{"id":12320,"date":"2024-08-01T11:17:41","date_gmt":"2024-08-01T16:17:41","guid":{"rendered":"https:\/\/1reason.com\/re\/udf-iv-mails-letter-to-shareholders-regarding-2024-annual-meeting\/12320\/"},"modified":"2024-08-02T06:17:41","modified_gmt":"2024-08-02T11:17:41","slug":"udf-iv-mails-letter-to-shareholders-regarding-2024-annual-meeting","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/udf-iv-mails-letter-to-shareholders-regarding-2024-annual-meeting\/12320\/","title":{"rendered":"UDF IV Mails Letter to Shareholders Regarding 2024 Annual Meeting"},"content":{"rendered":"<div>\n<p align=\"justify\">UDF IV will provide additional information regarding the Annual Meeting and the election of trustees to the UDF IV Board in the proxy materials, which are expected to be mailed in the coming days. The Trust urges shareholders to wait to vote on the <strong><u>WHITE<\/u><\/strong> proxy card included in the UDF IV proxy materials, and discard any green or other color proxy card sent to you by NexPoint.<\/p>\n<p align=\"justify\">The letter to shareholders and other important information regarding the Trust\u2019s commitment to value creation can be found at <a href=\"https:\/\/www.globenewswire.com\/Tracker?data=ydzD2pcoSLVMfW7fLLAEPQ3VVNPsi-0LzYMP6PvV9XUg55DVF-Lnf9f_582_Jik3_k2YFKkESnNJWoh7bmMb80o_ztmpGmG2qgpb9IHgZyE=\" rel=\"nofollow noopener\" target=\"_blank\" title=\"\"><strong>UDFforShareholders.com<\/strong><\/a><strong>.<\/strong><\/p>\n<p align=\"justify\">The full text of the letter to shareholders follows:<\/p>\n<p style=\"padding-left:30px\">Dear UDF IV Shareholder,<\/p>\n<p style=\"padding-left:30px\">You may have recently received a letter and proxy voting materials from NexPoint Real Estate Opportunities, LLC and its affiliates (collectively, \u201cNexPoint\u201d) regarding its dissident trustee nominations at the 2024 Annual Meeting of Shareholders to be held later this year. <strong>We urge shareholders to take no action at this time \u2013 do not fill out and return the GREEN proxy voting card provided by NexPoint.<\/strong><\/p>\n<p style=\"padding-left:30px\">NexPoint\u2019s materials include claims that are grounded in misinformation and intended to distract from the actions we\u2019ve taken to position the Trust to drive long-term value for the benefit of all shareholders. Further, we believe NexPoint is rushing out its proxy materials in an attempt to pressure shareholders into supporting its self-interested campaign before they have the opportunity to receive and review United Development Funding IV\u2019s (\u201cUDF IV\u201d or the \u201cTrust\u201d) proxy statement.<\/p>\n<p style=\"padding-left:30px\">We are finalizing our proxy materials and expect to mail them to shareholders in the coming days. We will also post them on <a href=\"https:\/\/www.globenewswire.com\/Tracker?data=ydzD2pcoSLVMfW7fLLAEPQ3VVNPsi-0LzYMP6PvV9XWXu95H9WlyAaSGeA5NO_BmbXiJuAmDcUKRZ7Jsx2vD8KSBKiWOEWRfTqgvArbhxRMbJc7LGQAGQIfs9nKCGax5\" rel=\"nofollow noopener\" target=\"_blank\" title=\"\"><strong>UDFforShareholders.com<\/strong><\/a>. <strong>We urge shareholders to wait to vote on the <\/strong><strong><u>WHITE<\/u><\/strong><strong> proxy card that will be included in UDF IV\u2019s proxy materials to support the UDF IV Board of Trustees (the \u201cBoard\u201d) and management team that are taking action to protect your investment. <\/strong><\/p>\n<p style=\"padding-left:30px\">The unfortunate truth is that for the last 5+ years, NexPoint has attempted to take over management of the Trust, causing significant disruption to the Trust\u2019s operations and coming at the expense of shareholders\u2019 hard-earned dollars.<\/p>\n<ul type=\"disc\">\n<li>In 2020, NexPoint launched a hostile tender offer, which it extended 13 times, to purchase Trust shares at the bargain basement price of $1.10 per share, or approximately a 90% discount to the Trust\u2019s book value per share at the time.<\/li>\n<\/ul>\n<ul type=\"disc\">\n<li>NexPoint has launched numerous frivolous lawsuits against the Trust \u2013 including a defamation suit \u2013 forcing the Trust to spend resources that could otherwise be used for the benefit of shareholders.<\/li>\n<\/ul>\n<p style=\"padding-left:30px\">Additionally, NexPoint\u2019s principals \u2013 including its founder, James Dondero \u2013 have engaged in a litany of actions that create considerable cause for concern regarding their integrity, character and willingness to do right by the investors they claim to represent.<\/p>\n<p style=\"padding-left:30px\"><strong>It is clear from NexPoint\u2019s latest letter that they have no viable plan to enhance value for UDF IV shareholders. Their materials reinforce our belief that NexPoint\u2019s true motivation behind its proxy contest is to extract the value of the Trust\u2019s portfolio for themselves to the detriment of all other shareholders. In addition, NexPoint\u2019s slate of nominees includes three close affiliates of NexPoint and \/ or James Dondero. We believe that NexPoint\u2019s nominees\u2019 sole focus will be to advance the hedge fund\u2019s self-interested campaign.<\/strong><\/p>\n<p style=\"padding-left:30px\">Despite NexPoint\u2019s persistent attempts to undermine the Trust, the Board and management team have acted, and continue to act, to protect and promote the interests of the Trust\u2019s shareholders.<\/p>\n<ul type=\"disc\">\n<li>The Board has paid cash distributions of approximately <strong>$38<\/strong> <strong>million, or approximately $1.24 per share, to shareholders<\/strong> since reinstating distributions in the third quarter of 2019 \u2013 far more than the $1.10 per share NexPoint offered to pay shareholders for their Trust shares. Cash distributions paid since inception total approximately $186 million, equating to approximately $6.06 per share.<\/li>\n<\/ul>\n<ul type=\"disc\">\n<li>The Trust has continued to actively and professionally manage its portfolio, including originating 9 new loans since 2020, committing to lend over $70 million in total. Importantly, 8 of these loans funded new phases of projects for which the Trust has current loans in its portfolio, <strong>which we expect will accelerate the completion of these existing projects<\/strong>.<\/li>\n<\/ul>\n<ul type=\"disc\">\n<li><strong>The Trust maintains transparent communication with shareholders<\/strong> and recently mailed its annual letter to shareholders and audited financial statements for the year ending December 31, 2023 to all shareholders. These materials are also available at <a href=\"https:\/\/www.globenewswire.com\/Tracker?data=UjikXBvNP6ldBaKC3bZYJ8UrHOBLQWsSIXeYgpBUrhi3wPusdxDXixWFHv9opf84Rg14mtquvbkuGemWe1G4cts5AcNiizIBkHOpULPE8hZ9SEwPj8reDGKc1hR2L6Bj\" rel=\"nofollow noopener\" target=\"_blank\" title=\"\"><strong>UDFforShareholders.com<\/strong><\/a>.<\/li>\n<\/ul>\n<p style=\"padding-left:30px\">We will provide additional information regarding the 2024 Annual Meeting of Shareholders and the election of members of the Board of Trustees in the proxy materials that we expect to mail in the coming days.<strong> Please wait to vote on the <\/strong><strong><u>WHITE <\/u><\/strong><strong>proxy card included in the UDF IV proxy materials, and discard any green or other color proxy card sent to you by NexPoint.<\/strong><\/p>\n<p style=\"padding-left:30px\">These proxy materials and other important information related to the 2024 Annual Meeting of Shareholders will be made available to shareholders at <a href=\"https:\/\/www.globenewswire.com\/Tracker?data=ydzD2pcoSLVMfW7fLLAEPQ3VVNPsi-0LzYMP6PvV9XWtxyT--vf3elradECZ5w7xZe2grNuOKtJialOsQClV_MqIREdxZ0Xy0qQVZWwmgxhYXJ31NgrUrLGxqreV48Mq\" rel=\"nofollow noopener\" target=\"_blank\" title=\"\"><strong>UDFforShareholders.com<\/strong><\/a>.<\/p>\n<p style=\"padding-left:30px\">We thank you for your investment and continued support of UDF IV.<\/p>\n<p style=\"padding-left:30px\">Sincerely,<\/p>\n<p style=\"padding-left:30px\">The UDF IV Board of Trustees<\/p>\n<p align=\"justify\">If you have any questions or require any assistance voting your shares, please contact our proxy solicitor:<\/p>\n<p align=\"center\"><strong>INNISFREE M&amp;A INCORPORATED<\/strong><br \/>Shareholders may call:<br \/>1 (877) 750-9496 (toll-free from the U.S. and Canada)<br \/>+1 (412) 232-3651 (from other countries)<\/p>\n<p align=\"justify\"><strong>About United Development Funding IV<\/strong><\/p>\n<p align=\"justify\">United Development Funding IV is a Maryland real estate investment trust. UDF IV was formed primarily to generate current interest income by investing in secured loans and producing profits from investments in residential real estate. Additional information about UDF IV can be found on its website at <a href=\"https:\/\/www.globenewswire.com\/Tracker?data=W2nBFqvZCrlYzbdw_mszxoMLbQ7svjKABU7cSKqggqcZStD4bQs0oiZ3360YgDTDkM1q9JFIZmHwZHlQXBGWjg==\" rel=\"nofollow noopener\" target=\"_blank\" title=\"www.udfiv.com\">www.udfiv.com<\/a>. UDF IV may disseminate important information regarding its operations, including financial information, through social media platforms such as Twitter, Facebook and LinkedIn.<\/p>\n<p align=\"justify\"><strong>Forward-Looking Statements<\/strong><\/p>\n<p align=\"justify\">This letter contains forward-looking statements relating to, among other things: UDF IV\u2019s 2024 Annual Meeting of Shareholders and proxy materials for the meeting, UDF IV\u2019s expectations regarding certain projects for which the Trust has provided funding and positioning the Trust to drive long-term value for the benefit of all shareholders. These forward-looking statements are based on management\u2019s current expectations and are not guarantees of future performance or future events. Such forward-looking statements generally can be identified by our use of forward-looking terminology such as \u201cmay,\u201d \u201cwill,\u201d \u201cexpect,\u201d \u201cintend,\u201d \u201canticipate,\u201d \u201cestimate,\u201d \u201cbelieve,\u201d or other similar words. Readers should be aware that there are various factors, many of which are beyond UDF IV\u2019s control, which could cause actual results to differ materially from any forward-looking statements made in this correspondence including, among others: changes in general economic conditions the real estate market and the credit market and changes in interest rates. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this correspondence. Forward-looking statements in this document speak only as of the date on which such statements were made, and UDF IV undertakes no obligation to update any such statements that may become untrue because of subsequent events.<\/p>\n<p align=\"justify\"><strong>Investor Contact:<\/strong><br \/>Investor Relations<br \/>1-800-859-9338<br \/><a href=\"https:\/\/www.globenewswire.com\/Tracker?data=LN0yGdKg8_3kZ3r0jA6PPyqaMVMIy1IZ0E4mnhLYUoJgwG5WFhyo02e-hrQCumuoPkfWbNJYJ_MPub_t1eJ7lfyMiVNZmBPbZacBBUcvr9-3k3aZruvxYbJKjLFKgftA\" rel=\"nofollow noopener\" target=\"_blank\" title=\"investorrelations@umth.com\">investorrelations@umth.com<\/a><\/p>\n<p align=\"justify\"><strong>Media Contact:<\/strong><br \/>Mahmoud Siddig \/ Lucas Pers<br \/>Joele Frank, Wilkinson Brimmer Katcher<br \/>(212) 895-8668<\/p>\n<p><img src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\" data-src=\"https:\/\/ml.globenewswire.com\/media\/MjJhOTBkN2ItZDAzNS00MGQ5LWExZTctYzJkMmEzMTNjN2Y1LTUwMDEyNTg3MQ==\/tiny\/United-Development-Funding-IV.png\"><\/div>\n","protected":false},"excerpt":{"rendered":"<div>\n<p align=\"center\">UDF IV Proxy Materials Being Mailed in Coming Days; No Shareholder Action Required at this Time<\/p>\n<p align=\"center\">Urges Shareholders to Discard Proxy Materials from NexPoint<\/p>\n<p align=\"justify\">IRVING, Texas, July 26, 2024 (GLOBE NEWSWIRE) &#8212; United Development Funding IV (\u201cUDF IV\u201d or the \u201cTrust\u201d) mailed a letter to update shareholderson the imminent mailing of the Trust\u2019s proxy materials related to the 2024 Annual Meeting of Shareholders (the \u201cAnnual Meeting\u201d) to be held later this year and to reiterate its concerns regarding NexPoint Real Estate Opportunities LLC and its affiliates\u2019 (collectively, \u201cNexPoint\u201d) campaign to elect a slate of dissident trustee nominees at the Annual Meeting.<\/p>\n<\/div>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/12320"}],"collection":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/comments?post=12320"}],"version-history":[{"count":1,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/12320\/revisions"}],"predecessor-version":[{"id":12329,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/12320\/revisions\/12329"}],"wp:attachment":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/media?parent=12320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/categories?post=12320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/tags?post=12320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}