NexPoint Diversified Real Estate Trust

NXDT: Is NexPoint Diversified Real Estate Trust Halal?

NexPoint Diversified Real Estate Trust

NYSEReal EstateUS

$4.83

+2.77%

Market Cap: 249.8M

Compliance Status

Not Halal

Screened on Aug 12, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is NexPoint Diversified Real Estate Trust (NXDT) halal? Not Halal. Based on AAOIFI screening, NexPoint Diversified Real Estate Trust passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

125.6% of 30.0% limit

What this means for you

Most scholars advise not holding NXDT

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About NexPoint Diversified Real Estate Trust

NexPoint Diversified Real Estate Trust (NXDT) functions as an externally managed, diversified real estate investment trust (REIT). Both its common stock and its 5.50% Series A Cumulative Preferred Shares (Series A Preferred) are publicly traded on the New York Stock Exchange under the symbols NXDT and NXDT-PA, respectively. The Trust's core financial aim is to deliver both consistent income streams and capital growth to its shareholders. It pursues this by strategically allocating capital across a broad spectrum of commercial real estate property types. Furthermore, NXDT invests across different tiers of the capital structure, encompassing instruments such as mortgage debt, mezzanine debt, and both common and preferred equity. Key property segments targeted for investment primarily include industrial, hospitality, net lease, retail, office, storage, and healthcare. The portfolio may also encompass multifamily and single-family rental properties that are currently held. On occasion, and to a restricted degree, NXDT may also hold, acquire, or trade in certain non-real estate securities.

Sector: Real Estate · Industry: REIT - Diversified

Shariah Compliance Status

AAOIFI Standard 21Updated Aug 12, 2026

Compliance History

Not Halal, unchanged since Aug 2026.

No status changes recorded since we began tracking.

Tracked since Aug 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: FMP
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Frequently Asked Questions

Is NexPoint Diversified Real Estate Trust (NXDT) halal to invest in?
NexPoint Diversified Real Estate Trust (NXDT) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did NexPoint Diversified Real Estate Trust get a F compliance rating?
NexPoint Diversified Real Estate Trust (NXDT) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 125.6% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change NexPoint Diversified Real Estate Trust's Shariah verdict?
NexPoint Diversified Real Estate Trust's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is NexPoint Diversified Real Estate Trust re-screened for Shariah compliance?
NexPoint Diversified Real Estate Trust (NXDT) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Aug 12, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.