DONDERO JAMES D 4

What Happened

• James D. Dondero, a reported 10% owner of NexPoint Residential Trust, Inc. (NXRT), had 22,350 shares acquired on March 13, 2026 via an exercise/conversion of a derivative (reported as code M). The filing shows the conversion at N/A (no cash price), consistent with restricted stock units (RSUs) vesting rather than an open‑market purchase or cash exercise.
• The Form 4 also lists an earlier entry (2026-02-17) reporting a disposition of 22,350 derivative units at $0.00. The March 13 conversion corresponds to the scheduled vesting (one-fifth) of RSUs granted on March 13, 2024.

Key Details

• Transaction date(s): 2026-03-13 (conversion/acquisition of 22,350 shares); filing date: 2026-03-17.
• Transaction code: M = exercise/conversion of derivative (here, conversion of RSUs into shares).
• Price: N/A for the March 13 conversion; a Feb 17 entry shows $0.00 for a disposition of 22,350 (reported as derivative).
• Shares owned after transaction: not specified in the portions of the filing provided.
• Footnotes of note:
  • F1/F7: Each RSU converts to one common share; 111,752 RSUs granted on 3/13/2024 vest one-fifth each year — 22,350 is the one-fifth that vested on 3/13/2026. Settlement generally occurs within 10 days and may be settled in cash at the Compensation Committee’s discretion.
  • F2–F6: Many shares are held by trusts or entities managed by related firms; Mr. Dondero disclaims direct beneficial ownership of certain holdings except to the extent of his pecuniary interest.
• Timeliness: The Form 4 was filed on 2026-03-17 for a 2026-03-13 transaction (filed 4 calendar days later), which is one business day late under Form 4 timing rules.

Context

• This was not an open‑market purchase or sale but a conversion/vesting of RSUs into shares — such events are typically administrative (compensation vesting) rather than direct signals of immediate insider buying or selling. Per F7, the grant vests in annual installments; settlement may be in shares or, at the committee’s option, cash.
• As a 10% owner with holdings held through trusts and managed entities, many reported positions are indirect and subject to disclaimers; these conversions reflect vested compensation rather than active trading decisions.