Leases

3 Months Ended

Mar. 31, 2026

14. Leases

There are no tenants that make up greater than 10% of net rental income during the three months ended March 31, 2026.

The following table lists the tenants where the rental revenue from the tenants represented 10% or more of total rental income in the Company’s Consolidated Statements of Operations and Comprehensive Income (in thousands) for the three months ended March 31, 2025:


	For the Three Months Ended March 31, 2025
Tenant	Rental Income
Neiman Marcus Group, LLC	$	601

Ground Lease

The Company has a ground lease situated in Durham County, North Carolina, with a subsidiary of OSL, an entity that may be deemed an affiliate of the Adviser through common beneficial ownership. The lease has a remaining term of 3 years and a discount rate of 4.6% and contains five one-year extension options. As of March 31, 2026, the carrying amount of the right-of-use asset is $0.5 million, and the lease liability is $(0.5) million.

The future minimum lease payments under the operating lease as of March 31, 2026 are as follows:


Years Ending December 31,	Minimum Lease Payment
2026	$	208
2027		212
2028		217
Total undiscounted lease payments		637
Less: Present value discount		(137	)
Total lease liability	$	500

For the three months ended March 31, 2026 and 2025, the Company recognized lease expense of $0.1 million and $0.1 million, respectively, recorded on a straight-line basis over the lease term.

NEXPOINT DIVERSIFIED REAL ESTATE TRUST 10-Q