Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 217

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 217
---
, on December 13, 2021, NHT issued an additional 210,000 Deferred Units to the independent Trustees and 2,475,000 NHT OP Profits Interest Units to officers of NHT and employees of the Advisor based on the performance of the Board and management during the COVID-19 pandemic and to further incentivize each group to continue delivering value to NHT’s Unitholders. 120,000 NHT OP Profits Interest Units were subsequently forfeited as two employees of the Advisors left their roles before the vesting dates. As of December 31, 2023, there were 2,904,687 awards outstanding under the Omnibus Plan and 121,468 awards remaining that may be granted.

The Omnibus Plan provides for awards of restricted equity units, performance-based awards, Deferred Units, NHT OP Profits Interest Units and other awards convertible, exercisable or exchangeable into or otherwise based on the Units. Eligibility distribution equivalents may also be provided in certain circumstances in connection with an award under the Omnibus Plan.

| ● | Restricted Equity Units. A restricted equity unit award is an award denominated in notional units that entitles the participant to receive Units or cash measured by the value of the Units in the future. The delivery of Units or cash under a restricted equity unit award may be subject to the satisfaction of performance conditions or other vesting conditions. |

| ● | Performance Awards. A performance award is an award the vesting, settlement or exercisability of which is subject to specified performance criteria. |

| ● | Deferred Units. A Deferred Unit is an award of a notional investment in the Units reflected on an unfunded, book-entry account maintained by NHT. Deferred Units may be subject to performance conditions or other vesting conditions. Deferred Units may be settled in Units, cash measured by the value of a Unit, or a combination thereof. |

| ● | NHT OP Profits Interest Units. An NHT OP Profits Interest Unit is an award of a membership unit of NHT OP which qualifies as a profits interest for U.S. federal income tax purposes. Subject to certain exceptions set forth in the LLC Agreement of NHT OP, NHT OP Profits Interest Unit are treated as Class B Units, with all of the rights, privileges and obligations attendant thereto, except the right to vote in respect of matters put before members of NHT OP. |

<div align='center'>-134-</div>

| ● | Other Awards. Other awards are