NexPoint Reminds UDF IV Shareholders That Actions Speak Louder Than Words and Urges Them to Vote for New Board Representatives
Vote for NexPoint Nominees to Protect Shareholders' Interests and Maximize Value
DALLAS, Nov. 21, 2024 /PRNewswire/ -- NexPoint Real Estate Opportunities, LLC (together with its affiliates "NexPoint") announced today that it has sent a mailing to fellow shareholders of United Development Funding IV ("UDF IV" or the "Company"), a real estate investment trust, ahead of the Company's upcoming Annual Meeting of Shareholders.
- Shareholders can review the full mailing here.
UDF IV continues to provide a misleading account of the actions of UDF IV's current Trustees that ignores their role in extensive misdeeds that have damaged shareholders. At the same time, UDF IV continues to mischaracterize NexPoint and its nominees.
The UDF IV Board's egregious actions speak for themselves. The mailing considers how some of the current Trustees' actions to date have impacted shareholders.
For example, the current Board:
- Allowed UDF IV to go eight years without an annual meeting;
- Changed the Company bylaws to avoid standing for reelection;
- Allowed UDF IV to go eight years without issuing any financial statements;
- Actively fought NexPoint's efforts to force an annual meeting, election of all independent trustees, and any level of financial transparency;
- Approved use of shareholder funds to pay former executives' SEC-ordered disgorgement;
- Approved use of shareholder funds to pay for former executives' criminal defense;
- Has taken no action against the Company's advisor for defrauding UDF IV shareholders, which continues to enrich former executives while they serve prison sentences;
- Permitted UDF IV's loan portfolio to become dangerously concentrated around a single borrower, representing 98% of the Company's unaffiliated debt; and
- Inexplicably, and without any justification, allowed over $100 million in loans to be extended, permitting the advisor to drain tens of millions of dollars in management fees for years to come.
Shareholders finally have the chance to replace the current Trustees by voting FOR NexPoint's nominees. Voting information can be found here.
Shareholders are encouraged to vote FOR NexPoint's nominees TODAY using NexPoint's GREEN proxy materials to enact long overdue change and elect Trustees who will work for all shareholders to maximize value at UDF IV.
NexPoint encourages shareholders to visit udfaccountability.com and complete the contact form to receive ongoing updates about the Company and the upcoming Annual Meeting.
Shareholders can also contact NexPoint via email at [email protected].
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.
CONTACT INFORMATION
Voting Assistance
Email: [email protected]
Phone: (212) 297-0720
General Inquiries
Email: [email protected]
Media Relations
Email: [email protected]
Investor Relations
Email: [email protected]
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SOURCE NexPoint Advisors, L.P.