NexPoint Diversified Real Estate Trust (NXDT) Investor update summary

Real estate market and portfolio updates

• Multifamily absorption has overtaken new deliveries nationally, with vacancies declining and rents turning positive; Sun Belt markets are lagging but showing improvement.

• Cityplace Uptown redevelopment is fully defined, with 460 multifamily units and curated retail, as submarket supply is set to drop sharply after 2027.

• Self-storage portfolio occupancy reached 94.1% at June 30, 2026, with in-place rates and web rates up year-over-year, supporting a projected 5%-6% same-store revenue growth for 2026.

• Storage sector supply remains limited due to high costs and permitting challenges, providing a potential tailwind for 2027-2028.

• VineBrook Homes focused on balance sheet strength, G&A savings, and portfolio repositioning toward built-to-rent (BTR) homes in dynamic markets.

Financial performance and capital allocation

• Self-storage same-store revenue rose 6.1% and NOI increased 15.2% year-over-year, outperforming public REIT peers.

• VineBrook Homes maintained over 95% occupancy and achieved blended rent growth of 4.2%, but NOI margin dropped due to higher turn costs and repairs.

• VineBrook secured a $545 million five-year fixed-rate loan, extending debt maturities and enabling further BTR acquisitions.

• Sold 638 homes for $101 million, reinvesting proceeds into BTR acquisitions, with a robust pipeline and favorable legislative changes supporting future growth.

• Net asset value declined 2.89% year-over-year to $52.68, reflecting higher cap rates and rising mortgage rates.

NREF investment and guidance

• NREF reported Q2 net income of $5.4 million and earnings available for distribution of $11.2 million, up 7% from Q1 and ahead of guidance.

• Book value per share was $18.60, down 2% from Q1, with a portfolio of $1.1 billion across 85 investments and conservative leverage.

• Closed a $375 million term loan facility, reducing interest costs and improving capital structure flexibility.

• New investments included high-coupon loans and preferred equity, with a strong pipeline and 85% leasing at Allele Life Sciences campus.

• Dividend coverage remains strong, with Q3 guidance for earnings available for distribution at $0.43 per share and CAD at $0.55 per share.