NexPoint Multifamily Capital Trust Inc., a publicly registered non-traded real estate investment trust, has suspended its distribution reinvestment plan in light of the recently announced plan to change its name and go public.
The DRIP has been terminated beginning with distributions declared for the month of July 2017, which are payable in August 2017. Stockholders will continue to receive their full distributions, which will be paid in cash as opposed to additional shares of common stock.
The DI Wire reported last month that the REIT terminated its $1 billion offering and filed a registration statement with the SEC to reclassify its Class A shares as common stock, eliminate its Class T shares, and change its name to NexPoint Real Estate Finance Inc.
NexPoint Real Estate Finance intends to qualify as a REIT that focuses on providing structured financing for properties that have a broad tenant base and short-term leases, including mid-sized multifamily, storage, and select-service and extended-stay hospitality properties and companies.
The company plans to offer an undisclosed number of shares of common stock and list on the New York Stock Exchange under the ticker symbol NREF. The move is intended to facilitate company growth and offer shareholders an opportunity to gain liquidity, the company said.
NexPoint Multifamily Capital Trust’s previous investment strategy focused on preferred equity investments, mezzanine loans, bridge loans and first mortgages, as well as directly purchased Class A multifamily properties located in the Southeastern and Southwestern United States.
The offering was declared effective in August 2015 and raised $10.2 million in investor equity, as of July 20th. The company’s investment portfolio consists of a majority interest in a $48.6 million multifamily property located in Phoenix and a $5.25 million preferred equity investment in a multifamily property located in San Antonio.