as of June 30, 2023: 2023 Number of Units Weighted Average Outstanding January 1, 2023 — $ — Granted 603,482 10.45 Vested — — Forfeited — — Outstanding June 30, 2023 603,482 $ 10.45 The following table contains information regarding the vesting of restricted share units under the 2023 LTIP for the next five calendar years subsequent to June 30, 2023: Shares Vesting April Total 2023 — — 2024 178,855 178,855 2025 141,542 141,542 2026 141,542 141,542 2027 141,542 141,542 Total 603,482 603,482 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Loss Per Share | The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share and share amounts): Six Months Ended June 30, Three Months Ended June 30, 2023 2023 Numerator for loss per share: Net loss attributable to common shareholders $ (35,698) $ (15,022) Denominator for loss per share: Weighted average common shares outstanding 37,172 37,172 Denominator for basic and diluted loss per share 37,172 37,172 Weighted average unvested restricted share units 37 38 Denominator for diluted loss per share (1) 37,172 37,172 Loss per weighted average common share: Basic $ (0.96) $ (0.40) Diluted $ (0.96) $ (0.40) (1) For the six and three months ended June 30, 2023, excludes approximately 583,587 and 293,406 shares, related to assumed vesting of RSUs as the effect would be anti-dilutive. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For the six months ended and as of June 30, 2023, the Company has the following investments in entities managed or advised by, or directly or indirectly owned by entities managed or advised by, affiliates of the Adviser (in thousands). Related Party Investment Fair Change in Unrealized Realized Equity in income (loss) Interest and Total Income SFR WLIF III, LLC LLC Units $ 7,306 $ — $ — $ 421 $ — $ 421 NexPoint Residential Trust, Inc. Common Stock 4,075 175 — — 75 250 NexPoint Hospitality Trust Common Stock 16,964 (10,721) — — — (10,721) NexPoint Hospitality Trust Convertible Notes 22,531 1,052 — — 319 1,371 NexPoint Storage Partners, Inc. Common Stock 105,005 1,311 — — — 1,311 NexPoint Storage Partners Operating Company, LLC LLC Units 57,220 714 — — — 714 NexPoint SFR Operating Partnership, L.P. Partnership Units 49,720 (4,361) — — 1,203 (3,158) NexPoint SFR Operating Partnership, L.P. Convertible Notes 21,200 393 — — 998 1,391 Claymore Holdings, LLC LLC Units — — — — — — Allenby, LLC LLC Units — — — — — — NexPoint Real Estate Finance Operating Partnership, L.P. Partnership Units 75,909 (1,461) — — 5,843 4,382 NexPoint Real Estate Finance, Inc. Common Stock 32,739 (630) — — — 2,877 — 2,247 VineBrook Homes Operating Partnership, L.P. Partnership Units 167,305 (3,784) — — — 2,866 — (918) Total $ 559,974 $ (17,312) $ — $ 421 $ 14,181 $ (2,710) |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The following table summarizes the future minimum lease payments to the Company as the lessor under the operating lease obligations at June 30, 2023 (in thousands). These amounts do not reflect future rental revenues from renewal or replacement of existing leases. Reimbursements of operating expenses and variable rent increases are excluded from the table below. Year: Operating Leases 2023 $6,069 2024 9,440 2025 9,130 2026 7,815 2027 7,001 Thereafter 19,601 Total $59,056 |
Schedules of Concentration of Risk, by Risk Factor | The following table lists the tenants where the rental revenue from the tenants during the period presented represented 10% or more of total rental income in the Company’s consolidated statements of operations (in thousands): For the Six Months Ended June 30, Tenant Rental Income Hudson Advisors, LLC $1,424 |
Organization and Description _2
Organization and Description of Business - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 shares | |
Summary of Investment Holdings [Line Items] | |
Advisory agreement, term | 3 years |
Advisory agreement, additional term | 1 year |
NexPoint Diversified Real Estate Trust OP GP, LLC | |
Summary of Investment Holdings [Line Items] | |
General partners' capital account, units outstanding (in shares) | 2,000 |
Ownership interest | 100% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Net loss before income taxes | $ 13,559 | $ 32,274 | ||
Income tax expense | $ 308 | $ 2,000 | $ 1,114 | $ 2,000 |
Effective tax rate (in percent) | (2.27%) | (3.45%) |
Investments in Real Estate Su_3
Investments in Real Estate Subsidiaries - Narrative (Details) | Jun. 30, 2023 property |
Summary of Investment Holdings [Line Items] | |
Number of real estate properties | 4 |
Special Purpose Entities Directly Owned Companies | |
Summary of Investment Holdings [Line Items] | |
Effective ownership | 100% |
Investments in Real Estate Su_4
Investments in Real Estate Subsidiaries - Schedule of Investments in SPEs (Details) | Jun. 30, 2023 a |
Special Purpose Entities Directly Owned Companies | |
Summary of Investment Holdings [Line Items] | |
Effective ownership | 100% |
White Rock Center | Special Purpose Entities Directly Owned Companies | |
Summary of Investment Holdings [Line Items] | |
Effective ownership | 100% |
5916 W Loop 289 | Special Purpose Entities Directly Owned Companies | |
Summary of Investment Holdings [Line Items] | |
Effective ownership | 100% |
Cityplace Tower | Special Purpose Entities Directly Owned Companies | |
Summary of Investment Holdings [Line Items] | |
Effective ownership | 100% |
NexPoint Dominion Land, LLC | Special Purpose Entities Directly Owned Companies | |
Summary of Investment Holdings [Line Items] | |
Effective ownership | 100% |
NexPoint Dominion Land, LLC | Undeveloped Land in Plano, Texas | |
Summary of Investment Holdings [Line Items] | |
Area of land (acre) | 21.5 |
Consolidated Real Estate Inve_3
Consolidated Real Estate Investments - Components of Investments in Real Estate Properties (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | $ 273,819 | $ 266,471 |
Accumulated depreciation and amortization | (12,537) | (6,415) |
Total Operating Properties | 261,282 | 260,056 |
White Rock Center | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 13,454 | 13,454 |
5916 W Loop 289 | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 4,020 | 4,020 |
Cityplace Tower | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 229,845 | 222,497 |
NexPoint Dominion Land, LLC | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 26,500 | 26,500 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 47,708 | 47,708 |
Accumulated depreciation and amortization | 0 | 0 |
Total Operating Properties | 47,708 | 47,708 |
Land | White Rock Center | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 1,315 | 1,315 |
Land | 5916 W Loop 289 | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 1,081 | 1,081 |
Land | Cityplace Tower | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 18,812 | 18,812 |
Land | NexPoint Dominion Land, LLC | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 26,500 | 26,500 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 181,886 | 174,469 |
Accumulated depreciation and amortization | (8,478) | (4,114) |
Total Operating Properties | 173,408 | 170,355 |
Buildings and Improvements | White Rock Center | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 10,314 | 10,314 |
Buildings and Improvements | 5916 W Loop 289 | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 2,939 | 2,939 |
Buildings and Improvements | Cityplace Tower | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 168,633 | 161,216 |
Buildings and Improvements | NexPoint Dominion Land, LLC | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 0 | 0 |
Intangible Lease Assets | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 10,979 | 10,979 |
Accumulated depreciation and amortization | (5,335) | (2,863) |
Total Operating Properties | 5,644 | 8,116 |
Intangible Lease Assets | White Rock Center | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 1,921 | 1,921 |
Intangible Lease Assets | 5916 W Loop 289 | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 0 | 0 |
Intangible Lease Assets | Cityplace Tower | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 9,058 | 9,058 |
Intangible Lease Assets | NexPoint Dominion Land, LLC | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 0 | 0 |
Intangible Lease Liabilities | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | (6,770) | (6,770) |
Accumulated depreciation and amortization | 1,486 | 743 |
Total Operating Properties | (5,284) | (6,027) |
Intangible Lease Liabilities | White Rock Center | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | (101) | (101) |
Intangible Lease Liabilities | 5916 W Loop 289 | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 0 | 0 |
Intangible Lease Liabilities | Cityplace Tower | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | (6,669) | (6,669) |
Intangible Lease Liabilities | NexPoint Dominion Land, LLC | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 0 | 0 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 39,654 | 39,731 |
Accumulated depreciation and amortization | 0 | 0 |
Total Operating Properties | 39,654 | 39,731 |
Construction in Progress | White Rock Center | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 0 | 0 |
Construction in Progress | 5916 W Loop 289 | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 0 | 0 |
Construction in Progress | Cityplace Tower | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 39,654 | 39,731 |
Construction in Progress | NexPoint Dominion Land, LLC | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 0 | 0 |
Furniture, Fixtures, and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 362 | 354 |
Accumulated depreciation and amortization | (210) | (181) |
Total Operating Properties | 152 | 173 |
Furniture, Fixtures, and Equipment | White Rock Center | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 5 | 5 |
Furniture, Fixtures, and Equipment | 5916 W Loop 289 | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 0 | 0 |
Furniture, Fixtures, and Equipment | Cityplace Tower | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 357 | 349 |
Furniture, Fixtures, and Equipment | NexPoint Dominion Land, LLC | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | $ 0 | $ 0 |
Consolidated Real Estate Inve_4
Consolidated Real Estate Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 2.3 | $ 4.4 |
Leases, Acquired-in-Place | Intangible Lease Assets | ||
Property, Plant and Equipment [Line Items] | ||
Amortization of intangible assets | 1.2 | 2.5 |
Leases, Acquired-in-Place | Intangible Lease Liabilities | ||
Property, Plant and Equipment [Line Items] | ||
Amortization of intangible assets | $ 0.4 | $ 0.7 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands | 6 Months Ended | ||||
May 22, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Aug. 09, 2022 USD ($) a | Jan. 08, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||
Total | $ 181,737 | ||||
Prime brokerage borrowing | 2,118 | $ 2,624 | |||
The Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Total | 38,250 | ||||
The Revolver | Revolving Credit Facility | NexBank | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 20,000 | ||||
Line of credit facility, optional maximum borrowing capacity | $ 50,000 | ||||
Renewal term | 1 year | ||||
Long-term line of credit | 20,000 | ||||
The Revolver | Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | NexBank | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 3.50% | ||||
Raymond James | The Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 30,000 | ||||
Repayments of long-term debt, total | 6,000 | ||||
Mortgages payable, net | $ 5,000 | ||||
Raymond James | The Credit Facility | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 4.25% | ||||
Undeveloped Land in Plano, Texas | |||||
Debt Instrument [Line Items] | |||||
Area of land (acre) | a | 21.5 | ||||
Mortgages | |||||
Debt Instrument [Line Items] | |||||
Total | $ 143,487 | ||||
Mortgages payable, net | $ 143,421 | ||||
Mortgages | Cityplace Tower | |||||
Debt Instrument [Line Items] | |||||
Debt, weighted average interest rate | 8.30% | ||||
Notes Payable, Other Payables | Gabriel Legacy, LLC | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 13,300 | ||||
Prime Brokerage Borrowing | Merrill Lynch Professional Clearing Corp (BAML) | |||||
Debt Instrument [Line Items] | |||||
Prime brokerage borrowing | $ 2,100 | ||||
Debt instrument, collateral amount | $ 10,200 | ||||
Prime Brokerage Borrowing | Merrill Lynch Professional Clearing Corp (BAML) | Overnight Bank Funding Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.50% |
Debt - Summary of Long-Term Not
Debt - Summary of Long-Term Notes Payable (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Debt Instrument [Line Items] | |
Total | $ 181,737 |
Mortgages | |
Debt Instrument [Line Items] | |
Total | 143,487 |
Deferred financing costs, net | (66) |
Mortgages payable, net | 143,421 |
Note A-1 | |
Debt Instrument [Line Items] | |
Total | $ 101,955 |
Interest rate | 7.50% |
Note A-2 | |
Debt Instrument [Line Items] | |
Total | $ 22,303 |
Interest rate | 11.50% |
Note B-1 | |
Debt Instrument [Line Items] | |
Total | $ 12,835 |
Interest rate | 7.50% |
Note B-2 | |
Debt Instrument [Line Items] | |
Total | $ 3,186 |
Interest rate | 11.50% |
Mezzanine Note 1 | |
Debt Instrument [Line Items] | |
Total | $ 2,807 |
Interest rate | 11.50% |
Mezzanine Note 2 | |
Debt Instrument [Line Items] | |
Total | $ 401 |
Interest rate | 11.50% |
Debt - Aggregate Scheduled Matu
Debt - Aggregate Scheduled Maturities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Debt Instrument [Line Items] | |
2023 | $ 148,487 |
2024 | 20,000 |
2025 | 13,250 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | 181,737 |
The Credit Facility | |
Debt Instrument [Line Items] | |
2023 | 5,000 |
2024 | 20,000 |
2025 | 13,250 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | 38,250 |
Mortgages | |
Debt Instrument [Line Items] | |
2023 | 143,487 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | $ 143,487 |
Variable Interest Entities - Ow
Variable Interest Entities - Ownership Percentage (Details) - VIE | Jun. 30, 2023 |
NexPoint Real Estate Finance Operating Partnership, L.P. | |
Variable Interest Entity [Line Items] | |
Effective ownership | 16% |
VineBrook Homes Operating Partnership, L.P. | |
Variable Interest Entity [Line Items] | |
Effective ownership | 11.10% |
NexPoint SFR Operating Partnership, L.P. | |
Variable Interest Entity [Line Items] | |
Effective ownership | 30.80% |
NexPoint Storage Partners Operating Company, LLC | |
Variable Interest Entity [Line Items] | |
Effective ownership | 29.70% |
NexPoint Storage Partners, Inc. | |
Variable Interest Entity [Line Items] | |
Effective ownership | 53% |
Perilune Aero Equity Holdings One, LLC | |
Variable Interest Entity [Line Items] | |
Effective ownership | 16.40% |
SFR WLIF III, LLC | |
Variable Interest Entity [Line Items] | |
Effective ownership | 20% |
IQHQ Holdings, LP | |
Variable Interest Entity [Line Items] | |
Effective ownership | 1.10% |
Equity Method Investments - Sum
Equity Method Investments - Summary of Equity Method Investments (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2023 USD ($) a | Dec. 31, 2022 USD ($) | Dec. 08, 2022 | Aug. 08, 2022 | Mar. 30, 2022 a | Feb. 29, 2020 | Jul. 11, 2019 | Nov. 01, 2018 | Jun. 08, 2018 | May 29, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investment Basis | $ 69,590 | $ 70,656 | ||||||||
Share of Investee's Net Assets | 41,512 | 49,863 | ||||||||
Basis Difference | 28,078 | 20,793 | ||||||||
Share of Earnings (Loss) | 1,338 | $ 501 | ||||||||
Investment Basis | $ 508,236 | |||||||||
Allenby, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Effective ownership | 50% | |||||||||
Sandstone Pasadena Apartments, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 50% | 50% | 83.30% | |||||||
Investment Basis | $ 12,169 | $ 13,013 | ||||||||
Share of Investee's Net Assets | (9,590) | 0 | ||||||||
Basis Difference | 21,759 | 13,013 | ||||||||
Share of Earnings (Loss) | $ (14) | $ (217) | ||||||||
AM Uptown Hotel, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 60% | 60% | 85% | |||||||
Investment Basis | $ 26,216 | $ 27,136 | ||||||||
Share of Investee's Net Assets | 21,334 | 21,334 | ||||||||
Basis Difference | 4,882 | 5,802 | ||||||||
Share of Earnings (Loss) | $ 245 | $ (227) | ||||||||
SFR WLIF III, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 20% | 20% | 20% | |||||||
Investment Basis | $ 7,306 | $ 7,272 | ||||||||
Share of Investee's Net Assets | 7,466 | 7,466 | ||||||||
Basis Difference | (160) | (194) | ||||||||
Share of Earnings (Loss) | $ 386 | $ 280 | ||||||||
Las Vegas Land Owner, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 77% | 77% | ||||||||
Investment Basis | $ 12,312 | $ 12,312 | ||||||||
Share of Investee's Net Assets | 12,312 | 12,312 | ||||||||
Basis Difference | 0 | 0 | ||||||||
Share of Earnings (Loss) | $ 0 | $ 0 | ||||||||
Perilune Aero Equity Holdings One, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 16.40% | 16.40% | ||||||||
Investment Basis | $ 11,587 | $ 10,923 | ||||||||
Share of Investee's Net Assets | 9,990 | 8,751 | ||||||||
Basis Difference | 1,597 | 2,172 | ||||||||
Share of Earnings (Loss) | $ 721 | $ 665 | ||||||||
Claymore Holdings, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 50% | 50% | ||||||||
Investment Basis | $ 0 | $ 0 | ||||||||
Share of Investee's Net Assets | 0 | 0 | ||||||||
Basis Difference | 0 | 0 | ||||||||
Share of Earnings (Loss) | $ 0 | $ 0 | ||||||||
Allenby, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 50% | 50% | ||||||||
Investment Basis | $ 0 | $ 0 | ||||||||
Share of Investee's Net Assets | 0 | 0 | ||||||||
Basis Difference | 0 | 0 | ||||||||
Share of Earnings (Loss) | $ 0 | $ 0 | ||||||||
NexPoint Real Estate Finance Operating Partnership, L.P. | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 16% | 16% | ||||||||
Investment Basis | $ 75,909 | |||||||||
NexPoint Real Estate Finance, Inc. | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 12.20% | |||||||||
Investment Basis | $ 32,739 | |||||||||
VineBrook Homes Operating Partnership, L.P. | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 11.10% | 11.10% | ||||||||
Investment Basis | $ 167,305 | |||||||||
NexPoint Storage Partners, Inc. | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 53% | |||||||||
Investment Basis | $ 105,006 | |||||||||
NexPoint Storage Partners Operating Company, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 29.70% | 14.80% | ||||||||
Investment Basis | $ 57,220 | |||||||||
NexPoint SFR Operating Partnership, L.P. | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 30.80% | |||||||||
Investment Basis | $ 49,720 | |||||||||
NexPoint Hospitality Trust | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 45.40% | |||||||||
Investment Basis | $ 16,964 | |||||||||
LLV Holdco, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 26.80% | |||||||||
Investment Basis | $ 3,373 | |||||||||
Tivoli North Property | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
NXDT Percentage Ownership | 77% | |||||||||
Percentage of ownership in real estate property | 100% | |||||||||
Area of land (acre) | a | 8.5 | |||||||||
Tivoli North Property | Las Vegas Land Owner, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Area of land (acre) | a | 8.5 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) $ in Millions | 6 Months Ended | 7 Months Ended | |||||||||||
Apr. 18, 2023 USD ($) | Dec. 23, 2022 shares | Dec. 08, 2022 shares | Jun. 08, 2022 USD ($) | Jul. 11, 2019 USD ($) | Nov. 01, 2018 USD ($) | May 29, 2015 USD ($) unit | Jun. 30, 2023 USD ($) a aircraft property shares | Dec. 31, 2022 USD ($) | Aug. 08, 2022 | Mar. 30, 2022 a unit | Feb. 29, 2020 | Jun. 08, 2018 unit | |
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Noncontrolling interest shares redeemed (in shares) | shares | 2,100,000 | ||||||||||||
Stock issued during period shares conversion of redeemable noncontrolling interests (in shares) | shares | 2,100,000 | ||||||||||||
Number of real estate properties | property | 4 | ||||||||||||
NexPoint SFR Operating Partnership, LP | NexPoint Diversified Real Estate Trust OP GP, LLC | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Stock issued during period, new issues (in shares) | shares | 27,261 | ||||||||||||
Sandstone Pasadena Apartments, LLC | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Payments to acquire equity method investments | $ 12 | ||||||||||||
Number of units in real estate property | unit | 696 | ||||||||||||
NXDT Percentage Ownership | 83.30% | 50% | 50% | ||||||||||
Equity method investment, percentage of return on unreturned equity | 10% | ||||||||||||
AM Uptown Hotel, LLC | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Number of units in real estate property | unit | 255 | ||||||||||||
NXDT Percentage Ownership | 60% | 60% | 85% | ||||||||||
SFR WLIF III, LLC | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
NXDT Percentage Ownership | 20% | 20% | 20% | ||||||||||
SFR WLIF III, LLC | Debt Issued to VineBrook OP | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Receivable with imputed interest, face amount | $ 238.5 | ||||||||||||
SFR WLIF III, LLC | Debt Issued to VineBrook OP | Secured Overnight Financing Rate (SOFR) | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Notes receivable, interest rate, basis spread on variable rate | 15,500% | ||||||||||||
Tivoli North Property | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Number of units in real estate property | unit | 300 | ||||||||||||
NXDT Percentage Ownership | 77% | ||||||||||||
Area of land (acre) | a | 8.5 | ||||||||||||
Percentage of ownership in real estate property | 100% | ||||||||||||
Perilune Aero Equity Holdings One, LLC | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
NXDT Percentage Ownership | 16.40% | 16.40% | |||||||||||
Number of aircraft | aircraft | 2 | ||||||||||||
NexPoint Real Estate Finance Operating Partnership, L.P. | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
NXDT Percentage Ownership | 16% | 16% | |||||||||||
NexPoint Real Estate Finance, Inc. (NREF) | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
NXDT Percentage Ownership | 12.20% | ||||||||||||
Noncontrolling interest shares redeemed (in shares) | shares | 2,100,000 | ||||||||||||
Stock issued during period shares conversion of redeemable noncontrolling interests (in shares) | shares | 2,100,000 | ||||||||||||
VineBrook Homes Operating Partnership, L.P. | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Payments to acquire equity method investments | $ 70.7 | ||||||||||||
NXDT Percentage Ownership | 11.10% | 11.10% | |||||||||||
NexPoint Storage Partners, Inc. | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
NXDT Percentage Ownership | 53% | ||||||||||||
NexPoint Storage Partners Operating Company, LLC | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
NXDT Percentage Ownership | 14.80% | 29.70% | |||||||||||
NexPoint Storage Partners Operating Company, LLC | Common Class B | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Stock issued during period, new issues (in shares) | shares | 47,064 | ||||||||||||
NexPoint SFR Operating Partnership, LP | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Payments to acquire equity method investments | $ 25 | $ 27.5 | |||||||||||
NXDT Percentage Ownership | 30.80% | ||||||||||||
Payments to acquire equity method investments through dividend reinvestments | 1 | ||||||||||||
NexPoint SFR Operating Partnership, LP | Common Class B | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
NXDT Percentage Ownership | 50% | ||||||||||||
NexPoint SFR Operating Partnership, LP | SFR OP Convertible Notes | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Receivable with imputed interest, face amount | 25 | ||||||||||||
Payments to acquire notes receivable | $ 25 | $ 5 | |||||||||||
Notes receivable, interest rate | 7.50% | ||||||||||||
NexPoint SFR Operating Partnership, LP | SFR OP Convertible Notes | NexPoint SFR Operating Partnership, LP | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Extinguishment of debt, amount | $ 8.5 | ||||||||||||
NexPoint Hospitality Trust | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
NXDT Percentage Ownership | 45.40% | ||||||||||||
Number of real estate properties | property | 10 | ||||||||||||
LLV Holdco, LLC | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
NXDT Percentage Ownership | 26.80% | ||||||||||||
Area of undeveloped land | a | 300 | ||||||||||||
Area of developed land | a | 115 | ||||||||||||
LLV Holdco, LLC | Revolving Credit Facility | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Debt instrument, face amount | $ 12.4 | ||||||||||||
Interest rate | 5% |
Equity Method Investments - Bal
Equity Method Investments - Balance Sheet Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||||||
Real estate assets | $ 266,566 | $ 266,083 | ||||
Cash and cash equivalents | 10,590 | 13,360 | ||||
TOTAL ASSETS | 1,173,542 | 1,222,902 | ||||
Liabilities: | ||||||
Total Liabilities | 202,213 | 205,070 | ||||
Total Shareholders' Equity | 971,329 | $ 991,581 | 1,017,832 | $ 1,029,616 | $ 965,891 | $ 911,208 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,173,542 | $ 1,222,902 | ||||
NexPoint Real Estate Finance Operating Partnership, L.P. | ||||||
ASSETS | ||||||
Investments | 7,523,160 | |||||
Real estate assets | 58,613 | |||||
Cash and cash equivalents | 19,657 | |||||
Other assets | 1,805 | |||||
TOTAL ASSETS | 7,603,235 | |||||
Liabilities: | ||||||
Debt | 1,248,549 | |||||
Other liabilities | 5,888,498 | |||||
Total Liabilities | 7,137,047 | |||||
Redeemable noncontrolling interests in the operating company | 94,545 | |||||
Noncontrolling interests in consolidated VIEs | 0 | |||||
Total Shareholders' Equity | 371,643 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,603,235 | |||||
VineBrook | ||||||
ASSETS | ||||||
Investments | 2,500 | |||||
Real estate assets | 3,489,153 | |||||
Cash and cash equivalents | 62,747 | |||||
Other assets | 122,298 | |||||
TOTAL ASSETS | 3,676,698 | |||||
Liabilities: | ||||||
Debt | 2,592,311 | |||||
Other liabilities | 125,732 | |||||
Total Liabilities | 2,718,043 | |||||
Redeemable noncontrolling interests in the operating company | 466,920 | |||||
Noncontrolling interests in consolidated VIEs | 12,705 | |||||
Total Shareholders' Equity | 479,030 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 3,676,698 | |||||
NexPoint Storage Partners, Inc. | ||||||
ASSETS | ||||||
Investments | 0 | |||||
Real estate assets | 1,217,297 | |||||
Cash and cash equivalents | 22,208 | |||||
Other assets | 210,082 | |||||
TOTAL ASSETS | 1,449,587 | |||||
Liabilities: | ||||||
Debt | 904,248 | |||||
Other liabilities | 417,138 | |||||
Total Liabilities | 1,321,386 | |||||
Redeemable noncontrolling interests in the operating company | 205,114 | |||||
Noncontrolling interests in consolidated VIEs | 3,970 | |||||
Total Shareholders' Equity | (80,883) | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,449,587 |
Equity Method Investments - Sta
Equity Method Investments - Statement of Operations Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues | ||||
Rental income | $ 5,417 | $ 10,137 | ||
Net interest income | $ 57,611 | $ 67,404 | ||
Other income | 22 | 31 | ||
Total revenues | 13,880 | 28,746 | ||
Expenses | ||||
Total expenses | $ 13,853 | $ 6,869 | 26,391 | $ 11,792 |
NexPoint Real Estate Finance Operating Partnership, L.P. | ||||
Revenues | ||||
Rental income | 2,035 | |||
Net interest income | 8,154 | |||
Other income | 0 | |||
Total revenues | 10,189 | |||
Expenses | ||||
Total expenses | 10,618 | |||
Gain (loss) on sales of real estate | 0 | |||
Other income (expense) | 18,284 | |||
Unrealized gain (loss) on derivatives | 0 | |||
Total comprehensive income (loss) | 17,855 | |||
VineBrook | ||||
Revenues | ||||
Rental income | 171,911 | |||
Net interest income | 0 | |||
Other income | 2,837 | |||
Total revenues | 174,748 | |||
Expenses | ||||
Total expenses | 243,805 | |||
Gain (loss) on sales of real estate | (30,454) | |||
Other income (expense) | (41,910) | |||
Unrealized gain (loss) on derivatives | 25,852 | |||
Total comprehensive income (loss) | (115,569) | |||
NexPoint Storage Partners, Inc. | ||||
Revenues | ||||
Rental income | 54,418 | |||
Net interest income | 2,032 | |||
Other income | 3,076 | |||
Total revenues | 59,526 | |||
Expenses | ||||
Total expenses | 67,903 | |||
Gain (loss) on sales of real estate | (8,276) | |||
Other income (expense) | (62,515) | |||
Unrealized gain (loss) on derivatives | 0 | |||
Total comprehensive income (loss) | $ (79,168) |
Fair Value of Derivatives and_3
Fair Value of Derivatives and Financial Instruments - Assets at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | $ 893,882 | $ 914,183 |
Bond | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 17 | 17 |
CLO | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 34,958 | 34,958 |
Common stock | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 314,498 | 325,275 |
Convertible notes | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 46,260 | 54,802 |
Life settlement | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 64,267 | 64,267 |
LLC interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 66,492 | 66,492 |
LP interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 323,054 | 321,026 |
Rights and warrants | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 3,937 | 3,947 |
Senior loan | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 40,399 | 43,399 |
Fair Value | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 773,276 | 822,621 |
Fair Value | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 43,968 | 53,872 |
Fair Value | Level 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 80,110 | 81,813 |
Fair Value | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 649,198 | 686,936 |
Fair Value | Bond | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 25 | 20 |
Fair Value | Bond | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | Bond | Level 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 25 | 20 |
Fair Value | Bond | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | CLO | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 5,416 | 6,975 |
Fair Value | CLO | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | CLO | Level 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 563 | 563 |
Fair Value | CLO | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 4,853 | 6,412 |
Fair Value | Common stock | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 265,831 | 288,539 |
Fair Value | Common stock | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 43,968 | 53,872 |
Fair Value | Common stock | Level 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | Common stock | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 221,863 | 234,667 |
Fair Value | Convertible notes | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 43,731 | 50,828 |
Fair Value | Convertible notes | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | Convertible notes | Level 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | Convertible notes | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 43,731 | 50,828 |
Fair Value | Life settlement | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 60,619 | 67,711 |
Fair Value | Life settlement | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | Life settlement | Level 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | Life settlement | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 60,619 | 67,711 |
Fair Value | LLC interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 60,593 | 60,836 |
Fair Value | LLC interest | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | LLC interest | Level 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | LLC interest | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 60,593 | 60,836 |
Fair Value | LP interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 292,933 | 300,511 |
Fair Value | LP interest | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | LP interest | Level 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 75,909 | 77,370 |
Fair Value | LP interest | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 217,024 | 223,141 |
Fair Value | Rights and warrants | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 3,558 | 3,794 |
Fair Value | Rights and warrants | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | Rights and warrants | Level 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 3,558 | 3,794 |
Fair Value | Rights and warrants | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | Senior loan | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 40,570 | 43,407 |
Fair Value | Senior loan | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | Senior loan | Level 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 55 | 66 |
Fair Value | Senior loan | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | $ 40,515 | $ 43,341 |
Fair Value of Derivatives and_4
Fair Value of Derivatives and Financial Instruments - Changes in Level 3 Assets (Details) - Level 3 $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |
Fair value, beginning balance | $ 686,936 |
Contributions/ Purchases | (3,982) |
Paid in- kind dividends | 1,960 |
Redemptions/ Conversions | (7,970) |
Return of capital | 0 |
Realized gain/(loss) | (491) |
Unrealized gain/(loss) | (27,255) |
Fair value, ending balance | 649,198 |
CLO | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |
Fair value, beginning balance | 6,412 |
Contributions/ Purchases | 0 |
Paid in- kind dividends | 0 |
Redemptions/ Conversions | 0 |
Return of capital | 0 |
Realized gain/(loss) | 0 |
Unrealized gain/(loss) | (1,559) |
Fair value, ending balance | 4,853 |
Common stock | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |
Fair value, beginning balance | 234,667 |
Contributions/ Purchases | 0 |
Paid in- kind dividends | 0 |
Redemptions/ Conversions | 0 |
Return of capital | 0 |
Realized gain/(loss) | 0 |
Unrealized gain/(loss) | (12,804) |
Fair value, ending balance | 221,863 |
Convertible notes | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |
Fair value, beginning balance | 50,828 |
Contributions/ Purchases | (8,542) |
Paid in- kind dividends | 0 |
Redemptions/ Conversions | 0 |
Return of capital | 0 |
Realized gain/(loss) | 0 |
Unrealized gain/(loss) | 1,445 |
Fair value, ending balance | 43,731 |
Life settlement | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |
Fair value, beginning balance | 67,711 |
Contributions/ Purchases | 2,532 |
Paid in- kind dividends | 0 |
Redemptions/ Conversions | (2,999) |
Return of capital | 0 |
Realized gain/(loss) | (502) |
Unrealized gain/(loss) | (6,123) |
Fair value, ending balance | 60,619 |
LLC interest | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |
Fair value, beginning balance | 60,836 |
Contributions/ Purchases | 0 |
Paid in- kind dividends | 0 |
Redemptions/ Conversions | 0 |
Return of capital | 0 |
Realized gain/(loss) | 0 |
Unrealized gain/(loss) | (243) |
Fair value, ending balance | 60,593 |
LP interest | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |
Fair value, beginning balance | 223,141 |
Contributions/ Purchases | 2,028 |
Paid in- kind dividends | 0 |
Redemptions/ Conversions | 0 |
Return of capital | 0 |
Realized gain/(loss) | 0 |
Unrealized gain/(loss) | (8,145) |
Fair value, ending balance | 217,024 |
Senior loan | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |
Fair value, beginning balance | 43,341 |
Contributions/ Purchases | 0 |
Paid in- kind dividends | 1,960 |
Redemptions/ Conversions | (4,971) |
Return of capital | 0 |
Realized gain/(loss) | 11 |
Unrealized gain/(loss) | 174 |
Fair value, ending balance | $ 40,515 |
Fair Value of Derivatives and_5
Fair Value of Derivatives and Financial Instruments - Significant Unobservable Inputs of Level 3 Assets (Details) - Level 3 $ in Thousands | Jun. 30, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value | $ 649,198 |
CLO | Discount Rate | Discounted Net Asset Value | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.70 |
Fair Value | $ 4,853 |
Common stock | Discount Rate | Discounted Net Asset Value | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.1000 |
Common stock | Unadjusted Price/MHz-PoP | Market Approach | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value | $ 221,863 |
Common stock | Implied Enterprise Value from Transaction Price ($mm) | Recent Transaction | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 841 |
Common stock | Offer Price per Share | Recent Transaction | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 1.1000 |
Convertible notes | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value | $ 43,731 |
Life settlement | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.14 |
Fair Value | $ 60,619 |
LLC interest | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value | $ 60,593 |
LLC interest | Capitalization Rates | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.055 |
LP interest | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value | $ 217,024 |
LP interest | Offer Price per Share | Recent Transaction | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 22.95 |
Senior loan | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value | $ 40,515 |
Minimum | Common stock | Recent Transaction | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 25.31 |
Minimum | Common stock | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.075 |
Minimum | Common stock | Unadjusted Price/MHz-PoP | Market Approach | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.09 |
Minimum | Common stock | Discounted Net Asset Value | Market Approach | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 1.10 |
Minimum | Common stock | Market Rent (per sqft) | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 4.48 |
Minimum | Common stock | RevPAR | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 71 |
Minimum | Common stock | Capitalization Rates | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.055 |
Minimum | Common stock | Multiple of EBITDA | Multiples Analysis | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 3.25 |
Minimum | Convertible notes | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.0750 |
Minimum | Life settlement | Life Expectancy (Months) | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 22 |
Minimum | LLC interest | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.0750 |
Minimum | LLC interest | Market Rent (per sqft) | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 4.48 |
Minimum | LP interest | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.0660 |
Minimum | LP interest | Capitalization Rates | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.037 |
Minimum | Senior loan | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.1230 |
Maximum | Common stock | Recent Transaction | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 28 |
Maximum | Common stock | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.1150 |
Maximum | Common stock | Unadjusted Price/MHz-PoP | Market Approach | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.90 |
Maximum | Common stock | Discounted Net Asset Value | Market Approach | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 1.45 |
Maximum | Common stock | Market Rent (per sqft) | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 32.55 |
Maximum | Common stock | RevPAR | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 186 |
Maximum | Common stock | Capitalization Rates | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.09875 |
Maximum | Common stock | Multiple of EBITDA | Multiples Analysis | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 4.25 |
Maximum | Convertible notes | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.0975 |
Maximum | Life settlement | Life Expectancy (Months) | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 299 |
Maximum | LLC interest | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.3000 |
Maximum | LLC interest | Market Rent (per sqft) | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 32.55 |
Maximum | LP interest | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.0920 |
Maximum | LP interest | Capitalization Rates | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.068 |
Maximum | Senior loan | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 0.2000 |
Weighted Average | Common stock | Recent Transaction | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (26.655) |
Weighted Average | Common stock | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (0.0961) |
Weighted Average | Common stock | Unadjusted Price/MHz-PoP | Market Approach | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (0.50) |
Weighted Average | Common stock | Discounted Net Asset Value | Market Approach | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (1.28) |
Weighted Average | Common stock | Market Rent (per sqft) | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (14) |
Weighted Average | Common stock | RevPAR | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (104.89) |
Weighted Average | Common stock | Capitalization Rates | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (0.0866) |
Weighted Average | Common stock | Multiple of EBITDA | Multiples Analysis | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (3.75) |
Weighted Average | Convertible notes | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (0.0863) |
Weighted Average | Life settlement | Life Expectancy (Months) | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | 71 |
Weighted Average | LLC interest | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (0.1388) |
Weighted Average | LLC interest | Market Rent (per sqft) | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (14) |
Weighted Average | LP interest | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (0.0775) |
Weighted Average | LP interest | Capitalization Rates | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (0.0525) |
Weighted Average | Senior loan | Discount Rate | Discounted Cash Flow | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Input Value(s) (Arithmetic Mean) | (0.1615) |
Life Settlement Portfolio - Nar
Life Settlement Portfolio - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) policy | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |
Life insurance policies, number | policy | 0 |
Life insurance policies matured, number | policy | 1 |
Life insurance policies matured, death benefit | $ | $ 3 |
Life insurance policies matured, premiums | $ | $ 2.5 |
Specialty Financial Products, LLC | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |
Ownership percentage | 100% |
Life Settlement Portfolio - Sch
Life Settlement Portfolio - Schedule of Life Settlement Portfolio (Details) $ in Thousands | Jun. 30, 2023 USD ($) contract |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |
Number of contracts, total | contract | 27 |
Face value, total | $ 139,951 |
Acquisition cost, total | 46,222 |
Premium cost, total | 2,628 |
Total, fair value | $ 60,619 |
Number | |
Number of contracts, maturing in next rolling 12 months | contract | 0 |
Number of contracts, maturing in rolling year two | contract | 2 |
Number of contracts, maturing in rolling year three | contract | 6 |
Number of contracts, maturing in rolling year four | contract | 5 |
Number of contracts, maturing in rolling year five | contract | 2 |
Number of contracts, maturing after rolling year five | contract | 12 |
Number of contracts, total | contract | 27 |
Face Value | |
Face value, maturing in next rolling 12 months | $ 0 |
Face value, maturing in rolling year two | 5,540 |
Face value, maturing in rolling year three | 32,413 |
Face value, maturing in rolling year four | 35,311 |
Face value, maturing in rolling year five | 9,000 |
Face value, maturing after rolling year five | 57,687 |
Face value, total | 139,951 |
Fair Value | |
Fair value, maturing in next rolling 12 months | 0 |
Fair value, maturing in rolling year two | 4,341 |
Fair value, maturing in rolling year three | 18,413 |
Fair value, maturing in rolling year four | 19,621 |
Fair value, maturing in rolling year five | 3,610 |
Fair value, maturing after rolling year five | 14,634 |
Total, fair value | 60,619 |
Minimum | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |
Face value, total | 1,500 |
Acquisition cost, total | 350 |
Premium cost, total | 0 |
Total, fair value | 27 |
Face Value | |
Face value, total | 1,500 |
Fair Value | |
Total, fair value | 27 |
Maximum | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |
Face value, total | 15,000 |
Acquisition cost, total | 3,895 |
Premium cost, total | 380 |
Total, fair value | 6,044 |
Face Value | |
Face value, total | 15,000 |
Fair Value | |
Total, fair value | $ 6,044 |
Life Settlement Portfolio - Fut
Life Settlement Portfolio - Future Premiums to be Paid (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Insurance [Abstract] | |
2023 | $ 2,628 |
2024 | 5,554 |
2025 | 6,238 |
2026 | 7,009 |
2027 | $ 7,672 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Apr. 04, 2023 | Jan. 08, 2021 | Jun. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | ||||||
Common stock, shares, issued (in shares) | 37,171,807 | 37,171,807 | 37,171,807 | |||
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||
Common shares pursuant to terminated dividend reinvestment plan (in shares) | 0 | |||||
Common stock, dividends paid (in dollars per share) | $ 0.15 | |||||
Common stock dividends declared (in dollars per share) | $ 0.15 | $ 0.30 | ||||
Preferred stock, shares issued (in shares) | 3,359,593 | 3,359,593 | 3,359,593 | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||
Restricted Stock Units (RSUs) | ||||||
Class of Stock [Line Items] | ||||||
Granted (in shares) | 603,482 | |||||
Equity-based compensation expense | $ 0.4 | $ 0.4 | ||||
Dividends payable | $ 0.1 | $ 0.1 | ||||
Long Term Incentive Plan | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares, issued (in shares) | 0 | 0 | ||||
Common stock, shares authorized (in shares) | 2,545,000 | |||||
Award vesting period | 4 years | |||||
Long Term Incentive Plan | Director | Restricted Stock Units (RSUs) | ||||||
Class of Stock [Line Items] | ||||||
Granted (in shares) | 37,313 | |||||
Long Term Incentive Plan | Officer | Restricted Stock Units (RSUs) | ||||||
Class of Stock [Line Items] | ||||||
Granted (in shares) | 566,169 | |||||
Long Term Incentive Plan | Minimum | ||||||
Class of Stock [Line Items] | ||||||
Award vesting period | 3 years | |||||
Long Term Incentive Plan | Maximum | ||||||
Class of Stock [Line Items] | ||||||
Award vesting period | 5 years | |||||
Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares issued (in shares) | 3,359,593 | |||||
Preferred stock, dividend rate, percentage | 5.50% | |||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||
Preferred stock, redemption price per share (in dollars per share) | $ 25 | |||||
Proceeds from issuance of preferred stock | $ 84 | |||||
Preferred stock, dividends paid (in dollars per share) | $ 0.34375 |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted Stock Units Activities (Details) - Restricted Stock Units (RSUs) - $ / shares | 6 Months Ended | |
Apr. 04, 2023 | Jun. 30, 2023 | |
Number of Units | ||
Restricted stock units at the beginning of the period (in shares) | 0 | |
Granted (in shares) | 603,482 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Restricted stock units at the end of the period (in shares) | 603,482 | 603,482 |
Weighted Average Grant Date Fair Value | ||
Restricted stock units weighted-average grant date fair value at the beginning of the period (in dollars per share) | $ 0 | |
Weighted-average grant date fair value, granted (in dollars per share) | 10.45 | |
Weighted-average grant date fair value, vested (in dollars per share) | 0 | |
Weighted-average grant date fair value, forfeited (in dollars per share) | 0 | |
Restricted stock units weighted-average grant date fair value at the end of the period (in dollars per share) | $ 10.45 |
Shareholders' Equity - Restri_2
Shareholders' Equity - Restricted Stock Units Vesting Schedule (Details) - Restricted Stock Units (RSUs) - shares | Jun. 30, 2023 | Apr. 04, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | |||
2023 | 0 | ||
2024 | 178,855 | ||
2025 | 141,542 | ||
2026 | 141,542 | ||
2027 | 141,542 | ||
Total | 603,482 | 603,482 | 0 |
April | |||
Class of Stock [Line Items] | |||
2023 | 0 | ||
2024 | 178,855 | ||
2025 | 141,542 | ||
2026 | 141,542 | ||
2027 | 141,542 | ||
Total | 603,482 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Numerator for loss per share: | ||
Net loss attributable to common shareholders | $ (15,022) | $ (35,698) |
Denominator for loss per share: | ||
Weighted average common shares outstanding (in shares) | 37,172,000 | 37,172,000 |
Weighted average unvested restricted stock units (in shares) | 38,000 | 37,000 |
Denominator for diluted loss per share (in shares) | 37,172,000 | 37,172,000 |
Loss per weighted average common share: | ||
Loss per share - basic (in dollars per share) | $ (0.40) | $ (0.96) |
Loss per share - diluted (in dollars per share) | $ (0.40) | $ (0.96) |
Antidilutive securities excluded from computation of earnings per share (in shares) | 293,406 | 583,587 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||||||
May 22, 2023 | Jan. 01, 2023 | Dec. 23, 2022 | Sep. 14, 2022 | Aug. 08, 2022 | Mar. 31, 2022 | Jan. 01, 2014 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 13, 2023 | Apr. 11, 2023 | Dec. 31, 2022 | Dec. 08, 2022 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||||||||||||||
Annual advisory fee, percent | 1% | |||||||||||||
Administrative fee, percent | 0.20% | |||||||||||||
Advisory agreement, maximum common shares issuable (in shares) | 6,000,000 | |||||||||||||
Maximum fee, percentage of managed assets | 1.50% | |||||||||||||
Advisory agreement, term | 3 years | |||||||||||||
Advisory agreement, additional term | 1 year | |||||||||||||
Termination threshold with cause | 30 days | |||||||||||||
Termination threshold without cause | 180 days | |||||||||||||
Termination threshold, material breach of contract | 30 days | |||||||||||||
Material breach of contract, term | 30 days | |||||||||||||
Termination fee calculation, threshold period | 1 year | |||||||||||||
Administrative and advisory fees expense | $ 1,700,000 | $ 5,200,000 | ||||||||||||
Administrative and advisory fees expense waived to comply with cap | $ 1,600,000 | $ 2,000,000 | ||||||||||||
Common stock, shares, issued (in shares) | 37,171,807 | 37,171,807 | 37,171,807 | |||||||||||
Noncontrolling interest shares redeemed (in shares) | 2,100,000 | |||||||||||||
Stock issued during period shares conversion of redeemable noncontrolling interests (in shares) | 2,100,000 | |||||||||||||
REIT Sub and the Co-Guarantors | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Guarantor obligations, current carrying value | $ 64,200,000 | |||||||||||||
Guarantor obligations, maximum exposure | 97,600,000 | |||||||||||||
REIT Sub | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Guarantor obligations, maximum exposure | $ 83,800,000 | |||||||||||||
SFR IMA | NexAnnuity Asset Management, L.P. | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Management fee, percent | 1% | |||||||||||||
NexPoint Storage Partners Operating Company, LLC | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Ownership percentage | 29.70% | 29.70% | 14.80% | |||||||||||
NexPoint Storage Partners, Inc. | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Ownership percentage | 53% | 53% | ||||||||||||
Tivoli North Property | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Percentage of ownership in real estate property | 77% | |||||||||||||
Bridge Note | PNC Bank, N.A. | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 13,500,000 | $ 13,500,000 | ||||||||||||
Bridge Note | Secured Overnight Financing Rate (SOFR) | PNC Bank, N.A. | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||||||||||
Bridge Note | Prime Rate | NexPoint Real Estate Finance, Inc. | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||||||||||
NexBank | The Revolver | Revolving Credit Facility | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | |||||||||||||
Line of credit facility, optional maximum borrowing capacity | $ 50,000,000 | |||||||||||||
Long-term line of credit | $ 20,000,000 | $ 20,000,000 | ||||||||||||
NexBank | The Revolver | Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||||||||||
BS Borrower | BS Loan Agreement | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Mortgages payable, net | $ 184,900,000 | |||||||||||||
Long-term debt, additional term | 1 year | |||||||||||||
BS Borrower | BS Loan Agreement | Minimum | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Mortgages payable, net | $ 221,800,000 | |||||||||||||
BS Borrower | BS Loan Agreement | Minimum | Secured Overnight Financing Rate (SOFR) | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||||||||
BS Borrower | BS Loan Agreement, First Initial Principal | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 5.40% | |||||||||||||
Mortgages payable, net | $ 36,900,000 | |||||||||||||
BS Borrower | BS Loan Agreement, Second Initial Principal | Secured Overnight Financing Rate (SOFR) | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 356,500,000 | |||||||||||||
BS Loan Agreement | BS Loan Agreement, First Initial Principal | Secured Overnight Financing Rate (SOFR) | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 4% | |||||||||||||
CMBS Borrower | CMBS Loan Agreement | Secured Overnight Financing Rate (SOFR) | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate | 3.60% | |||||||||||||
CMBS Borrower | CMBS Loan Agreement, Second Extension | Secured Overnight Financing Rate (SOFR) | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate, increase | 0.10% | |||||||||||||
CMBS Borrower | CMBS Loan Agreement, Third Extension | Secured Overnight Financing Rate (SOFR) | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, basis spread on variable rate, increase | 0.15% | |||||||||||||
NexVest Realty Advisors | Property Management Fees | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Management fee, percent | 3% | |||||||||||||
Related party transaction, expenses from transactions with related party | $ 300,000 | |||||||||||||
Related party transaction, monthly expenses from transactions with related party | $ 1,200 | $ 750 | ||||||||||||
NexVest Realty Advisors | Property Management Fees | Cityplace Tower | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Minimum management fee | 20,000 | $ 20,000 | ||||||||||||
White Rock Center | Property Management Fees | Cityplace Tower | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Management fee, percent | 4% | |||||||||||||
NexPoint Hospitality Trust | Guarantor on Loans | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Mortgages payable, net | $ 77,400,000 | $ 77,400,000 | ||||||||||||
NexPoint Storage Partners Operating Company, LLC | Common Class B | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Common stock, shares, issued (in shares) | 47,064 | 47,064 | 47,064 | |||||||||||
NexPoint Storage Partners, Inc. | Common Class B | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Common stock, shares, issued (in shares) | 86,369 | 86,369 | ||||||||||||
NexPoint SFR Operating Partnership, L.P. | NexPoint SFR Operating Partnership, L.P. | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 11,000,000 | |||||||||||||
NexPoint SFR Operating Partnership, L.P. | Highland Income Fund (“HIF”) | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Interest rate | 7.50% | |||||||||||||
Convertible notes | $ 11,000,000 | |||||||||||||
Threshold percentage ownership | 0.500 |
Related Party Transactions - Re
Related Party Transactions - Related Party Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Change in unrealized gains (losses) | $ (9,332) | $ 10,546 | $ (27,972) | $ 32,594 |
Realized gains (losses) | (914) | $ 1,555 | 221 | $ 29,146 |
Equity in income (loss) | 422 | 346 | ||
SFR WLIF III, LLC | ||||
Related Party Transaction [Line Items] | ||||
Investments | 7,306 | 7,306 | ||
Change in unrealized gains (losses) | 0 | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 421 | |||
Interest and Dividends | 0 | |||
Total Income | 421 | |||
NexPoint Residential Trust, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Investments | 4,075 | 4,075 | ||
Change in unrealized gains (losses) | 175 | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 0 | |||
Interest and Dividends | 75 | |||
Total Income | 250 | |||
NexPoint Hospitality Trust | ||||
Related Party Transaction [Line Items] | ||||
Investments | 16,964 | 16,964 | ||
Change in unrealized gains (losses) | (10,721) | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 0 | |||
Interest and Dividends | 0 | |||
Total Income | (10,721) | |||
NexPoint Hospitality Trust | ||||
Related Party Transaction [Line Items] | ||||
Investments | 22,531 | 22,531 | ||
Change in unrealized gains (losses) | 1,052 | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 0 | |||
Interest and Dividends | 319 | |||
Total Income | 1,371 | |||
NexPoint Storage Partners, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Investments | 105,005 | 105,005 | ||
Change in unrealized gains (losses) | 1,311 | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 0 | |||
Interest and Dividends | 0 | |||
Total Income | 1,311 | |||
NexPoint Storage Partners Operating Company, LLC | ||||
Related Party Transaction [Line Items] | ||||
Investments | 57,220 | 57,220 | ||
Change in unrealized gains (losses) | 714 | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 0 | |||
Interest and Dividends | 0 | |||
Total Income | 714 | |||
NexPoint SFR Operating Partnership, L.P. | ||||
Related Party Transaction [Line Items] | ||||
Investments | 49,720 | 49,720 | ||
Change in unrealized gains (losses) | (4,361) | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 0 | |||
Interest and Dividends | 1,203 | |||
Total Income | (3,158) | |||
NexPoint SFR Operating Partnership, L.P. | ||||
Related Party Transaction [Line Items] | ||||
Investments | 21,200 | 21,200 | ||
Change in unrealized gains (losses) | 393 | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 0 | |||
Interest and Dividends | 998 | |||
Total Income | 1,391 | |||
Claymore Holdings, LLC | ||||
Related Party Transaction [Line Items] | ||||
Investments | 0 | 0 | ||
Change in unrealized gains (losses) | 0 | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 0 | |||
Interest and Dividends | 0 | |||
Total Income | 0 | |||
Allenby, LLC | ||||
Related Party Transaction [Line Items] | ||||
Investments | 0 | 0 | ||
Change in unrealized gains (losses) | 0 | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 0 | |||
Interest and Dividends | 0 | |||
Total Income | 0 | |||
NexPoint Real Estate Finance Operating Partnership, L.P. | ||||
Related Party Transaction [Line Items] | ||||
Investments | 75,909 | 75,909 | ||
Change in unrealized gains (losses) | (1,461) | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 0 | |||
Interest and Dividends | 5,843 | |||
Total Income | 4,382 | |||
NexPoint Real Estate Finance, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Investments | 32,739 | 32,739 | ||
Change in unrealized gains (losses) | (630) | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 0 | |||
Interest and Dividends | 2,877 | |||
Total Income | 2,247 | |||
VineBrook Homes Operating Partnership, L.P. | ||||
Related Party Transaction [Line Items] | ||||
Investments | 167,305 | 167,305 | ||
Change in unrealized gains (losses) | (3,784) | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 0 | |||
Interest and Dividends | 2,866 | |||
Total Income | (918) | |||
Affiliates of the Advisor | ||||
Related Party Transaction [Line Items] | ||||
Investments | $ 559,974 | 559,974 | ||
Change in unrealized gains (losses) | (17,312) | |||
Realized gains (losses) | 0 | |||
Equity in income (loss) | 421 | |||
Interest and Dividends | 14,181 | |||
Total Income | $ (2,710) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Sep. 14, 2022 |
NexPoint Storage Partners, Inc. | ||
Other Commitments [Line Items] | ||
Ownership percentage | 53% | |
REIT Sub and the Co-Guarantors | ||
Other Commitments [Line Items] | ||
Guarantor obligations, current carrying value | $ 64.2 | |
Guarantor obligations, maximum exposure | 97.6 | |
REIT Sub | ||
Other Commitments [Line Items] | ||
Guarantor obligations, maximum exposure | $ 83.8 | |
NexPoint Hospitality Trust | Guarantor on Loans | ||
Other Commitments [Line Items] | ||
Other commitment | $ 77.4 |
Operating Leases - Lessee, Oper
Operating Leases - Lessee, Operating Lease, Liability, Maturity (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 6,069 |
2024 | 9,440 |
2025 | 9,130 |
2026 | 7,815 |
2027 | 7,001 |
Thereafter | 19,601 |
Total | $ 59,056 |
Operating Leases - Concentratio
Operating Leases - Concentration Risk (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Revenue Benchmark | Customer Concentration Risk | Hudson Advisors, LLC | |
Lessor, Lease, Description [Line Items] | |
Rental Income | $ 1,424 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2023 | Jul. 24, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | |
Subsequent Event [Line Items] | ||||
Common stock dividends declared (in dollars per share) | $ 0.15 | $ 0.30 | ||
Preferred stock dividends declared (in dollars per share) | $ 0.34375 | $ 0.68750 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Common stock dividends declared (in dollars per share) | $ 0.15 | |||
Preferred stock dividends declared (in dollars per share) | $ 0.34375 | |||
Stock issued during period, issued for services (in shares) | 14,588.75 |