NexPoint announced the launch of NexPoint Semiconductor Manufacturing DST (the "Trust"), a Delaware Statutory Trust ("DST") that owns a semiconductor manufacturing property in Temecula, California (the "Property"). The current tenant of the Property, Skorpios Technologies Inc. (the "Tenant"), is engaged in both the contract fabrication and next-generation fabrication of semiconductors. The Tenant also develops proprietary technology in its own vertically integrated fabrication facility.

The Tenant's lease has a 15-year initial duration, with extension options, and the Property is fundamental to the Tenant's business as it houses its manufacturing and production. NexPoint believes that these factors, along with strong industry tailwinds, high quality construction, and strategic location, make the Property an attractive long-term investment. Semiconductors are a key component of the U.S. economy.

The semiconductor space is in the early stages of a new wave of growth, driven in part by the CHIPS and Science Act of 2022, which Congress passed with bipartisan support. The CHIPS and Science Act of 2022 provides incentives and investment for research to ensure the U.S. stays at the forefront of innovation. According to the Semiconductor Industry Association's 2023 report, the CHIPS and Science Act of 2022 should create over 200,000 jobs and result in over $180 billion in company investments in the U.S. The Property is located in Temecula, California, part of the Riverside, California metropolitan statistical area (the "Riverside MSA"), which has added over 450,000 jobs since 2013 and is expected to see continued job growth.

The Riverside MSA also experienced GDP growth of 6.2% in 2021.