NexPoint provides update on UDF IV’s proposed merger with Ready Capital

NexPoint Real Estate Opportunities (NXDT) provided an update on its intentions with respect to its investment in United Development Funding IV ahead of the Special Meeting of UDF IV Shareholders, scheduled for March 4, 2025, to vote on the proposed merger of UDF IV with Ready Capital (RC). NexPoint has significant and growing concerns about the Ready Merger, which was first announced days ahead of the Annual Meeting and Board of Trustees election in December 2024. Since announcement of the Ready Merger, NexPoint’s ongoing assessment of the transaction has amplified those concerns, leading to the conclusion that shareholders have no reason to believe that the self-interested and entrenched Board, after years of failing to protect shareholders’ interests, would suddenly change its behavior in pursuing, negotiating, approving and recommending that shareholders vote to approve the Ready Merger. NexPoint’s conclusion mirrors the findings of Glass Lewis in its December 2024 report on UDF IV: “That the board claims its current members and management team are ‘focused on protecting and enhancing shareholder value’ is, in our view, confounding.”