Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 59

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 59
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 as set forth in the subscription agreement. In addition, such investors will pay the full purchase price for their shares to the escrow agent (as set forth in the subscription agreement), to be held in trust for the investors’ benefit pending release to us as described herein. See “—Settlement Procedures” for a description of the closing procedures with respect to each of the closing methods.

The offering price for the Series B Preferred Shares and the related selling commissions and dealer manager fees have been determined pursuant to discussions between us and our dealer manager, based upon our financial condition and perceived demand. Because the offering price is not based upon any independent valuation, such as the amount that a firm commitment underwriter is willing to pay for the securities to be issued, the offering price may not be indicative of the price that you would receive upon the sale of the Series B Preferred Shares in a hypothetical liquid market.

In connection with the sale of the Series B Preferred Shares on our behalf, NexPoint Securities may be deemed to be an “underwriter” within the meaning of the Securities Act, and NexPoint Securities’ compensation may be deemed to be underwriting compensation.

Our dealer manager, NexPoint Securities, is a registered broker-dealer and member firm of FINRA. Our dealer manager is an affiliate of the Adviser and is controlled and majority owned by James Dondero, who is chairman of the Board and President of the Company. Mr. Dondero also controls and is the sole beneficiary of a trust that owns our Sponsor and indirectly owns our Adviser. Mr. Dondero may be deemed to be the “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of more than 20% of our outstanding common shares as of December 31, 2024. NexPoint Securities is a Delaware corporation with a principal business address of 200 Crescent Court, Suite 700, Dallas, Texas 75201 and its telephone number is (833) 697-6246.

Compensation of Dealer Manager and Participating Broker-Dealers

We will pay to NexPoint Securities selling commissions of up to 7.0% of the aggregate gross offering proceeds from this offering. We will also pay to NexPoint Securities a dealer manager fee of up to 3.0% of the aggregate gross offering proceeds from this offering as compensation for acting as dealer manager. As dealer manager, NexPoint Securities will manage, direct and supervise its associated persons who will be wholesalers in connection with this offering. Our dealer manager will also