$NXDT
NexPoint Credit Strategies Fund
CIK:0001356115|SEC Filings
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2026 |
Jun. 30, 2025 |
|
| Cash flows from operating activities | ||
| Net loss | $ (19,229) | $ (79,194) |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
| Depreciation and amortization | 7,213 | 7,937 |
| Amortization of intangible lease assets and liabilities | (486) | (497) |
| Amortization of deferred financing costs | 349 | 339 |
| Amortization of fair value adjustment of assumed debt | 731 | 820 |
| Paid-in-kind interest and dividends ($(2,890) and $(2,824) with related parties, respectively) | (7,446) | (5,363) |
| Net cash (paid) received on derivative settlements | 65 | (308) |
| Proceeds from paid-in-kind interest and dividends ($383 and $0 with related parties, respectively) | 393 | 528 |
| Realized gains ($0 and $3,462 with related parties, respectively) | (145) | (4,981) |
| Net change in unrealized loss on investments held at fair value ($2,476 and $(56,711) with related parties, respectively) | 8,793 | 74,959 |
| Unrealized loss on interest rate derivatives | 0 | (12) |
| Impairment loss | 0 | 1,752 |
| Equity in losses of unconsolidated ventures (($419) and $206 with related parties, respectively) | 873 | 167 |
| Distributions of earnings from unconsolidated ventures | 2,353 | 5,343 |
| Stock-based compensation expense | 2,449 | 2,467 |
| Loss (gain) on sales of real estate | 2,784 | (37) |
| Loss (gain) on extinguishment of debt and modification costs | 210 | 0 |
| Equity security dividends reinvested ($(1,398) and $(1,310) with related parties, respectively) | (1,398) | (1,310) |
| Deferred tax expense | 126 | (228) |
| Changes in operating assets and liabilities, net of effects of acquisitions: | ||
| Income tax payable | (5) | (255) |
| Real estate taxes payable | (1,153) | 2,404 |
| Operating assets | (1,043) | 1,681 |
| Operating liabilities | (565) | 939 |
| Net cash (used in) provided by operating activities: | (5,131) | 7,151 |
| Cash flows from investing activities | ||
| Proceeds from asset redemptions ($2,101 and $18,282 with related parties, respectively) | 2,435 | 18,312 |
| Sale of consolidated real estate investment | 26,197 | 28,306 |
| Proceeds from return of investment | 2,284 | 15,054 |
| Purchases of investments ($(2,462) and $(11,558) with related parties, respectively) | (2,462) | (25,518) |
| Additions to consolidated real estate investments | (3,109) | (1,294) |
| Net cash provided by investing activities | 25,345 | 34,860 |
| Cash flows from financing activities | ||
| Mortgage proceeds received | 50,765 | 411 |
| Mortgage payments | (79,021) | (33,952) |
| Prime brokerage borrowing | 1,732 | 3,497 |
| Credit facilities payments | (2,164) | (8,665) |
| Prime brokerage payments | (961) | (309) |
| Deferred financing costs paid | (587) | (522) |
| Payments for taxes related to net share settlement of stock-based compensation | (931) | (314) |
| Repurchase of common shares | (2,765) | 0 |
| Distributions paid to common shareholders | (3,903) | (3,015) |
| Distributions to redeemable noncontrolling interests in the OP | (6) | (3) |
| Net cash used in financing activities: | (20,084) | (42,041) |
| Net increase (decrease) in cash, cash equivalents and restricted cash | 130 | (30) |
| Cash, cash equivalents and restricted cash, beginning of period | 51,407 | 48,901 |
| Cash, cash equivalents and restricted cash, end of period | 51,537 | 48,871 |
| Supplemental Disclosure of Cash Flow Information | ||
| Interest paid | 8,838 | 12,101 |
| Income tax paid | 700 | 1,300 |
| Supplemental Disclosure of Noncash Activities | ||
| Non-cash distribution payment, paid in common shares | 12,211 | 10,638 |
| (Decrease) increase in dividends payable upon vesting of restricted stock units | (72) | 128 |
| Notes payable assumed in acquisition of NexPoint Hospitality Trust | 0 | 784 |
| Change to additional paid-in capital from the merger of NexPoint Hospitality Trust | 0 | (6,059) |
| Redeemable noncontrolling interest in the OP from the acquisition of NexPoint Hospitality Trust | 0 | 359 |
| Noncontrolling interests extinguished in merger of NexPoint Hospitality Trust | 0 | 4,915 |
| Change in capitalized construction costs included in accounts payable and other accrued liabilities | 0 | 25 |
| Series A Preferred Shares | ||
| Cash flows from financing activities | ||
| Distributions paid to Preferred Shareholders | (2,310) | (2,310) |
| Series B Preferred Stock | ||
| Cash flows from financing activities | ||
| Proceeds from issuance of Series B Preferred Shares through public offering, net of redemptions and offering costs | 21,446 | 3,171 |
| Distributions paid to Preferred Shareholders | $ (1,379) | $ (30) |
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Jun. 30, 2026 |
Dec. 31, 2025 |
|---|---|---|
| Consolidated Real Estate Investments | ||
| Land | $ 61,160 | $ 61,997 |
| Buildings and improvements | 291,826 | 317,395 |
| Intangible lease assets | 10,979 | 10,979 |
| Construction in progress | 23,912 | 21,237 |
| Furniture, fixtures, and equipment | 7,455 | 10,356 |
| Right-of-use assets ($442 and $534 with related parties, respectively) | 442 | 1,998 |
| Total Gross Consolidated Real Estate Investments | 395,774 | 423,962 |
| Accumulated depreciation and amortization | (54,726) | (50,028) |
| Total Net Consolidated Real Estate Investments | 341,048 | 373,934 |
| Investments, at fair value ($426,382 and $421,746 with related parties, respectively) | 568,440 | 568,610 |
| Equity method investments ($0 and $700 with related parties, respectively) | 30,587 | 33,788 |
| Investments in DSTs ($33,559 and $33,559 with related parties, respectively) | 33,559 | 33,559 |
| Cash and cash equivalents | 11,666 | 8,166 |
| Restricted cash | 39,871 | 43,241 |
| Accounts receivable, net | 2,427 | 2,868 |
| Prepaid and other assets ($287 and $0 with related parties, respectively) | 8,829 | 8,557 |
| Accrued interest and dividends | 2,370 | 1,366 |
| Interest rate caps | 0 | 65 |
| Deferred tax asset, net | 372 | 498 |
| Total Assets | 1,039,169 | 1,074,652 |
| Liabilities: | ||
| Mortgages payable, net ($14,140 and $10,000 with related parties, respectively) | 196,670 | 224,995 |
| Notes payable ($62,297 and $63,700 with related parties, respectively) | 75,530 | 76,892 |
| Prime brokerage borrowing | 5,907 | 5,136 |
| Accounts payable and other accrued liabilities | 28,252 | 28,810 |
| Income tax payable | 268 | 273 |
| Accrued real estate taxes payable | 2,536 | 3,689 |
| Accrued interest payable | 12,058 | 10,627 |
| Security deposit liability | 422 | 403 |
| Prepaid rents | 416 | 437 |
| Intangible lease liabilities, net | 1,539 | 2,065 |
| Lease liability ($454 and $546 with related parties, respectively) | 454 | 546 |
| Total Liabilities | 324,052 | 353,873 |
| Redeemable Series B Preferred Shares, $0.001 par value: 16,000,000 authorized; 1,878,475 and 911,003 shares issued and outstanding, respectively | 41,825 | 20,379 |
| Redeemable noncontrolling interests in the OP | 294 | 309 |
| Equity: | ||
| Series A Preferred Shares, $0.001 par value: 4,800,000 shares authorized; 3,359,593 and 3,359,593 shares issued and outstanding, respectively | 3 | 3 |
| Common shares, $0.001 par value: unlimited shares authorized; 53,106,027 and 50,132,605 shares issued and outstanding, respectively | 53 | 50 |
| Additional paid-in capital | 1,073,969 | 1,062,114 |
| Accumulated earnings (loss) | (401,027) | (362,076) |
| Total Shareholders' Equity | 672,998 | 700,091 |
| TOTAL LIABILITIES AND EQUITY | $ 1,039,169 | $ 1,074,652 |