Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 43

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 43
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 we have the right, in our sole discretion, to pay the redemption price in cash or in equal value of our common shares, based on the closing price per share of our common shares for the single trading day prior to the date of redemption.

Our ability to redeem Series B Preferred Shares in cash may be limited to the extent that we do not have sufficient funds available to fund such cash redemption. Further, our obligation to redeem any of the Series B Preferred Shares submitted for redemption in cash may be restricted by Delaware law. No redemptions of Series B Preferred Shares will be made at such time as the terms and provisions of any agreement to which we are a party prohibits such redemption or provides that such redemption would constitute a breach thereof or a default thereunder, or if such redemption would result in a Change of Control.

In addition, aggregate optional redemptions by holders of the Series B Preferred Shares will be subject to the following redemption limits: (i) no more than 2% of the outstanding Series B Preferred Shares will be redeemed per calendar month; (ii) no more than 5% of the outstanding Series B Preferred Shares will be redeemed per fiscal quarter; and (iii) no more than 20% of the outstanding Series B Preferred Shares will be redeemed per fiscal year.

Redemptions pursuant to an optional redemption by the Company or in connection with a Change of Control (described below) will not count toward the 2%/5%/20% limits applied to optional redemptions by holders of the Series B Preferred Shares. Optional redemptions following death or qualifying disability of a holder (described below) will count toward the 2%/5%/20% limits but will not be subject to such limits.

If, after applying these redemption limits, a holder would own less than one Series B Preferred Share, all of such holder’s Series B Preferred Shares will be redeemed. Otherwise, all redemption amounts will be rounded down such that after giving effect to any redemption, no holder is left owning a fractional share. For example, if after applying the redemption limits, an investor would own 2.5 shares, we will redeem 0.5 fewer shares from such holder so that the holder is left owning three shares. If, after applying these redemption limits, the number of Series B Preferred Shares to be redeemed is less than the number of Series B Preferred Shares submitted for redemption by a holder, the excess Series B Preferred Shares will remain subject to redemption in future periods until the earlier of (i) all Series B Preferred Shares