NexPoint Details 2025 Dividend Allocations: 5.93% Ordinary Income on $2.00 Common Distribution
NexPoint Real Estate Finance allocated its 2025 common-stock dividends of $2.00 per share, with $0.11864 (5.93%) taxable ordinary income and $1.88136 (94.07%) return of capital. Series A and B shares received $2.125 and $2.0625 as taxable income, with 98.374% qualifying under Section 199A and 1.626% eligible for dividends-received deduction.
1. 2025 Dividend Distribution Allocations
NexPoint Real Estate Finance finalized income allocations for its 2025 quarterly dividends across common stock and Series A and B preferred shares. Common shareholders received four $0.50 distributions totaling $2.00 per share; Series A and B preferred holders received $2.12500 and $2.06250 per share, respectively.
2. Taxable Income and Return of Capital Breakdown
The common-stock distributions comprised $0.11864 per share (5.93%) in taxable ordinary income and $1.88136 per share (94.07%) return of capital. Both Series A and B preferred dividends were reported entirely as taxable ordinary income.
3. Qualification Under Tax Codes
Of the taxable ordinary income, 98.374% qualifies as a Section 199A REIT dividend, while 1.626% is eligible for the dividends-received deduction for corporate taxpayers. No capital gains or Section 1250 gains were allocated for any share classes.