NexPoint Diversified Real Estate Trust (NYSE: NXDT) (“NXDT” or the “Company”) today provided an update on its investment in Metro Goldwyn Mayer, Inc. (“MGM”). On March 17, 2022, Amazon.com Inc. (“Amazon”) announced it had closed its previously announced acquisition of MGM. As a result of the deal closing, NXDT received $43,115,073 in cash, reflecting the Company’s direct ownership of MGM shares. The Company also has indirect investments in MGM through which it is expected to receive approximately $81 million. In total, NXDT is expected to receive more than $126 million in cash from the transaction. Only proceeds from the Company’s direct investment have been received at this time.
NXDT’s initial investment was in MGM’s debt, which converted to equity when the company emerged from bankruptcy in 2010. NXDT’s average cost was $24.59/share. The position generated a return of nearly 6x the original investment. About the NexPoint Diversified Real Estate Trust (NXDT)
The NexPoint Diversified Real Estate Trust (NYSE: NXDT) is a closed-end fund managed by NexPoint Advisors, L.P. that is in the process of converting to a diversified REIT. On August 28, 2020, shareholders approved the conversion proposal and amended the Company’s fundamental investment policies and restrictions to permit the Company to pursue its new business. The Company is realigning its portfolio so that it is no longer an “investment company” under the Investment Company Act of 1940 (the “1940 Act”). On March 31, 2021, the Company filed an application (the “Deregistration Application”) with the Securities and Exchange Commission (the “SEC”) for an order under the 1940 Act declaring that the Company is no longer an investment company (the “Deregistration Order”). On September 13, 2021, November 5, 2021, and December 2, 2021, the Company filed amendments to the Deregistration Application, which provides additional information regarding the realignment of the Company’s portfolio. The Company will continue to be structured as a registered closed- end investment company until it receives the Deregistration Order; however, the Company has repositioned its portfolio sufficient to achieve REIT tax status and is operating during its 2021 taxable year so that it may qualify for taxation as a REIT. Effective November 8, 2021, NHF changed its name to NexPoint Diversified Real Estate Trust and is traded on the New York Stock Exchange under the ticker NXDT. For more information visit nexpoint.com/nxdt.
About NexPoint Advisors, L.P.
NexPoint Advisors, L.P. is an SEC-registered adviser on the NexPoint alternative investment platform. It serves as the adviser to a suite of funds and investment vehicles, including a closed-end fund, interval fund, business development company (“BDC”), and various real estate vehicles. For more information visit nexpoint.com.
