DONDERO JAMES D 4

What Happened
James D. Dondero, a reported 10% owner of NexPoint Residential Trust, converted/vested restricted stock units (derivative exercises, code M) that resulted in the issuance of 20,749 common shares. The filing shows conversions of 8,810 shares on Feb 17, 2026 and 11,939 shares on Feb 18, 2026. Acquisition prices are reported as N/A and the corresponding derivative disposals are reported at $0 — consistent with RSU vesting/settlement rather than an open-market purchase or cash sale.

Key Details

• Transaction dates: Feb 17, 2026 (8,810 shares) and Feb 18, 2026 (11,939 shares); total = 20,749 shares converted.
• Transaction code: M (exercise/conversion of a derivative). Acquired prices: N/A; Disposed prices: $0 (reflects conversion of RSUs to shares).
• Shares owned after the transactions: not specified in the Form 4 provided.
• Notable footnotes:
  • F1/F8/F9 — these were restricted stock units (RSUs) awarded in prior years with scheduled vesting; settlement generally occurs within 10 days and may be cash or stock.
  • F3–F7 — many shares are held in trusts and funds managed by entities connected to Mr. Dondero; he disclaims direct beneficial ownership of some holdings except to the extent of pecuniary interest.
• Filing timeliness: Report filed Feb 19, 2026 for transactions on Feb 17–18, 2026 (filed within the typical two-business-day Form 4 window).

Context

• This was a conversion/vesting of RSUs, not an open-market buy or sale. Disposals at $0 on the Form 4 reflect conversion of the derivative instruments to underlying shares.
• For retail investors: RSU vesting is typically routine compensation-related activity and does not necessarily signal a change in insider sentiment. As a 10% owner with many indirect holdings, Dondero’s broader economic interests are often held through managed funds and trusts (see footnotes), so these conversions are likely administrative/compensation events.