Nexpoint Diversified Real Estate Trust · NYSE:NXDT
Nexpoint Diversified Real Estate Trust — Q2 2022 Earnings Presentation
38 slides from Nexpoint Diversified Real Estate Trust's earnings presentation, August 2022
Slide 1: NexPoint Diversified Real Estate Trust Q2 2022 Investor Call
N Y S E : N X D T NexPoint Diversified Real Estate Trust Q2 2022 INVESTOR CALL
Slide 2: Table of Contents
03 DISCLOSURES 04 MANAGEMENT & COMPANY OVERVIEW 16 VINEBROOK HOMES 18 NREF Table of 20 NSP Contents 22 CITYPLACE 24 NEXPOINT HOMES TRUST 26 TERRESTAR 27 SAFSTOR 31 NHT 33 MARRIOTT UPTOWN 35 CADDO 37 NXRT 2
Slide 3: Disclosures
Disclosures This presentation contains information about NexPoint Diversified Real Estate Trust (the “Company”). The Company deregistered as an investment company under the Investment Company Act of 1940 effective July 1, 2022. Following the deregistration, the Company intends to operate as a divers
Slide 4: NexPoint Real Estate Advisors Management Team
P O R T F O L I O O V E R V I E W NexPoint Real Estate Advisors Management Team MATT MCGRANER C h i e f I n v e s t m e n t O f f i c e r Mr. McGraner serves in numerous roles across the NexPoint platform (NexPoint Real Estate Advisors, L.P. or “NREA”), including: Executive VP and Chief Investment O
Slide 5: NXDT Performance vs. Diversified REITs
N E X P O I N T D I V E R S I F I E D R E A L E S T A T E T R U S T NXDT Performance vs. Diversified REITs1 60.0% CLOSING OF SALE OF NXDT POSITION IN MGM 40.0% 20.0% 9.9% 8.0% 0.0% 5.7% -1.2% -14.3% -20.0% -19.3% -40.0% -60.0% -80.0% Sep-19 Nov-20 Sep-18 Sep-17 Mar-20 Mar-21 Mar-22 Nov-19 Jan-20 Sep
Slide 6: NexPoint Diversified Real Estate Trust History
P O R T F O L I O O V E R V I E W NexPoint Diversified Real Estate Trust History MARCH 10 2006 Company Inception APRIL 1 2015 NXRT Spins Out of NHF Receive Shareholder Approval for REIT AUGUST 28 2020 Conversion Proposal, Investment Company Deregistration & Amended Investment Policies Filed Initial
Slide 7: NexPoint Diversified Real Estate Trust Strategy
P O R T F O L I O O V E R V I E W NexPoint Diversified Real Estate Trust Strategy I N V E S T M E N T O B J E C T I V E S VALUE ADD OPPORTUNISTIC CASH FLOWING DEBT & EQUITY Management believes that a diversified investment approach is appropriate for the current market environment. The Adviser and N
Slide 8: Portfolio Allocation
P O R T F O L I O O V E R V I E W ASSET CLASS1 Portfolio Allocation $944.5 NET ASSET VALUE 34.86% Single-Family Rental Self-Storage 21.32% NexPoint Diversified Real Estate Trust is an externally advised, publicly traded, Office 10.90% diversified real estate investment trust (REIT) focused on the ac
Slide 9: Experienced Capital Allocators and REIT Management
N E X P O I N T D I V E R S I F I E D R E A L E S T A T E T R U S T Experienced Capital Allocators and REIT Management Management has been NXDT has a diverse, The NXDT traditionally invested NXRT’s adviser has alongside shareholders, majority management team waived $58MM in fees currently with 12.6%
Slide 10: Real Estate Asset Consolidated Organization Chart
N E X P O I N T D I V E R S I F I E D R E A L E S T A T E T R U S T Real Estate Asset Consolidated Organization Chart Outside Investors NexPoint Affiliates 84% ~16% NexPoint Real Estate Advisory Agreement NexPoint Diversified Advisors X, L.P. Real Estate Trust (the Adviser) (the Company) 100% Member
Slide 11: Narrowing the Discount
N E X P O I N T D I V E R S I F I E D R E A L E S T A T E T R U S T Narrowing the Discount 1. INDEX INCLUSION Due to the timing of the conversion, the largest inflow (Russell 2000 of an expected $41MM) will not happen until June 2023 since it only rebalances once a year. The Real Estate indices reba
Slide 12: NXDT NAV
N E X P O I N T D I V E R S I F I E D R E A L E S T A T E T R U S T NXDT NAV 6/30/2022 Asset Valuation Technique Inputs Input/Range Values Fair Value NAV N/A N/A 316.2mm Single Family Rental Transaction Indication of Value Cost Price N/A Discounted Cash Flow Discount Rate 1.48% - 5.43% (3.46%) Disco
Slide 13: NXDT Net Asset Value (NAV)
N E X P O I N T D I V E R S I F I E D R E A L E S T A T E T R U S T NXDT Net Asset Value (NAV) NXDT Discount to NAV 42.1% $434M Discount to NAV $596M Discount to NAV 13 As of June 30, 2022
Slide 14: Pro Forma Capitalization
N E X P O I N T D I V E R S I F I E D R E A L E S T A T E T R U S T Pro Forma Capitalization $31.2MM 55.6% DIRECT VS. CONSOLIDATED DEBT N O T E O N N O T E OF TOTAL DEBT IS FLOATING AND IS F I N A N C I N G 5 . 3 8 % A V G SUBJECT TO MARK-TO-MARKET R A T E $1.2B TO TA L D E B T 1 . 7 Y E A R S $134.
Slide 15: Real Estate Overview
NexPoint Diversified Real Estate Trust REAL ESTATE LIFE SCIENCE OVERVIEW 15
Slide 16: VineBrook Homes
S I N G L E - F A M I L Y R E N T A L VineBrook Homes 10.8% $221M S I N G L E - F A M I L Y R E N T A L Owned within Invested Across NXDT NexPoint Platform VineBrook Homes 95.1% 21,144 Stabilized Homes Occupancy 1,332 $1,104 Avg. Sqft Average Monthly 3 bed/1.5 bath Rent EQUITY OWNERSHIP MARKETS Mana
Slide 17: VineBrook Homes
S I N G L E - F A M I L Y R E N T A L VineBrook Homes INVESTMENT HIGHLIGHTS We believe VineBrook’s experienced management team and technology platform provide it the ability to scale as the company enters new markets and increases acquisitions in existing markets. Single family rental (“SFR”) invest
Slide 18: NexPoint Real Estate Finance
23.0% M O R T G A G E R E I T Owned with NXDT NexPoint Real Estate $281M Finance Invested Across NexPoint Platform 8.9% Dividend Yield 1 6.4 years Average Remaining Term 2 93.8% Of Portfolio Stabilized 2 68.5% Weighted Average LTV 2 1.63X Weighted Average DSCR 2 1Implied dividend yield is calculated
Slide 19: NexPoint Real Estate Finance
M O R T G A G E R E I T NexPoint Real Estate Finance INVESTMENT HIGHLIGHTS NexPoint Real Estate Finance is a publicly traded mortgage REIT listed on the New York Stock Exchange under the symbol “NREF”. The company primarily concentrates on investments in real estate sectors where its senior manageme
Slide 20: NexPoint Storage Partners
S T O R A G E 53.1% NexPoint Storage Partners Owned within NXDT $121MM Total Value within NXDT 47 Total Investments $228MM Market Value Invested Across NexPoint Platform 34,000 Units 3.2MM Total Rentable Sqft 8.5% Projected Stabilized Yield on Cost As of June 30, 2022 20
Slide 21: NexPoint Storage Partners
S T O R A G E NexPoint Storage Partners INVESTMENT HIGHLIGHTS In November 2020, NexPoint took Jernigan Capital (formerly NYSE: JCAP) private in a $900 million transaction. The company rebranded as NexPoint Storage Partners, Inc. (“NSP”). JCAP was started as a hybrid mortgage-equity REIT, providing c
Slide 22: Cityplace Tower
100% Of Assets Held O F F I C E Within NXDT Cityplace Tower $99MM Invested Across NexPoint Platform 35 Office Floors 73% Office Leased 7 Hotel Floors 1.35 million Square Feet 70% LTV Development of 5-star hotel underway 22 As of June 30, 2022
Slide 23: Cityplace Tower
O F F I C E Cityplace Tower INVESTMENT HIGHLIGHTS Cityplace Tower (“Cityplace”) is a 42-story, 1.35 million-square-foot, trophy office building acquired in 2018. The building is adjacent to the Uptown submarket in Dallas, Texas. The prior owners were unwilling to invest significant capital to keep u
Slide 24: NexPoint Homes Trust
S I N G L E - F A M I L Y R E N T A L VineBrook Homes 28.3% $318M Owned within Invested Across S I N G L E - F A M I L Y R E N T A L NexPoint Platform NXDT NexPoint Homes Trust 1,741 7 Homes States $1,736 $262,186 Average Monthly Avg. Cost/Home Rent ~96% 2016 Occupancy for Average Vintage Homes Owne
Slide 25: NexPoint Homes Trust, Inc.
S I N G L E - F A M I L Y R E N T A L NexPoint Homes Trust, Inc. INVESTMENT HIGHLIGHTS NexPoint Homes Trust, Inc. (“NXHT”) was formed in 2022, in response to the growing need for expanded access to single family rental housing in the U.S. NXHT focuses on acquiring newer construction homes Birmingham
Slide 26: TerreStar
N E X P O I N T D I V E R S I F I E D R E A L E S T A T E T R U S T TerreStar TerreStar is a non-real estate legacy asset. As is stands today, the company owns rights to two spectrums: 1.4 GHZ and the 1.7 GHZ. 1 . 7 G H Z S P E C T R U M 1 . 4 G H Z S P E C T R U M 30% owned by TerreStar 100% owned
Slide 27: SAFStor
24.8% Owned Within S T O R A G E NXDT SAFStor $234MM Invested Across NexPoint Platform 24,000 Total Units* 29 Properties 1 Project Currently in Development 8.6% Weighted -Average Yield on Cost 1 As of June 30, 2022. * NXDT has exposure to 6,405 units 27 27at 1 Yield-on-cost is the net operating inco
Slide 28: SAFStor, Inc.
S T O R A G E SAFStor, Inc. INVESTMENT HIGHLIGHTS SAFStor, Inc. owns, develops, and redevelops single- and multistory self-storage properties in undersupplied markets with high barriers to entry. The company looks for markets that offer low delinquency, high traffic count, and high population growth
Slide 29: IQHQ
L I F E S C I E N C E IQHQ 5.3% Of Net Assets Within NXDT $133M Invested Across NexPoint Platform 10 Million Square Feet of Development 8 Markets As of June 30, 2022 29
Slide 30: IQHQ
L I F E S C I E N C E IQHQ INVESTMENT HIGHLIGHTS Over the past few years, IQHQ, Inc. has built a bespoke portfolio of life science projects. In partnering with the life science community, they combine deep expertise with thoughtful yet progressive methods to develop purpose-driven real estate soluti
Slide 31: NexPoint Hospitality Trust
46.2% H O S P I T A L I T Y Owned within NXDT 1 NexPoint Hospitality Trust 13 Properties 1 $2.50 Publicly Traded Share Price a s o f 6 /3 0/2 2 1,648 Keys 2 6 States 2 $112 1Q22 REVPar 2 1As of June 30, 2022 2As of March 31, 2022. RevPAR is calculated by multiplying average daily rate 31 (ADR) by oc
Slide 32: NexPoint Hospitality Trust
H O S P I T A L I T Y NexPoint Hospitality Trust INVESTMENT HIGHLIGHTS NexPoint Hospitality Trust is a publicly traded REIT, with its units listed on the TSX Venture Exchange under the symbol “NHT-U”, and is primarily focused on acquiring, owning, renovating, and operating select-service, extended-s
Slide 33: Marriott Uptown
H O S P I T A L I T Y Marriott Uptown H O S P I T A L I T Y 60% Owned Within Marriott Uptown NXDT $29MM Invested Across NexPoint Platform 255 Keys 13,000 Sqft of Meeting Space $281 2Q22 RevPar As of June 30, 2022. 33 *The remaining 40% is owned by Alamo Manhattan.
Slide 34: Marriott Uptown
H O S P I T A L I T Y Marriott Uptown INVESTMENT HIGHLIGHTS NexPoint funded the development of an upscale Marriott hotel in the heart of the Uptown submarket of Dallas, Texas. Upon completion, the hotel boasts 255 upscale guestrooms with approximately 13,000 square feet of meeting space. The hotel a
Slide 35: Caddo Sustainable Timberlands
T I M B E R Caddo Sustainable Timberlands 1.2% T I M B E R Of Net Assets Caddo Sustainable Within NXDT Timberlands $177M Invested Across NexPoint Platform 800 t ho u sand Acres East Texas Within 100 miles of Austin, Dallas and Houston Rapidly improving inventory profile, growing from current 2.8 mil
Slide 36: Caddo Sustainable Timberlands
T I M B E R Caddo Sustainable Timberlands INVESTMENT HIGHLIGHTS MARKET HIGHLIGHTS We originally invested in the asset in May 2018 through TexMark Opportunity to invest in an under-valued, under- Timber Treasury, L.P. (“Triple T”) as participating preferred in a utilized property with additional valu
Slide 37: NexPoint Residential Trust
0.5% M U L T I F A M I L Y Of Net Assets Within NXDT NexPoint Residential $40M Invested Across NexPoint Platform Trust 41 Properties 15,387 Units $1,387 Average Monthly Rent/Unit 94.5% Portfolio Occupancy $0.38 Q3 2022 Dividend per Share 12.6% Inside Ownership 37
Slide 38: NexPoint Residential Trust
M U L T I F A M I L Y NexPoint Residential Trust INVESTMENT HIGHLIGHTS NexPoint Residential Trust, Inc. is a publicly traded REIT listed on the New York Stock Exchange under the symbol “NXRT.” NXRT is primarily focused on acquiring, owning and operating well located, middle-income, multifamily prope
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