NexPoint corrects proxy statement errors ahead of June meeting

Published 09/05/2025, 21:40
NexPoint corrects proxy statement errors ahead of June meeting

NexPoint Diversified Real Estate Trust (NYSE:NXDT), a $160 million market cap real estate trust currently trading at $3.38, has filed a Current Report on Form 8-K to address typographical errors in its definitive proxy statement/prospectus related to the upcoming annual meeting of shareholders. According to InvestingPro data, the company has experienced significant challenges, with its stock down nearly 39% over the past six months. The meeting, scheduled for Tuesday, June 10, 2025, will include proposals such as the conversion of the Company’s jurisdiction and form of organization from a Delaware statutory trust to a Maryland corporation and the approval of the Amended and Restated NexPoint Diversified Real Estate Trust 2023 Long Term Incentive Plan (the "A&R 2023 Plan").

The corrections pertain to the overhang rate, a measure of potential dilution to holders of Old Common Shares, as of April 9, 2025. The revised document clarifies the overhang rate, which is 4.2% on a fully diluted basis when excluding the impact of the new share request. Despite recent challenges, InvestingPro data shows the company maintains a substantial 17.91% dividend yield and has achieved 32.35% revenue growth in the last twelve months. If the new share request of 943,000 Old Common Shares is included, the overhang rate will be approximately 6.1% on a fully diluted basis. The corrected figures aim to provide shareholders with accurate information to make informed decisions at the Annual Meeting.

The Company began mailing the corrected definitive proxy statement/prospectus to shareholders around May 2, 2025, and urges them to read the document carefully as it contains important information about the Annual Meeting. Shareholders who have already voted do not need to take any action unless they wish to change their vote. The Company’s filings, including any amendments or supplements to the proxy statement/prospectus, are available to shareholders free of charge on the SEC’s website and the Company’s website.

This report is based on a press release statement and aims to provide shareholders with the necessary details to ensure the integrity of the voting process at the upcoming Annual Meeting. For comprehensive analysis and additional insights about NXDT’s financial health (currently rated as Weak with a score of 1.28), investors can access more detailed metrics and analysis through InvestingPro, which offers 8 additional key insights about the company’s performance and outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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