NexPoint Diversified Real Estate Trust (NXDT)

[Enterprising Investor]

NexPoint Strategic Opportunities Fund Shareholders Approve REIT Conversion Proposal (8/28/20)

With Approval of Proposal, Fund to Begin Transition to Diversified REIT

DALLAS, Aug. 28, 2020 /PRNewswire/ -- NexPoint Strategic Opportunities Fund (NYSE:NHF) ("NHF" or the "Fund"), a closed-end fund managed by NexPoint Advisors, L.P. (the "Adviser" and together with its affiliates "NexPoint"), announced the results of the special meeting of shareholders (the "Special Meeting"), which took place earlier today.

At the Special Meeting, shareholders approved the proposal to covert the Fund from a registered investment company to a diversified real estate investment trust ("REIT") and to amend certain fundamental investment restrictions (the "Business Change Proposal").

The Adviser announced the Business Change Proposal on June 19, 2020 in conjunction with a preliminary proxy filing. It filed a definitive proxy statement on July 10, 2020.

The Fund's Board of Trustees (the "Board"), which includes members who are not interested persons of the Fund (the "Independent Trustees"), believes the Business Change Proposal provides the best path to increase shareholder value over time.

Shareholders likewise supported this path in voting to approve the Business Change Proposal.

"We are pleased that shareholders recognized the opportunities in both the REIT structure and the real estate investment landscape," said James Dondero, president of NexPoint Advisors and the Fund's portfolio manager. "We are grateful for the support of the proposal and look forward to delivering value through this transition."

At the Special Meeting, shareholders also approved the amendment and restatement of the Fund's Agreement and Declaration of Trust (the "Amendment Proposal" and, together with the Business Change Proposal, the "Proposals"). The approval of the Business Change Proposal was a precondition for the Amendment Proposal.

Per the Proposals, the Fund will begin to transition its business and investments to those of a diversified REIT. Additional information on the transition can be found in the definitive proxy statement.

With the conversion, NHF will be the fourth publicly traded REIT on the NexPoint platform. NexPoint is the external manager for: NexPoint Residential Trust, Inc. (NYSE: NXRT), a value-add multifamily REIT; NexPoint Real Estate Finance, Inc. (NYSE: NREF), a mortgage REIT; and NexPoint Hospitality Trust (TSX-V: NHT.U), a hospitality REIT focused on select service and extended stay properties.

About the NexPoint Strategic Opportunities Fund (NHF)

The NexPoint Strategic Opportunities Fund (NYSE:NHF) is a closed-end fund managed by NexPoint Advisors, L.P. The fund invests primarily in below investment grade debt, equity securities, and real estate, and has the ability to hedge risk.

For more information visit www.nexpointgroup.com/nexpoint-strategic-opportunities-fund/

About NexPoint Advisors, L.P.

NexPoint Advisors, L.P. is an SEC-registered adviser on the NexPoint alternative investment platform. It serves as the adviser to a suite of funds and investment vehicles, including a closed-end fund, an interval fund, a business development company, and various real estate vehicles. NexPoint Advisors is the external manager for three publicly traded REITs: NexPoint Residential Trust, Inc. (NYSE: NXRT), NexPoint Real Estate Finance, Inc. (NYSE: NREF), and NexPoint Hospitality Trust (TSX-V: NHT.U).

For more information visit www.nexpointgroup.com

https://www.prnewswire.com/news-releases/nexpoint-strategic-opportunities-fund-shareholders-approve-reit-conversion-proposal-301120373.html