Highlights Poor Share Price Performance at Multiple NexPoint-Managed Funds
Reiterates Concerns Regarding the Motivation of NexPoint’s Disruptive Campaign and the Potentially Disastrous Implications for UDF IV Shareholders if Successful
Urges Shareholders to Vote FOR the Board’s Highly Qualified Trustee Nominees on the WHITE Proxy Card
IRVING, Texas, Nov. 22, 2024 (GLOBE NEWSWIRE) — United Development Funding IV (“UDF IV” or the “Trust”) 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, “NexPoint”).
Shareholders are encouraged to read the full letter which outlines the recent poor performance and stock price declines at NexPoint-managed funds, including:
- NXDT, which continues to perform poorly, with losses of over $246 million since July 2022 and a 60% share price decline since November 2022
- Another NexPoint-managed fund, Highland Opportunities and Income Fund (HFRO), whose stock price similarly declined approximately 54% since November 2022 and is currently trading near its all-time low
- NexPoint Hospitality Trust (NHT.U), which is externally advised by NexPoint Real Estate Advisors VI, L.P., was quoted on its own website at $0.01 per share on November 8, 2024
The letter also reiterates UDF IV’s concerns regarding NexPoint’s motivations given its multi-year campaign to take over management of the Trust, causing significant disruption to the Trust’s operations and undermining shareholders’ interests.
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’s 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.
UDF IV urges shareholders to help the Board prevent NexPoint from succeeding in its nefarious and self-interested campaign by voting “FOR” on the WHITE proxy card to reelect the Board’s highly qualified nominees who have acted to protect shareholders’ interests.
UDF IV shareholders with questions or who require assistance with respect to voting their shares are encouraged to contact UDF IV’s proxy solicitor:
INNISFREE M&A INCORPORATED
Shareholders may call:
1 (877) 750-9496 (toll-free from the U.S. and Canada) +1 (412) 232-3651 (from other countries)
About United Development Funding IV
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 www.udfiv.com. UDF IV may disseminate important information regarding its operations, including financial information, through social media platforms such as Twitter, Facebook and LinkedIn.
Forward-Looking Statements
This release contains forward-looking statements relating to, among other things, the Annual Meeting, and the potential future of UDF IV under NexPoint’s control. These forward-looking statements are based on management’s 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 “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” or other similar words. Readers should be aware that there are various factors, many of which are beyond UDF IV’s 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.
Investor Contact:
Investor Relations
1-800-859-9338
investorrelations@umth.com
Media Contact:
Mahmoud Siddig / Lucas Pers / Dylan O’Keefe
Joele Frank, Wilkinson Brimmer Katcher
(212) 895-8668
