NexPoint Residential Trust, Inc. (NYSE: NXRT) ("NXRT" or the "Company")
announced today the successful completion of its spin-off from NexPoint
Credit Strategies Fund (NYSE: NHF) ("NHF"). The Company will begin
"regular way" trading as an independent public company on the New York
Stock Exchange under the ticker symbol "NXRT," starting tomorrow, April
1, 2015.
NXRT is a real estate investment trust (“REIT”) that will focus on
directly or indirectly acquiring, owning, operating and selectively
developing well-located Class A and B multifamily properties with
“value-add” potential in large cities and suburban submarkets of large
cities. NXRT’s initial portfolio consists of 38 multifamily properties
primarily located in the Southeastern United States and Texas. NXRT is
externally advised by NexPoint Real Estate Advisors, L.P., an affiliate
of Highland Capital Management, L.P., a leading global alternative asset
manager and an SEC-registered investment adviser which, together with
its affiliates, has approximately $20.2 billion in assets under
management as of January 31, 2015. NexPoint Real Estate Advisors, L.P.
will conduct substantially all of NXRT’s operations and manage NXRT’s
real estate investments. The members of the management team of NexPoint
Real Estate Advisors, L.P. are James Dondero, Brian Mitts, Matt
McGraner, Matthew Goetz and Scott Ellington. The management team has
significant experience across real estate investing, private lending,
and private equity.
“We believe the spin-off of NXRT will allow us to replicate and build
upon NHF’s tremendous success over the past several years by continuing
to develop and optimize our real estate portfolio as a standalone
company,” said Brian Mitts, Chairman of the Board of Directors and Chief
Financial Officer, Executive VP-Finance and Treasurer of NXRT and Chief
Operating Officer of NexPoint Advisors, the adviser to NHF. “Our
experienced and dedicated real estate team continues to see attractive
investments in multifamily properties and we’re looking forward to
NXRT’s potential.”
NHF completed the spin-off through a pro-rata taxable distribution of
NXRT common stock to NHF shareholders of record as of the close of
business on March 23, 2015 (the "Record Date"). NHF shareholders
received one share of NXRT common stock for every three NHF common
shares held on the Record Date. There are approximately 21.3 million
shares of NXRT common stock outstanding after the spin-off. The
distribution of these shares was made in book-entry form, which means
that no physical stock certificates were issued.
Prior to the spin-off, NHF and NXRT entered into a separation and
distribution agreement and various other agreements related to the
spin-off, as described in NXRT’s information statement filed with the
SEC and available on NXRT’s website. Please visit NXRT’s website at http://www.NexPointLiving.com
under the Investor Relations section for additional information
regarding the spin-off.
About NexPoint Residential Trust
NexPoint Residential Trust will be a publicly traded REIT, with its
shares listed on the New York Stock Exchange under the symbol “NXRT,”
primarily focused on directly or indirectly acquiring, owning, operating
and selectively developing well-located Class A and B multifamily
properties with “value-add” potential in large cities and suburban
submarkets of large cities, primarily in the Southeastern United States
and Texas. NXRT is externally advised by NexPoint Real Estate Advisors,
L.P., an affiliate of Highland Capital Management, L.P., a leading
global alternative asset manager and an SEC-registered investment
adviser. More information about NXRT is available at http://www.NexPointLiving.com.
Cautionary Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based on
management's current expectations, assumptions and beliefs.
Forward-looking statements can often be identified by words such as
"will” and similar expressions, and variations or negatives of these
words. These forward-looking statements include, but are not limited to,
statements regarding the trading of NXRT’s common stock and the
operation of NXRT following the spin-off. They are not guarantees of
future results and are subject to risks, uncertainties and assumptions
that could cause actual results to differ materially from those
expressed in any forward-looking statement.
Readers should not place undue reliance on any forward-looking
statements and are encouraged to review NXRT’s final information
statement and NXRT’s Form 10 registration statement, filed with the SEC,
for a more complete discussion of the risks and other factors that could
affect any forward-looking statements. Except as required by the federal
securities laws, NXRT does not undertake any obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events, changing circumstances or any other
reason after the date of this press release, except as required by law.
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