Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 10, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 39,650,817 | |
Entity Central Index Key | 0001356115 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
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 ($25.00 liquidation preference per share) | |
Trading Symbol | NXDT-PA | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Consolidated Real Estate Investments | ||
Land | $ 47,708 | $ 47,708 |
Buildings and improvements | 206,546 | 206,213 |
Intangible lease assets | 10,979 | 10,979 |
Construction in progress | 19,993 | 19,177 |
Furniture, fixtures, and equipment | 362 | 362 |
Total Gross Consolidated Real Estate Investments | 285,588 | 284,439 |
Accumulated depreciation and amortization | (23,172) | (20,525) |
Total Net Consolidated Real Estate Investments | 262,416 | 263,914 |
Investments, at fair value ($519,108 and $533,065 with related parties, respectively) | 669,535 | 691,238 |
Equity method investments ($7,002 and $7,079 with related parties, respectively) | 63,531 | 66,263 |
Cash and cash equivalents | 20,173 | 20,608 |
Restricted cash | 33,516 | 32,561 |
Accounts receivable, net | 1,796 | 4,347 |
Prepaid and other assets | 12,594 | 10,431 |
Accrued interest and dividends | 8,084 | 6,078 |
Deferred tax asset, net | 2,905 | 2,896 |
TOTAL ASSETS | 1,074,550 | 1,098,336 |
Liabilities: | ||
Mortgages payable, net | 141,379 | 142,186 |
Notes payable, net ($20,000 and $20,000 with related party, respectively) | 52,291 | 52,919 |
Prime brokerage borrowing | 1,441 | 1,782 |
Accounts payable and other accrued liabilities | 7,090 | 8,633 |
Income tax payable | 1,527 | 356 |
Accrued real estate taxes payable | 1,018 | 231 |
Accrued interest payable | 1,374 | 1,398 |
Security deposit liability | 415 | 422 |
Prepaid rents | 718 | 768 |
Intangible lease liabilities, net | 4,274 | 4,567 |
Total Liabilities | 211,527 | 213,262 |
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; 39,301,419 and 38,389,600 shares issued and outstanding, respectively | 39 | 38 |
Additional paid-in capital | 1,018,136 | 1,011,613 |
Accumulated earnings (loss) | (155,155) | (126,580) |
Total Shareholders' Equity | 863,023 | 885,074 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,074,550 | $ 1,098,336 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investments, at fair value | $ 669,535 | $ 691,238 |
Equity method investments | 63,531 | 66,263 |
Notes payable, net | $ 52,291 | $ 52,919 |
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) | 39,301,419 | 38,389,600 |
Common stock, shares, outstanding (in shares) | 39,301,419 | 38,389,600 |
Related Party | ||
Investments, at fair value | $ 519,108 | $ 533,065 |
Equity method investments | 7,002 | 7,079 |
Notes payable, net | $ 20,000 | $ 20,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Rental income | $ 4,047 | $ 4,720 |
Interest income | 1,682 | 2,018 |
Dividend income | 7,049 | 8,119 |
Other income | 27 | 9 |
Total revenues | 12,805 | 14,866 |
Expenses | ||
Property operating expenses | 1,577 | 1,506 |
Property management fees | 176 | 171 |
Real estate taxes and insurance | 1,239 | 1,357 |
Advisory and administrative fees | 3,246 | 3,578 |
Conversion expenses | 0 | 163 |
Depreciation and amortization | 2,796 | 3,524 |
Total expenses | 12,536 | 12,538 |
Operating income (loss) | 269 | 2,328 |
Interest expense | (4,531) | (3,462) |
Equity in income (losses) of unconsolidated equity method ventures | (1,154) | (76) |
Change in unrealized gains (losses) ($(15,676) and $(16,008) with related parties, respectively) | 6,290 | (18,640) |
Realized gains (losses) | (21,872) | 1,135 |
Net income (loss) before income taxes | (20,998) | (18,715) |
Income tax expense | (550) | (806) |
Net income (loss) | (21,548) | (19,521) |
Net (income) loss attributable to preferred shareholders | (1,155) | (1,155) |
Net income (loss) attributable to common shareholders | $ (22,703) | $ (20,676) |
Weighted average common shares outstanding - basic (in shares) | 38,572 | 37,172 |
Weighted average common shares outstanding - diluted (in shares) | 38,572 | 37,172 |
Earnings (loss) per share - basic (in dollars per share) | $ (0.59) | $ (0.56) |
Earnings (loss) per share - diluted (in dollars per share) | $ (0.59) | $ (0.56) |
Property general and administrative expenses | ||
Expenses | ||
General and administrative expense | $ 667 | $ 743 |
Corporate general and administrative expenses | ||
Expenses | ||
General and administrative expense | $ 2,835 | $ 1,496 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest income | $ 1,682 | $ 2,018 |
Dividend income | 7,049 | 8,119 |
Equity in (income) losses of unconsolidated ventures | 1,154 | 76 |
Change in Unrealized Gain/(Loss) | 6,290 | (18,640) |
Related Party | ||
Interest income | 482 | 625 |
Dividend income | 6,905 | 6,426 |
Equity in (income) losses of unconsolidated ventures | (214) | 213 |
Change in Unrealized Gain/(Loss) | $ (15,676) | $ (16,008) |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Earnings (Loss) |
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] | |||||
Net loss attributable to common shareholders | (20,676) | (20,676) | |||
Net income attributable to preferred shareholders | 1,155 | 1,155 | |||
Common share dividends declared | (5,575) | (5,575) | |||
Preferred share dividends declared | (1,155) | (1,155) | |||
Ending balances (in shares) at Mar. 31, 2023 | 3,359,593 | 37,171,807 | |||
End of period at Mar. 31, 2023 | 991,581 | $ 3 | $ 37 | 999,845 | (8,304) |
Beginning balances (in shares) at Dec. 31, 2023 | 3,359,593 | 38,389,600 | |||
Beginning of period at Dec. 31, 2023 | 885,074 | $ 3 | $ 38 | 1,011,613 | (126,580) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 547 | 547 | |||
Shares issued to Advisor for admin and advisory fees (in shares) | 169,921 | ||||
Shares issued to Adviser for admin and advisory fees | 1,351 | 1,351 | |||
Net loss attributable to common shareholders | (22,703) | (22,703) | |||
Net income attributable to preferred shareholders | 1,155 | 1,155 | |||
Common share dividends declared (in shares) | 741,898 | ||||
Common share dividends declared | (1,246) | $ 1 | 4,625 | (5,872) | |
Preferred share dividends declared | (1,155) | (1,155) | |||
Ending balances (in shares) at Mar. 31, 2024 | 3,359,593 | 39,301,419 | |||
End of period at Mar. 31, 2024 | $ 863,023 | $ 3 | $ 39 | $ 1,018,136 | $ (155,155) |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Common share dividends declared (in dollars per share) | $ 0.15 | $ 0.15 |
Preferred share dividends declared (in dollars per share) | $ 0.34375 | $ 0.34375 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net loss | $ (21,548) | $ (19,521) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,796 | 3,524 |
Amortization of intangible lease assets and liabilities | (257) | (371) |
Amortization of deferred financing costs | 271 | 474 |
Paid-in-kind interest ($(1,296) and $0 with related parties, respectively) | (2,356) | (1,008) |
Proceeds from paid-in-kind interest on paydowns or sales from investments | 2,271 | 0 |
Realized (gain) loss | 21,872 | (1,135) |
Net change in unrealized (gain) loss on investments held at fair value | (6,290) | 18,640 |
Equity in (income) losses of unconsolidated ventures | 1,154 | 76 |
Distributions of earnings from unconsolidated ventures | 1,578 | 727 |
Stock-based compensation expense | 547 | 0 |
Cash paid for life settlement premiums | 0 | (1,266) |
Equity security dividends reinvested ($(2,082) and $0 with related parties, respectively) | (2,154) | 0 |
Deferred tax benefit | (9) | (116) |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Income tax payable | 1,171 | 921 |
Real estate taxes payable | 787 | 877 |
Operating assets | (1,920) | 476 |
Operating liabilities | (468) | (1,793) |
Net cash provided by (used in) operating activities | (2,555) | 505 |
Cash flows from investing activities | ||
Proceeds from asset redemptions ($1,700 and $0 with related parties, respectively) | 1,700 | 0 |
Distributions from CLO investments | 1,267 | 0 |
Proceeds from sale of investments | 2,437 | 14,549 |
Proceeds from paydowns of investments | 3,252 | 0 |
Purchases of investments ($(42) and $0 with related parties, respectively) | (42) | (1,464) |
Additions to consolidated real estate investments | (1,178) | (4,851) |
Net cash provided by investing activities | 7,436 | 8,234 |
Cash flows from financing activities | ||
Mortgage payments | (592) | (591) |
Prime brokerage borrowing | 88 | 6,397 |
Credit facilities payments | (750) | (2,999) |
Prime brokerage payments | (429) | (8,285) |
Deferred financing costs paid | (365) | (379) |
Dividends paid to preferred shareholders | (1,155) | (1,155) |
Dividends paid to common shareholders | (1,158) | (5,575) |
Net cash used in financing activities | (4,361) | (12,587) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 520 | (3,848) |
Cash, cash equivalents and restricted cash, beginning of period | 53,169 | 48,649 |
Cash, cash equivalents and restricted cash, end of period | 53,689 | 44,801 |
Supplemental Disclosure of Cash Flow Information | ||
Interest paid | 4,555 | 2,504 |
Income tax paid | 0 | 1,501 |
Supplemental Disclosure of Noncash Activities | ||
Change in capitalized construction costs included in accounts payable and other accrued liabilities | (29) | 322 |
Change in capitalized investment costs included in accounts payable and other accrued liabilities | 121 | 0 |
Non-cash dividend payment | 4,626 | 0 |
Non-cash advisory fee payment | 1,351 | 0 |
Increase in dividends payable upon vesting of restricted stock units | $ 89 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Paid-in-kind interest ($(1,296) and $0 with related parties, respectively) | $ (2,356) | $ (1,008) |
Net change in unrealized (gain) loss on investments held at fair value | (6,290) | 18,640 |
Equity in (income) losses of unconsolidated ventures | 1,154 | 76 |
Distributions of earnings from unconsolidated ventures | 1,578 | 727 |
Equity security dividends reinvested | (2,154) | 0 |
Proceeds from asset redemptions | 1,700 | 0 |
Purchase of investments, related parties | (42) | (1,464) |
Related Party | ||
Paid-in-kind interest ($(1,296) and $0 with related parties, respectively) | (1,296) | 0 |
Net change in unrealized (gain) loss on investments held at fair value | (15,676) | (16,009) |
Equity in (income) losses of unconsolidated ventures | (214) | 213 |
Distributions of earnings from unconsolidated ventures | 292 | 195 |
Equity security dividends reinvested | (2,082) | 0 |
Proceeds from asset redemptions | 1,700 | 0 |
Purchase of investments, related parties | $ (42) | $ 0 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, 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 March 31, 2024 . 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 | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Accounting 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, 2023, which are included in our 2023 Annual Report on Form 10-K ("202 3 Annual Report") , filed with the 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 2023 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. Income Taxes The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code"), and expects to continue to qualify as a REIT. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement to distribute annually at least 90% of its “REIT taxable income,” as defined by the Code, to its shareholders. As a REIT, the Company will be subject to federal income tax on its undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions it pays with respect to any calendar year are less than the sum of (1) 85% of its ordinary income, (2) 95% of its capital gain net income and (3) 100% of its undistributed income from prior years. The Company intends to operate in such a manner so as to qualify as a REIT, but no assurance can be given that the Company will operate in a manner so as to qualify as a REIT. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. If the Company fails to meet these requirements, it could be subject to federal income tax on all of the Company’s taxable income at regular corporate rates for that year. The Company would not be able to deduct distributions paid to shareholders in any year in which it fails to qualify as a REIT. Additionally, the Company will also be disqualified from electing to be taxed as a REIT for the four taxable years following the year during which qualification was lost unless the Company is entitled to relief under specific statutory provisions. As of March 31, 2024, the Company believes it is in compliance with all applicable REIT requirements. As a REIT for U.S. federal income tax purposes, the Company may deduct earnings distributed to shareholders 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 $21.0 million and $18.7 million for the three months ended March 31, 2024 and 2023, respectively. The Company’s consolidated balance sheet as of March 31, 2024 consists of a $4.5 million net deferred tax asset at NHF TRS, LLC and a $1.6 million net deferred tax liability at NREO TRS, Inc. for a consolidated net Deferred Tax asset of $2.9 million. The Company's consolidated balance sheet as of December 31, 2023 consisted of a $4.5 million net deferred tax asset at NHF TRS, LLC and a $1.6 million net deferred tax liability at NREO TRS, Inc. for a consolidated net Deferred Tax asset of $2.9 million. 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 months ended March 31, 2024 and 2023 were (2.62)% and (4.31)%, 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. The Company recognizes its tax positions and evaluates them using a two-step process. First, the Company determines whether a tax position is more-likely-than-not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. The Company had no material unrecognized tax benefit or expense, accrued interest or penalties as of March 31, 2024 and 2023. The Company and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The 2023, 2022, 2021 and 2020 tax years remain open to examination by tax jurisdictions to which the Company and its subsidiaries are subject. When applicable, the Company recognizes interest and/or penalties related to uncertain tax positions on its consolidated statement of operations and comprehensive income (loss). The Company has not recorded any uncertain tax positions for the three months ended March 31, 2024 and 2023. A reconciliation of the statutory income tax provisions to the effective income tax provisions for the periods indicated is as follows (in thousands): For the Period Ended March 31, 2024 2023 Expected tax at statutory rate $ (4,410) 21.0 % $ (3,930) 21.0 % Non-taxable REIT income 4,969 -23.7 % 4,852 -25.9 % Change in valuation allowance (9) — % (116) 0.6 % Total provision $ 550 -2.6 % $ 806 -4.3 % |
Investments in Real Estate Subs
Investments in Real Estate Subsidiaries | 3 Months Ended |
Mar. 31, 2024 | |
Investments, All Other Investments [Abstract] | |
Investments in Real Estate Subsidiaries | Investments in Real Estate Subsidiaries The 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 variable interest entities ("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 March 31, 2024 and 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 March 31, 2024 and 2023: Effective Ownership Percentage at Property Name Location Year Acquired March 31, 2024 March 31, 2023 White Rock Center Dallas, Texas 2013 100 % 100 % 5916 W Loop 289 Lubbock, Texas 2013 100 % 100 % Cityplace Tower Dallas, Texas 2018 100 % 100 % NexPoint Dominion Land, LLC (1) Plano, Texas 2022 100 % 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 | 3 Months Ended |
Mar. 31, 2024 | |
Investments, All Other Investments [Abstract] | |
Consolidated Real Estate Investments | Consolidated Real Estate Investments As of March 31, 2024, 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 $ 10,408 $ 1,921 $ (101) $ — $ 5 $ 13,548 5916 W Loop 289 1,081 2,938 — — — — 4,019 Cityplace Tower 18,812 193,200 9,058 (6,669) 19,993 357 234,751 NexPoint Dominion Land, LLC 26,500 — — — — — 26,500 47,708 206,546 10,979 (6,770) 19,993 362 278,818 Accumulated depreciation and amortization — (15,805) (7,117) 2,496 — (250) (20,676) Total Operating Properties $ 47,708 $ 190,741 $ 3,862 $ (4,274) $ 19,993 $ 112 $ 258,142 As of December 31, 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 $ 10,345 $ 1,921 $ (101) $ — $ 5 $ 13,485 5916 W Loop 289 1,081 2,938 — — — — 4,019 Cityplace Tower 18,812 192,930 9,058 (6,669) 19,177 357 233,665 NexPoint Dominion Land, LLC 26,500 — — — — — 26,500 47,708 206,213 10,979 (6,770) 19,177 362 277,669 Accumulated depreciation and amortization — (13,490) (6,798) 2,203 — (237) (18,322) Total Operating Properties $ 47,708 $ 192,723 $ 4,181 $ (4,567) $ 19,177 $ 125 $ 259,347 Depreciation expense was $2.3 million for the three months ended March 31, 2024 and $2.1 million for the three months ended March 31, 2023. Amortization expense related to the Company’s intangible lease assets was $0.3 million for the three months ended March 31, 2024 and $1.3 million for the three months ended March 31, 2023. Amortization expense related to the Company's intangible lease liabilities was $0.3 million for the three months ended March 31, 2024 and $0.4 million for the three months ended March 31, 2023. The net amount amortized as an increase to rental revenue for capitalized above and below-market lease intangibles was $0.3 million for the three months ended March 31, 2024 and $0.4 million for the three months ended March 31, 2023. Acquisitions There were no acquisitions by the Company for the three months ended March 31, 2024 and 2023. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Cityplace Debt The Company has debt on the Cityplace Tower pursuant to 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 were 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. On September 8, 2023, the lender agreed to defer the maturity of the Cityplace debt by six months to March 8, 2024. On March 8, 2024, the lender agreed to defer the maturity of the Cityplace debt by twelve months to March 7, 2025. The debt restructuring per the terms of the Thirteenth Omnibus Amendment Agreement was 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 $141.7 million principal balance outstanding as of March 31, 2024, 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 $ 100,695 7.68 % 3/7/2025 Note A-2 22,027 11.68 % 3/7/2025 Note B-1 12,676 7.68 % 3/7/2025 Note B-2 3,147 11.68 % 3/7/2025 Mezzanine Note 1 2,773 11.68 % 3/7/2025 Mezzanine Note 2 396 11.68 % 3/7/2025 Mortgages payable 141,714 Deferred financing costs, net (335) Mortgages payable, net $ 141,379 The weighted average interest rate of the Company’s debt related to its Cityplace investment was 8.48% as of March 31, 2024 and 8.53% as of December 31, 2023. The one-month SOFR was 5.33% as of March 31, 2024 and 5.35% as of December 31, 2023. The Loan Agreement contains 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 March 31, 2024, the Company believes it is in compliance with all such 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. On October 20, 2023, Raymond James Bank, N.A. agreed to amend the terms of the Credit Facility, which, among other things, extended the maturity date to October 6, 2025 and amended the credit limit to $20.0 million. On October 23, 2023, the Company drew $6.0 million of the available balance. On November 20, 2023, the Company drew the remaining $13.0 million of the available balance. During the three months ended March 31, 2024, the Company paid down $0.75 million on the Credit Facility. As of March 31, 2024, the Credit Facility had an outstanding balance of $19.25 million and bore interest at the one-month SOFR plus 4.25%. Due to the short term nature of the debt, the fair value of the debt is approximately the outstanding balance. 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 March 31, 2024, the NexBank Revolver bears interest at one-month SOFR plus 3.50% and matures on May 21, 2024, with the option to extend the maturity up to two times, each by six months. Due to the short term nature of the debt, the fair value of the debt is approximately the outstanding balance. As of March 31, 2024, 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 "Prime Brokerage"). The Company from time to time borrows against the value of these securities. As of March 31, 2024, the Company had a margin balance of approximately $1.4 million outstanding with Jefferies bearing interest at the Overnight Bank Funding Rate plus 0.50%. Securities with a fair value of approximately $9.3 million are pledged as collateral against this margin balance. This arrangement has no stated maturity date. Due to the short term 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 March 31, 2024 are as follows (in thousands): Mortgages Payable Credit Facilities Notes Payable Prime Brokerage Borrowing Total 2024 $ — $ 28,250 $ — $ — $ 28,250 2025 141,714 11,000 13,250 — 165,964 2026 — — — — — 2027 — — — — — 2028 — — — — — Thereafter — — — 1,441 1,441 Total $ 141,714 $ 39,250 $ 13,250 $ 1,441 $ 195,655 Management believes that the Company has sufficient access to capital to ensure the Company is able to meet its obligations as they become due. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities As of March 31, 2024 and 2023, the Company does not consolidate the investments below as it does not have a controlling financial interest in these investments: Entities Instrument Asset Type Percentage Ownership as of March 31, 2024 Percentage Ownership as of March 31, 2023 Relationship as of March 31, 2024 Relationship as of March 31, 2023 Unconsolidated Entities: NexPoint Storage Partners, Inc. Common stock Self-storage 52.8 % 53.0 % VIE VIE NexPoint Storage Partners Operating Company, LLC LLC interest Self-storage 29.9 % 29.7 % VIE VIE Perilune Aero Equity Holdings One, LLC LLC interest Aircraft 16.4 % 16.4 % VIE VIE SFR WLIF III, LLC LLC interest Single-family rental 20.0 % 20.0 % VIE VIE NexPoint Real Estate Finance Operating Partnership, L.P. LP interest Mortgage 15.6 % 16.1 % VIE VIE VineBrook Homes Operating Partnership, L.P. LP interest Single-family rental 11.3 % 11.5 % VIE VIE NexPoint SFR Operating Partnership, L.P. LP interest Single-family rental 31.2 % 30.8 % VIE VIE IQHQ Holdings, LP LP interest Life science 1.3 % 1.1 % VIE VIE NexAnnuity Holdings, Inc. Preferred Shares Annuities 100.0 % (1) N/A VIE N/A (1) The Company owns 100% of the preferred stock of NexAnnuity Holdings, Inc. ("NHI"), but it does not own any of the outstanding common stock of NHI. Consolidated VIEs The Company did not have any consolidated VIEs as of and for the three months ended March 31, 2024 and 2023. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 (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 % $ 11,034 $ (9,590) $ 20,624 $ (58) AM Uptown Hotel, LLC LLC interest Hospitality 60.0 % (3) 20,600 16,290 4,310 (1,203) SFR WLIF III, LLC LLC interest Single-family rental 20.0 % 7,002 7,110 (108) 161 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 % (7) 12,583 10,488 2,095 353 Claymore Holdings, LLC LLC interest N/A 50.0 % (5) — (6) — — — Allenby, LLC LLC interest N/A 50.0 % (5) — (6) — — — Haygood, LLC LLC interest N/A 31.0 % (8) — (6) — — — $ 63,531 $ 36,610 $ 26,921 $ (747) Below is a summary of the Company's investments as of March 31, 2024 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 sheets. Investee Name Instrument Asset Type NXDT Percentage Ownership Fair Value NexPoint Real Estate Finance Operating Partnership, L.P. LP interest Mortgage 15.6 % (7) $69,920 (6) NexPoint Real Estate Finance, Inc. Common stock Mortgage 12.1 % (7) 30,156 (6) VineBrook Homes Operating Partnership, L.P. LP interest Single-family rental 11.3 % (7) 145,433 (6) NexPoint Storage Partners, Inc. Common stock Self-storage 52.8 % (3) 69,494 (6) NexPoint Storage Partners Operating Company, LLC LLC interest Self-storage 29.9 % 37,869 (6) NexPoint SFR Operating Partnership, L.P. LP interest Single-family rental 31.2 % 47,676 (6) NexPoint Hospitality Trust Common stock Hospitality 46.2 % 2,782 (6) LLV Holdco, LLC LLC interest Land 26.8 % 2,593 (6) $ 405,923 Below is a summary of the Company’s equity method investments as of December 31, 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 % $ 11,458 $ (9,590) $ 21,048 $ — AM Uptown Hotel, LLC LLC interest Hospitality 60.0 % (3) 23,158 17,581 5,577 (426) SFR WLIF III, LLC LLC interest Single-family rental 20.0 % 7,079 7,241 (162) 555 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 % (7) 12,256 10,488 1,768 1,441 Claymore Holdings, LLC LLC interest N/A 50.0 % (5) — (6) — — — Allenby, LLC LLC interest N/A 50.0 % (5) — (6) — — — Haygood, LLC LLC interest N/A 31.0 % (8) — (6) — — — $ 66,263 $ 38,032 $ 28,231 $ 1,570 Below is a summary of the Company's investments as of December 31, 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 sheets. Investee Name Instrument Asset Type NXDT Percentage Ownership Fair Value NexPoint Real Estate Finance Operating Partnership, L.P. LP interest Mortgage 15.6 % (7) $76,688 (6) NexPoint Real Estate Finance, Inc. Common stock Mortgage 12.0 % (7) 33,075 (6) VineBrook Homes Operating Partnership, L.P. LP interest Single-family rental 11.2 % (7) 146,516 (6) NexPoint Storage Partners, Inc. Common stock Self-storage 52.9 % (3) 68,187 (6) NexPoint Storage Partners Operating Company, LLC LLC interest Self-storage 30.0 % 37,157 (6) NexPoint SFR Operating Partnership, L.P. LP interest Single-family rental 30.8 % 49,383 (6) NexPoint Hospitality Trust Common stock Hospitality 46.2 % 4,886 (6) LLV Holdco, LLC LLC interest Land 26.8 % 2,242 (6) $ 418,134 (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 to be the primary beneficiary 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"). Through a tenants in common arrangement, 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 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. (8) The Company has a 31% non-controlling interest in Haygood, LLC, (“Haygood”). The Company has determined it is not the primary beneficiary and does not consolidate this entity. (9) The Company owns less than 20% of the investee but has significant influence due to the legal nature of a partnership that implies an inherent right to influence the operating and financial policies of the partnership. Significant Equity Method Investments The table below presents the unaudited summary balance sheets for the Company’s significant equity method investments as of December 31, 2023 (dollars in thousands). The Company reports these unaudited summary balance sheets on a quarter lag. For purposes of equity method investments, significance is determined in accordance with Rule 3-09 of Regulation S-X. NexPoint Real Estate Finance, Inc. ("NREF") and VineBrook Homes Trust, Inc. ("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 and VineBrook are presented below. NREF VineBrook ASSETS Investments $ 6,873,666 $ 2,500 Real estate assets 126,551 3,211,897 Cash and cash equivalents 13,824 27,917 Other assets 4,312 211,026 TOTAL ASSETS $ 7,018,353 $ 3,453,340 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Debt $ 1,172,555 $ 2,433,674 Other liabilities 5,400,291 144,707 Total Liabilities 6,572,846 2,578,381 Redeemable noncontrolling interests in the operating company 98,070 478,746 Noncontrolling interests in consolidated VIEs — 11,742 Total Shareholders' Equity 347,437 384,471 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 7,018,353 $ 3,453,340 The table below presents the unaudited summary statement of operations for the year ended December 31, 2023, for the Company’s significant equity method investments (dollars in thousands). NREF VineBrook Revenues Rental income $ 4,962 $ 345,778 Net interest income 16,798 — Other income 182 5,330 Total revenues 21,942 351,108 Expenses Total expenses 23,350 502,850 Gain (loss) on sales and impairment of real estate — (72,539) Other income (expense) 20,148 (55,866) Unrealized gain (loss) on derivatives — (15,050) Total comprehensive income (loss) $ 18,740 $ (295,197) The table below presents the unaudited summary balance sheets for the Company’s significant equity method investments as of March 31, 2023 (dollars in thousands). In the prior year, the Company did not present these financials on a quarter lag. This comparison will not be on a quarter lag basis as we are utilizing the previously filed financial information for consistency purposes. 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 $ 7,943,558 $ 2,500 $ — Real estate assets 59,072 3,566,053 1,297,814 Cash and cash equivalents 38,830 82,128 9,751 Other assets 1,106 95,365 173,979 TOTAL ASSETS 8,042,566 3,746,046 1,481,544 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Debt 1,275,290 2,622,755 914,999 Other liabilities 6,294,300 126,974 397,768 Total Liabilities 7,569,590 2,749,729 1,312,767 Redeemable noncontrolling interests in the operating company 95,712 467,290 205,114 Noncontrolling interests in consolidated VIEs — 8,685 4,035 Total Shareholders' Equity 377,264 520,342 (40,372) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 8,042,566 $ 3,746,046 $ 1,481,544 The table below presents the unaudited summary statement of operations for the three months ended March 31, 2023 for the Company’s significant equity method investments (dollars in thousands). NREF VineBrook NSP Revenues Rental income $ 1,018 $ 84,497 $ 26,877 Net interest income 3,949 — 809 Other income — 1,608 1,472 Total revenues 4,967 86,105 29,158 Expenses Total expenses 5,520 120,987 31,833 Gain (loss) on sales of real estate — (15,853) — Other income (expense) 9,931 (41,662) (34,885) Unrealized gain (loss) on derivatives — (9,485) — Total comprehensive income (loss) $ 9,378 $ (101,882) $ (37,560) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The table below summarizes the Company’s assets within the valuation hierarchy carried at fair value on a recurring basis as of March 31, 2024 (in thousands): Fair Value Cost Basis Level 1 Level 2 Level 3 Total Assets Bond $ 17 $ — $ 41 $ — $ 41 CLO 187 — — — — Common stock 312,062 39,875 — 174,386 214,261 Convertible notes 46,385 — — 41,441 41,441 LLC interest 66,825 — — 40,462 40,462 LP interest 328,636 — 69,920 193,109 263,029 Preferred Shares 65,864 — — 65,864 65,864 Rights and warrants 1,784 — 1,788 — 1,788 Senior loan 42,292 — 50 42,599 42,649 $ 864,052 $ 39,875 $ 71,799 $ 557,861 $ 669,535 The table below summarizes the Company’s assets within the valuation hierarchy carried at fair value on a recurring basis as of December 31, 2023 (in thousands): Fair Value Cost Basis Level 1 Level 2 Level 3 Total Assets Bond $ 17 $ — $ 30 $ — $ 30 CLO 24,187 — — 1,215 1,215 Common stock 311,576 42,832 — 176,256 219,088 Convertible notes 46,385 — — 42,251 42,251 LLC interest 66,825 — — 39,399 39,399 LP interest 326,555 — 76,688 195,898 272,586 Preferred Shares 66,268 — — 66,268 66,268 Rights and warrants 3,937 — 3,993 — 3,993 Senior loan 46,174 — 55 46,353 46,408 $ 891,924 $ 42,832 $ 80,766 $ 567,640 $ 691,238 The table below sets forth a summary of changes in the Company’s Level 3 assets (assets measured at fair value using significant unobservable inputs) for the three months ended March 31, 2024 (in thousands): December 31, 2023 Contributions/ Paid in- Transfer Into Level 3 Redemptions/ Return of capital Realized Unrealized gain/(loss) March 31, 2024 CLO $ 1,215 $ — $ — $ — $ — $ (1,266) $ (22,735) $ 22,786 $ — Common stock 176,256 120 — — — — — (1,990) 174,386 Convertible notes 42,251 — — — — — — (810) 41,441 LLC interest 39,399 — — — — — — 1,063 40,462 LP interest 195,898 2,082 — — — — — (4,871) 193,109 Preferred Shares 66,268 — 1,296 — (1,700) — — — 65,864 Senior loan 46,353 — 1,066 — (5,522) — 574 128 42,599 Total $ 567,640 $ 2,202 $ 2,362 $ — $ (7,222) $ (1,266) $ (22,161) $ 16,306 $ 557,861 The table below sets forth a summary of changes in the Company’s Level 3 assets (assets measured at fair value using significant unobservable inputs) for the three months ended March 31, 2023 (in thousands): December 31, 2022 Contributions/ Paid in- Redemptions/ Return of capital Realized Unrealized gain/(loss) March 31, 2023 CLO $ 6,412 $ — $ — $ — $ — $ — $ 488 $ 6,900 Common stock 234,667 — — — — — (5,800) 228,867 Convertible notes 50,828 — — — — — 474 51,302 Life settlement 67,711 1,266 — — — — (2,593) 66,384 LLC interest 60,836 — — — — — (708) 60,128 LP interest 223,141 1,427 — — — — (9,439) 215,129 Senior loan 43,341 — 1,008 (4,971) — 11 164 39,553 Total $ 686,936 $ 2,693 $ 1,008 $ (4,971) $ — $ 11 $ (17,414) $ 668,263 The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. 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 March 31, 2024. Category Valuation Technique Significant Unobservable Inputs Input Value(s) Fair Value Common Stock Market Approach Unadjusted Price/MHz-PoP $0.10 — $0.90 $(0.48) $ 174,386 Discounted Cash Flow Discount Rate 7.50% — 14.10% (9.32)% Market Rent (per sqft) $12.00 — $41.50 $(26.75) RevPAR $73.00 — $145.00 $(100.13) Capitalization Rates 5.25% — 9.50% (7.60)% NAV Approach Discount Rate 10.00% Multiples Analysis Multiple of EBITDA 3.00x — 4.00x (3.50)x Multiple of NAV 1.00x — 1.20x (1.10)x Recent Transaction Implied Enterprise Value from Transaction Price ($mm) $841.00 N/A $25.31 — $28.00 $(26.66) Discount to NAV (25.00)% — (10.00)% (17.50)% Offer Price per Share $1.10 Convertible Notes Discounted Cash Flow Discount Rate 6.08% — 10.25% (8.17)% 41,441 Option Pricing Model Volatility 55.00% — 65.00% (60.00)% LLC Interest Discounted Cash Flow Discount Rate 7.75% — 30.50% 14.19% 40,462 Market Rent (per sqft) $12.00 — $41.50 $(26.75) Capitalization Rate 5.25% LP Interest Market Approach Capitalization Rate 3.70% — 6.60% 5.24% 193,109 Discount to NAV (10.05)% Recent Transaction Price per Share $21.46 Preferred Shares Recent Transaction Price per Share $1,000 65,864 Senior Loan Discounted Cash Flow Discount Rate 12.30% — 20.00% (16.15)% 42,599 Total $ 557,861 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 December 31, 2023. Category Valuation Technique Significant Unobservable Inputs Input Value(s) Fair Value CLO Discounted Net Asset Value Discount N/A $ 1,215 Common Stock Market Approach Unadjusted Price/MHz-PoP $0.10 — $0.90 $(0.48) 176,256 Discounted Cash Flow Discount Rate 7.5% — 13.90% (9.18)% Market Rent (per sqft) $11.50 — $41.00 $(26.25) RevPAR $75.00 — $145.00 $(102.00) Capitalization Rates 5.25% — 9.5% (7.58)% NAV Approach Discount Rate 10.00% Multiples Analysis Multiple of EBITDA 3.00x — 4.00x (3.50)x Multiple of NAV 1.00x — 1.25x (1.13)x Recent Transaction Implied Enterprise Value from Transaction Price ($mm) $841.00 N/A $25.31 — $28.00 $(26.66) Discount to NAV (25.00)% — (10.00)% (17.50)% Offer Price per Share $1.10 Convertible Notes Discounted Cash Flow Discount Rate 6.08% — 10.25% (8.17)% 42,251 Option Pricing Model Volatilty 55.00% — 65.00% (60.00)% LLC Interest Discounted Cash Flow Discount Rate 7.50% — 30.50% 14% 39,399 Market Rent (per sqft) $11.5 — $41 $(26.25) Capitalization Rate 5.25% LP Interest Direct Capitalization Approach Capitalization Rate 4.00% — 6.80% 5.51% 195,898 Discount to NAV (12.5)% — (2.5)% (-7.5%) Discounted Cash Flow Discount Rate 18.00% — 28.00% (22.80)% Market Approach Capitalization Rate 5.00% — 5.50% (5.22)% Recent Transaction Price per Share $21.59 Preferred Shares Recent Transaction Price per Share $1,000 66,268 Senior Loan Discounted Cash Flow Discount Rate 12.30% — 20.00% (16.15)% 46,353 Total $ 567,640 |
Life Settlement Portfolio
Life Settlement Portfolio | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Life Settlement Portfolio | Life Settlement Portfolio Prior to September 1, 2023, the Company, through one of its TRSs, owned 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. At the proposal of NexAnnuity Asset Management, L.P. ("NexAnnuity"), an affiliate of the Adviser, SFP was formed for the purpose of 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. Prior to September 1, 2023, as the Company owned the outstanding ordinary shares of and Structured Note issued by SFP, the Company consolidated SFP in its entirety. On September 1, 2023, the Company, through one of its TRSs, entered into a contribution agreement to transfer the Structured Note in SFP and all its rights, title and interests to NHI and its wholly owned subsidiaries, which are related parties. The Company also transferred all of its ordinary shares in SFP to a separate share trustee. In exchange, the Company was issued 68,500 shares of Class A Preferred Stock in NHI. As a result, the Company now holds none of the outstanding equity and debt of SFP, and SFP no longer meets the requirements for consolidation under ASC 810 – Consolidation. The Company will have no continuing involvement with SFP. As such, SFP has been deconsolidated herein as of September 1, 2023. The Class A Preferred Stock in NHI is accounted for as an investment in an equity security. However, management has elected to account for the investment using the fair value option and presented it within Investments, at fair value. The fair value of the Class A Preferred Stock is its original issue price of $1,000 per share due to the recent nature of the transaction. Dividends on the Class A Preferred Stock are cumulative and are payable quarterly on March 31, June 30, September 30, and December 31 at an annual rate of 8.0% for years one through seven, 9.5% for years eight through ten, 11.0% for years eleven through thirteen, and 12.0% for years fourteen through sixteen and thereafter. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders ’ Equity Common Shares As of March 31, 2024, the Company had 39,301,419 common shares, par value $0.001 per share, issued and outstanding. 911,819 shares of which were issued during the three months ended March 31, 2024. During the three months ended March 31, 2024, the Company paid a distribution of $0.15 per share on its common shares on March 28, 2024 to shareholders of record on February 16, 2024. The dividend paid on March 28, 2024 consisted of a combination of cash and shares, with the cash component of the dividend (other than cash paid in lieu of fractional shares) comprising 20% of the dividend, with the balance being paid in the Company's common shares. As of March 31, 2023, the Company had 37,171,807 common shares, par value $0.001 per share, issued and outstanding. No shares were issued during the three months ended March 31, 2023. During the three months ended March 31, 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. 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 three months ended March 31, 2024, the Company declared one distribution 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 April 1, 2024, to shareholders of record on March 25, 2024. The Company sent funding to the transfer agent for the first quarter dividend prior to March 31, 2024, which was then paid to shareholders on April 1, 2024. During the three months ended March 31, 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. 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, 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 employees of the Adviser. The following table includes the number of restricted share units granted, vested, forfeited and outstanding as of and for the three months ended March 31, 2024: 2024 Number of Units Weighted Average Outstanding January 1, 2024 589,906 $ 10.45 Granted 1,033,787 6.10 Vested — — Forfeited (4,371) 6.10 Outstanding March 31, 2024 1,619,322 $ 7.68 The following table contains information regarding the vesting of restricted share units under the 2023 LTIP for the next five calendar years subsequent to March 31, 2024: Shares Vesting March April June Total 2024 — 172,637 6,219 178,856 2025 301,221 140,404 — 441,625 2026 242,731 135,323 — 378,054 2027 242,732 135,323 — 378,055 2028 242,732 — — 242,732 Total 1,029,416 583,687 6,219 1,619,322 For the three months ended March 31, 2024, the Company recognized approximately $0.5 million of equity-based compensation expense related to grants of restricted share units. As of March 31, 2024, the Company had recognized a liability of approximately $0.4 million related to dividends earned on restricted share units that are payable in cash upon vesting. As of March 31, 2024, total unrecognized compensation expense on restricted share units was approximately $10.6 million, and the expense is expected to be recognized over a weighted average vesting period of 2.0 years. As of March 31, 2023, there was no compensation expense on restricted share units. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2024 | |
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 amounts): Three Months Ended March 31, Three Months Ended March 31, 2024 2023 Numerator for loss per share: Net income (loss) attributable to common shareholders $ (22,703) $ (20,676) Denominator for loss per share: Weighted average common shares outstanding 38,572 37,172 Denominator for basic and diluted loss per share 38,572 37,172 Weighted average unvested restricted share units 749 — Denominator for diluted loss per share (1) 38,572 37,172 Loss per weighted average common share: Basic $ (0.59) $ (0.56) Diluted $ (0.59) $ (0.56) (1) For the three months ended March 31, 2024 and 2023, this excludes approximately 748,950 and 0 shares, respectively, related to assumed vesting of restricted share units as the effect would be anti-dilutive. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Advisory and Administrative Fees 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 March 31, 2024 and 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 (defined below) and an annual fee (the "Administrative Fee" and, together with the Advisory Fee, the "Fees") of 0.20% of the Company’s Managed Assets. 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 2023 annual meeting of shareholders, the Company’s shareholders did not approve issuances in excess of the Share Cap. During the three months ended March 31, 2024, we issued 169,920.62 common shares to the Advisor in payment of the Fees in an amount of $1.35 million. 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 U.S. generally accepted accounting principles ("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. Reimbursement of Expenses; Expense Cap We also generally reimburse our Adviser for operating or offering expenses it incurs on our behalf or in connection with the services it performs for us. 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 the Expense Cap of 1.5% 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. This limitation ended on June 30, 2023 and did 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, 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. 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, those expenses are considered permanently waived and became non-recoupable. 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 such 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 an 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 months ended March 31, 2024 and 2023, the Company incurred Administrative Fees and Advisory Fees of $3.2 million and $3.6 million, respectively. 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 amount of $50.0 million and bears interest at one-month SOFR plus 3.50% and matures on May 21, 2024. The Company drew the $20.0 million on May 22, 2023. As of March 31, 2024, the NexBank Revolver had an outstanding balance of $20.0 million. Guaranties of NexPoint Storage Partners, Inc. Debt On July 2, 2021, the Company, together with Highland Opportunities and Income Fund (“HFRO”) and Highland Global Allocation Fund (collectively, the “Co-Guarantors”) as limited guarantors, entered into a Guaranty of Recourse Obligations (“SAFStor Recourse Guaranty I”) in favor of ACORE Capital Mortgage, LP (“ACORE”) in its capacity as Administrative Agent for and on behalf of the Lenders under a Loan Agreement ("SAFStor Loan Agreement I"), in an aggregate principal amount of $235.86 million, for the benefit of entities indirectly owned by SAFStor NREA JV – I, LLC (“SAFStor – I”), SAFStor NREA JV – III, LLC (“SAFStor – III”), SAFStor NREA JV – IV, LLC (“SAFStor – IV”), SAFStor NREA JV – V, LLC (“SAFStor – V”), SAFStor NREA JV – VI, LLC (“SAFStor – VI”), SAFStor NREA JV – VII, LLC (“SAFStor – VII”), and SAFStor NREA JV – VIII, LLC (“SAFStor – VIII”) (collectively, “SAFStor”), pursuant to which the Company and the Co-Guarantors guaranteed certain obligations of SAFStor. On July 2, 2021, the Company also entered a substantively identical guaranty in favor of ACORE in its capacity as Administrative Agent for and on behalf of the Lenders under a Mezzanine Loan Agreement ("SAFStor Mezzanine Loan Agreement I"), in the amount of $6.05 million, for the benefit of entities indirectly owned by SAFStor. On December 8, 2022, NSP completed a transaction that resulted in it acquiring 100% of the equity interest in SAFStor. On April 24, 2023, the Company joined certain separate guaranties previously made in favor of ACORE by the Co-Guarantors pursuant to an Omnibus Amendment to and Reaffirmation of Loan Documents (the “SAFStor Recourse Guaranty II”) in favor of ACORE in its capacity as (i) Administrative Agent for and on behalf of the Lenders under a Loan Agreement (“SAFStor Loan Agreement II”), in an aggregate principal amount of $41.99 million, for the benefit of SAFStor, and (ii) Administrative Agent for and on behalf of the Lenders under a Mezzanine Loan Agreement (“SAFStor Mezzanine Loan Agreement II”), in the amount of $1.08 million, for the benefit of entities indirectly owned by SAFStor. Pursuant to the SAFStor Recourse Guaranty I and SAFStor Recourse Guaranty II, the Company guarantees the loss recourse liability and obligation for any Recourse Liabilities (as defined in the respective SAFStor Loan Agreement) arising out of or in connection with certain bad acts, such as if the borrower takes actions that are fraudulent or improper or upon certain violations of the respective SAFStor Loan Agreement. The Company also guarantees the full payment of the debt upon the occurrence of any Springing Recourse Events (as defined in the respective SAFStor Loan Agreement), such as if the borrower voluntarily files a bankruptcy or similar liquidation or reorganization action or upon certain other violations of the respective SAFStor Loan Agreement. The guarantees by the Company are limited for loss recourse events, to the loss attributable to properties in which it indirectly owns an interest and for Springing Recourse Events (as defined in the respective SAFStor Loan Agreement) to the pro-rata share of the aggregate liability of all guarantors within the pool of the guarantor properties. As of March 31, 2024, the outstanding balance of the pools of guaranties is $272.69 million. 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 March 9, 2024 which date may, at the option of BS Borrower, be extended for an additional six months upon the satisfaction of certain terms and conditions. On March 8, 2024, the BS Lender agreed to extend the maturity date to March 22, 2024. On March 22, 2024, the BS Lender agreed to extend the maturity date on the two loans to September 9, 2024. 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 $133.3 million of principal as of March 31, 2024 and approximately 5.4% with respect to approximately $46.9 million of principal as of March 31, 2024. On December 8, 2022 and in connection with a restructuring of NSP, the Company, together with NREF, HFRO and NexPoint Real Estate Strategies Fund (collectively, the "NSP 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 NSP Co-Guarantors guaranteed obligations of NSP with respect to accrued dividends on 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 NSP Co-Guarantors were capped at $97.6 million, and each of the Company and the NSP 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. On February 15, 2023, NSP paid down approximately $15.0 million of these promissory notes, resulting in an aggregate principal amount of approximately $49.2 million. On December 8, 2023, NSP paid down the remaining principal balance of $49.2 million. The Series D Preferred Stock remains outstanding as of March 31, 2024. As of March 31, 2024, the outstanding NSP Series D Preferred Stock accrued dividends was $7.3 million, and the Company and NREF OP IV REIT SUB, LLC are jointly and severally liable for 85.90% of the guaranteed amount. 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. As discussed in Note 9, the Company disposed of its interest in SFP on September 1, 2023. Prior to its disposition, the Company paid $0.1 million in management fees to NexAnnuity. In exchange for its services, the SFP IMA provided that NexAnnuity would 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 could 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. The Company’s operating properties, other than undeveloped land, are managed by NexVest Realty Advisors, LLC ("NexVest"), an affiliate of the Adviser. For three months ended March 31, 2024 and 2023, the Company through its subsidiaries has paid approximately $0.2 million and $0.1 million, respectively, 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 property management agreement with NexVest for Cityplace Tower also allows for the manager, as the agent of CP Tower Owner, LLC (“Owner”), to draw on the operating account when required in connection with the operation or maintenance of the property, the payment of certain expenses defined in the agreement, or as expressly approved in writing by Owner. For the three months ended March 31, 2024 and 2023, Cityplace Tower reimbursed $0.5 million and $0.4 million, respectively, to NexVest for these expenses. A director and officer of the Company, who controls the Adviser, which externally manages the Company, also (i) is the beneficiary of a trust that indirectly owns 100% of the limited partnership interests in the parent of the Adviser and directly owns 100% of the general partnership interests in the parent of the Adviser and (ii) is a director of NexBank Capital, the holding company of NexBank, directly owns a minority of the common stock of NexBank, and is the beneficiary of a trust that directly owns a substantial portion of the common stock of NexBank. The Company is a limited guarantor and an indemnitor on one of NexPoint Hospitality Trust's ("NHTs") loans with an aggregate principal amount of $77.4 million as of March 31, 2024. NHT is a publicly traded hospitality REIT that is managed by an affiliate of the Adviser. 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 December 8, 2022, the Company, through NexPoint Real Estate Opportunities, LLC ("NREO"), entered into a Contribution Agreement pursuant to which 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 approximately 47,064 newly created Class B common operating company units of the NSP OC ("Class B Units"), representing 14.8% of the outstanding combined classes of common units of the NSP OC (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 52.8%, of the outstanding common stock as of March 31, 2024. 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 March 31, 2024, the Company owns approximately 47,064 Class B Units, or 29.9%, of the outstanding NSP OC Common Units. On December 23, 2022, the Company, through NREO, redeemed 2,100,000 common units of limited partnership (the "NREF OP Units") of NexPoint Real Estate Finance Operating Partnership, L.P. (the "NREF OP") 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. On September 1, 2023, the Company, through one of its wholly owned TRSs, entered into a contribution agreement to transfer the Structured Note in SFP and all its rights, title and interests to related party NHI and its wholly owned subsidiaries. The Company also transferred all of its ordinary shares in SFP to a separate share trustee. In exchange, the Company was issued 68,500 shares of Class A Preferred Stock in NHI. On September 28, 2023, the Company, through one of its wholly owned TRSs, redeemed 2,000 shares of Class A Preferred Stock in NHI. On October 24, 2023, the Company, through one of its wholly owned TRSs, redeemed 1,000 shares of Class A Preferred Stock in NHI. On November 10, 2023, the Company, through one of its wholly owned TRSs, redeemed 1,000 shares of Class A Preferred Stock in NHI. On January 12, 2024, the Company, through one of its wholly owned TRSs, redeemed 1,700 shares of Class A Preferred Stock in NHI. Related Party Investments The Company, from time to time, may invest in entities managed by affiliates of the Adviser. For the three months ended and as of March 31, 2024, the Company had 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 NexPoint Hospitality Trust Common Stock $ 2,782 $ (2,104) $ — $ — $ — $ (2,104) NexPoint Real Estate Finance, Inc. Common Stock 30,156 (2,919) — — 1,050 (1,869) NexPoint Storage Partners, Inc. Common Stock 69,494 1,308 — — — 1,308 Related Party Investment Fair Change in Unrealized Realized Equity in income (loss) Interest and Total Income NexPoint Residential Trust, Inc. Common Stock 2,987 (209) — — 43 (166) NexPoint SFR Operating Partnership, L.P. Convertible Notes 20,814 — — — 407 407 NexPoint Hospitality Trust Convertible Notes 20,627 (810) — — (4) (814) NexPoint Storage Partners Operating Company, LLC LLC Units 37,869 712 — — — 712 SFR WLIF III, LLC LLC Units 7,002 — — 214 — 214 Claymore Holdings, LLC LLC Units — — — — — — Allenby, LLC LLC Units — (1) — — — (1) Haygood, LLC. LLC Units — — — — — — VineBrook Homes Operating Partnership, L.P. Partnership Units 145,433 (2,547) — — 1,465 (1,082) NexPoint Real Estate Finance Operating Partnership, L.P. Partnership Units 69,920 (6,768) — — 2,435 (4,333) NexPoint SFR Operating Partnership, L.P. Partnership Units 47,676 (2,324) — — 617 (1,707) NexAnnuity Holdings, Inc. Preferred Shares 65,864 — — — 1,296 1,296 NexPoint Storage Partners Operating Company, LLC Promissory Note 4,986 (14) — — 67 53 NexPoint SFR Operating Partnership, L.P. Promissory Note 500 — — — 11 11 Total $ 526,110 $ (15,676) $ — $ 214 $ 7,387 $ (8,075) For the three months ended and as of March 31, 2023, the Company had 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 Interest and Total Income SFR WLIF III, LLC LLC Units $ 7,289 $ 213 $ — $ — $ 213 NexPoint Residential Trust, Inc. Common Stock 3,875 13 — 37 50 NexPoint Hospitality Trust Common Stock 22,935 (4,750) — — (4,750) NexPoint Hospitality Trust Convertible Notes 21,677 198 — 62 260 NexPoint Storage Partners, Inc. Common Stock 103,194 (501) — — (501) NexPoint Storage Partners Operating Company, LLC LLC Units 56,232 (273) — — (273) NexPoint SFR Operating Partnership, L.P. Partnership Units 48,666 (4,813) — 602 (4,211) NexPoint SFR Operating Partnership, L.P. Convertible Notes 29,625 275 — 563 838 Claymore Holdings, LLC LLC Units — — — — — Allenby, LLC LLC Units — — — — — NexPoint Real Estate Finance Operating Partnership, L.P. Partnership Units 76,299 (1,071) — 2,921 1,850 NexPoint Real Estate Finance, Inc. Common Stock 32,907 (462) — 1,439 — 977 VineBrook Homes Operating Partnership, L.P. Partnership Units 166,463 (4,625) — 1,427 — (3,198) Total $ 569,162 $ (15,796) $ — $7,051 $ (8,745) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 NSP Co-Guarantors, as guarantors, entered into a Sponsor Guaranty Agreement in favor of Extra Space pursuant to which the Company and the NSP Co-Guarantors guaranteed obligations of NSP with respect to accrued dividends on 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 NSP Co-Guarantors were capped at $97.6 million, and each of the Company and the NSP 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. On February 15, 2023, NSP paid down approximately $15.0 million of these promissory notes, resulting in an aggregate principal amount of approximately $49.2 million. On December 8, 2023, NSP paid down the remaining principal balance of $49.2 million. The NSP Series D Preferred Stock remains outstanding as of March 31, 2024. As of March 31, 2024, the outstanding NSP Series D Preferred Stock accrued dividends was $7.3 million, and the Company and NREF OP IV REIT SUB, LLC are jointly and severally liable for 85.90% of the guaranteed amount. On July 2, 2021, the Company, together the Co-Guarantors as limited guarantors, entered into a SAFStor Recourse Guaranty I in favor of ACORE in its capacity as Administrative Agent for and on behalf of the Lenders under the SAFStor Loan Agreement I, in an aggregate principal amount of $235.86 million, for the benefit of entities indirectly owned by SAFStor, pursuant to which the Company and the Co-Guarantors guaranteed certain obligations of SAFStor. On July 2, 2021, the Company also entered a substantively identical guaranty in favor of ACORE in its capacity as Administrative Agent for and on behalf of the Lenders under the SAFStor Mezzanine Loan Agreement I, in the amount of $6.05 million, for the benefit of entities indirectly owned by SAFStor. On April 24, 2023, the Company joined certain separate guaranties previously made in favor of ACORE by the Co-Guarantors pursuant to the SAFStor Recourse Guaranty II in favor of ACORE in its capacity as (i) Administrative Agent for and on behalf of the Lenders under the SAFStor Loan Agreement II, for the benefit of SAFStor, and (ii) Administrative Agent for and on behalf of the Lenders under the SAFStor Mezzanine Loan Agreement II, for the benefit of entities indirectly owned by SAFStor. See Note 12 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 March 31, 2024. 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. The Company is a guarantor and an indemnitor on one of Cityplace’s loans with an aggregate principal amount of $141.7 million as of March 31, 2024. The obligations include a completion guarantee, which is generally only applicable if and when the borrower, which is a subsidiary of the Company, directly, or indirectly through an agreement with an affiliate, joint venture partner or other third party, voluntarily terminates construction services prior to the completion of the project, files a bankruptcy or similar liquidation or reorganization action or takes other actions that are fraudulent or improper. As of March 31, 2024, management does not anticipate any material deviations from schedule or budget related to construction projects current in process, and Cityplace 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 March 31, 2024, the Company was not aware of any environmental liabilities. There can be no assurance that material environmental liabilities do not exist. Claymore, Allenby and Haygood 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 | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Operating Leases | Operating Leases Lessor Accounting The following table summarizes the future minimum lease payments to the Company as the lessor under the operating lease obligations at March 31, 2024 (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 2024 $7,605 2025 9,924 2026 8,600 2027 7,712 2028 4,826 Thereafter 50,407 Total $89,074 The following table lists the tenants where the rental revenue from the tenants represented 10% or more of total rental income in the Company’s consolidated statements of operations (in thousands) for the three months ended March 31, 2024: For the Three Months Ended March 31, 2024 Tenant Rental Income Neiman Marcus Group, LLC $587 Saputo Dairy Foods $497 The following table lists the tenants where the rental revenue from the tenants represented 10% or more of total rental income in the Company’s consolidated statements of operations (in thousands) for the three months ended March 31, 2023: Three Months Ended March 31, 2023 Tenant Rental Income Hudson Advisors, LLC $712 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividends Declared On April 29, 2024, the Board approved a quarterly dividend of $0.15 per common share, payable on June 28, 2024 to shareholders of record on May 15, 2024. The dividend on the Company’s common shares consists 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 April 29, 2024, the Board approved a quarterly dividend of $0.34375 per Series A Preferred Share, payable on July 1, 2024 to shareholders of record on June 24, 2024. Issuance of Common Shares to Adviser On April 29, 2024, the Company issued 208,117.75 common shares to the Adviser as payment of a portion of the monthly Advisory Fees pursuant to the Advisory Agreement. NREF Promissory Note On April 19, 2024, the OP loaned $6.5 million to NREF OP IV, L.P. (“NREF OP IV”), a subsidiary of NREF, an entity that is managed by an affiliate of the Adviser in exchange for a promissory note (the “NREF Note”). The NREF Note bears interest at 7.535%, which is payable in kind, is interest only during the term of the NREF Note and matures on April 19, 2029. NHT / NREO Transaction On April 19, 2024, NREO purchased 2,176,257 of NHT common shares, valued at $0.8 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting 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, 2023, which are included in our 2023 Annual Report on Form 10-K ("202 3 Annual Report") , filed with the 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 2023 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. |
Income Taxes | Income Taxes The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code"), and expects to continue to qualify as a REIT. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement to distribute annually at least 90% of its “REIT taxable income,” as defined by the Code, to its shareholders. As a REIT, the Company will be subject to federal income tax on its undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions it pays with respect to any calendar year are less than the sum of (1) 85% of its ordinary income, (2) 95% of its capital gain net income and (3) 100% of its undistributed income from prior years. The Company intends to operate in such a manner so as to qualify as a REIT, but no assurance can be given that the Company will operate in a manner so as to qualify as a REIT. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. If the Company fails to meet these requirements, it could be subject to federal income tax on all of the Company’s taxable income at regular corporate rates for that year. The Company would not be able to deduct distributions paid to shareholders in any year in which it fails to qualify as a REIT. Additionally, the Company will also be disqualified from electing to be taxed as a REIT for the four taxable years following the year during which qualification was lost unless the Company is entitled to relief under specific statutory provisions. As of March 31, 2024, the Company believes it is in compliance with all applicable REIT requirements. As a REIT for U.S. federal income tax purposes, the Company may deduct earnings distributed to shareholders 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 $21.0 million and $18.7 million for the three months ended March 31, 2024 and 2023, respectively. The Company’s consolidated balance sheet as of March 31, 2024 consists of a $4.5 million net deferred tax asset at NHF TRS, LLC and a $1.6 million net deferred tax liability at NREO TRS, Inc. for a consolidated net Deferred Tax asset of $2.9 million. The Company's consolidated balance sheet as of December 31, 2023 consisted of a $4.5 million net deferred tax asset at NHF TRS, LLC and a $1.6 million net deferred tax liability at NREO TRS, Inc. for a consolidated net Deferred Tax asset of $2.9 million. 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 months ended March 31, 2024 and 2023 were (2.62)% and (4.31)%, 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. The Company recognizes its tax positions and evaluates them using a two-step process. First, the Company determines whether a tax position is more-likely-than-not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, the Company will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. The Company had no material unrecognized tax benefit or expense, accrued interest or penalties as of March 31, 2024 and 2023. The Company and its subsidiaries are subject to federal income tax as well as income tax of various state and local jurisdictions. The 2023, 2022, 2021 and 2020 tax years remain open to examination by tax jurisdictions to which the Company and its subsidiaries are subject. When applicable, the Company recognizes interest and/or penalties related to uncertain tax positions on its consolidated statement of operations and comprehensive income (loss). The Company has not recorded any uncertain tax positions for the three months ended March 31, 2024 and 2023. A reconciliation of the statutory income tax provisions to the effective income tax provisions for the periods indicated is as follows (in thousands): For the Period Ended March 31, 2024 2023 Expected tax at statutory rate $ (4,410) 21.0 % $ (3,930) 21.0 % Non-taxable REIT income 4,969 -23.7 % 4,852 -25.9 % Change in valuation allowance (9) — % (116) 0.6 % Total provision $ 550 -2.6 % $ 806 -4.3 % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory income tax provisions to the effective income tax provisions for the periods indicated is as follows (in thousands): For the Period Ended March 31, 2024 2023 Expected tax at statutory rate $ (4,410) 21.0 % $ (3,930) 21.0 % Non-taxable REIT income 4,969 -23.7 % 4,852 -25.9 % Change in valuation allowance (9) — % (116) 0.6 % Total provision $ 550 -2.6 % $ 806 -4.3 % |
Investments in Real Estate Su_2
Investments in Real Estate Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, All Other Investments [Abstract] | |
Schedule of Investments in SPEs 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 March 31, 2024 and 2023: Effective Ownership Percentage at Property Name Location Year Acquired March 31, 2024 March 31, 2023 White Rock Center Dallas, Texas 2013 100 % 100 % 5916 W Loop 289 Lubbock, Texas 2013 100 % 100 % Cityplace Tower Dallas, Texas 2018 100 % 100 % NexPoint Dominion Land, LLC (1) Plano, Texas 2022 100 % 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) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, All Other Investments [Abstract] | |
Schedule of Components of Investments in Real Estate Properties | As of March 31, 2024, 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 $ 10,408 $ 1,921 $ (101) $ — $ 5 $ 13,548 5916 W Loop 289 1,081 2,938 — — — — 4,019 Cityplace Tower 18,812 193,200 9,058 (6,669) 19,993 357 234,751 NexPoint Dominion Land, LLC 26,500 — — — — — 26,500 47,708 206,546 10,979 (6,770) 19,993 362 278,818 Accumulated depreciation and amortization — (15,805) (7,117) 2,496 — (250) (20,676) Total Operating Properties $ 47,708 $ 190,741 $ 3,862 $ (4,274) $ 19,993 $ 112 $ 258,142 As of December 31, 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 $ 10,345 $ 1,921 $ (101) $ — $ 5 $ 13,485 5916 W Loop 289 1,081 2,938 — — — — 4,019 Cityplace Tower 18,812 192,930 9,058 (6,669) 19,177 357 233,665 NexPoint Dominion Land, LLC 26,500 — — — — — 26,500 47,708 206,213 10,979 (6,770) 19,177 362 277,669 Accumulated depreciation and amortization — (13,490) (6,798) 2,203 — (237) (18,322) Total Operating Properties $ 47,708 $ 192,723 $ 4,181 $ (4,567) $ 19,177 $ 125 $ 259,347 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term 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 $ 100,695 7.68 % 3/7/2025 Note A-2 22,027 11.68 % 3/7/2025 Note B-1 12,676 7.68 % 3/7/2025 Note B-2 3,147 11.68 % 3/7/2025 Mezzanine Note 1 2,773 11.68 % 3/7/2025 Mezzanine Note 2 396 11.68 % 3/7/2025 Mortgages payable 141,714 Deferred financing costs, net (335) Mortgages payable, net $ 141,379 |
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 March 31, 2024 are as follows (in thousands): Mortgages Payable Credit Facilities Notes Payable Prime Brokerage Borrowing Total 2024 $ — $ 28,250 $ — $ — $ 28,250 2025 141,714 11,000 13,250 — 165,964 2026 — — — — — 2027 — — — — — 2028 — — — — — Thereafter — — — 1,441 1,441 Total $ 141,714 $ 39,250 $ 13,250 $ 1,441 $ 195,655 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | As of March 31, 2024 and 2023, the Company does not consolidate the investments below as it does not have a controlling financial interest in these investments: Entities Instrument Asset Type Percentage Ownership as of March 31, 2024 Percentage Ownership as of March 31, 2023 Relationship as of March 31, 2024 Relationship as of March 31, 2023 Unconsolidated Entities: NexPoint Storage Partners, Inc. Common stock Self-storage 52.8 % 53.0 % VIE VIE NexPoint Storage Partners Operating Company, LLC LLC interest Self-storage 29.9 % 29.7 % VIE VIE Perilune Aero Equity Holdings One, LLC LLC interest Aircraft 16.4 % 16.4 % VIE VIE SFR WLIF III, LLC LLC interest Single-family rental 20.0 % 20.0 % VIE VIE NexPoint Real Estate Finance Operating Partnership, L.P. LP interest Mortgage 15.6 % 16.1 % VIE VIE VineBrook Homes Operating Partnership, L.P. LP interest Single-family rental 11.3 % 11.5 % VIE VIE NexPoint SFR Operating Partnership, L.P. LP interest Single-family rental 31.2 % 30.8 % VIE VIE IQHQ Holdings, LP LP interest Life science 1.3 % 1.1 % VIE VIE NexAnnuity Holdings, Inc. Preferred Shares Annuities 100.0 % (1) N/A VIE N/A (1) The Company owns 100% of the preferred stock of NexAnnuity Holdings, Inc. ("NHI"), but it does not own any of the outstanding common stock of NHI. |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Equity Method Investments | Below is a summary of the Company’s equity method investments as of March 31, 2024 (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 % $ 11,034 $ (9,590) $ 20,624 $ (58) AM Uptown Hotel, LLC LLC interest Hospitality 60.0 % (3) 20,600 16,290 4,310 (1,203) SFR WLIF III, LLC LLC interest Single-family rental 20.0 % 7,002 7,110 (108) 161 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 % (7) 12,583 10,488 2,095 353 Claymore Holdings, LLC LLC interest N/A 50.0 % (5) — (6) — — — Allenby, LLC LLC interest N/A 50.0 % (5) — (6) — — — Haygood, LLC LLC interest N/A 31.0 % (8) — (6) — — — $ 63,531 $ 36,610 $ 26,921 $ (747) Below is a summary of the Company's investments as of March 31, 2024 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 sheets. Investee Name Instrument Asset Type NXDT Percentage Ownership Fair Value NexPoint Real Estate Finance Operating Partnership, L.P. LP interest Mortgage 15.6 % (7) $69,920 (6) NexPoint Real Estate Finance, Inc. Common stock Mortgage 12.1 % (7) 30,156 (6) VineBrook Homes Operating Partnership, L.P. LP interest Single-family rental 11.3 % (7) 145,433 (6) NexPoint Storage Partners, Inc. Common stock Self-storage 52.8 % (3) 69,494 (6) NexPoint Storage Partners Operating Company, LLC LLC interest Self-storage 29.9 % 37,869 (6) NexPoint SFR Operating Partnership, L.P. LP interest Single-family rental 31.2 % 47,676 (6) NexPoint Hospitality Trust Common stock Hospitality 46.2 % 2,782 (6) LLV Holdco, LLC LLC interest Land 26.8 % 2,593 (6) $ 405,923 Below is a summary of the Company’s equity method investments as of December 31, 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 % $ 11,458 $ (9,590) $ 21,048 $ — AM Uptown Hotel, LLC LLC interest Hospitality 60.0 % (3) 23,158 17,581 5,577 (426) SFR WLIF III, LLC LLC interest Single-family rental 20.0 % 7,079 7,241 (162) 555 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 % (7) 12,256 10,488 1,768 1,441 Claymore Holdings, LLC LLC interest N/A 50.0 % (5) — (6) — — — Allenby, LLC LLC interest N/A 50.0 % (5) — (6) — — — Haygood, LLC LLC interest N/A 31.0 % (8) — (6) — — — $ 66,263 $ 38,032 $ 28,231 $ 1,570 Below is a summary of the Company's investments as of December 31, 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 sheets. Investee Name Instrument Asset Type NXDT Percentage Ownership Fair Value NexPoint Real Estate Finance Operating Partnership, L.P. LP interest Mortgage 15.6 % (7) $76,688 (6) NexPoint Real Estate Finance, Inc. Common stock Mortgage 12.0 % (7) 33,075 (6) VineBrook Homes Operating Partnership, L.P. LP interest Single-family rental 11.2 % (7) 146,516 (6) NexPoint Storage Partners, Inc. Common stock Self-storage 52.9 % (3) 68,187 (6) NexPoint Storage Partners Operating Company, LLC LLC interest Self-storage 30.0 % 37,157 (6) NexPoint SFR Operating Partnership, L.P. LP interest Single-family rental 30.8 % 49,383 (6) NexPoint Hospitality Trust Common stock Hospitality 46.2 % 4,886 (6) LLV Holdco, LLC LLC interest Land 26.8 % 2,242 (6) $ 418,134 (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 to be the primary beneficiary 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"). Through a tenants in common arrangement, 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 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. (8) The Company has a 31% non-controlling interest in Haygood, LLC, (“Haygood”). The Company has determined it is not the primary beneficiary and does not consolidate this entity. (9) The Company owns less than 20% of the investee but has significant influence due to the legal nature of a partnership that implies an inherent right to influence the operating and financial policies of the partnership. |
Equity Method Investments, Balance Sheet Summary | As such, only the financial information for NREF and VineBrook are presented below. NREF VineBrook ASSETS Investments $ 6,873,666 $ 2,500 Real estate assets 126,551 3,211,897 Cash and cash equivalents 13,824 27,917 Other assets 4,312 211,026 TOTAL ASSETS $ 7,018,353 $ 3,453,340 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Debt $ 1,172,555 $ 2,433,674 Other liabilities 5,400,291 144,707 Total Liabilities 6,572,846 2,578,381 Redeemable noncontrolling interests in the operating company 98,070 478,746 Noncontrolling interests in consolidated VIEs — 11,742 Total Shareholders' Equity 347,437 384,471 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 7,018,353 $ 3,453,340 NREF VineBrook NSP ASSETS Investments $ 7,943,558 $ 2,500 $ — Real estate assets 59,072 3,566,053 1,297,814 Cash and cash equivalents 38,830 82,128 9,751 Other assets 1,106 95,365 173,979 TOTAL ASSETS 8,042,566 3,746,046 1,481,544 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Debt 1,275,290 2,622,755 914,999 Other liabilities 6,294,300 126,974 397,768 Total Liabilities 7,569,590 2,749,729 1,312,767 Redeemable noncontrolling interests in the operating company 95,712 467,290 205,114 Noncontrolling interests in consolidated VIEs — 8,685 4,035 Total Shareholders' Equity 377,264 520,342 (40,372) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 8,042,566 $ 3,746,046 $ 1,481,544 |
Equity Method Investments, Statement of Operations Summary | The table below presents the unaudited summary statement of operations for the year ended December 31, 2023, for the Company’s significant equity method investments (dollars in thousands). NREF VineBrook Revenues Rental income $ 4,962 $ 345,778 Net interest income 16,798 — Other income 182 5,330 Total revenues 21,942 351,108 Expenses Total expenses 23,350 502,850 Gain (loss) on sales and impairment of real estate — (72,539) Other income (expense) 20,148 (55,866) Unrealized gain (loss) on derivatives — (15,050) Total comprehensive income (loss) $ 18,740 $ (295,197) The table below presents the unaudited summary statement of operations for the three months ended March 31, 2023 for the Company’s significant equity method investments (dollars in thousands). NREF VineBrook NSP Revenues Rental income $ 1,018 $ 84,497 $ 26,877 Net interest income 3,949 — 809 Other income — 1,608 1,472 Total revenues 4,967 86,105 29,158 Expenses Total expenses 5,520 120,987 31,833 Gain (loss) on sales of real estate — (15,853) — Other income (expense) 9,931 (41,662) (34,885) Unrealized gain (loss) on derivatives — (9,485) — Total comprehensive income (loss) $ 9,378 $ (101,882) $ (37,560) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Assets at Fair Value on a Recurring Basis | The table below summarizes the Company’s assets within the valuation hierarchy carried at fair value on a recurring basis as of March 31, 2024 (in thousands): Fair Value Cost Basis Level 1 Level 2 Level 3 Total Assets Bond $ 17 $ — $ 41 $ — $ 41 CLO 187 — — — — Common stock 312,062 39,875 — 174,386 214,261 Convertible notes 46,385 — — 41,441 41,441 LLC interest 66,825 — — 40,462 40,462 LP interest 328,636 — 69,920 193,109 263,029 Preferred Shares 65,864 — — 65,864 65,864 Rights and warrants 1,784 — 1,788 — 1,788 Senior loan 42,292 — 50 42,599 42,649 $ 864,052 $ 39,875 $ 71,799 $ 557,861 $ 669,535 The table below summarizes the Company’s assets within the valuation hierarchy carried at fair value on a recurring basis as of December 31, 2023 (in thousands): Fair Value Cost Basis Level 1 Level 2 Level 3 Total Assets Bond $ 17 $ — $ 30 $ — $ 30 CLO 24,187 — — 1,215 1,215 Common stock 311,576 42,832 — 176,256 219,088 Convertible notes 46,385 — — 42,251 42,251 LLC interest 66,825 — — 39,399 39,399 LP interest 326,555 — 76,688 195,898 272,586 Preferred Shares 66,268 — — 66,268 66,268 Rights and warrants 3,937 — 3,993 — 3,993 Senior loan 46,174 — 55 46,353 46,408 $ 891,924 $ 42,832 $ 80,766 $ 567,640 $ 691,238 |
Summary of Changes in Level 3 Assets | The table below sets forth a summary of changes in the Company’s Level 3 assets (assets measured at fair value using significant unobservable inputs) for the three months ended March 31, 2024 (in thousands): December 31, 2023 Contributions/ Paid in- Transfer Into Level 3 Redemptions/ Return of capital Realized Unrealized gain/(loss) March 31, 2024 CLO $ 1,215 $ — $ — $ — $ — $ (1,266) $ (22,735) $ 22,786 $ — Common stock 176,256 120 — — — — — (1,990) 174,386 Convertible notes 42,251 — — — — — — (810) 41,441 LLC interest 39,399 — — — — — — 1,063 40,462 LP interest 195,898 2,082 — — — — — (4,871) 193,109 Preferred Shares 66,268 — 1,296 — (1,700) — — — 65,864 Senior loan 46,353 — 1,066 — (5,522) — 574 128 42,599 Total $ 567,640 $ 2,202 $ 2,362 $ — $ (7,222) $ (1,266) $ (22,161) $ 16,306 $ 557,861 The table below sets forth a summary of changes in the Company’s Level 3 assets (assets measured at fair value using significant unobservable inputs) for the three months ended March 31, 2023 (in thousands): December 31, 2022 Contributions/ Paid in- Redemptions/ Return of capital Realized Unrealized gain/(loss) March 31, 2023 CLO $ 6,412 $ — $ — $ — $ — $ — $ 488 $ 6,900 Common stock 234,667 — — — — — (5,800) 228,867 Convertible notes 50,828 — — — — — 474 51,302 Life settlement 67,711 1,266 — — — — (2,593) 66,384 LLC interest 60,836 — — — — — (708) 60,128 LP interest 223,141 1,427 — — — — (9,439) 215,129 Senior loan 43,341 — 1,008 (4,971) — 11 164 39,553 Total $ 686,936 $ 2,693 $ 1,008 $ (4,971) $ — $ 11 $ (17,414) $ 668,263 |
Schedule of Significant Unobservable Inputs of Level 3 Assets | 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 March 31, 2024. Category Valuation Technique Significant Unobservable Inputs Input Value(s) Fair Value Common Stock Market Approach Unadjusted Price/MHz-PoP $0.10 — $0.90 $(0.48) $ 174,386 Discounted Cash Flow Discount Rate 7.50% — 14.10% (9.32)% Market Rent (per sqft) $12.00 — $41.50 $(26.75) RevPAR $73.00 — $145.00 $(100.13) Capitalization Rates 5.25% — 9.50% (7.60)% NAV Approach Discount Rate 10.00% Multiples Analysis Multiple of EBITDA 3.00x — 4.00x (3.50)x Multiple of NAV 1.00x — 1.20x (1.10)x Recent Transaction Implied Enterprise Value from Transaction Price ($mm) $841.00 N/A $25.31 — $28.00 $(26.66) Discount to NAV (25.00)% — (10.00)% (17.50)% Offer Price per Share $1.10 Convertible Notes Discounted Cash Flow Discount Rate 6.08% — 10.25% (8.17)% 41,441 Option Pricing Model Volatility 55.00% — 65.00% (60.00)% LLC Interest Discounted Cash Flow Discount Rate 7.75% — 30.50% 14.19% 40,462 Market Rent (per sqft) $12.00 — $41.50 $(26.75) Capitalization Rate 5.25% LP Interest Market Approach Capitalization Rate 3.70% — 6.60% 5.24% 193,109 Discount to NAV (10.05)% Recent Transaction Price per Share $21.46 Preferred Shares Recent Transaction Price per Share $1,000 65,864 Senior Loan Discounted Cash Flow Discount Rate 12.30% — 20.00% (16.15)% 42,599 Total $ 557,861 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 December 31, 2023. Category Valuation Technique Significant Unobservable Inputs Input Value(s) Fair Value CLO Discounted Net Asset Value Discount N/A $ 1,215 Common Stock Market Approach Unadjusted Price/MHz-PoP $0.10 — $0.90 $(0.48) 176,256 Discounted Cash Flow Discount Rate 7.5% — 13.90% (9.18)% Market Rent (per sqft) $11.50 — $41.00 $(26.25) RevPAR $75.00 — $145.00 $(102.00) Capitalization Rates 5.25% — 9.5% (7.58)% NAV Approach Discount Rate 10.00% Multiples Analysis Multiple of EBITDA 3.00x — 4.00x (3.50)x Multiple of NAV 1.00x — 1.25x (1.13)x Recent Transaction Implied Enterprise Value from Transaction Price ($mm) $841.00 N/A $25.31 — $28.00 $(26.66) Discount to NAV (25.00)% — (10.00)% (17.50)% Offer Price per Share $1.10 Convertible Notes Discounted Cash Flow Discount Rate 6.08% — 10.25% (8.17)% 42,251 Option Pricing Model Volatilty 55.00% — 65.00% (60.00)% LLC Interest Discounted Cash Flow Discount Rate 7.50% — 30.50% 14% 39,399 Market Rent (per sqft) $11.5 — $41 $(26.25) Capitalization Rate 5.25% LP Interest Direct Capitalization Approach Capitalization Rate 4.00% — 6.80% 5.51% 195,898 Discount to NAV (12.5)% — (2.5)% (-7.5%) Discounted Cash Flow Discount Rate 18.00% — 28.00% (22.80)% Market Approach Capitalization Rate 5.00% — 5.50% (5.22)% Recent Transaction Price per Share $21.59 Preferred Shares Recent Transaction Price per Share $1,000 66,268 Senior Loan Discounted Cash Flow Discount Rate 12.30% — 20.00% (16.15)% 46,353 Total $ 567,640 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 and for the three months ended March 31, 2024: 2024 Number of Units Weighted Average Outstanding January 1, 2024 589,906 $ 10.45 Granted 1,033,787 6.10 Vested — — Forfeited (4,371) 6.10 Outstanding March 31, 2024 1,619,322 $ 7.68 The following table contains information regarding the vesting of restricted share units under the 2023 LTIP for the next five calendar years subsequent to March 31, 2024: Shares Vesting March April June Total 2024 — 172,637 6,219 178,856 2025 301,221 140,404 — 441,625 2026 242,731 135,323 — 378,054 2027 242,732 135,323 — 378,055 2028 242,732 — — 242,732 Total 1,029,416 583,687 6,219 1,619,322 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 amounts): Three Months Ended March 31, Three Months Ended March 31, 2024 2023 Numerator for loss per share: Net income (loss) attributable to common shareholders $ (22,703) $ (20,676) Denominator for loss per share: Weighted average common shares outstanding 38,572 37,172 Denominator for basic and diluted loss per share 38,572 37,172 Weighted average unvested restricted share units 749 — Denominator for diluted loss per share (1) 38,572 37,172 Loss per weighted average common share: Basic $ (0.59) $ (0.56) Diluted $ (0.59) $ (0.56) (1) For the three months ended March 31, 2024 and 2023, this excludes approximately 748,950 and 0 shares, respectively, related to assumed vesting of restricted share units as the effect would be anti-dilutive. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For the three months ended and as of March 31, 2024, the Company had 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 NexPoint Hospitality Trust Common Stock $ 2,782 $ (2,104) $ — $ — $ — $ (2,104) NexPoint Real Estate Finance, Inc. Common Stock 30,156 (2,919) — — 1,050 (1,869) NexPoint Storage Partners, Inc. Common Stock 69,494 1,308 — — — 1,308 Related Party Investment Fair Change in Unrealized Realized Equity in income (loss) Interest and Total Income NexPoint Residential Trust, Inc. Common Stock 2,987 (209) — — 43 (166) NexPoint SFR Operating Partnership, L.P. Convertible Notes 20,814 — — — 407 407 NexPoint Hospitality Trust Convertible Notes 20,627 (810) — — (4) (814) NexPoint Storage Partners Operating Company, LLC LLC Units 37,869 712 — — — 712 SFR WLIF III, LLC LLC Units 7,002 — — 214 — 214 Claymore Holdings, LLC LLC Units — — — — — — Allenby, LLC LLC Units — (1) — — — (1) Haygood, LLC. LLC Units — — — — — — VineBrook Homes Operating Partnership, L.P. Partnership Units 145,433 (2,547) — — 1,465 (1,082) NexPoint Real Estate Finance Operating Partnership, L.P. Partnership Units 69,920 (6,768) — — 2,435 (4,333) NexPoint SFR Operating Partnership, L.P. Partnership Units 47,676 (2,324) — — 617 (1,707) NexAnnuity Holdings, Inc. Preferred Shares 65,864 — — — 1,296 1,296 NexPoint Storage Partners Operating Company, LLC Promissory Note 4,986 (14) — — 67 53 NexPoint SFR Operating Partnership, L.P. Promissory Note 500 — — — 11 11 Total $ 526,110 $ (15,676) $ — $ 214 $ 7,387 $ (8,075) For the three months ended and as of March 31, 2023, the Company had 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 Interest and Total Income SFR WLIF III, LLC LLC Units $ 7,289 $ 213 $ — $ — $ 213 NexPoint Residential Trust, Inc. Common Stock 3,875 13 — 37 50 NexPoint Hospitality Trust Common Stock 22,935 (4,750) — — (4,750) NexPoint Hospitality Trust Convertible Notes 21,677 198 — 62 260 NexPoint Storage Partners, Inc. Common Stock 103,194 (501) — — (501) NexPoint Storage Partners Operating Company, LLC LLC Units 56,232 (273) — — (273) NexPoint SFR Operating Partnership, L.P. Partnership Units 48,666 (4,813) — 602 (4,211) NexPoint SFR Operating Partnership, L.P. Convertible Notes 29,625 275 — 563 838 Claymore Holdings, LLC LLC Units — — — — — Allenby, LLC LLC Units — — — — — NexPoint Real Estate Finance Operating Partnership, L.P. Partnership Units 76,299 (1,071) — 2,921 1,850 NexPoint Real Estate Finance, Inc. Common Stock 32,907 (462) — 1,439 — 977 VineBrook Homes Operating Partnership, L.P. Partnership Units 166,463 (4,625) — 1,427 — (3,198) Total $ 569,162 $ (15,796) $ — $7,051 $ (8,745) |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 (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 2024 $7,605 2025 9,924 2026 8,600 2027 7,712 2028 4,826 Thereafter 50,407 Total $89,074 |
Schedules of Concentration of Risk, by Risk Factor | The following table lists the tenants where the rental revenue from the tenants represented 10% or more of total rental income in the Company’s consolidated statements of operations (in thousands) for the three months ended March 31, 2024: For the Three Months Ended March 31, 2024 Tenant Rental Income Neiman Marcus Group, LLC $587 Saputo Dairy Foods $497 The following table lists the tenants where the rental revenue from the tenants represented 10% or more of total rental income in the Company’s consolidated statements of operations (in thousands) for the three months ended March 31, 2023: Three Months Ended March 31, 2023 Tenant Rental Income Hudson Advisors, LLC $712 |
Organization and Description _2
Organization and Description of Business (Details) | 3 Months Ended |
Mar. 31, 2024 shares | |
Summary of Investment Holdings [Line Items] | |
Advisory agreement, term | 3 years |
Advisory agreement, additional term | 1 year |
NexPoint Diversified Real Estate Trust OP GP, LLC | |
Summary of Investment Holdings [Line Items] | |
General partners' capital account, units outstanding (in shares) | 2,000 |
Ownership interest | 100% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Tax Credit Carryforward [Line Items] | |||
Net income (loss) before income taxes | $ (20,998) | $ (18,715) | |
Deferred tax asset, net | 2,905 | $ 2,896 | |
Income tax payable | $ 1,527 | 356 | |
Effective tax rate (in percent) | (2.62%) | (4.31%) | |
NHS TRS, LLC | |||
Tax Credit Carryforward [Line Items] | |||
Deferred tax asset, net | $ 4,500 | 4,500 | |
NREO TRS, LLC | |||
Tax Credit Carryforward [Line Items] | |||
Deferred tax asset, net | 2,900 | ||
Income tax payable | $ 1,600 | $ 1,600 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Expected tax at statutory rate | $ (4,410) | $ (3,930) |
Non-taxable REIT income | 4,969 | 4,852 |
Change in valuation allowance | (9) | (116) |
Total provision | $ 550 | $ 806 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Expected tax at statutory rate (in percent) | 21% | 21% |
Non-taxable REIT income (in percent) | (23.70%) | (25.90%) |
Change in valuation allowance (in percent) | 0% | 0.60% |
Effective tax rate (in percent) | (2.62%) | (4.31%) |
Investments in Real Estate Su_3
Investments in Real Estate Subsidiaries - Narrative (Details) - property | Mar. 31, 2024 | Mar. 31, 2023 |
Summary of Investment Holdings [Line Items] | ||
Number of real estate properties | 4 | 4 |
Special Purpose Entities Directly Owned Companies | ||
Summary of Investment Holdings [Line Items] | ||
Effective ownership (as a percent) | 100% | 100% |
Investments in Real Estate Su_4
Investments in Real Estate Subsidiaries - Schedule of Investments in SPEs Properties (Details) - a | Mar. 31, 2024 | Mar. 31, 2023 |
Special Purpose Entities Directly Owned Companies | ||
Summary of Investment Holdings [Line Items] | ||
Effective ownership (as a percent) | 100% | 100% |
White Rock Center | Special Purpose Entities Directly Owned Companies | ||
Summary of Investment Holdings [Line Items] | ||
Effective ownership (as a percent) | 100% | 100% |
5916 W Loop 289 | Special Purpose Entities Directly Owned Companies | ||
Summary of Investment Holdings [Line Items] | ||
Effective ownership (as a percent) | 100% | 100% |
Cityplace Tower | Special Purpose Entities Directly Owned Companies | ||
Summary of Investment Holdings [Line Items] | ||
Effective ownership (as a percent) | 100% | 100% |
NexPoint Dominion Land, LLC | Undeveloped Land in Plano, Texas | ||
Summary of Investment Holdings [Line Items] | ||
Area of land (acre) | 21.5 | |
NexPoint Dominion Land, LLC | Special Purpose Entities Directly Owned Companies | ||
Summary of Investment Holdings [Line Items] | ||
Effective ownership (as a percent) | 100% | 100% |
Consolidated Real Estate Inve_3
Consolidated Real Estate Investments - Components of Investments in Real Estate Properties (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | $ 278,818 | $ 277,669 |
Accumulated depreciation and amortization | (20,676) | (18,322) |
Total Operating Properties | 258,142 | 259,347 |
White Rock Center | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 13,548 | 13,485 |
5916 W Loop 289 | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 4,019 | 4,019 |
Cityplace Tower | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 234,751 | 233,665 |
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 | 206,546 | 206,213 |
Accumulated depreciation and amortization | (15,805) | (13,490) |
Total Operating Properties | 190,741 | 192,723 |
Buildings and Improvements | White Rock Center | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 10,408 | 10,345 |
Buildings and Improvements | 5916 W Loop 289 | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 2,938 | 2,938 |
Buildings and Improvements | Cityplace Tower | ||
Property, Plant and Equipment [Line Items] | ||
Investment in real estate, gross | 193,200 | 192,930 |
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 | (7,117) | (6,798) |
Total Operating Properties | 3,862 | 4,181 |
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 | 2,496 | 2,203 |
Total Operating Properties | (4,274) | (4,567) |
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 | 19,993 | 19,177 |
Accumulated depreciation and amortization | 0 | 0 |
Total Operating Properties | 19,993 | 19,177 |
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 | 19,993 | 19,177 |
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 | 362 |
Accumulated depreciation and amortization | (250) | (237) |
Total Operating Properties | 112 | 125 |
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 | 357 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 2.3 | $ 2.1 |
Net amount amortized as increase to rental revenue for capitalized above and below market lease | 0.3 | 0.4 |
Leases, Acquired-in-Place | Intangible Lease Assets | ||
Property, Plant and Equipment [Line Items] | ||
Amortization of intangible assets | 0.3 | 1.3 |
Leases, Acquired-in-Place | Intangible Lease Liabilities | ||
Property, Plant and Equipment [Line Items] | ||
Amortization of intangible assets | $ 0.3 | $ 0.4 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands | 3 Months Ended | |||||||||
Nov. 20, 2023 USD ($) | Oct. 23, 2023 USD ($) | Sep. 08, 2023 | May 22, 2023 USD ($) | Aug. 15, 2018 | Mar. 31, 2024 USD ($) extension | Dec. 31, 2023 USD ($) | Oct. 20, 2023 USD ($) | Aug. 09, 2022 USD ($) a | Jan. 08, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Total | $ 195,655 | |||||||||
Prime brokerage borrowing | 1,441 | $ 1,782 | ||||||||
Raymond James Bank, N.A | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 20,000 | |||||||||
Draws on credit facility | $ 13,000 | $ 6,000 | ||||||||
Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total | $ 39,250 | |||||||||
Revolver | NexBank | Revolving Credit Facility | ||||||||||
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 | 6 months | |||||||||
Long-term line of credit | $ 20,000 | |||||||||
Number of extension options | extension | 2 | |||||||||
Raymond James | Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 30,000 | |||||||||
Repayments of long-term debt, total | $ 750 | |||||||||
Mortgages payable, net | $ 19,250 | |||||||||
Secured Overnight Financing Rate (SOFR) | Revolver | NexBank | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 3.50% | 3.50% | ||||||||
Secured Overnight Financing Rate (SOFR) | Raymond James | Credit Facility | ||||||||||
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] | ||||||||||
Extension term | 4 months | |||||||||
Deferral period | 6 months | |||||||||
Total | $ 141,714 | |||||||||
Mortgages payable, net | $ 141,379 | |||||||||
Mortgages | Cityplace Tower | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, weighted average interest rate | 8.48% | 8.53% | ||||||||
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 | $ 1,400 | |||||||||
Debt instrument, collateral amount | $ 9,300 | |||||||||
Prime Brokerage Borrowing | Overnight Bank Funding Rate | Merrill Lynch Professional Clearing Corp (BAML) | ||||||||||
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 | Mar. 31, 2024 USD ($) |
Debt Instrument [Line Items] | |
Total | $ 195,655 |
Mortgages | |
Debt Instrument [Line Items] | |
Total | 141,714 |
Deferred financing costs, net | (335) |
Mortgages payable, net | 141,379 |
Note A-1 | |
Debt Instrument [Line Items] | |
Total | $ 100,695 |
Interest rate | 7.68% |
Note A-2 | |
Debt Instrument [Line Items] | |
Total | $ 22,027 |
Interest rate | 11.68% |
Note B-1 | |
Debt Instrument [Line Items] | |
Total | $ 12,676 |
Interest rate | 7.68% |
Note B-2 | |
Debt Instrument [Line Items] | |
Total | $ 3,147 |
Interest rate | 11.68% |
Mezzanine Note 1 | |
Debt Instrument [Line Items] | |
Total | $ 2,773 |
Interest rate | 11.68% |
Mezzanine Note 2 | |
Debt Instrument [Line Items] | |
Total | $ 396 |
Interest rate | 11.68% |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 28,250 |
2025 | 165,964 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 1,441 |
Total | 195,655 |
Credit Facilities | |
Debt Instrument [Line Items] | |
2024 | 28,250 |
2025 | 11,000 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | 39,250 |
Prime Brokerage Borrowing | |
Debt Instrument [Line Items] | |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 1,441 |
Total | 1,441 |
Mortgages Payable | |
Debt Instrument [Line Items] | |
2024 | 0 |
2025 | 141,714 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | 141,714 |
Notes Payable | |
Debt Instrument [Line Items] | |
2024 | 0 |
2025 | 13,250 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | $ 13,250 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - VIE | Mar. 31, 2024 | Mar. 31, 2023 |
NexPoint Storage Partners, Inc. | ||
Variable Interest Entity [Line Items] | ||
Effective ownership (as a percent) | 52.80% | 53% |
NexPoint Storage Partners Operating Company, LLC | ||
Variable Interest Entity [Line Items] | ||
Effective ownership (as a percent) | 29.90% | 29.70% |
Perilune Aero Equity Holdings One, LLC | ||
Variable Interest Entity [Line Items] | ||
Effective ownership (as a percent) | 16.40% | 16.40% |
SFR WLIF III, LLC | ||
Variable Interest Entity [Line Items] | ||
Effective ownership (as a percent) | 20% | 20% |
NexPoint Real Estate Finance Operating Partnership, L.P. | ||
Variable Interest Entity [Line Items] | ||
Effective ownership (as a percent) | 15.60% | 16.10% |
VineBrook Homes Operating Partnership, L.P. | ||
Variable Interest Entity [Line Items] | ||
Effective ownership (as a percent) | 11.30% | 11.50% |
NexPoint SFR Operating Partnership, L.P. | ||
Variable Interest Entity [Line Items] | ||
Effective ownership (as a percent) | 31.20% | 30.80% |
IQHQ Holdings, LP | ||
Variable Interest Entity [Line Items] | ||
Effective ownership (as a percent) | 1.30% | 1.10% |
NexAnnuity Holdings, Inc. | ||
Variable Interest Entity [Line Items] | ||
Effective ownership (as a percent) | 100% |
Equity Method Investments - Equ
Equity Method Investments - Equity Method Investments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) a | Dec. 31, 2023 USD ($) | Dec. 08, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment Basis | $ 63,531 | $ 66,263 | |
Share of Investee's Net Assets | 36,610 | 38,032 | |
Basis Difference | 26,921 | 28,231 | |
Share of Earnings (Loss) | (747) | 1,570 | |
Fair Value | $ 405,923 | $ 418,134 | |
Allenby, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Effective ownership | 50% | ||
Haygood, LLC. | |||
Schedule of Equity Method Investments [Line Items] | |||
Effective ownership | 31% | ||
Sandstone Pasadena Apartments, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
NXDT Percentage Ownership | 50% | 50% | |
Investment Basis | $ 11,034 | $ 11,458 | |
Share of Investee's Net Assets | (9,590) | (9,590) | |
Basis Difference | 20,624 | 21,048 | |
Share of Earnings (Loss) | $ (58) | $ 0 | |
AM Uptown Hotel, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
NXDT Percentage Ownership | 60% | 60% | |
Investment Basis | $ 20,600 | $ 23,158 | |
Share of Investee's Net Assets | 16,290 | 17,581 | |
Basis Difference | 4,310 | 5,577 | |
Share of Earnings (Loss) | $ (1,203) | $ (426) | |
SFR WLIF III, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
NXDT Percentage Ownership | 20% | 20% | |
Investment Basis | $ 7,002 | $ 7,079 | |
Share of Investee's Net Assets | 7,110 | 7,241 | |
Basis Difference | (108) | (162) | |
Share of Earnings (Loss) | $ 161 | $ 555 | |
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 | $ 12,583 | $ 12,256 | |
Share of Investee's Net Assets | 10,488 | 10,488 | |
Basis Difference | 2,095 | 1,768 | |
Share of Earnings (Loss) | $ 353 | $ 1,441 | |
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 | |
Haygood, LLC. | |||
Schedule of Equity Method Investments [Line Items] | |||
NXDT Percentage Ownership | 31% | 31% | |
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 | 15.60% | 15.60% | |
Fair Value | $ 69,920 | $ 76,688 | |
NexPoint Real Estate Finance, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
NXDT Percentage Ownership | 12.10% | 12% | |
Fair Value | $ 30,156 | $ 33,075 | |
VineBrook Homes Operating Partnership, L.P. | |||
Schedule of Equity Method Investments [Line Items] | |||
NXDT Percentage Ownership | 11.30% | 11.20% | |
Fair Value | $ 145,433 | $ 146,516 | |
NexPoint Storage Partners, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
NXDT Percentage Ownership | 52.80% | 52.90% | |
Fair Value | $ 69,494 | $ 68,187 | |
NexPoint Storage Partners Operating Company, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
NXDT Percentage Ownership | 29.90% | 30% | 14.80% |
Fair Value | $ 37,869 | $ 37,157 | |
NexPoint SFR Operating Partnership, L.P. | |||
Schedule of Equity Method Investments [Line Items] | |||
NXDT Percentage Ownership | 31.20% | 30.80% | |
Fair Value | $ 47,676 | $ 49,383 | |
NexPoint Hospitality Trust | |||
Schedule of Equity Method Investments [Line Items] | |||
NXDT Percentage Ownership | 46.20% | 46.20% | |
Fair Value | $ 2,782 | $ 4,886 | |
LLV Holdco, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
NXDT Percentage Ownership | 26.80% | 26.80% | |
Fair Value | $ 2,593 | $ 2,242 | |
Tivoli North Property | |||
Schedule of Equity Method Investments [Line Items] | |||
NXDT Percentage Ownership | 100% | ||
Percentage of ownership in real estate property | 77% | ||
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 - Bal
Equity Method Investments - Balance Sheet Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||||
Real estate assets | $ 262,416 | $ 263,914 | ||
Cash and cash equivalents | 20,173 | 20,608 | ||
TOTAL ASSETS | 1,074,550 | 1,098,336 | ||
Liabilities: | ||||
Total Liabilities | 211,527 | 213,262 | ||
Total Shareholders' Equity | 863,023 | 885,074 | $ 991,581 | $ 1,017,832 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,074,550 | 1,098,336 | ||
NexPoint Real Estate Finance Operating Partnership, LP | ||||
ASSETS | ||||
Investments | 6,873,666 | 7,943,558 | ||
Real estate assets | 126,551 | 59,072 | ||
Cash and cash equivalents | 13,824 | 38,830 | ||
Other assets | 4,312 | 1,106 | ||
TOTAL ASSETS | 7,018,353 | 8,042,566 | ||
Liabilities: | ||||
Debt | 1,172,555 | 1,275,290 | ||
Other liabilities | 5,400,291 | 6,294,300 | ||
Total Liabilities | 6,572,846 | 7,569,590 | ||
Redeemable noncontrolling interests in the operating company | 98,070 | 95,712 | ||
Noncontrolling interests in consolidated VIEs | 0 | 0 | ||
Total Shareholders' Equity | 347,437 | 377,264 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,018,353 | 8,042,566 | ||
VineBrook | ||||
ASSETS | ||||
Investments | 2,500 | 2,500 | ||
Real estate assets | 3,211,897 | 3,566,053 | ||
Cash and cash equivalents | 27,917 | 82,128 | ||
Other assets | 211,026 | 95,365 | ||
TOTAL ASSETS | 3,453,340 | 3,746,046 | ||
Liabilities: | ||||
Debt | 2,433,674 | 2,622,755 | ||
Other liabilities | 144,707 | 126,974 | ||
Total Liabilities | 2,578,381 | 2,749,729 | ||
Redeemable noncontrolling interests in the operating company | 478,746 | 467,290 | ||
Noncontrolling interests in consolidated VIEs | 11,742 | 8,685 | ||
Total Shareholders' Equity | 384,471 | 520,342 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 3,453,340 | 3,746,046 | ||
NexPoint Storage Partners, Inc. | ||||
ASSETS | ||||
Investments | 0 | |||
Real estate assets | 1,297,814 | |||
Cash and cash equivalents | 9,751 | |||
Other assets | 173,979 | |||
TOTAL ASSETS | 1,481,544 | |||
Liabilities: | ||||
Debt | 914,999 | |||
Other liabilities | 397,768 | |||
Total Liabilities | 1,312,767 | |||
Redeemable noncontrolling interests in the operating company | 205,114 | |||
Noncontrolling interests in consolidated VIEs | 4,035 | |||
Total Shareholders' Equity | (40,372) | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,481,544 |
Equity Method Investments - Sta
Equity Method Investments - Statement of Operations Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenues | |||
Rental income | $ 4,047 | $ 4,720 | |
Other income | 27 | 9 | |
Total revenues | 12,805 | 14,866 | |
Expenses | |||
Total expenses | $ 12,536 | 12,538 | |
NexPoint Real Estate Finance Operating Partnership, LP | |||
Revenues | |||
Rental income | 1,018 | $ 4,962 | |
Net interest income | 3,949 | 16,798 | |
Other income | 0 | 182 | |
Total revenues | 4,967 | 21,942 | |
Expenses | |||
Total expenses | 5,520 | 23,350 | |
Gain (loss) on sales and impairment of real estate | 0 | 0 | |
Other income (expense) | 9,931 | 20,148 | |
Unrealized gain (loss) on derivatives | 0 | 0 | |
Total comprehensive income (loss) | 9,378 | 18,740 | |
VineBrook | |||
Revenues | |||
Rental income | 84,497 | 345,778 | |
Net interest income | 0 | 0 | |
Other income | 1,608 | 5,330 | |
Total revenues | 86,105 | 351,108 | |
Expenses | |||
Total expenses | 120,987 | 502,850 | |
Gain (loss) on sales and impairment of real estate | (15,853) | (72,539) | |
Other income (expense) | (41,662) | (55,866) | |
Unrealized gain (loss) on derivatives | (9,485) | (15,050) | |
Total comprehensive income (loss) | (101,882) | $ (295,197) | |
NexPoint Storage Partners, Inc. | |||
Revenues | |||
Rental income | 26,877 | ||
Net interest income | 809 | ||
Other income | 1,472 | ||
Total revenues | 29,158 | ||
Expenses | |||
Total expenses | 31,833 | ||
Gain (loss) on sales and impairment of real estate | 0 | ||
Other income (expense) | (34,885) | ||
Unrealized gain (loss) on derivatives | 0 | ||
Total comprehensive income (loss) | $ (37,560) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Assets at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | $ 864,052 | $ 891,924 |
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 | 187 | 24,187 |
Common stock | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 312,062 | 311,576 |
Convertible notes | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 46,385 | 46,385 |
LLC interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 66,825 | 66,825 |
LP interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 328,636 | 326,555 |
Preferred Shares | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 65,864 | 66,268 |
Rights and warrants | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 1,784 | 3,937 |
Senior loan | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 42,292 | 46,174 |
Fair Value | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 669,535 | 691,238 |
Fair Value | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 39,875 | 42,832 |
Fair Value | Level 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 71,799 | 80,766 |
Fair Value | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 557,861 | 567,640 |
Fair Value | Bond | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 41 | 30 |
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 | 41 | 30 |
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 | 0 | 1,215 |
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 | 0 | 0 |
Fair Value | CLO | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 1,215 |
Fair Value | Common stock | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 214,261 | 219,088 |
Fair Value | Common stock | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 39,875 | 42,832 |
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 | 174,386 | 176,256 |
Fair Value | Convertible notes | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 41,441 | 42,251 |
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 | 41,441 | 42,251 |
Fair Value | LLC interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 40,462 | 39,399 |
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 | 40,462 | 39,399 |
Fair Value | LP interest | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 263,029 | 272,586 |
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 | 69,920 | 76,688 |
Fair Value | LP interest | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 193,109 | 195,898 |
Fair Value | Preferred Shares | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 65,864 | 66,268 |
Fair Value | Preferred Shares | Level 1 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | Preferred Shares | Level 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 0 | 0 |
Fair Value | Preferred Shares | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 65,864 | 66,268 |
Fair Value | Rights and warrants | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | 1,788 | 3,993 |
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 | 1,788 | 3,993 |
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 | 42,649 | 46,408 |
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 | 50 | 55 |
Fair Value | Senior loan | Level 3 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Investments, fair value disclosure | $ 42,599 | $ 46,353 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Changes in Level 3 Assets (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value, beginning balance | $ 567,640 | $ 686,936 |
Contributions/ Purchases | 2,202 | 2,693 |
Paid in- kind dividends | 2,362 | 1,008 |
Transfer Into Level 3 | 0 | |
Redemptions/ conversions | (7,222) | (4,971) |
Return of capital | (1,266) | 0 |
Realized gain/(loss) | (22,161) | 11 |
Unrealized gain/(loss) | 16,306 | (17,414) |
Fair value, ending balance | 557,861 | 668,263 |
CLO | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value, beginning balance | 1,215 | 6,412 |
Contributions/ Purchases | 0 | 0 |
Paid in- kind dividends | 0 | 0 |
Transfer Into Level 3 | 0 | |
Redemptions/ conversions | 0 | 0 |
Return of capital | (1,266) | 0 |
Realized gain/(loss) | (22,735) | 0 |
Unrealized gain/(loss) | 22,786 | 488 |
Fair value, ending balance | 0 | 6,900 |
Common stock | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value, beginning balance | 176,256 | 234,667 |
Contributions/ Purchases | 120 | 0 |
Paid in- kind dividends | 0 | 0 |
Transfer Into Level 3 | 0 | |
Redemptions/ conversions | 0 | 0 |
Return of capital | 0 | 0 |
Realized gain/(loss) | 0 | 0 |
Unrealized gain/(loss) | (1,990) | (5,800) |
Fair value, ending balance | 174,386 | 228,867 |
Convertible notes | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value, beginning balance | 42,251 | 50,828 |
Contributions/ Purchases | 0 | 0 |
Paid in- kind dividends | 0 | 0 |
Transfer Into Level 3 | 0 | |
Redemptions/ conversions | 0 | 0 |
Return of capital | 0 | 0 |
Realized gain/(loss) | 0 | 0 |
Unrealized gain/(loss) | (810) | 474 |
Fair value, ending balance | 41,441 | 51,302 |
Life settlement | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value, beginning balance | 67,711 | |
Contributions/ Purchases | 1,266 | |
Paid in- kind dividends | 0 | |
Redemptions/ conversions | 0 | |
Return of capital | 0 | |
Realized gain/(loss) | 0 | |
Unrealized gain/(loss) | (2,593) | |
Fair value, ending balance | 66,384 | |
LLC interest | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value, beginning balance | 39,399 | 60,836 |
Contributions/ Purchases | 0 | 0 |
Paid in- kind dividends | 0 | 0 |
Transfer Into Level 3 | 0 | |
Redemptions/ conversions | 0 | 0 |
Return of capital | 0 | 0 |
Realized gain/(loss) | 0 | 0 |
Unrealized gain/(loss) | 1,063 | (708) |
Fair value, ending balance | 40,462 | 60,128 |
LP interest | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value, beginning balance | 195,898 | 223,141 |
Contributions/ Purchases | 2,082 | 1,427 |
Paid in- kind dividends | 0 | 0 |
Transfer Into Level 3 | 0 | |
Redemptions/ conversions | 0 | 0 |
Return of capital | 0 | 0 |
Realized gain/(loss) | 0 | 0 |
Unrealized gain/(loss) | (4,871) | (9,439) |
Fair value, ending balance | 193,109 | 215,129 |
Preferred Shares | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value, beginning balance | 66,268 | |
Contributions/ Purchases | 0 | |
Paid in- kind dividends | 1,296 | |
Transfer Into Level 3 | 0 | |
Redemptions/ conversions | (1,700) | |
Return of capital | 0 | |
Realized gain/(loss) | 0 | |
Unrealized gain/(loss) | 0 | |
Fair value, ending balance | 65,864 | |
Senior loan | ||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ||
Fair value, beginning balance | 46,353 | 43,341 |
Contributions/ Purchases | 0 | 0 |
Paid in- kind dividends | 1,066 | 1,008 |
Transfer Into Level 3 | 0 | |
Redemptions/ conversions | (5,522) | (4,971) |
Return of capital | 0 | 0 |
Realized gain/(loss) | 574 | 11 |
Unrealized gain/(loss) | 128 | 164 |
Fair value, ending balance | $ 42,599 | $ 39,553 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Significant Unobservable Inputs of Level 3 Assets (Details) - Level 3 $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | $ 557,861 | $ 567,640 |
CLO | Discount Rate | Discounted Net Asset Value | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | $ 1,215 | |
Common stock | Discount Rate | Discounted Net Asset Value | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.1000 | 0.1000 |
Common stock | Unadjusted Price/MHz-PoP | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | $ 174,386 | $ 176,256 |
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 | 841 |
Common stock | Offer Price per Share | Recent Transaction | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 1.10 | 1.10 |
Convertible notes | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | $ 41,441 | $ 42,251 |
LLC interest | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | $ 40,462 | $ 39,399 |
LLC interest | Capitalization Rates | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.0525 | 0.0525 |
LP interest | Capitalization Rates | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | $ 193,109 | |
LP interest | Capitalization Rates | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | $ 195,898 | |
LP interest | Discount to NAV | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.1005) | |
LP interest | Offer Price per Share | Recent Transaction | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 21.46 | 21.59 |
Preferred Shares | Offer Price per Share | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | $ 65,864 | |
Preferred Shares | Offer Price per Share | Recent Transaction | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 1,000 | 1,000 |
Fair Value | $ 66,268 | |
Senior loan | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value | $ 42,599 | $ 46,353 |
Minimum | Common stock | Recent Transaction | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 25.31 | 25.31 |
Minimum | Common stock | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.0750 | 0.075 |
Minimum | Common stock | Unadjusted Price/MHz-PoP | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.10 | 0.10 |
Minimum | Common stock | Market Rent (per sqft) | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 12 | 11.50 |
Minimum | Common stock | RevPAR | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 73 | 75 |
Minimum | Common stock | Capitalization Rates | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.0525 | 0.0525 |
Minimum | Common stock | Multiple of EBITDA | Multiples Analysis | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 3 | 3 |
Minimum | Common stock | Multiple of NAV | Multiples Analysis | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 1 | 1 |
Minimum | Common stock | Discount to NAV | Recent Transaction | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.2500) | (0.2500) |
Minimum | Convertible notes | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.0608 | 0.0608 |
Minimum | Convertible notes | Volatility | Option Pricing Model | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.5500 | 0.5500 |
Minimum | LLC interest | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.0775 | 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) | 12 | 11.5 |
Minimum | LP interest | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.1800 | |
Minimum | LP interest | Capitalization Rates | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.0500 | |
Minimum | LP interest | Capitalization Rates | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.0370 | 0.0400 |
Minimum | LP interest | Discount to NAV | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | ||
Minimum | LP interest | Discount to NAV | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.125) | |
Minimum | Senior loan | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.1230 | 0.1230 |
Maximum | Common stock | Recent Transaction | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 28 | 28 |
Maximum | Common stock | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.1410 | 0.1390 |
Maximum | Common stock | Unadjusted Price/MHz-PoP | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.90 | 0.90 |
Maximum | Common stock | Market Rent (per sqft) | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 41.50 | 41 |
Maximum | Common stock | RevPAR | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 145 | 145 |
Maximum | Common stock | Capitalization Rates | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.0950 | 0.095 |
Maximum | Common stock | Multiple of EBITDA | Multiples Analysis | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 4 | 4 |
Maximum | Common stock | Multiple of NAV | Multiples Analysis | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 1.20 | 1.25 |
Maximum | Common stock | Discount to NAV | Recent Transaction | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.1000) | (0.1000) |
Maximum | Convertible notes | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.1025 | 0.1025 |
Maximum | Convertible notes | Volatility | Option Pricing Model | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.6500 | 0.6500 |
Maximum | LLC interest | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.3050 | 0.3050 |
Maximum | LLC interest | Market Rent (per sqft) | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 41.50 | 41 |
Maximum | LP interest | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.2800 | |
Maximum | LP interest | Capitalization Rates | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.0550 | |
Maximum | LP interest | Capitalization Rates | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.0660 | 0.0680 |
Maximum | LP interest | Discount to NAV | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | ||
Maximum | LP interest | Discount to NAV | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.025) | |
Maximum | Senior loan | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.2000 | 0.2000 |
Weighted Average | Common stock | Recent Transaction | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (26.66) | (26.66) |
Weighted Average | Common stock | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.0932) | (0.0918) |
Weighted Average | Common stock | Unadjusted Price/MHz-PoP | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.48) | (0.48) |
Weighted Average | Common stock | Market Rent (per sqft) | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (26.75) | (26.25) |
Weighted Average | Common stock | RevPAR | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (100.13) | (102) |
Weighted Average | Common stock | Capitalization Rates | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.0760) | (0.0758) |
Weighted Average | Common stock | Multiple of EBITDA | Multiples Analysis | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.0350) | (0.0350) |
Weighted Average | Common stock | Multiple of NAV | Multiples Analysis | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.0110) | (0.0113) |
Weighted Average | Common stock | Discount to NAV | Recent Transaction | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.1750) | (0.1750) |
Weighted Average | Convertible notes | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.0817) | (0.0817) |
Weighted Average | Convertible notes | Volatility | Option Pricing Model | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.6000) | (0.6000) |
Weighted Average | LLC interest | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.1419 | 0.14 |
Weighted Average | LLC interest | Market Rent (per sqft) | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (26.75) | (26.25) |
Weighted Average | LP interest | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.2280) | |
Weighted Average | LP interest | Capitalization Rates | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.0522) | |
Weighted Average | LP interest | Capitalization Rates | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | 0.0524 | 0.0551 |
Weighted Average | LP interest | Discount to NAV | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | ||
Weighted Average | LP interest | Discount to NAV | Market Approach | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.075) | |
Weighted Average | Senior loan | Discount Rate | Discounted Cash Flow | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Input Value(s) (Arithmetic Mean) | (0.1615) | (0.1615) |
Life Settlement Portfolio (Deta
Life Settlement Portfolio (Details) - $ / shares | 3 Months Ended | ||
Sep. 01, 2023 | Jan. 08, 2021 | Mar. 31, 2024 | |
Preferred Class A | NexAnnuity Holdings, Inc. | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Stock issued during period, new issues (in shares) | 68,500 | ||
Series A Preferred Stock | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Original issue price per share (in dollars per share) | $ 1,000 | ||
Preferred stock, dividend rate, percentage | 5.50% | ||
Series A Preferred Stock | Dividend Payable Years One Through Seven | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Preferred stock, dividend rate, percentage | 8% | ||
Series A Preferred Stock | Dividend Payable Years Eight Through Ten | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Preferred stock, dividend rate, percentage | 9.50% | ||
Series A Preferred Stock | Dividend Payable Years Eleven Through Thirteen | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Preferred stock, dividend rate, percentage | 11% | ||
Series A Preferred Stock | Dividend Payable Years Fourteen Through Sixteen and Thereafter | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Preferred stock, dividend rate, percentage | 12% | ||
Specialty Financial Products, LLC | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Ownership percentage | 100% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||
Mar. 28, 2024 | Apr. 04, 2023 shares | Jan. 08, 2021 USD ($) $ / shares shares | Mar. 31, 2024 USD ($) distribution $ / shares shares | Mar. 31, 2023 $ / shares shares | Dec. 31, 2023 $ / shares shares | Jan. 30, 2023 shares | |
Class of Stock [Line Items] | |||||||
Common stock, shares, issued (in shares) | 39,301,419 | 37,171,807 | 38,389,600 | ||||
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Common shares pursuant to terminated dividend reinvestment plan (in shares) | 911,819 | ||||||
Common stock, dividends paid (in dollars per share) | $ / shares | $ 0.15 | ||||||
Percentage of common stock, dividend paid as cash | 0.20 | ||||||
Preferred stock, shares issued (in shares) | 3,359,593 | 3,359,593 | |||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||
Additional Paid-in Capital | |||||||
Class of Stock [Line Items] | |||||||
Equity based compensation expense related to grants | $ | $ (500) | ||||||
Restricted Stock Units (RSUs) | |||||||
Class of Stock [Line Items] | |||||||
Granted (in shares) | 1,033,787 | ||||||
Dividends payable | $ | $ 400 | ||||||
Unrecognized compensation expense | $ | $ 10,600 | ||||||
Period to recognize unrecognized compensation expense | 2 years | ||||||
Long Term Incentive Plan | |||||||
Class of Stock [Line Items] | |||||||
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) | 58,490 | ||||||
Long Term Incentive Plan | Officer | Restricted Stock Units (RSUs) | |||||||
Class of Stock [Line Items] | |||||||
Granted (in shares) | 975,297 | ||||||
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) | $ / shares | $ 0.001 | ||||||
Preferred stock, redemption price per share (in dollars per share) | $ / shares | $ 25 | ||||||
Proceeds from issuance of preferred stock | $ | $ 84,000 | ||||||
Number of distribution declared | distribution | 1 | ||||||
Preferred stock, dividends paid (in dollars per share) | $ / shares | $ 0.34375 | $ 0.34375 |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted Stock Units Activities (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Units | |
Restricted stock units at the beginning of the period (in shares) | shares | 589,906 |
Granted (in shares) | shares | 1,033,787 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (4,371) |
Restricted stock units at the end of the period (in shares) | shares | 1,619,322 |
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) | $ / shares | $ 10.45 |
Weighted-average grant date fair value, granted (in dollars per share) | $ / shares | 6.10 |
Weighted-average grant date fair value, vested (in dollars per share) | $ / shares | 0 |
Weighted-average grant date fair value, forfeited (in dollars per share) | $ / shares | 6.10 |
Restricted stock units weighted-average grant date fair value at the end of the period (in dollars per share) | $ / shares | $ 7.68 |
Shareholders' Equity - Restri_2
Shareholders' Equity - Restricted Stock Units Vesting Schedule (Details) - Restricted Stock Units (RSUs) - shares | Mar. 31, 2024 | Dec. 31, 2023 |
Class of Stock [Line Items] | ||
2024 | 178,856 | |
2025 | 441,625 | |
2026 | 378,054 | |
2027 | 378,055 | |
2028 | 242,732 | |
Total | 1,619,322 | 589,906 |
March | ||
Class of Stock [Line Items] | ||
2024 | 0 | |
2025 | 301,221 | |
2026 | 242,731 | |
2027 | 242,732 | |
2028 | 242,732 | |
Total | 1,029,416 | |
April | ||
Class of Stock [Line Items] | ||
2024 | 172,637 | |
2025 | 140,404 | |
2026 | 135,323 | |
2027 | 135,323 | |
2028 | 0 | |
Total | 583,687 | |
June | ||
Class of Stock [Line Items] | ||
2024 | 6,219 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
Total | 6,219 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator for loss per share: | ||
Net income (loss) attributable to common shareholders | $ (22,703) | $ (20,676) |
Denominator for loss per share: | ||
Weighted average common shares outstanding (in shares) | 38,572,000 | 37,172,000 |
Weighted average unvested restricted share units (in shares) | 749,000 | 0 |
Denominator for diluted loss per share (in shares) | 38,572,000 | 37,172,000 |
Loss per weighted average common share: | ||
Basic (in dollars per share) | $ (0.59) | $ (0.56) |
Diluted (in dollars per share) | $ (0.59) | $ (0.56) |
Antidilutive securities excluded from computation of earnings per share (in shares) | 748,950 | 0 |
Related Party Transactions - Ad
Related Party Transactions - Advisory and Administrative Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Apr. 11, 2023 | |
Related Party Transaction [Line Items] | |||
Annual advisory fee, percent | 1% | 1% | |
Administrative fee, percent | 0.20% | 0.20% | |
Advisory agreement, maximum common shares issuable (in shares) | 6,000,000 | ||
Advisor | Common stock | Advisory Agreement | |||
Related Party Transaction [Line Items] | |||
Stock issued during period, value, issued for services | $ 1,350 | ||
Stock issued during period, issued for services (in shares) | 169,920.62 |
Related Party Transactions - Re
Related Party Transactions - Reimbursement of Expenses (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Related Party Transactions [Abstract] | ||
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 | |
Fees earned multiplier | 3 | |
Termination fee calculation, threshold period | 1 year | |
Administrative and advisory fees expense | $ 3.2 | $ 3.6 |
Related Party Transactions - _2
Related Party Transactions - Revolving Credit Facilities (Details) - Revolving Credit Facility - Revolver - NexBank - USD ($) $ in Millions | 3 Months Ended | |
May 22, 2023 | Mar. 31, 2024 | |
Related Party Transaction [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 20 | |
Line of credit facility, optional maximum borrowing capacity | $ 50 | |
Long-term line of credit | $ 20 | |
Secured Overnight Financing Rate (SOFR) | ||
Related Party Transaction [Line Items] | ||
Debt instrument, basis spread on variable rate | 3.50% | 3.50% |
Related Party Transactions - Gu
Related Party Transactions - Guaranties of NexPoint Storage Partners Debt (Details) $ in Thousands | 3 Months Ended | |||||
Feb. 15, 2023 USD ($) | Sep. 14, 2022 USD ($) extension | Mar. 31, 2024 USD ($) | Apr. 24, 2023 USD ($) | Dec. 08, 2022 USD ($) | Jul. 02, 2021 USD ($) | |
CMBS Borrower | ||||||
Related Party Transaction [Line Items] | ||||||
Long-term debt, additional term | 1 year | |||||
Number of extension terms | extension | 3 | |||||
REIT Sub and the Co-Guarantors | ||||||
Related Party Transaction [Line Items] | ||||||
Guarantor obligations, current carrying value | $ 49,200 | $ 7,300 | $ 64,200 | |||
Guarantor obligations, maximum exposure | $ 97,600 | |||||
Guarantor Obligation, Serverally Liable, Percentage | 85.90% | |||||
SAFStor Ventures | NSP | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of voting interests acquired | 100% | |||||
BS Loan Agreement | BS Borrower | ||||||
Related Party Transaction [Line Items] | ||||||
Mortgages payable, net | $ 133,300 | |||||
Long-term debt, additional term | 6 months | |||||
BS Loan Agreement | Minimum | BS Borrower | ||||||
Related Party Transaction [Line Items] | ||||||
Mortgages payable, net | $ 221,800 | |||||
BS Loan Agreement | Minimum | BS Borrower | Secured Overnight Financing Rate (SOFR) | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||
BS Loan Agreement, First Initial Principal | BS Borrower | ||||||
Related Party Transaction [Line Items] | ||||||
Mortgages payable, net | $ 46,900 | |||||
Debt instrument, basis spread on variable rate | 5.40% | |||||
BS Loan Agreement, First Initial Principal | BS Loan Agreement | Secured Overnight Financing Rate (SOFR) | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 4% | |||||
Promissory Notes | REIT Sub and the Co-Guarantors | ||||||
Related Party Transaction [Line Items] | ||||||
Extinguishment of debt, amount | $ 15,000 | |||||
BS Loan Agreement, Second Initial Principal | BS Borrower | Secured Overnight Financing Rate (SOFR) | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, face amount | $ 356,500 | |||||
CMBS Loan Agreement | CMBS Borrower | Secured Overnight Financing Rate (SOFR) | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.60% | |||||
CMBS Loan Agreement, Second Extension | CMBS Borrower | Secured Overnight Financing Rate (SOFR) | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, basis spread on variable rate, increase | 0.10% | |||||
CMBS Loan Agreement, Third Extension | CMBS Borrower | Secured Overnight Financing Rate (SOFR) | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, basis spread on variable rate, increase | 0.15% | |||||
NexPoint Storage Partners, Inc. | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, face amount | $ 235,860 | |||||
NexPoint Storage Partners, Inc. | Guarantor on Loans | ||||||
Related Party Transaction [Line Items] | ||||||
Other commitment | $ 272,690 | |||||
NexPoint Storage Partners, Inc. | Mezzanine Loan Agreement I | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, face amount | $ 1,080 | $ 6,050 | ||||
NexPoint Storage Partners, Inc. | Loan Arrangement | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, face amount | $ 41,990 |
Related Party Transactions - Su
Related Party Transactions - Subsidiary Investment Management Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 14, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Aug. 31, 2023 | |
Related Party Transaction [Line Items] | ||||
Property management fees | $ 176 | $ 171 | ||
SFR IMA | NexAnnuity Asset Management, L.P. | ||||
Related Party Transaction [Line Items] | ||||
Property management fees | $ 100 | |||
Management fee, percent | 1% |
Related Party Transactions - Ot
Related Party Transactions - Other Related Party Transactions (Details) | 3 Months Ended | |||||||||||
Jan. 12, 2024 shares | Nov. 10, 2023 shares | Oct. 24, 2023 shares | Sep. 28, 2023 company shares | Sep. 01, 2023 company shares | Jan. 01, 2023 USD ($) | Dec. 23, 2022 shares | Jan. 01, 2014 USD ($) | Mar. 31, 2024 USD ($) shares | Mar. 31, 2023 USD ($) shares | Dec. 31, 2023 shares | Dec. 08, 2022 shares | |
Related Party Transaction [Line Items] | ||||||||||||
Common stock, shares, issued (in shares) | 39,301,419 | 37,171,807 | 38,389,600 | |||||||||
Noncontrolling interest shares redeemed (in shares) | 2,100,000 | |||||||||||
Stock issued during period shares conversion of redeemable noncontrolling interests (in shares) | 2,100,000 | |||||||||||
Number of company owned | company | 1 | 1 | ||||||||||
NexPoint Storage Partners Operating Company, LLC | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
NXDT Percentage Ownership | 29.90% | 30% | 14.80% | |||||||||
NexPoint Storage Partners, Inc. | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
NXDT Percentage Ownership | 52.80% | 52.90% | ||||||||||
Preferred Class A | NexAnnuity Holdings, Inc. | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Noncontrolling interest shares redeemed (in shares) | 1,700 | 1,000 | 1,000 | 2,000 | ||||||||
Stock issued during period, new issues (in shares) | 68,500 | |||||||||||
NexPoint Storage Partners Operating Company, LLC | Common Class B | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Common stock, shares, issued (in shares) | 47,064 | 47,064 | ||||||||||
NexPoint Storage Partners, Inc. | Common Class B | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Common stock, shares, issued (in shares) | 86,369 | |||||||||||
Property Management Fees | Cityplace Tower | Reimbursements Member | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Cityplace Tower reimbursed | $ | $ 500,000 | $ 400,000 | ||||||||||
Property Management Fees | NexVest Realty Advisors | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party transaction, expenses from transactions with related party | $ | $ 200,000 | $ 100,000 | ||||||||||
Related party transaction, monthly expenses from transactions with related party | $ | $ 1,200 | $ 750 | ||||||||||
Management fee, percent | 3% | |||||||||||
Property Management Fees | NexVest Realty Advisors | Cityplace Tower | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Minimum management fee | $ | $ 20,000 | |||||||||||
Property Management Fees | White Rock Center | Cityplace Tower | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Management fee, percent | 4% | |||||||||||
Guarantor on Loans | NexPoint Storage Partners Operating Company, LLC | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
NXDT Percentage Ownership | 100% | |||||||||||
Guarantor on Loans | NexPoint Hospitality Trust | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Mortgages payable, net | $ | $ 77,400,000 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Change in Unrealized Gain/(Loss) | $ 6,290 | $ (18,640) |
Realized Gain/(Loss) | (21,872) | 1,135 |
Equity in income (loss) | (1,154) | (76) |
NexPoint Hospitality Trust | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 2,782 | 22,935 |
Change in Unrealized Gain/(Loss) | (2,104) | (4,750) |
Realized Gain/(Loss) | 0 | 0 |
Equity in income (loss) | 0 | |
Interest and Dividends | 0 | 0 |
Total Income | (2,104) | (4,750) |
NexPoint Real Estate Finance, Inc. | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 30,156 | 32,907 |
Change in Unrealized Gain/(Loss) | (2,919) | (462) |
Realized Gain/(Loss) | 0 | 0 |
Equity in income (loss) | 0 | |
Interest and Dividends | 1,050 | 1,439 |
Total Income | (1,869) | 977 |
NexPoint Storage Partners, Inc. | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 69,494 | |
Change in Unrealized Gain/(Loss) | 1,308 | |
Realized Gain/(Loss) | 0 | |
Equity in income (loss) | 0 | |
Interest and Dividends | 0 | |
Total Income | 1,308 | |
NexPoint Residential Trust, Inc. | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 2,987 | 3,875 |
Change in Unrealized Gain/(Loss) | (209) | 13 |
Realized Gain/(Loss) | 0 | 0 |
Equity in income (loss) | 0 | |
Interest and Dividends | 43 | 37 |
Total Income | (166) | 50 |
NexPoint SFR Operating Partnership, L.P. | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 20,814 | 29,625 |
Change in Unrealized Gain/(Loss) | 0 | 275 |
Realized Gain/(Loss) | 0 | 0 |
Equity in income (loss) | 0 | |
Interest and Dividends | 407 | 563 |
Total Income | 407 | 838 |
NexPoint Hospitality Trust | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 21,677 | |
Change in Unrealized Gain/(Loss) | 198 | |
Realized Gain/(Loss) | 0 | |
Interest and Dividends | 62 | |
Total Income | 260 | |
NexPoint Storage Partners Operating Company, LLC | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 37,869 | 103,194 |
Change in Unrealized Gain/(Loss) | 712 | (501) |
Realized Gain/(Loss) | 0 | 0 |
Equity in income (loss) | 0 | |
Interest and Dividends | 0 | 0 |
Total Income | 712 | (501) |
NexPoint Hospitality Trust, Investment Two, Including Netting | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 20,627 | |
Change in Unrealized Gain/(Loss) | (810) | |
Realized Gain/(Loss) | 0 | |
Equity in income (loss) | 0 | |
Interest and Dividends | (4) | |
Total Income | (814) | |
SFR WLIF III, LLC | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 7,002 | 7,289 |
Change in Unrealized Gain/(Loss) | 0 | 213 |
Realized Gain/(Loss) | 0 | 0 |
Equity in income (loss) | 214 | |
Interest and Dividends | 0 | 0 |
Total Income | 214 | 213 |
Claymore Holdings, LLC | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 0 | 0 |
Change in Unrealized Gain/(Loss) | 0 | 0 |
Realized Gain/(Loss) | 0 | 0 |
Equity in income (loss) | 0 | |
Interest and Dividends | 0 | 0 |
Total Income | 0 | 0 |
Allenby, LLC | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 0 | 0 |
Change in Unrealized Gain/(Loss) | (1) | 0 |
Realized Gain/(Loss) | 0 | 0 |
Equity in income (loss) | 0 | |
Interest and Dividends | 0 | 0 |
Total Income | (1) | 0 |
Haygood, LLC. | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 0 | |
Change in Unrealized Gain/(Loss) | 0 | |
Realized Gain/(Loss) | 0 | |
Equity in income (loss) | 0 | |
Interest and Dividends | 0 | |
Total Income | 0 | |
VineBrook Homes Operating Partnership, L.P. | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 145,433 | 166,463 |
Change in Unrealized Gain/(Loss) | (2,547) | (4,625) |
Realized Gain/(Loss) | 0 | 0 |
Equity in income (loss) | 0 | |
Interest and Dividends | 1,465 | 1,427 |
Total Income | (1,082) | (3,198) |
NexPoint Real Estate Finance Operating Partnership, L.P. | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 69,920 | |
Change in Unrealized Gain/(Loss) | (6,768) | |
Realized Gain/(Loss) | 0 | |
Equity in income (loss) | 0 | |
Interest and Dividends | 2,435 | |
Total Income | (4,333) | |
NexPoint SFR Operating Partnership, LP - Partnership Units | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 47,676 | |
Change in Unrealized Gain/(Loss) | (2,324) | |
Realized Gain/(Loss) | 0 | |
Equity in income (loss) | 0 | |
Interest and Dividends | 617 | |
Total Income | (1,707) | |
NexAnnuity Holdings, Inc. | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 65,864 | |
Change in Unrealized Gain/(Loss) | 0 | |
Realized Gain/(Loss) | 0 | |
Equity in income (loss) | 0 | |
Interest and Dividends | 1,296 | |
Total Income | 1,296 | |
NexPoint Storage Partners Operating Company, LLC, Investment Two | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 4,986 | |
Change in Unrealized Gain/(Loss) | (14) | |
Realized Gain/(Loss) | 0 | |
Equity in income (loss) | 0 | |
Interest and Dividends | 67 | |
Total Income | 53 | |
NexPoint SFR Operating Partnership, LP, Investment Two | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 500 | 48,666 |
Change in Unrealized Gain/(Loss) | 0 | (4,813) |
Realized Gain/(Loss) | 0 | 0 |
Equity in income (loss) | 0 | |
Interest and Dividends | 11 | 602 |
Total Income | 11 | (4,211) |
Affiliates of the Advisor | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 526,110 | 569,162 |
Change in Unrealized Gain/(Loss) | (15,676) | (15,796) |
Realized Gain/(Loss) | 0 | 0 |
Equity in income (loss) | 214 | |
Interest and Dividends | 7,387 | 7,051 |
Total Income | $ (8,075) | (8,745) |
NexPoint Storage Partners Operating Company, LLC - LLC Units | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 56,232 | |
Change in Unrealized Gain/(Loss) | (273) | |
Realized Gain/(Loss) | 0 | |
Interest and Dividends | 0 | |
Total Income | (273) | |
NexPoint Real Estate Finance Operating Partnership, LP | ||
Related Party Transaction [Line Items] | ||
Fair Value/Carrying Value | 76,299 | |
Change in Unrealized Gain/(Loss) | (1,071) | |
Realized Gain/(Loss) | 0 | |
Interest and Dividends | 2,921 | |
Total Income | $ 1,850 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Feb. 15, 2023 | Mar. 31, 2024 | Apr. 24, 2023 | Dec. 08, 2022 | Jul. 02, 2021 |
NexPoint Hospitality Trust | Guarantor on Loans | |||||
Other Commitments [Line Items] | |||||
Other commitment | $ 77,400 | ||||
NexPoint Storage Partners, Inc. | |||||
Other Commitments [Line Items] | |||||
Debt instrument, face amount | $ 235,860 | ||||
NexPoint Storage Partners, Inc. | Guarantor on Loans | |||||
Other Commitments [Line Items] | |||||
Other commitment | 272,690 | ||||
Mezzanine Loan Agreement I | NexPoint Storage Partners, Inc. | |||||
Other Commitments [Line Items] | |||||
Debt instrument, face amount | $ 1,080 | $ 6,050 | |||
REIT Sub and the Co-Guarantors | |||||
Other Commitments [Line Items] | |||||
Guarantor obligations, current carrying value | $ 49,200 | $ 7,300 | $ 64,200 | ||
Guarantor obligations, maximum exposure | $ 97,600 | ||||
Guarantor Obligation, Serverally Liable, Percentage | 85.90% | ||||
REIT Sub and the Co-Guarantors | Promissory Notes | |||||
Other Commitments [Line Items] | |||||
Extinguishment of debt, amount | $ 15,000 | ||||
CityPlace | |||||
Other Commitments [Line Items] | |||||
Guarantor obligations, current carrying value | $ 141,700 |
Operating Leases - Lessee, Oper
Operating Leases - Lessee, Operating Lease, Liability, Maturity (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Leases [Abstract] | |
2024 | $ 7,605 |
2025 | 9,924 |
2026 | 8,600 |
2027 | 7,712 |
2028 | 4,826 |
Thereafter | 50,407 |
Total | $ 89,074 |
Operating Leases - Concentratio
Operating Leases - Concentration Risk (Details) - Revenue Benchmark - Customer Concentration Risk - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Neiman Marcus Group, LLC | ||
Lessor, Lease, Description [Line Items] | ||
Rental Income | $ 587 | |
Saputo Dairy Foods | ||
Lessor, Lease, Description [Line Items] | ||
Rental Income | $ 497 | |
Hudson Advisors, LLC | ||
Lessor, Lease, Description [Line Items] | ||
Rental Income | $ 712 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Apr. 29, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Apr. 19, 2024 | |
Subsequent Event [Line Items] | ||||
Common share dividends declared (in dollars per share) | $ 0.15 | $ 0.15 | ||
Preferred share dividends declared (in dollars per share) | $ 0.34375 | $ 0.34375 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Common share dividends declared (in dollars per share) | $ 0.15 | |||
Dividend cash percentage | 20% | |||
Stock issued during period, issued for services (in shares) | 208,117.75 | |||
Subsequent Event | Series A Preferred Stock | ||||
Subsequent Event [Line Items] | ||||
Preferred share dividends declared (in dollars per share) | $ 0.34375 | |||
Subsequent Event | NexPoint Real Estate Finance Operating Partnership, LP | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, face amount | $ 6.5 | |||
Interest rate | 7.535% | |||
Subsequent Event | NREO TRS, LLC | ||||
Subsequent Event [Line Items] | ||||
Stock issued during period, investment share purchased (in shares) | 2,176,257 | |||
Stock issued during period, investment value, purchase of common shares | $ 0.8 |