{"id":13238,"date":"2025-01-01T09:52:23","date_gmt":"2025-01-01T15:52:23","guid":{"rendered":"https:\/\/1reason.com\/re\/udf-iv-reveals-troubling-pattern-of-nexpoints-value-destruction-in-letter-to-shareholders\/13238\/"},"modified":"2025-01-02T03:52:23","modified_gmt":"2025-01-02T09:52:23","slug":"udf-iv-reveals-troubling-pattern-of-nexpoints-value-destruction-in-letter-to-shareholders","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/udf-iv-reveals-troubling-pattern-of-nexpoints-value-destruction-in-letter-to-shareholders\/13238\/","title":{"rendered":"UDF IV Reveals Troubling Pattern of NexPoint\u2019s Value Destruction in Letter to Shareholders"},"content":{"rendered":"<div>  22, 2024  (GLOBE NEWSWIRE) &#8212; United Development Funding IV (\u201cUDF IV\u201d or the \u201cTrust\u201d) mailed a letter to shareholders disclosing a troubling pattern of value destruction at funds managed by affiliates of NexPoint Real Estate Opportunities, LLC, an indirect subsidiary of NexPoint Diversified Real Estate Trust (NXDT, and collectively with its affiliates, \u201cNexPoint\u201d).  <\/p>\n<p>Shareholders are encouraged to read the <a href=\"https:\/\/www.globenewswire.com\/Tracker?data=YOJgFxKfb2ZMaujP9v7AsfbPo_rIDrd9ZaLXuxVfAe2zb7OrtctK3RVQUeO8foIAfVzoejWxWYPoCqa-rEGLWgqfE5B7hdWN6snxnI84OwM04GV2m2z51wLG32Xo8rDIaFbA16LYNvco1CW_fiYdTM5sr1ZgAXQezz8GzSyPWcnw8Nn79jbBhZWnJvELTtsxQ_1c1JQgcy0m1uJF1RHuNd58LzT2P5ENUXMuzM2jxTw=\" rel=\"nofollow noopener\" target=\"_blank\" title=\"\"><u>full letter<\/u><\/a> which outlines the recent poor performance and stock price declines at NexPoint-managed funds, including:<\/p>\n<ul type=\"disc\">\n<li>NXDT, which continues to perform poorly, with losses of over <strong>$246 million <\/strong>since July 2022 and a <strong>60% share price decline<\/strong> since November 2022<\/li>\n<li>Another NexPoint-managed fund, Highland Opportunities and Income Fund (HFRO), whose stock price <strong>similarly declined approximately 54%<\/strong> since November 2022 and is currently trading near its all-time low<\/li>\n<li>NexPoint Hospitality Trust (NHT.U), which is externally advised by NexPoint Real Estate Advisors VI, L.P., was quoted on its own website at <strong>$0.01 per share<\/strong> on November 8, 2024<\/li>\n<\/ul>\n<p>The letter also reiterates UDF IV\u2019s concerns regarding NexPoint\u2019s motivations given its multi-year campaign to take over management of the Trust, causing significant disruption to the Trust\u2019s operations and undermining shareholders\u2019 interests.<\/p>\n<p>UDF IV also continues to monitor a shareholder class action lawsuit relating to the sale of Jernigan Capital to NexPoint that names James Dondero, NexPoint\u2019s founder, and John Good, one of the trustee candidates that NexPoint has nominated for election to the UDF IV Board, as defendants, and raises serious concerns regarding allegedly false and misleading disclosures.<\/p>\n<p>UDF IV urges shareholders to help the Board prevent NexPoint from succeeding in its nefarious and self-interested campaign by voting \u201cFOR\u201d on the WHITE proxy card to reelect the Board\u2019s highly qualified nominees who have acted to protect shareholders\u2019 interests.<\/p>\n<p>UDF IV shareholders with questions or who require assistance with respect to voting their shares are encouraged to contact UDF IV\u2019s 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) +1 (412) 232-3651 (from other countries)<\/p>\n<p><strong>About United Development Funding IV<\/strong><\/p>\n<p>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=7vcyURVm9JL2kol1HYD4XZGM9mjQIi75pxbYx09zLDr8s4KanjNJ8jTN0LJ_P446DTkYd_5loI7fkY_Pd6YJ1Hm1lF0WDWa-fVPAYYm3RFwHzur6tNjLkcj52uRYCWXGcO3fMCWg52k9BodiwI5lnlJlQPFxJmkaVnqFfgJaSlVXxDzX4mXfiPb4CBL9OXWBaEV7e_aq7LuQTdP8X5JaVmtJRIP9AahMZ3TT8JC5Bvk911IGT1cF_74VJC_BoPHF7NuiQYeto1g7-k5vGzl40FTefd_m-ck7Rk4y2GCFjKTyMQLeHqerIi0Ozwi9mG3cwU_URD77Fm_PElx5rquoP553wz2PPC4ArkyqPzJUpk8FJ7Ya_SZOr_CkZk_1IQbIe7myijdhyp_2tXUjEYjITrT9eEqOt-T8lnzvnvv8FRM=\" rel=\"nofollow noopener\" target=\"_blank\" title=\"\"><u>www.udfiv.com<\/u><\/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><strong>Forward-Looking Statements<\/strong><\/p>\n<p>This release contains forward-looking statements relating to, among other things, the Annual Meeting, and the potential future of UDF IV under NexPoint\u2019s control. 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 release including, among others, the results of the trustee elections at the Annual Meeting. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this letter. UDF IV undertakes no obligation to update its forward-looking statements, whether as a result of new information, future events or otherwise.<\/p>\n<p><strong>Investor Contact:<\/strong><br \/>Investor Relations<br \/>1-800-859-9338<br \/><a href=\"https:\/\/www.globenewswire.com\/Tracker?data=A9W4OrgBQLYarM17jlSeanG4ocZA7NI-Sxvkr9Q0X1cr728PPjPpgtAOQxr0OuO74tiAt-eMbJpwgJwaWKl4oob-7NDYIABcOkUKw-zKT3s_cqCs8JTeKcc-wr_r1YRS1GVoCOnaCc7WLFrwd3DHmX0P7_8xTkcTkDbnd7xvU71UWt6NavIrw0UocnF2yTKcOQ1X-rJbQrYW6n_VesQyodlzl-cRlfubltKmuJOUjKJHHZAaYjEGyJ534ff0m8w23D5bBnKYWAvthR0tZLC476Xlf7yHTGAKJQyi1dvGbwE=\" rel=\"nofollow noopener\" target=\"_blank\" title=\"\"><u>investorrelations@umth.com<\/u><\/a><\/p>\n<p><strong>Media Contact:<\/strong><br \/>Mahmoud Siddig \/ Lucas Pers \/ Dylan O\u2019Keefe<br \/>Joele Frank, Wilkinson Brimmer Katcher<br \/>(212) 895-8668<\/p>\n<p><img alt=\"\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\" data-src=\"https:\/\/ml.globenewswire.com\/media\/OGEwOTIxNDUtMjNmMi00NGVjLTgzNmItYzExNzU4ZTk4ZTBlLTUwMDEyNTg3MQ==\/tiny\/United-Development-Funding-IV.png\"><\/div>\n","protected":false},"excerpt":{"rendered":"<div>\n<p align=\"center\">Highlights Poor Share Price Performance at Multiple NexPoint-Managed Funds<\/p>\n<p align=\"center\">Reiterates Concerns Regarding the Motivation of NexPoint\u2019s Disruptive Campaignand the Potentially Disastrous Implications for UDF IV Shareholders if Successful <\/p>\n<p align=\"center\">Urges Shareholders to Vote FOR the Board\u2019s Highly Qualified Trustee Nominees on the WHITE Proxy Card <\/p>\n<p>IRVING, Texas, Nov.<\/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\/13238"}],"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=13238"}],"version-history":[{"count":1,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/13238\/revisions"}],"predecessor-version":[{"id":13244,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/13238\/revisions\/13244"}],"wp:attachment":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/media?parent=13238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/categories?post=13238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/tags?post=13238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}