Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 365

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 365
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$686,936 $83,217 $5,952 $563 $(87,360)$(9,170)$(2,479)$(110,019)$567,640 

127

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the significant unobservable inputs used in the fair valuation of assets categorized within Level 3 of the fair value hierarchy as of December 31, 2024.CategoryValuation TechniqueSignificant Unobservable InputsInput Value(s) (Arithmetic Mean)Fair ValueCommon StockMarket ApproachUnadjusted Price/MHz-PoP$0.10—$0.90$(0.48)$157,828 Discounted Cash FlowDiscount Rate7.00%—14.50%(9.63)%Market Rent (per sqft)$13.00—$42.50$(27.75)NAV ApproachDiscount Rate10.00%NAV per Share$12.75Multiple of EBITDA3.00x—4.25x(3.63)xRecent TransactionImplied Enterprise Value from Transaction Price ($mm)$1,149.00N/A$25.31—$28.00$(26.66)Discount to NAV(30.00)%—(20.00)%(25.00)%Offer Price per Share$4.27Convertible NotesDiscounted Cash FlowDiscount Rate6.08%—8.08%(7.08)%20,846 LLC InterestDiscounted Cash FlowDiscount Rate7.00%—26.00%(12.5)%36,777 Market Rent (per sqft)$13.00—$42.50$(27.75)Capitalization Rate5.13%LP InterestDirect Capitalization ApproachCapitalization Rate5.25%—5.50%(5.38)%189,659 Market ApproachDiscount to NAV(7.5)%Recent TransactionPrice per Share$16.41Preferred SharesLiquidation AnalysisPar$1,00069,895 Senior LoanDiscounted Cash FlowDiscount Rate13.30%—26.00%(19.65)%43,693 Total$518,698  

128

The following is a summary of the significant unobservable inputs used in the fair valuation of assets categorized within Level 3 of the fair value hierarchy as of December 31, 2023.CategoryValuation TechniqueSignificant Unobservable InputsInput Value(s) (Ar