NEXPOINT DIVERSIFIED REAL ESTATE TRUST

NXDTdata completeness 75%4 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'totalDebt'; no data for concept 'pretaxIncome'

The thesis, from the filings

NEXPOINT DIVERSIFIED REAL ESTATE TRUST earns about -3% on equity, but has diluted owners by 25% over 4 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own

Figure	FY 2021	FY 2023	FY 2024	FY 2025
Revenue	$95.1M¹	$63.3M²	$83.2M³	$86M³
Net income	$245.5M⁴	−$121.9M⁵	−$51.3M⁶	−$130.2M⁶
Operating cash flow	$38.1M⁷	−$24.3M⁸	−$11.7M⁹	$9.17M⁹
Capital expenditure	—	—	—	—
Free cash flow (derived)	—	—	—	—
Total debt	—	—	—	—
Cash & equivalents	$2.24M¹⁰	$20.6M¹¹	$8.79M¹²	$8.17M¹²
Diluted shares	37.1M	37.3M	40.2M	46.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal

If you owned

Net assets behind them

$151.36

your share of equity

Profit it earned you last year

−$28.15

Free cash flow it threw off

—

Debt you’d be carrying

—

10 shares is a claim on $151.36 of net worth that earned you −$28.15 last year.

iii. Is this a good business?

Moat signal · return on equity

-3% avg · 4y

FY21 27%FY23 -14%FY24 -6%FY25 -19%

It earned an average -3% on equity over 4 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →

Management signal · capital allocation

+25% shares · 4y

Share count is up 25% over 4 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

DCF · Growth Exit 10Y

not applicable

only 0 years of FCF (need ≥3) — model not applicable

DCF · Growth Exit 5Y

not applicable

only 0 years of FCF (need ≥3) — model not applicable

Earnings Power Value

not applicable

normalized (5y-median) earnings non-positive — EPV undefined

Graham Number

not applicable

diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts

10-K · period ending 2021-12-31 · accession 0001356115-24-000007 (InterestAndDividendIncomeOperating)
10-K · period ending 2023-12-31 · accession 0001356115-25-000003 (Revenues)
10-K · period ending 2024-12-31 · accession 0001193125-26-133271 (Revenues)
10-K · period ending 2021-12-31 · accession 0001356115-24-000007 (NetIncomeLoss)
10-K · period ending 2023-12-31 · accession 0001356115-25-000003 (NetIncomeLoss)
10-K · period ending 2024-12-31 · accession 0001193125-26-133271 (NetIncomeLoss)
10-K · period ending 2021-12-31 · accession 0001356115-24-000007 (NetCashProvidedByUsedInOperatingActivities)
10-K · period ending 2023-12-31 · accession 0001356115-25-000003 (NetCashProvidedByUsedInOperatingActivities)
10-K · period ending 2024-12-31 · accession 0001193125-26-133271 (NetCashProvidedByUsedInOperatingActivities)
10-K · period ending 2021-12-31 · accession 0001356115-23-000004 (CashAndCashEquivalentsAtCarryingValue)
10-K · period ending 2023-12-31 · accession 0001356115-25-000003 (CashAndCashEquivalentsAtCarryingValue)
10-K · period ending 2024-12-31 · accession 0001193125-26-133271 (CashAndCashEquivalentsAtCarryingValue)