DALLAS--NexPoint Credit Strategies Fund has announced a plan to separate its business into two separate and independent publicly traded companies: NexPoint Credit Strategies Fund (“NHF”), which will continue to operate as a non-diversified, closed-end investment company; and NexPoint Residential Trust Inc. (“NXRT”), which will acquire, own, operate and selectively develop multifamily real property.

“We believe the spin-off of NXRT from NHF allows us to continue developing and optimizing our real estate portfolio as a standalone product,” says Brian Mitts, chief operating officer of NexPoint Advisors.

Through a spin-off, NHF will distribute all of the outstanding shares of NXRT common stock to NHF's shareholders on a pro rata basis. At the time of the spin-off, NXRT, which is currently a wholly owned subsidiary of NHF, will hold all or a majority interest in all of the multifamily properties that NHF holds interests in through its subsidiary Freedom REIT LLC prior to the spin-off.