NexPoint Diversified Real Estate Trust Common Stock (NXDT)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable assets, honest accounting, and a sensible price. NXDT is an externally advised, diversified REIT focused on opportunistic and value-add real estate. The filed numbers show a business that has grown revenue but not profit. In FY2025, revenue was $86.0M and net income was -$130.2M, or EPS -$2.81. FY2024 had $83.2M revenue and -$51.3M net income, and FY2023 had $63.3M revenue and -$121.9M net income. That revenue trend is real, but the bottom line has been deeply negative. The latest filed quarter, fiscal Q2 2026 (quarter ended 2026-06-30), showed $19.3M revenue, $61,000 net income, and $0.00 EPS, a tiny profit after a fiscal Q2 2025 net loss of $45.3M. Fiscal Q1 2026 still lost $23.0M. So I do not see a durable moat; it is an external advisor model with capital-intensive, cyclical assets. Financial health is mixed: D/E 0.39 is not alarming, but FairStock's Altman Z-score is -0.02, Piotroski 4/9, TTM FCF -$3.1M, and FCF yield -1.2%. Valuation looks asset-cheap: at the 2026-10-13 close of $5.08, P/B is 0.40 and dividend yield 9.39%. But without FFO/AFFO in the data, I cannot judge REIT earnings properly. A 9.39% yield with negative free cash flow may not be covered. I would want proof that asset value is real and cash flow can cover the dividend before calling the discount a bargain.

In plain English: NexPoint Diversified Real Estate Trust owns different kinds of real estate across the U.S. The business has lost money in recent years, though the latest filed quarter was barely profitable. At the 2026-10-13 close, the price looks low compared with the value of its assets on the books, but weak profits and cash flow mean it is not clearly a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer