Segment Reporting

6 Months Ended

Jun. 30, 2025

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company has two reportable segments: Diversified and Hospitality. For a description of the types of products and services from which these reportable segments derive their revenues, see Notes 1, 2 and 3. The accounting policies of both segments are the same as those described in the Summary of Significant Accounting Policies. The chief operating decision maker primarily assesses performance for the segments and decides how to allocate resources based on segment net income (loss). The measures of segment assets are based on each segment’s total assets. The chief operating decision maker uses segment net income (loss) to evaluate profitability in deciding whether to reinvest profits into new or existing investments or into other parts of the entity, such as for dividend amounts. The Company’s two reportable segments serve different strategic purposes. The Diversified segment primarily consists of activities focused on investing in various commercial real estate property types and across the capital structure, including but not limited to equity, mortgage debt, mezzanine debt and preferred equity. The majority of NXDT’s revenue is comprised of Rental income, Dividend income, and Interest income. The Hospitality segment primarily consists of acquiring additional U.S. located hospitality assets that meet its investment objective and criteria and seeking to own, renovate and operate its portfolio of income-producing hotel properties. The majority of NHT’s revenue is comprised of revenue from renting rooms and selling food and beverages (“F&B”). Therefore, the Company has identified Diversified and Hospitality as the two operating segments and the two reportable segments. The Company’s chief operating decision maker is the president of the Company.

The following table presents measures of the reportable segment measures of profitability, along with significant segment expenses (in thousands):

	For the Six Months Ended June 30, 2025						For the Six Months Ended June 30, 2024
	Diversified		Hospitality		Total		Diversified		Hospitality			Total
Total Revenues	$	31,191	$	18,917	$	50,108	$	25,693	$	9,386		$	35,079
Less:
Advisory and administrative fees	6,764		3,898		10,662		6,420		269			6,689
Corporate general and administrative expenses	5,577		(1,630)		3,947		5,460		570			6,030
Real estate taxes and insurance	2,375		1,039		3,414		2,466		548			3,014
Property operating expense	3,090		9,394		12,484		3,335		4,998			8,333
Interest expense	7,513		6,400		13,913		8,911		3,471			12,382
Realized (gains) losses from non-real estate investments	(4,981)		—		(4,981)		21,875		—			21,875
Change in unrealized (gains) losses from non-real estate investments	74,959		—		74,959		(3,136)		—			(3,136)
Gain on sales of real estate	—		(37)		(37)		—		—			—
Property general and administrative expenses	1,147		2,460		3,607		1,326		1,566			2,892
Impairment loss	—		1,752		1,752		—		—			—
Income tax expense (benefit)	484		88		572		853		—			853
Depreciation and amortization	5,721		2,216		7,937		5,543		1,355			6,898
Equity in (income) losses of unconsolidated equity method ventures	167		—		167		958		—			958
Other segment items (1)	363		543		906		342		19		~	361
Net loss	$	(71,988)	$	(7,206)	$	(79,194)	$	(28,662)	$	(3,408)		$	(32,070)

The following table presents total assets for the reportable segments (in thousands):

	As of June 30, 2025						As of December 31, 2024
	Diversified		Hospitality		Total		Diversified		Hospitality		Total
Total assets	$	959,694	$	151,296	$	1,110,990	$	1,039,392	$	185,447	$	1,224,839

(1) Other segment items includes: Property management fees.