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

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 25
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 at the sole discretion of the Adviser.

Applicable NAV, which the Minimum Market Price Trigger is based on, may not be adjusted for all dilutive events.

Applicable NAV, which the Minimum Market Price Trigger is based on, is subject to adjustments for certain events, including any share splits (including those effected pursuant to a distribution of our common shares), subdivisions or combinations (in each case, a “Share Split”) with respect to our common shares. See “Description of Series B Preferred Shares—Conversion at Option of Holders” in this prospectus supplement. Applicable NAV may not be adjusted for other events that may adversely affect the trading price of our common shares, including other dilutive events like issuances of additional common shares, Series B Preferred Shares or other securities that are convertible into common shares.

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Dividend payments on the Series B Preferred Shares are not guaranteed. We may use borrowed funds or funds from other sources to pay dividends, which may adversely impact our operations.

Although dividends on the Series B Preferred Shares are cumulative, our Board must approve the actual payment of such distributions. Distributions declared by us will be authorized by our Board in its sole discretion out of assets legally available for distribution. Our Board can elect at any time or from time to time, and for an indefinite duration, not to pay any or all accrued distributions. Our Board could do so for any reason, and may be prohibited from doing so or may determine not to do so in the following instances, among others:

| ● | poor historical or projected cash flows or earnings; |

| ● | the need to make payments on our indebtedness; |

| ● | concluding that payment of distributions on any or all such series of preferred shares would cause us to breach the terms of any indebtedness or other instrument or agreement; |

| ● | the capital requirements or financial condition of the Company; |

| ● | determining that the payment of distributions would violate applicable law regarding unlawful distributions to shareholders; or |

| ● | other factors as our Board may deem relevant from time to time. |

We may have to fund distributions from working capital, borrow to provide funds for such distributions, use proceeds of future offerings or sell assets to the extent distributions exceed earnings or cash flows from operations. Funding distributions from working capital would restrict our operations. If we are required to sell assets to fund dividends, such asset sales may occur at a time or in a manner that is not consistent with our disposition strategy. If we borrow to fund dividends