#1Q3 2023 NEXPOINT INVESTOR PRESENTATION Highland Opportunities and Income Fund 23 NOVEMBER 2023 1#2Disclaimers & Cautionary Notes Regarding Forward-Looking Statements The information herein has been prepared by the Investment Adviser, is based upon unaudited information, and has not been independently audited or verified. This summary is for informational purposes only and is subject to change. This presentation contains information about prior investments made by the Adviser of the Fund. This information was prepared by the Adviser based on its experience in the industry and on assumptions of fact and opinion as to future events which the Adviser believed to be reasonable when made. There can be no assurance that the Adviser and/or the Fund will be as successful as these earlier investments. Prior investment returns are not indicative of future results. It should not be assumed that investment recommendations made in the future will be profitable or will equal the performance of the securities included herein. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange and frequently trade at prices lower than their net asset value, which may increase an investor's risk of loss. Net Asset Value (NAV) is total assets less total liabilities, which includes preferred shares, divided by the number of common shares outstanding. At the time of sale, your shares may have a market price that is above or below NAV and may be worth more or less than your original investment. For additional information, please contact your investment adviser or visit our website www.nexpointassetmgmt.com. Distributions: If a Fund estimates that it has distributed more than its income and net realized capital gains in the current fiscal year; a portion of its distribution may be a return of capital. A return of capital may occur, for example, when some or all of a shareholder's investment is paid back to the shareholder. A return of capital distribution does not necessarily reflect a Fund's investment performance and should not be confused with "yield" or "income". When distributions exceed total return performance, the difference will reduce the Fund's net asset value per share. Although the character of income will not be determined until the end of the Fund's fiscal year, please refer to the section on the website for Section 19a notices that provide estimated amounts and sources of the fund's distributions, which should not be relied upon for tax reporting purposes. The fund had a return of capital of 71.4% in 2022 and expects similar results in the future. A Form 1099-DIV for the calendar year will be sent to shareholders to illustrate how the Fund's distributions should be reported for federal income tax purposes. The performance data quoted here represents past performance and is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please call 877-665-1287. RISK CONSIDERATIONS Before investing in the Fund, you should carefully consider the Fund's investment objectives, risks, charges, and expenses. For a copy of the Fund's annual report which contains this and other information, please visit our website at www.nexpointassetmgmt.com or call 1-877-665-1287. Please read the Fund's annual report carefully before investing. Credit Risk. The risk that the Fund could lose money if the issuer or guarantor of a fixed income security, or the counterparty of a derivatives contract or repurchase agreement, is unable or unwilling (or is perceived to be unable or unwilling) to make a timely payment of principal and/ or interest, or to otherwise honor its obligations. Currency Risk. The risk that the values of foreign investments may be affected by changes in the currency rates or exchange control regulations. Debt Securities Risk. The Fund's ability to invest in high-yield debt securities generally subjects the Fund to greater risk than securities with higher ratings. Loans may not be considered 'securities' for purposes of the anti-fraud provisions under the federal securities laws and, as a result, as a purchaser of these instruments, a Fund may not be entitled to the anti-fraud protections of the federal securities laws. Derivatives Risk. Derivatives, such as futures and options, are subject to the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate, or index. Derivatives also expose the Fund to the credit risk of the derivative counterparty. Derivative contracts may expire worthless, and the use of derivatives may result in losses to the Fund. Liquidity Risk. The risk that, due to low trading volume, lack of a market maker, large position size, or legal restrictions (including daily price fluctuation limits or "circuit breakers"), the Fund may not be able to sell particular securities or unwinding derivative positions at desirable prices. Because loan transactions often take longer to settle than transactions in other securities, the Fund may not receive the proceeds from the sale of a loan for a significant period of time. No assurance can be given that the Fund will have sufficient liquidity for distributions. Non-Diversification Risk. As a non-diversified fund, the Fund may invest a larger portion of its assets in the securities of one or a few issuers than a diversified fund. Non-Payment Risk. Senior Loans, like other corporate debt obligations, are subject to the risk of non-payment of scheduled interest and/or principal. Non-payment would result in a reduction of income to the Fund, a reduction in the value of the Senior Loan experiencing non-payment and a potential decrease in the NAV of the Fund. Senior Loans Risk. The risks associated with senior loans are similar to the risks of below investment grade securities in that they are considered speculative. In addition, as with any debt instrument, senior loans are also generally subject to the risk of price declines and to increases in prevailing interest rates. Senior loans are also subject to the risk that, as interest rates rise, the cost of borrowing increases, which may also increase the risk and rate of default. In addition, the interest rates of floating rate loans typically only adjust to changes in short-term interest rates; long-term interest rates can vary dramatically from short-term interest rates. Therefore, senior loans may not mitigate price declines in a rising long-term interest rate environment. Short Sales Risk. The risk of short sales theoretically involves unlimited loss potential since the market price of securities sold short may continuously increase. Real Estate Investment Trust Risk. Real estate investments are subject to various risk factors. Generally, real estate investments could be adversely affected by a recession or general economic downturn where the properties are located. Real estate investment performance is also subject to the success that a particular property manager has in managing the property. Real Estate Market Risk. The Fund is exposed to economic, market and regulatory changes that impact the real estate market generally through its investment in NFRO REIT Sub, LLC, NFRO REIT Sub II, LLC, and NFRO SFR REIT, LLC (together the "REIT Subsidiaries"), which may cause the Fund's operating results to suffer. A number of factors may prevent the REIT Subsidiaries' properties and other real estate-related investments from generating sufficient net cash flow or may adversely affect their value, or both, resulting in less cash available for distribution, or a loss, to us. These factors include: national, regional, and local economic conditions; changing demographics; the ability of property managers to provide capable management and adequate maintenance; the quality of a property's construction and design; increases in costs of maintenance, insurance, and operations (including energy costs and real estate taxes); potential environmental and other legal liabilities; the level of financing used by each REIT Subsidiary and the availability and cost of refinancing; potential instability, default or bankruptcy of tenants in the properties owned by each REIT Subsidiary; the relative illiquidity of real estate investments in general, which may make it difficult to sell a property at an attractive price or within a reasonable time frame. NEXPOINT NOVEMBER 2023 2#3Selected Financial Highlights Quarter Ended September 30, 2023 Balance Sheet Highlights' Investment Portfolio at Fair Value Total Debt Outstanding² Total Net Assets Debt-to-Equity Ratio Net Debt-to-Equity 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 $1,046 $1,035 $1,070 $1,067 $1,067 $1,180 $1,072 $159 $159 $159 $162 $140 $140 $140 $925 $928 $936 $946 $1,011 $1,048 $1,025 0.17x 0.17x 0.17x 0.17x 0.14x 0.13x 0.14x 0.17x 0.16x 0.16x 0.14x 0.03x 0.12x 0.06x Income Statement Highlights' Total Investment Income $9.0 $10.0 $24.7 $10.3 $32.4 $52.0 $10.8 Net Investment Income $5.4 $6.6 $21.3 $6.9 Net Realized Gains/(losses) ($2.0) ($5.2) $2.5 $29.0 ($7.8) ($12.8) $77.0 $79.4 $48.7 $7.5 Net Unrealized Appreciation/(Depreciation) $10.4 $8.1 Total Increase in Net Assets Resulting from Operations $11.9 $7.6 ($16.6) $5.2 $28.9 $26.0 ($111.9) ($70.3) ($35.9) ($97.7) $53.3 $49.1 Per-Share Data Net Asset Value per Share $13.56 $13.61 $13.74 Net Investment Income per Share (Basic and Diluted) $0.08 $0.10 $0.31 $13.89 $0.10 $14.86 $15.41 $15.06 Total Increase in Net Assets Resulting from Operations per Share (Basic and Diluted) $0.18 $0.10 $0.08 $0.38 $0.43 ($1.44) $0.72 $0.11 $0.79 $0.72 Distributions per Share $0.23 $0.23 $0.23 $0.23 $0.23 $0.23 $0.23 1. 2. All numbers are in millions, except for per share data. Includes mezzanine equity of approximately $139.8M. NEXPOINT NOVEMBER 2023 3#4Summary Portfolio Characteristics Quarter Ended September 30, 2023 PORTFOLIO COMPOSITION As of September 30, 2023, the Fund's gross assets totaled $1.046 billion. The Fund's long assets were approximately 73.25% commercial real estate (debt & equity) and 26.75% non- real estate-related assets invested across debt securities, public and private equity, and structured products. The Fund held 102 positions with the top-ten holdings comprising 65.19% of the long-only assets. The Fund paid $0.23 in distributions during the quarter for a distribution rate of approximately 6.8% of NAV. Ticker CUSIP GENERAL INFORMATION HFRO 43010E404 Inception Date January 13, 2000 1.67(1) Expense Ratio Total Managed Assets (M) $1,090 Total Net Assets (M) $925 Jim Dondero, CFA Scott Johnson Co-Founder, President, Portfolio Manager PORTFOLIO CHARACTERISTICS Number of Holdings 102 Monthly Distribution Rate Per Share $0.077 Distribution Rate (Price) 11.5% Distribution Rate (NAV) 6.8% Regulatory Leverage (M) Leverage Percentage $164 15.1% * Distributions may include income and/or return of capital. The Fund had a return of capital in 2022 of 71.4 % and expects similar results in 2023. 1. The Expense Ratio shown is reported in the Fund's Annual Report Dated December 31, 2022. NEXPOINT NOVEMBER 2023 4#5Aggregate Portfolio Characteristics Quarter Ended September 30, 2023 PORTFOLIO COMPOSITION • • • As of September 30, 2023, the Fund's assets totaled $1.046 billion. The Fund's long assets were approximately 73.25% commercial real estate (debt & equity) and 26.75% non-real estate related assets invested across debt securities, public and private equity, and structured products. The real estate assets by type were approximately 34.31% private equity, 29.67% debt, and 9.26% public equity securities, as a percentage of the Fund's long assets. The real estate assets were comprised of Multifamily (16.50%), Self Storage (15.56%), Single Family Rental (15.46%), Life Science (11.86%), and the balance in industrial, hotel, and development, as a percentage of the Fund's long assets. ASSET CLASS (% OF LONG ASSETS) Other 1.32% Public Stocks 0.57% Loans & Bonds 4.70% CLOS 5.91% Private Equity 14.25% REAL ESTATE COMPOSITION (% OF LONG ASSETS) Retail 0.06% Development 4.30% Industrial 4.69% Hotel 4.83% 73.25% Life Science 11.86% Single Family Rental 15.46% NEXPOINT REAL ESTATE BY ASSET TYPE (% OF LONG ASSETS) Public Stocks 9.26% Multifamily 16.50% Self Storage 15.56% Debt 29.67% Commercial Real Estate 73.25% 73.25% Private Equity 34.31% NOVEMBER 2023 5#6Top Holdings Quarter Ended September 30, 2023 Investment Equity Debt Total NexPoint Storage Partners 15.54% (a) 15.54% NexPoint Homes 4.59% (b) 7.18% 11.77% NexPoint Real Estate Finance 7.14% 0.62% 7.76% EDS Legacy Partners 0.26% (c) 5.94% 6.20% IQHQ 5.31% 5.31% QuarterNorth Energy 3.89% 0.61% 4.50% NexPoint Hospitality Trust 4.45% 4.45% CCS Medical 2.39% 1.55% 3.93% Freddie Mac 21K-F103 CS FRN Easton Village Ventures Total 3.06% 3.06% 2.66% (c) 2.66% 41.78% 23.41% 65.19% Top holdings are as a percentage of long-only market value. a) 11.80% of the 15.54% held within NFRO Self Storage REIT, LLC b) 100% held within NFRO SFR REIT c) 100% held within NFRO Diversified REIT, LLC NEXPOINT NOVEMBER 2023 6#7NexPoint Storage Partners Top 10 Exposures 1. 2. NexPoint Storage Partners NexPoint Homes NexPoint Real 3. Estate Finance 4. EDS Legacy Partners 5. IQHQ QuaterNorth 6. Energy 7. NexPoint Hospitality Trust 8. CCS Medical 9. Freddie Mac 21K- F103 10. Easton Village Ventures INVESTMENT BACKGROUND In November 2020, NexPoint participated in the take-private transaction of Jernigan Capital (formerly NYSE: JCAP) in a $900 million transaction. The company rebranded as NexPoint Storage Partners, Inc. ("NSP"). NSP has successfully acquired most of the self-storage facilities that JCAP financed and continues to seek investments in newly built, multi-story, climate-controlled, Class-A self-storage facilities located in dense and growing markets, which management refers to as GenV facilities. All assets are managed by Extra Space Storage, who also invested $300 million in preferred equity during the JCAP buyout. In December 2022, NexPoint Storage Partners acquired all 29 SAFStor properties. Following the SAFStor acquisition, the NSP platform consists of 69 owned GenV facilities plus interests in 3 additional GenV facilities. The aggregate gross asset value is approximately $1.6 billion. In addition, NSP has the right to acquire an additional 20 GenV facilities with a gross asset value of approximately $700 million. INVESTMENT UPDATE The self-storage industry experienced strong rent growth in 2021 and 2022 but faced a deceleration in both rent and net operating income growth during 2023, reaching a notable plateau in the third quarter. The slowdown in growth from the Covid years was largely expected by the industry. This slowdown was attributed to the resurgence of in-office work and a sluggish housing market characterized by elevated mortgage rates. Consequently, occupancy rates reverted from the high 90% range observed in 2021 and 2022 to the low 90% range. This reversal, coupled with expanding cap rates contributed to a decline in self-storage real estate valuations. Despite these challenges, the CEO of Extra Space Storage conveyed optimism during the company's third-quarter call, emphasizing the long- term prospects of self-storage as an asset class. Occupancy rates remained robust, hovering at healthy levels, and although new customer rates didn't match the strength seen in 2022, they surpassed pre-pandemic levels. INVESTMENT HIGHLIGHTS Initial Investment % of HFRO Investment Investment Type Industry 2018 15.54% $162.6M Private Equity Real Estate - Storage Extra SpaceStorage NOVEMBER 2023 7#8NexPoint Homes Top 10 Exposures 1. 2. 3. NexPoint Storage Partners NexPoint Homes NexPoint Real Estate Finance 4. EDS Legacy Partners 5. IQHQ 6. QuarterNorth Energy INVESTMENT BACKGROUND NexPoint Homes Trust, Inc. ("NXHT") is a private real estate investment trust (REIT) formed in 2022 that focuses on acquiring, building, and operating single-family rental ("SFR") homes mostly in the Sunbelt states. NXHT was formed in response to the growing need for expanded access to affordable SFR properties. NXHT focuses on acquiring newer construction homes and partnering with local builders to create "build- for-rent" communities in secondary and tertiary markets. Using a balanced rehabilitation model and carefully studying the Affordability Index of the geographical area, NXHT prices its rentals more affordably, aiming to provide more affordable housing in safe neighborhoods near major employment centers. INVESTMENT UPDATE As of September 30, 2023, NXHT owned 2,569 homes, a decrease of one home from last quarter, with an average purchase price of $274,000 and an average age of approximately seven years. As of September 30, 2023, the stabilized portfolio occupancy was 99.2% with an average effective monthly rent of $1,717. The portfolio is split 60% SFR and 40% built-for-rent with over 60% of the homes located in Arkansas, Oklahoma, and Texas. INVESTMENT HIGHLIGHTS Initial Investment 2022 % of HFRO Investment 11.77% $123.1M Investment Type Debt, Private Equity Real Estate - SFR Industry 7. NexPoint Hospitality Trust 8. CCS Medical 9. Freddie Mac 21K- F103 Boise City Des Moines 0 Indianapolis Kansas City Knoxville. Nashville 00 Greensboro 10. Easton Village O Tulsa O NW AR Oklahoma City Winston-Salem Memphis ° Charlotte Chattanoogal Ventures Dallas-Ft." ° Atlanta Tuscaloosa O Savannah Current Market Pensacola Austin о Potential Expansion Market San Antonio Houston Birmingham Huntsville Jacksonville Orlando Tampa Current State Potential Expansion State NOVEMBER 2023 8#9NexPoint Real Estate Finance Top 10 Exposures 1. 2. 3. NexPoint Storage Partners NexPoint Homes NexPoint Real Estate Finance 4. EDS Legacy Partners 5. IQHQ 6. QuarterNorth Energy INVESTMENT BACKGROUND NexPoint Real Estate Finance, Inc. is an externally managed commercial mortgage real estate investment trust (REIT), with its shares of common stock listed on the New York Stock Exchange under the symbol "NREF." The REIT is primarily focused on investments in real estate sectors where its senior management team has operating expertise, including in the multifamily, single-family rental, self-storage, and life science sectors predominantly in the top 50 metropolitan statistical areas. The REIT targets lending or investing in properties that are stabilized or have a "light transitional" business plan, meaning a property that requires limited deferred funding to support leasing or ramp-up of operations and for which most capital expenditures are for value-add improvements 7. NexPoint Hospitality Trust • 8. CCS Medical 9. Freddie Mac 21K- F103 10. Easton Village Ventures INVESTMENT UPDATE In November, NREF reported its financial results for the quarter ended September 30, 2023. NREF reported a net loss of $17.0 million, or $0.90 per diluted share¹, for the three months ended September 30, 2023. NREF reported cash available for distribution² of $10.8 million, or $0.47 per diluted share, for the three months ended September 30, 2023. NREF's portfolio continues to provide stable and defensive yields despite a challenging commercial real estate environment. NREF announced an offering of up to 16,000,000 shares of NREF's 9.00% Series B Cumulative Redeemable Preferred Stock in November. Outstanding total portfolio of $1.6 billion, composed of 89 investments.3 Weighted-average loan to value ("LTV")³ and debt service coverage ratio ("DSCR") on the SFR, CMBS, CMBS IO strips, preferred, mezzanine, credit risk transfer, and mortgage-backed security investments are 69.0% and 1.77x3, respectively. As of November 15, 2023, there are no loans currently in forbearance in the portfolio. INVESTMENT HIGHLIGHTS Initial Investment % of HFRO Investment Investment Type Industry Life Sciences 4.6% 2020 7.76% $81.2M Common Stock Real Estate - Finance Multifamily 48.1% $1.6B Mortgage Back Securities 2.5% Mezz 8.4% 10 Strips 3.5% Current Principal³ Self-Storage 1.5% SFR 45.8% Preferred 10.9% 69.0% Weighted Avg LTV³ Senior Loan 42.8% 1. 2. CMBS B-Pieces 31.2% MSCR Notes 0.7% Weighted-average diluted shares outstanding assumes vesting of all outstanding unvested restricted stock units and the conversion of all redeemable non-controlling interests. Earnings available for distribution and cash available for distribution are non-GAAP measures. For a discussion of why we consider these non-GAAP measures useful and reconciliations of earnings available for distribution and cash available for distribution to net income (loss) attributable to common stockholders, see the "Reconciliations of Non-GAAP Financial Measures" and "Non-GAAP Financial Measures" sections of NREF release. 3. As of September 30, 2023; CMBS B-Pieces reflected on an unconsolidated basis. NOVEMBER 2023 9#10EDS Legacy Partners Top 10 Exposures 1. 2. NexPoint Storage Partners NexPoint Homes 3. NexPoint Real Estate Finance 4. EDS Legacy Partners 5. IQHQ 6. INVESTMENT BACKGROUND EDS Legacy Partners owns the property located at 5400 Legacy Drive in Plano, Texas. The property is situated on 91 acres and includes ~1.6 million square feet of office space. The campus was built in 1992 and previously served as the headquarters of Electronic Data Systems (EDS). INVESTMENT UPDATE In November, Plano's city council approved the plan to turn the EDS campus into a new life sciences and medical center. The location obtained zoning to convert the 1.6 million-square-foot former EDS campus into a life sciences complex. The 91-acre redevelopment east of the Dallas North Tollway in Legacy business park could create more than 2,000 jobs in the first phase. The redevelopment, called the Texas Research Quarter, could also include 375,000 square feet of new pharmaceutical manufacturing space, a 300-room hotel and 775 apartments surrounding a nine-acre park. INVESTMENT HIGHLIGHTS Initial Investment % of HFRO Investment Investment Type Industry 2018 6.20% $64.9M Debt, Private Equity Real Estate - Life Science QuarterNorth Energy NexPoint Hospitality 7. Trust 8. CCS Medical Freddie Mac 21K- 9. F103 10. Easton Village Ventures NOVEMBER 2023 10#11IQHQ Top 10 Exposures 1. 2. NexPoint Storage Partners NexPoint Homes 3. NexPoint Real Estate Finance 4. EDS Legacy Partners 5. 9 6. IQHQ QuarterNorth Energy INVESTMENT BACKGROUND IQHQ is a private real estate investment trust (REIT) that acquires, develops, redevelops, and manages life-sciences real estate across several core-markets. The company was founded by Alan Gold, founder of several successful life-sciences and healthcare REITS. IQHQ pursues large format, iconic development, and selective re-development opportunities within live-work-play clusters in the top life science markets in the world, including Boston, San Francisco, and San Diego, as well as Cambridge and London in the U.K. HFRO's investment includes representation on the board. The life science real estate market has levels of supply that are not commensurate to the consistently high levels of demand that the market has experienced for the past few years. The effects of this supply-demand imbalance may be evidenced by the historical performance of the life sciences sector in comparison to the broader REIT market. Life sciences real estate has been constrained in core markets, such as Boston, San Diego, and San Francisco, with high occupancy and increasing tenant demand. This high demand real estate usually lacks price sensitivity resulting from healthy tenant budgets of which rent typically comprises a very small portion. INVESTMENT HIGHLIGHTS Initial Investment 2020 5.31% $55.6M % of HFRO Investment Investment Type Industry Private Equity Real Estate - Life Science 7. 8. 9. NexPoint Hospitality Trust CCS Medical Freddie Mac 21K- F103 INVESTMENT UPDATE In 2023, IQHQ has continued to advance construction on 7 projects spanning 4.8 million square feet (SF) across Boston, San Diego, and the Bay Area. IQHQ is expected to complete over 2 million SF by the end of 2024, including deliveries at Alewife Park, located in Boston, and RaDD, located in San Diego. In addition to ongoing development, IQHQ is pursuing entitlements for additional sites, which will bring the company's total portfolio to over 12 million SF once fully delivered. 10. Easton Village Ventures NOVEMBER 2023 11#12QuarterNorth Energy Top 10 Exposures 1. 2. NexPoint Storage Partners NexPoint Homes 3. NexPoint Real Estate Finance 4. EDS Legacy Partners INVESTMENT BACKGROUND QuarterNorth Energy Holding Inc. ("QNE") is one of the largest independent offshore exploration and production operators in the United States with a diverse footprint spanning the Gulf of Mexico. QNE was formed in August 2021 to purchase certain oil and natural gas properties from Fieldwood Energy Inc., which filed for bankruptcy in 2020. In managing its business, QNE is focused on optimizing production and increasing reserves in a profitable and prudent manner, while managing cash flows to meet its obligations and investment needs. The company's goal is to grow its production, reserves, and cash flow in a capital efficient manner by pursuing low-risk, high-return projects that organically enhance the value of its deepwater oil and gas assets. The company is based in Houston, Texas. INVESTMENT HIGHLIGHTS Initial Investment % of HFRO Investment Investment Type Industry 2021 4.50% $47.1M Debt, Private Equity Energy 5. IQHQ 6. QuarterNorth Energy 7. NexPoint Hospitality Trust INVESTMENT UPDATE In November, QNE reported strong operational and financial results for the fiscal quarter ended September 30, 2023. The key highlights for the quarter were record oil and gas production due to the successful completion of the Katmia West well. The company plans to drill another offsetting well in 2024 and upgrade the production platform. In addition, the company sold its Plugging & Abandonment business and closed on the sale of its shelf properties. 8. CCS Medical Freddie Mac 21K- 9. F103 10. Easton Village Ventures NOVEMBER 2023 12#13NexPoint Hospitality Trust Top 10 Exposures 1. 2. 3. NexPoint Storage Partners NexPoint Homes NexPoint Real Estate Finance 4. EDS Legacy Partners 5. IQHQ QuarterNorth 6. Energy 7. NexPoint Hospitality Trust 8. CCS Medical 9. Freddie Mac 21K- F103 10. Easton Village Ventures INVESTMENT BACKGROUND NexPoint Hospitality Trust (NHT) is a publicly traded real estate investment trust (REIT), with its units listed on the TSX Venture Exchange under the ticker NHT.U. NHT is focused on acquiring, owning and operating well-located hospitality properties in the United States that offer a high current yield and in many cases are underperforming assets with the potential to increase in value through investments in capital improvements, brand repositioning, revenue enhancements, or operational improvements. NHT owns branded properties sponsored by Marriott, Hilton, Hyatt, and Intercontinental Hotels Group, located across the U.S. INVESTMENT UPDATE As of June 30, 2023, NHT's current portfolio consists of 9 properties with 1,433 rooms, located throughout the U.S., in the full-service, select- service, limited-service, and extended stay hospitality categories. Each property has a long-term franchise agreement with Marriott, Hyatt, Hilton, or InterContinental Hotels Group sponsored brands. NHT believes each property in the portfolio has the opportunity to generate outsized market share improvements and topline increases as leading select-service, limited-service, or extended-stay hotels in their respective submarkets. For the nine months ended September 30, 2023, occupancy across the current portfolio was 70.9%, Average Daily Rate was $156.06, and RevPAR was $111.32. NHT continues to see recovery in the business travel sector. As of June 30, 2023, NHT had total assets of $296.7 million. NHT had accounts payable and other accrued liabilities of $28.2 million, net indebtedness of $190.2 million, notes issued to affiliates of $82.7 million, redeemable Class B Units valued at $0.1 million, and unitholders' deficit of $10.3 million. On June 29, 2023, the DoubleTree Olympia property was sold. On August 11, 2023, NHT announced that it had entered into an agreement for the sale of its Holiday Inn Express hotel property in Nashville, Tennessee for $120 million. The asset sale is expected to close in 2023. INVESTMENT HIGHLIGHTS Initial Investment % of HFRO Investment Investment Type Industry 2020 4.45% $46.6M Convertible Debt Real Estate - Hotels NOVEMBER 2023 13#14CCS Medical Top 10 Exposures 1. 2. NexPoint Storage Partners NexPoint Homes 3. NexPoint Real Estate Finance 4. EDS Legacy Partners INVESTMENT BACKGROUND CCS Medical (CCS) is a leading national distributor of home medical equipment and supplies for patients with chronic conditions, with a focus on diabetes management. The company has an expansive, diversified payor network covering most of the U.S. population. The company is headquartered in Tampa, Florida and has sales associates and distribution centers nationwide. CCS holds pharmacy licenses or permits in all states and is a Medicare Competitive Bid company. CCS is well positioned to compete in the rapidly growing distribution market for continuous glucose monitoring (CGM) diabetes supplies and to capture growth stemming from the secular trend of healthcare moving online and to the home. CCS aims to provide a more integrated experience for chronic care management rather than the typical fragmented care patients living with such conditions face. HFRO's investment includes representation on the board. INVESTMENT HIGHLIGHTS Initial Investment % of HFRO Investment Investment Type Industry 2010 3.93% $41.2M Debt, Private Equity Healthcare 5. IQHQ 6. QuarterNorth Energy 7. NexPoint Hospitality Trust INVESTMENT UPDATE CCS experienced continued growth in both revenue and adjusted EBITDA during the third quarter of 2023, leading to a roughly 9.8% increase in CCS's equity price compared to the second quarter. CCS saw improvements in both its new shipments and reorder rate in the third quarter and will remain focused on growing revenue over the next quarter. 8. CCS Medical Freddie Mac 21K- 9. F103 10. Easton Village Ventures NOVEMBER 2023 14#15Empty#16Easton Village Ventures Top 10 Exposures 1. 2. 3. NexPoint Storage Partners NexPoint Homes NexPoint Real Estate Finance INVESTMENT BACKGROUND Easton Village Ventures, LLC owns 88.5% of the Easton Village apartment complex in Boise, Idaho. The Property consists of 144 market rate, multifamily units within six garden style buildings on 7.47 acres of land with a pool, barbeque area, playground, fireplace, community room, and fitness center. The Property is an infill location with robust community amenities situated just four miles from Boise National Forest, a 2.5-million-acre forest with hiking trails, biking trails, scenic drives, water sports and winter sports. Boise Towne Centre, a 12 million square feet mall, is located within 4.8 miles from the Property. INVESTMENT HIGHLIGHTS Initial Investment % of HFRO Investment Investment Type Industry 2021 2.66% $27.8M Private Equity Real Estate - Multifamily 4. EDS Legacy Partners 5. IQHQ QuarterNorth 6. Energy 7. NexPoint Hospitality Trust 8. CCS Medical 9. Freddie Mac 21K- F103 INVESTMENT UPDATE As of September 30, 2023, the property was 91.7% occupied with average monthly rents of $1,601. The property continued to demonstrate successful rent collection closing the quarter with zero delinquency and remains focused on improving occupancy. The property is running 4.07% below management's revenue forecast for the nine months ended September 30, driven by a $62,000 or 2.8% miss on top-line rent forecast. The Boise market continues to soften both due to normal seasonality, as well as from the demand highs of 2021. The property has done well to offset the miss on revenue by beating the expense budget by $28,000, or 4.3%, for the year-to-date, and anticipate that to remain consistent in Q4. The property made a distribution to the Fund in the third quarter at a 4.88% annualized rate of return. 10. Easton Village Ventures NOVEMBER 2023 16#17HFRO NEXPOINT VISIT OUR WEBSITE www.nexpoint.com CONTACT SALES & INVESTOR SUPPORT (833) 697-7253 ADDRESS 300 Crescent CT Ste. 700 Dallas, TX 75201 NOVEMBER 2023 NEXPOINT