NexPoint Diversified Real Estate Trust Completes $95 Million Refinancing of Marriot Dallas Uptown

DALLAS, Jan. 21, 2025 /PRNewswire/ -- NexPoint Diversified Real Estate Trust NXDT ("NXDT"), a publicly traded diversified real estate investment trust, and its partner, Alamo Manhattan, today announced the successful refinancing of the Marriot Dallas Uptown ("the Property"), a 255-key hotel located in the Uptown submarket of Dallas, Texas.

The new $95 million financing includes $87.5 million in initial loan proceeds used to replace the Property's outstanding debt, as well as two future-funded earnout facilities that provide potential to access $7.5 million in additional capital. The financing was provided by KKR via its opportunistic real estate credit strategy.

The transaction provides significant interest expense savings and results in approximately $19 million in cash proceeds for NXDT and Alamo Manhattan collectively. NXDT's share of these proceeds is roughly $15 million. Additionally, if exercised, the $7.5 million of earnout facilities provide NXDT with the potential to access approximately $6.5 million in cash proceeds on future draws.

"We are pleased to complete this refinancing, which brings significant benefits to both NXDT and the Property," said Matthew McGraner, NXDT Chief Investment Officer and Executive Vice President. "It affirms the quality of the asset and builds positive momentum for NXDT to start the year, which we expect to continue throughout 2025."

The 14-story hotel, majority owned by NXDT through AM Uptown Hotel, LLC, is located at 3033 Fairmount Street in Dallas's Uptown neighborhood. The area is known for attracting young professionals and business travelers due to its proximity to the many businesses in Uptown and Downtown. The Property offers approximately 13,000 square feet of meeting space and a range of amenities, including a rooftop pool, lounge, and ground-floor restaurant. The Property filled a void in the Uptown Dallas hospitality market, which had a high concentration of five-star, luxury hotels, yet lacked an affordable and quality hotel for the neighborhood's many business travelers. NXDT provided funding to develop the Property, which opened in the first quarter of 2021.

About NexPoint Diversified Real Estate Trust

NexPoint Diversified Real Estate Trust is an externally advised, publicly traded, diversified real estate investment trust (REIT) focused on the acquisition, development, and management of opportunistic and value-add investments throughout the United States across multiple sectors where NexPoint and its affiliates have operational expertise. NXDT is externally advised by NexPoint Real Estate Advisors X, L.P. For more information, please visit nxdt.nexpoint.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. In particular, statements relating to the availability and exercise of, and proceeds from, the two future-funded earnout facilities, the significant savings and benefits of the refinancing and the expected continuation of positive momentum throughout 2025 contain forward-looking statements. We caution investors that any forward-looking statements presented in this press release are based on management's current beliefs and assumptions made by, and information currently available to, management. When used, the words "will," "potential," and "expect," the negative version of these words and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions.

Forward-looking statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control as described in greater detail in our filings with the Securities and Exchange Commission (the "SEC"), particularly those described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements and encourage you to review our other filings with the SEC for a more complete discussion of risks and other factors that could affect any forward-looking statement.

CONTACTS

Investor Relations
Kristen (Thomas) Griffith
ir@nexpoint.com

Media Relations
comms@nexpoint.com

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