Tag Archives: NXDT

NexPoint Diversified Real Estate Trust (NXDT), mcap=$584m, price $15.73 vs $16.20

Closed-end fund at 40% discount to NAV and converting into REIT in the coming months. REITs tend to trade at much narrower discounts. SEC approval, the last remaining step in conversion, was granted at the end of June. Index inclusion and buying by passive funds are expected to close the NAV discount gap. Well-aligned insider interests with 15% ownership and active buying. 50% of the portfolio is residential and self-storage rentals, with the rest being a mix of office, hotel, timber, and life sciences RE. Properties on the balance sheet are already marked at conservative valuations, making NAV discounts unwarranted.