Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 1743

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 1743
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 ("ASC") 805, Business Combinations.

Because the Company does not wholly own NHT, the Company recognized a noncontrolling interest of $6.9 million, which was recorded at fair value when the controlling financial interest was acquired. The Company also recorded an unrealized gain on its previously held interest in NHT of $3.9 million.

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I-1374</div>

The accumulated cost of the acquisition was allocated to the acquired assets and liabilities based on their relative fair values as follows:

| Description                                    |     |   |          |   |
|:-----------------------------------------------|:----|:--|---------:|:--|
| Land                                           |     | $ |   22,673 |   |
| Buildings and improvements                     |     |   |  128,616 |   |
| Construction in progress                       |     |   |    3,613 |   |
| Furniture, fixtures, and equipment             |     |   |   12,722 |   |
| Investments, at fair value                     |     |   |    5,000 |   |
| Cash and cash equivalents                      |     |   |   38,467 |   |
| Restricted cash                                |     |   |    5,065 |   |
| Prepaid and other assets                       |     |   |    4,001 |   |
| Right-of-use asset                             |     |   |    1,465 |   |
| Interest-rate cap                              |     |   |    1,064 |   |
| Mortgages payable                              |     |   | (114,640 | ) |
| Notes payable                                  |     |   |  (70,529 | ) |
| Accounts payable and other accrued liabilities |     |   |  (21,826 | ) |
| Accrued real estate taxes                      |     |   |   (1,233 | ) |
| Identifiable Net Assets Acquired               |     | $ |   14,458 |   |

3. Summary of Significant Accounting Policies

Basis of Accounting

Readers of this Quarterly Report on Form 10-Q ("Quarterly Report") should refer to the audited financial statements and notes to consolidated financial statements of the Company for the year ended December 31, 2023, which are included in our 2023 Annual Report on Form 10-K ("2023Annual Report"), filed with the SEC and also available on our website (nxdt