NexPoint Diversified Real Estate Trust

NXDT-PA

Asset Management · Financial Services

Price

$13.16

-0.02 (-0.16%)

Market Cap

$232.6M

Exchange

New York Stock Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Weak

Stability

Mixed

Valuation

Data not available

Dividends

Good

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Share count rising — dilution

+24.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 37.3M (2021) → 46.3M (2025)

Winston Score History

The full picture

NexPoint Diversified Real Estate Trust is a publicly traded company that invests in a mix of real estate assets and real estate-related securities. Its portfolio includes direct property holdings, loans, and stakes in other real estate investment trusts (REITs). The company targets a range of property types, including multifamily housing, office, and specialty real estate, serving investors who want exposure to diversified real estate without owning property directly.

The company earns money through rental income, interest on loans, and returns from its investments in other real estate vehicles. It operates primarily in the United States and is relatively small, with a market cap around $200 million. The wide gap between its gross margin and deeply negative operating margin signals that overhead and investment losses are a significant drag on profitability. The main risk facing the company is its complex, leveraged structure, which makes it sensitive to rising interest rates and declining property values — both of which can quickly erode returns for shareholders.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+175.9% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

+105.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

0.0%ownership

Relatively low insider ownership

Cash Runway

5+ years

$644M cash & investments at current burn rate

Strong grower

NexPoint Diversified Real Estate Trust is growing revenue at 176% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

64.3%

Premium pricing power — 64.3% gross margin

Profit after running costs

Operating Margin

11.5%

Modest — 11.5% operating margin

Return on the money invested

ROCE

-4.7%

Weak — -4.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

N/A

Data not available

Profit growth

EPS YoY

N/A

—

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-4.8%

Burning cash (-4.8%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.39

Conservative — low debt load (0.39)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend

Dividend Yield

11.88%

Healthy income — 11.88% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record

Dividend Growth

+0.0%

Dividend flat

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