Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 318

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 318
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 and uncertainties that could materially adversely affect our business, financial condition and results of operations. You should read this summary together with the more detailed description of each risk factor contained below.

| • | unfavorable changes in economic conditions and their effects on the real estate industry generally and our operations and financial condition, including inflation, high interest rates, tightening monetary policy or recession, which may limit our ability to access funding and generate returns for shareholders; |

| • | the risk we make significant changes to our strategies in a market downturn, or fail to do so; |

| • | risks associated with ownership of real estate, including properties in transition, subjectivity of valuation, environmental matters and lack of liquidity in certain asset classes; |

| • | risks associated with our investment in diverse issuers, industries and investment forms and classes, both in real estate and in non-real estate sectors, including common equity, preferred equity securities, options or other derivatives, short sale contracts, secured loans of securities, reverse repurchase agreements, structured finance securities, below investment grade senior loans, bonds, convertible instruments, joint ventures, and emerging markets; |

| • | risks associated with our loans and investments in debt instruments including senior loans, CLOs, and structured finance securities; |

| • | the exposure of our loans and investments to risks similar to real estate investments generally, including the risk of delinquency, dependence on tenants, compliance with laws and regulations related to ownership of real property, and foreclosure and loss in any of our commercial real estate-related investments that are secured, directly or indirectly, by real property; |

| • | fluctuations in interest rate and credit spreads that could reduce our ability to generate income on our loans and investments; |

| • | the use of leverage to finance our investments; |

| • | competition for desirable loans and investments; |

| • | the concentration of loans and investments in terms of type of interest, geography, asset types, industry and sponsors; |

| • | the risk of downgrade of any credit ratings assigned to our loans and investments; |

| • | the risk that any distressed loans or investments we may make may subject us to bankruptcy risks; |

| • | our dependence on information systems and risks associated with breaches of our data security; |

| • | costs associated with being a public company, including compliance with securities laws; |

| • | the risk of adverse impact to our business if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting; |

| • | risks associated with pandemics,