NexPoint Cautions Shareholders Not to Let UDF
IV's Attacks Divert from Real Issues
DALLAS, Oct. 11,
2024 /PRNewswire/ -- United Development Funding IV
("UDF IV" or the "Company") recently issued a letter to
shareholders "raising concerns about the integrity of NexPoint
leadership." The letter, which rehashes themes used in previous
attacks and include several false claims about NexPoint, are the
latest attempt by UDF IV to distract shareholders from both the
failures of the current Board of Trustees and the severe
mismanagement of the Company that has resulted in a massive loss of
value and liquidity. (NexPoint's responses to UDF IV's previous
attempts to mislead shareholders can be found here.)
The Company has failed to develop, communicate, or execute a
plan to turn around operations, enhance shareholder value, and
create liquidity. Despite having had at least six years since the
Company's 2018 settlement with the SEC, during which this Board of
Trustees and the management team have had exclusive control, the
Company has yet to articulate any viable proposal to recover value
for shareholders, beyond touting a "long history of cash
distributions" that are 100% return of capital and thus only
further eroding value.
Shareholders should not be fooled by the Company's misleading
claims about NexPoint and should equip themselves with the facts
about the current Board and NexPoint's intentions:
Facts about UDF IV's current Board of Trustees:
- Members of the current Board of Trustees presided over years of
fraud committed by former UDF IV executives against
shareholders.
- Those former executives were convicted on numerous counts of
fraud and are serving combined prison sentences of 20+
years, and their convictions were upheld by the U.S. Fifth Circuit
Court of Appeals and the U.S. Supreme Court.
- The current Board of Trustees authorized the use of tens of
millions of dollars of shareholder funds to pay for the legal
defense of the former executives and have made no attempt to recoup
those funds on behalf of shareholders—even after the conclusive
U.S. Supreme Court decision.
Facts about NexPoint's intentions:
- NexPoint has over $14.5 billion
in real estate assets under management (as of June 30, 2024) across numerous asset classes in
both public1 and private REITs and private funds with a
proven track record over the past 15 years of producing positive
investment returns.
- As one of the largest shareholders, NexPoint is completely
aligned with fellow shareholders.
- NexPoint is nominating four Trustee candidates to replace the
current Board. The candidates would serve as Independent Trustees
with fiduciary duties to represent the interests of ALL
shareholders—not just NexPoint's.
- The nominees are independent and have relevant experience and
track records of acting for the benefit of shareholders and
creating corporate value.
- If elected, the nominees would cause UDF IV to aggressively
enforce its loan agreements, pursue remedies against defaulting
borrowers, manage its expenses, and realize the fullest value
possible for its assets.
NexPoint urges shareholders to vote using the GREEN proxy card
FOR its nominees: Paul S. Broaddus, Edward N.
Constantino, John A. Good, and Julie Silcock. Voting
information and additional shareholder resources can be found at
www.udfaccountability.com.
About NexPoint
NexPoint Real Estate Opportunities, LLC is a wholly owned
subsidiary of NexPoint Diversified Real Estate Trust, Inc.
(NYSE: NXDT), an affiliate of 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, interval fund, business development company, and various real
estate vehicles. For more information
visit www.nexpoint.com
IMPORTANT INFORMATION
NexPoint Real Estate Opportunities, LLC ("NexPoint") intends to
deliver a proxy statement with respect to its solicitation of
proxies for nominees to be elected to the United Development
Funding IV ("UDF IV") Board of Trustees at the Annual Meeting of
Shareholders of UDF IV. The date for the Annual Meeting has not yet
been set and NexPoint is not soliciting proxies at this time.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE NEXPOINT PROXY
STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) WHEN
AVAILABLE IN ITS ENTIRETY BECAUSE IT WILL CONTAIN IMPORTANT
INFORMATION ABOUT ANY SOLICITATION.
Copies of the documents will be made available free of charge
from NexPoint by accessing the
website www.udfaccountability.com.
NexPoint, its affiliates, their directors and executive officers
and other members of management and employees may be participants
(collectively "Participants") in the solicitation of proxies by
NexPoint. Information about NexPoint's nominees to the UDF IV Board
of Trustees and information regarding the direct or indirect
interests in UDF IV, by security holdings or otherwise, of
NexPoint, the other Participants and NexPoint's nominees will be
available in the proxy statement. NexPoint's disclosure of
any security holdings will be based on information made available
to NexPoint by such Participants and nominees. UDF IV is no longer
subject to the reporting requirements of the Securities Exchange
Act of 1934, as amended. Consequently, NexPoint's knowledge of
significant security holders of UDF IV and as to UDF IV itself is
limited.
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CONTACT INFORMATION
Investor Contacts
Okapi Partners:
info@okapipartners.com
NexPoint: ir@nexpoint.com
Media Contacts
Paul
Caminiti/Pamela
Greene (Reevemark): nexpointteam@reevemark.com
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1 Among the other public REITs
advised by NexPoint and its affiliates are NexPoint Residential
Trust, Inc. (NYSE:NXDT) and NexPoint Real Estate Finance, Inc.
(NYSE: NREF).
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SOURCE NexPoint Advisors, L.P.