Form 4: James Dondero Reports Changes in Beneficial Ownership of NexPoint Diversified Real Estate Trust (NXDT)
SEC Form 4
James Dondero, a director, 10% owner, and officer of NexPoint Diversified Real Estate Trust, reports changes in beneficial ownership of the company's common stock due to the receipt of shares as payment for advisory fees and other transactions.
Summary
- James Dondero, a director, 10% owner, and officer of NexPoint Diversified Real Estate Trust (NXDT), filed a Form 4 detailing changes in his beneficial ownership of the company's common stock.
- On August 13, 2024, Dondero acquired shares indirectly through the issuance of common stock to NexPoint Real Estate Advisers X, L.P. (the 'Adviser') as payment for advisory fees.
- The Adviser received 70,660.98 shares for April fees at a VWAP of $6.2395 per share, 82,576.52 shares for May fees at a VWAP of $5.4513 per share, and 85,996.95 shares for June fees at a VWAP of $5.1268 per share.
- Dondero's indirect beneficial ownership includes shares held by various entities he controls, such as Drugcrafters, L.P., PCMG Trading Partners XXIII, L.P., Governance Re Ltd., and NexPoint Asset Management, L.P.
- He also holds shares through The Dugaboy Investment Trust, subsidiaries of the trust, and as custodian for UTMA accounts for his children.
- Dondero disclaims beneficial ownership of shares held by these entities, except to the extent of his pecuniary interest.
Sentiment
Score: 5
Explanation: The document is a routine filing of changes in beneficial ownership, so the sentiment is neutral.
Industry Context
Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.
Related Party Transactions
- The issuance of common stock to NexPoint Real Estate Advisers X, L.P., for advisory fees is a related party transaction.
Stakeholder Impact
- The changes in beneficial ownership may be of interest to shareholders, as they provide insight into the holdings of key company insiders.
Key Dates
| Date | Description |
|---|---|
| July 1, 2022 | Date of the Advisory Agreement between NexPoint Diversified Real Estate Trust and NexPoint Real Estate Advisers X, L.P. |
| October 25, 2022 | Date of the First Amendment to the Advisory Agreement. |
| April 11, 2023 | Date of the Second Amendment to the Advisory Agreement. |
| June 28, 2024 | Date of elective stock dividend paid on the Company's common shares. |
| August 13, 2024 | Date of the transactions reported in the Form 4. |
| August 15, 2024 | Date of signature of the Form 4. |
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