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What is NexPoint Diversified Real Estate Trust ROE %?
NexPoint Diversified Real Estate TrustNXDT -0.56%34 ROE % is 1.15% as of Jun. 2026, which is 423% above its 10-year median of 0.22. GuruFocus rates NXDT with a GF Score™ of 34/100. The stock has 3 warning signs investors should review. Among 918 REITs companies, NexPoint Diversified Real Estate Trust ranks worse than 92.7% on this metric.
NexPoint Diversified Real Estate Trust (NYSE:NXDT) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
NexPoint Diversified Real Estate Trust ROE % Related Terms
NexPoint Diversified Real Estate Trust ROE % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NexPoint Diversified Real Estate Trust ROE % Chart
NexPoint Diversified Real Estate Trust Annual Data
For the REIT - Diversified subindustry, NexPoint Diversified Real Estate Trust's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NexPoint Diversified Real Estate Trust ROE % vs REITs Industry
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
NexPoint Diversified Real Estate Trust (NXDT) has a ROE % of 1.15% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NexPoint Diversified Real Estate Trust and its competitors. This is 423% above median its historical median of 0.22. According to the industry distribution chart, NexPoint Diversified Real Estate Trust ranks #851 out of 918 companies in the REITs industry, placing it in the top 92.7%.
Is NexPoint Diversified Real Estate Trust's ROE % too high?
NexPoint Diversified Real Estate Trust's current ROE % of 1.15% is 423% above median its 10-year median of 0.22. The REITs industry median ROE % is 6.13. NexPoint Diversified Real Estate Trust's value of 1.15% is 81.2% below this industry median. Based on the distribution chart, NexPoint Diversified Real Estate Trust ranks #851 out of 918 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, NexPoint Diversified Real Estate Trust has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does NexPoint Diversified Real Estate Trust's ROE % compare to FVR and AHRT?
According to the REITs industry distribution chart, NexPoint Diversified Real Estate Trust ranks #851 out of 918 companies for ROE %. This places NexPoint Diversified Real Estate Trust in the lower half of its industry. The industry median ROE % is 6.13. NexPoint Diversified Real Estate Trust's value of 1.15% is 81.2% below this benchmark. While the company's 10-year median is 0.22 vs. the industry median of 6.13, NexPoint Diversified Real Estate Trust has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a REITs company?
The median ROE % among REITs companies is 6.13, based on 918 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NexPoint Diversified Real Estate Trust's current ROE % of 1.15% is 81.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NexPoint Diversified Real Estate Trust and its competitors. For the REITs industry, the median ROE % is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NexPoint Diversified Real Estate Trust's current ROE % is 1.15%, which is 423% above median its own 10-year median of 0.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NexPoint Diversified Real Estate Trust stock overvalued right now?
NexPoint Diversified Real Estate Trust (NXDT) has a current ROE % of 1.15%. The current ROE % is 1.15%, which is 423% above median its 10-year median of 0.22 and 81.2% below the REITs industry median of 6.13. NexPoint Diversified Real Estate Trust's overall GF Score™ is 34/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For NexPoint Diversified Real Estate Trust (NXDT), the current ROE % is 1.15% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
NexPoint Diversified Real Estate Trust is an externally advised REIT focused on the acquisition, asset management, development, and disposition of opportunistic, value-add investments in real estate properties throughout the United States. The company has two reportable segments: The Diversified reportable segment is 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 Hospitality segment is focused on operating and renovating its U.S. located hospitality assets that meet its investment objective and criteria. Its Portfolio includes investments in the single-family rental, self-storage, office, hospitality, life science and multifamily sectors.
34GF Score
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