NexPoint urges UDF IV shareholders to support board change in Dallas

On September 16, 2024, NexPoint Real Estate Opportunities, LLC, reached out to shareholders of United Development Funding IV (UDF IV) ahead of the company's Annual Meeting, which must occur by December 31, 2024. In their communication, NexPoint highlighted serious concerns regarding UDF IV's financial management, including a rise in impaired loans and questionable loan practices that have led to significant value loss for shareholders. The letter also pointed out the unhealthy concentration of loans to a single borrower and excessive general and administrative expenses that have eroded assets. NexPoint is advocating for a change in leadership by urging shareholders to support their nominees for the Board of Trustees. The nominees include Paul S. Broaddus, Edward N. Constantino, John A. Good, and Julie Silcock, who are positioned to address the issues raised in the letter. Shareholders are encouraged to utilize NexPoint's GREEN proxy materials to vote for these nominees, aiming to restore value and accountability within UDF IV. While the date for the Annual Meeting has not been officially announced, NexPoint is actively engaging with shareholders to ensure they are informed and can participate in the voting process. They have set up a dedicated website for updates and communication regarding UDF IV, emphasizing the importance of shareholder involvement in this critical decision. NexPoint's actions reflect a broader concern about governance and financial oversight within UDF IV, as they seek to implement necessary changes that would benefit all shareholders and enhance the company's overall performance.